Employee motivation and job satisfaction in retail sector with reference to Tata Retail Enterprise

ISHAN INSTITUTE OF MANAGEMENT & TECHNOLOGY

TITLE

“EMPLOYEE MOTIVATION AND JOB SATISFACTION IN

RETAIL SECTOR WITH REFERENCE TO M/S TATA RETAIL

ENTERPRISE”

A report submitted to Ishan Institute of Management &

Technology, Greater Noida as a partial fulfillment to

full time Post Graduate Diploma in Management.

Submitted To: Submitted By:

Dr. D. K. Garg Sumit Jaiswal

IIMT Gr. Noida ENR: RMR2017

15th Batch


2, Knowledge Park-1, Greater Noida, Dist.- G. B. Nagar (U.P.)

Website: www.ishanfamily.com

E-Mail: [email protected]

http://www.ishanfamily.com/


PREFACE

This Project Report has been completed in Partial fulfil l ment of my

management Program, Post Graduate Diploma in Retail Management

(PGDRM) in the company M/s Tata Retail Enterprise. The t itle of my

project was ―EMPLOYEE MOTIVATION AND JOB SATISFACTION

IN RETAIL SECTOR WITH REFERENCE TO M/S TATA RETAIL

ENTERPRISE‖.

Training is a period in which a student can apply his theoretical

knowledge in practical field. Basically practical knowledge and

theoretical knowledge have a very broad difference. Theoretical

knowledge is the fundamental weapon for any management student. As

a student of management, apart from theoretical studies we need to get

a deeper insight of the practical aspects of theories by working in an

organization. The training session helps to know about the working

process in the organization. It helps to know about the organizational

management and discipline, which has its own importance.

To achieve professional competence, manager ought to be fully

occupied with theory and practical exposure of management. A

comprehensive understanding of the princ iple increases their decision -

making abili ty and sharpens their tools for this purpose. So, this

training has high importance as to know how both the aspects are

applied together.

Theoretical knowledge of a person remains dormant until it is used and

tested in the practical life. The training has given to me the chance to

apply my theoretical knowledge that I have acquired in my classroom

to the real business world. I completed my summer training project in

which I involved successful application of theorie s. In spite of few

limitations and hindrance during the summer training, I found that the

work was a challenge and fruitful . This summer training project has

enabled my capability in order to manage business effectively.


CERTIFICATE

This is to certify that the project work done on the title ―Employee motivation and job

satisfaction in retail sector with reference to Tata Retail Enterprise‖ submitted to

Ishan Institute of Management and Technology, Greater Noida by SUMIT JAISWAL

in partial fulfillment of the requirement for the award of the degree of Post Graduate

Diploma in Business Management is a bonafide work carried out by him/her under

my supervision and guidance. The project report is the original one and has not been

submitted anywhere else for any other degree/diploma.

Date: Seal/Stamp of the Guide Name of the Guide

Address:


ACKNOWLEDGEMENT

This project has been prepared as a part of an internship required during the

completion of PGDM programme at Ishan Institute of Management & Technology,

Greater Noida (U.P.).

I was involved with Tata Retail Enterprise, Sector-18 Noida for a period of around

2 months, and I came across a lot of people who put in their time and effort towards

acclimatizing me to the workings of their organization. I express my thanks to my

company guide Mr. Rajesh Shrivastav, who was there to introduce me to the idea

of retailing and what goes behind and inside it. Also under his guidance and

leadership I was able to enhance my analytical as well as inter-personal skills and

logical concepts behind store management.

These past 2 months were of utmost importance as they added value towards my path

of knowledge. I would like to end this acknowledgement by thanking the customers,

people at large with whom I have interacted during the course of my training.

I would like to thank respected Chairman Dr. D. K. Garg, who has been a source of

motivation and support to the students of Ishan Institute of Management &

Technology.

Last, but definitely not the least, I express my gratitude to the entire staff of Westside,

Noida. I would like to express my feelings for my parents without their blessings the

project work couldn‘t be possible, also the moral support of my family members have

worked a lot.

SUMIT JAISWAL


DECLARATION

The summer training project on the title ―Employee motivation and job satisfaction in

retail sector with reference to Tata Retail Enterprise‖ under the guidance of Mr.

Rajesh Shrivastav is the original work done by me. This is the property of the institute

& use of this report without prior permission of the institute will be considered illegal

& actionable.

Date: Signature

SUMIT JAISWAL

ENR- RMR2017


TABLE OF CONTENT

Preface

2

Certificate

3

Acknowledgement

4

Declaration

5

Executive summary

9

Chapter 1

Introduction to topic

11

Employee motivation- An introduction

13

Importance and challenges of motivation

15

Employee motivation theories 19

Chapter 2

Job satisfaction- An introduction 31

Models of job satisfaction 33

Role of employee satisfaction and moral boosting 40

Modern methods of measuring job satisfaction 41

Determinants of job satisfaction 46

Importance of job satisfaction 49

Reason and effect of low job satisfaction

52


Chapter 3

Employee benefits and welfare

53

Stock take process and its effect on employees

56

Dimensions of job satisfaction 58

Chapter 4

Performance and appraisal of employees 59

Chapter 5

Job satisfaction and work satisfaction

67

Common myths about employee motivation 69

Chapter 6

Stress management

79

Theories of stress 84

Stress cycle 87

Chapter 7

Overview of Indian retail sector

101

Employment in retailing

103

Evolution of the Indian retail industry

109

Chapter 8

Company profile

History

Vision and vision

Head office and branch office

111

Products of the Westside

117

Tata code of conduct

122


Chapter 9

HR policies

131

Key staff

Management hierarchy

Staff at store level

140

Duties and responsibilities of key staff

144

Chapter 10

Findings

148

Learning

149

Suggestions and recommendations

151

Word of thanks

152

Bibliography

153


EXECUTIVE SUMMARY

Motivation in simple terms may be understood as the set of forces that cause

people to behave in certain ways. A motivated employee generally is more quality

oriented. Highly motivated worker are more productive than apathetic worker one

reason why motivation is a difficult task is that the workforce is changing. Employees

join organizations with different needs and expectations. Their values, beliefs,

background, lifestyles, perceptions and attitudes are different. Not many organizations

have understood these and not many HR experts are clear about the ways of

motivating such diverse workforce.

Now days employees have been hired, trained and remunerated they need to be

motivated for better performance. Motivation in simple terms may be understood as

the set or forces that cause people to behave certain ways. People are motivated

rewards something they can relate to and something they can believe in. Times have

changed People wants more. Motivated employees are always looking for better ways

to do a job. It is the responsibility of managers to make employees look for better

ways of doing their jobs.

Individuals differ not only in their ability to do but also in their will to do, or

motivation Managers who are successful in motivating employees are often providing

an environment in which appropriate goals are available for needs satisfaction.

Retaining and motivating workers requires special attention and the responsibility

falls squarely on the shoulders of HR as well as managers and supervisors at all level.

They have to create a work environment where people enjoy what they do, feel like

they have a purpose and have pride in the mission of the organization. It requires

more time, more skill, and managers who care about people. It takes true leadership.

By giving employees special tasks, you make them feel more important. When your

employees feel like they are being trusted with added responsibilities, they are

motivated to work even harder so they won‘t let the company down.

Motivation is essential for any company because employee is Asset of company.

Motivation is important for the growth of employees as well as growth of the

organization.

Job Satisfaction is the favorableness or un-favorableness with which the employee

views his work. It expresses the amount of agreement between one‘s expectation of


the job and the rewards that the job provides. Job Satisfaction is a part of life

satisfaction. The nature of one‘s environment of job is an important part of life as Job

Satisfaction influences one‘s general life satisfaction.

Job Satisfaction, thus, is the result of various attitudes possessed by an employee. In a

narrow sense, these attitudes are related to the job under condition with such specific

factors such as wages. Supervisors of employment, conditions of work, social relation

on the job, prompt settlement of grievances and fair treatment by employer.

However, more comprehensive approach requires that many factors are to be included

before a complete understanding of job satisfaction can be obtained. Such factors as

employee‘s age, health temperature, desire and level of aspiration should be

considered. Further his family relationship, Social status, recreational outlets, activity

in the organizations etc. Contribute ultimately to job satisfaction.


Chapter 1

INTRODUCTION TO TOPIC

Management, observed Mary parker Follett ―is to get things done through people‖.

Any business activity basically require four Ms, viz. Men, Material, Money and

Machinery. Of all these resources people is the most important resource of

production. Today, the corporate world has started acknowledging the fact that it is

people and money, machinery or materials that run organizations. The burden of

performance is no longer on mechanically advanced systems, but on the

resourcefulness, initiative and responsibility of the people who are intrinsically the

process owners.

There has always been a gap between the corporate visions and the ambitions of

individuals. In the past, the human resource function did not try to bring about

compatibility between corporate needs and that of individuals. But, today‘s the

managements have to ensure congruence between organizational objectives and

employee‘s aspirations.

The task of coordinating all the other factors of production, except man is felt easier,

because man cannot be controlled fully at all times. He can act according to his own

desired. And most of the time human being will be manipulated by the work

environment and by the group. Human behaviour is unpredictable. One will act

according to one‘s own. Hence, only by providing more facilities to human factor, we

can motivate them to work. Then only it is possible to direct the combination of all

factors towards the goal.

There are numerous factors, which will influence the human factors. Among them the

levels of human relations in the organization play a significant role. In ancient day‘s

it was felt that by using power and authority human relations in the organization could

he improved. Through this concept we cannot get worker‘s co-operation and

involvement at their level best. But, they will work because of fear not without

involvement.


The second concept is, only by providing monetary increments and incentives, human

relations can be improved in the organization. This concept also failed to achieve is

goal but at certain level it increased human relations.

Now, the recent human relation‘s theory prescribes participatory management

according to which all are allowed to play their roles and the management will play a

participatory role.

By enhancing human relations we can improves the efficiency of the workers. If they

are fully satisfied, then they will give their full efforts. As a result, the achievement

of organizational goal becomes an easy one.

Therefore employee motivation and job satisfaction alone is responsible for the

attainment organizational goals. Hence, it is important to provide more facilities in

the form of work environment, improved human relations, and fair wages and welfare

measures. The management can improve them and satisfy the workers. By satisfying

workers they will reach their goal. Thus is the individual and the organizational goals

will reached simultaneously. People see organization as a means to help them to

reach their goals while organization needs people to reach organizational objectives.


EMPLOYEE MOTIVATION-AN INTRODUCTION

In the organizational setting the word ―Motivation‖ is used to describe the drive that

impels an individual to work. A truly motivated person is one who ―wants‖ to work

.Both employees and employers are interested in understanding motivation if

employees know what strengthens and what weakens their motivation, they can often

perform more effectively to find more satisfaction in their job. Employers want to

know what motivates their employees so that they can get them to work harder.

When people speak of motivation or ask about the motives of person, they are really

asking ―Why‖ the person acts, or why the person acts the way he does .The concept of

motivation implies that people choose the path of action they follow.

When behavioral scientists use the word motivation, they think of its something

steaming from within the person technically, the term motivation has its origin in the

Latin word ―mover‖ which means ―to move‖. Thus the word motivation stands for

movement. One can get a donkey to move by using a carrot or a stick; with people

one can use incentives, or threats or reprimands. However, these only have a limited

effect. These work for a while and then need to be repeated, increased or reinforced to

secure further movement.

If a manager truly understands his subordinate‘s motivation, he can channel their

―inner state‖ towards command goals, i.e., goals, shared by both the individual and

the organization. It is a well-known fact that human being have great potential but

they do not use it fully , when motivation is absent .Motivation factor are those which

make people give more than a fair day‘s work and that is usually only about sixty-five

percent of a person‘s capacity .Obviously , every manager should be releasing

hundred percent of an individual‘s to maximize performance for achieving

organizational goals and at the same to enable the individual to develop his potential

and gain satisfaction. Thus every manager should have both interest and concern

about how to enable people to perform task willingly and to the best of their ability.

At one time, employees were considered just another input into the production of

goods and services. What perhaps changed this way of thinking about employees was

research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924


to 1932 (Dickson, 1973). This study found employees are not motivated solely by

money and employee behavior is linked to their attitudes (Dickson, 1973). The

Hawthorne Studies began the human relations approach to management, whereby the

needs and motivation of employees become the primary focus of managers

Framework of motivation

The framework comprises six steps.

(step1) Motivation process begins with the individual‘s needs. Needs are telt

deprivations which the individual experiences at a given time and act as energizers.

These needs may be psychological (e.g., the needs for recognition), physiological

(e.g., the needs for water, air or foods) or social (e.g., the needs for friendship).

(step2) Motivation is goal directed.

(step3) A goal is a specific result that the individual wants to achieve .An employee‘s

goal are often driving forces and accomplishing those goals can significantly reduce

needs.

(step4) Promotions and raises are two of the ways that organizations seek to maintain

desirable behavior. They are signals to employees that their needs for advancement

and recognition and their behaviors are appropriate.

(step5) Once the employee have received either rewards or punishments

(step6) They reassess their needs.


IMPORTANCE AND CHALLENGES OF MOTIVATION

IMPORTANCE

Probably, no concept of HRM receives as much attention of academicians,

researchers and practicing manager‘s motivation. The increased attention towards

motivation is justified by several reasons

1. Motivated employees are always looking for better ways to do a job. This statement

can apply to corporate strategists and to production workers. It is the responsibility of

managers to make employees look for better ways of doing their jobs.

2. A motivated employee generally is more quality oriented. This is true whether we

are talking about a top manager spending extra time on data gathering and analysis for

a report or a clerk taking extra care when filing important document.

3. Highly motivated worker are more productive than apathetic worker .The high

productivity of Japanese worker and the fever worker are needed to produce an

automobile in Japan than elsewhere is well known. An appreciation of the nature of

motivation is highly useful manager.

4. Every organization requires human resources in addition to financial and physical

resources for it to function .Three behavioral dimensions of HR are significant to

organizations (i) people must be attracted not only to join the organizations but also to

remain it (ii) people must perform he tasks for which they are hired and must do so in

a dependable manner and (iii) people must go beyond this dependable role per

performance and engage in some form of creative, spontaneous, and innovative

behavior at work.

5. Motivation as a concept represents a highly complex phenomenon that affects. and

is affected by .a multitude of factors in the organizational milieu .an understanding of

the topic of motivation is thus essential in order to comprehend more fully the effects

of variations in other reaction as they relate to the performance, satisfaction, and so

forth .


6. Why increasing attention is paid towards motivation can be found in the present

and future technology required for production, as technology increases in complexity,

machines tend to become necessary, yet insufficient, vehicles of effective and

efficient operation .Consider the example of the highly technology-based space

programmed in our country.

CHALLENGES

The framework of motivation indicates that motivation is a simple process. But in

reality, the task is more daunting one reason why motivation is a difficult task is that

the workforce is changing. Employees join organizations with different needs and

expectations. Their values, beliefs, background, lifestyles, perceptions and attitudes

are different. Not many organizations have understood these and not many HR

experts are clear about the ways of motivating such diverse workforce.

Motivating employees is also more challenging at a time when firms have

dramatically changed the jobs that employees perform, reduced layers of hierarchy,

and jettisoned large numbers of employees in the name of right-sizing or down-sizing.

These actions have considerably damaged the level of trust and commitment

necessary for employee to put in efforts above minimum requirements some

organization have resorted to hire and fire and pay – for- performance strategies

almost giving up motivational efforts. Such strategies may have some effects (both

positive and negative) but fail to make and individual over reach him or her Third,

motives can only be inferred, but not seen. The dynamic nature of needs offend poses

challenge to any manager in motivating his or her subordinate. An employee, at any

given time, has a various needs, desire, and expectations. Employees who put in extra

hours at work to fulfill their needs or accomplishment may find that these extra hours

conflict directly with needs for affiliation and their desire to be with their families

However, there is no shortage of models, strategies, and tactics for motivating

employees. As a result, firms constantly experiment with next motivational

programmed and practice.


Work Motivation

Craig Pinder ―echoing the basic definition of motivation, define it as follows:

―Work motivation is a set of energetic force that originate both within as well as

beyond and individuals being, to initiate work – related behavior, and to determine its

form, direction, intensity, and duration.‖

While general motivation is concerned with effort towards any goal, Stephen Robbins

narrow the focus to organizational goals in order to reflect singular interest in work

related behavior the effort element is a measure of intensity. The need means some

internal state that makes certain outcomes appear attractive. And unsatisfied need

creates tension that stimulates drives within the individual. This drives general a

search behavior to find particular goals, if attend, will satisfied the needs and lead to

the reduction of tension

Mechanism of motivation

Motivation is the process that starts with physiological or psychological deficiency or

need that activate behavior or a drive that is aimed at a goal or incentive.

Thus, the key to understanding motivation lies in the meaning of, and relationship

between needs, drives and goals,

• Needs: Needs are created whenever there is a physiological or psychological

imbalance For example: A need exists when cells in the body are deprived of food

and water or when the personality is deprived of other people who serve friends or

companions. Although psychological may be based on a deficiency, sometimes they

are not. For instant, and individuals with a strong need to get ahead may have a

history of consistent success

• Drives: ―Drives (Or motives) are set up to alleviate needs. Psychological needs can

be simply defined as a deficiency with direction. Physiological or psychological

drives are action – oriented and provide energizing thrust towards reaching an

incentive or goals. They are at the very heart of the motivational process. The needs

for food and water are translated into hunger and thrust drives, and the need for friend


becomes a drives affiliation. Thus, a drive is a psychological state which moves an

individual‘s satisfying needs.

• Goals: At the end of the motivational cycle is the goal or incentive. It is anything

that wills that will alleviate a need and reduce a drive. Thus, attaining a goal will tend

to restore physiological or psychological balance and will reduce or cut off the drive.

Eating food, drinking water and obtaining friends will tend to restore the balance and

reduce the corresponding drives food, water and friends are the incentive are the

goals.

Conceptual clarification: (motives, motivation and motivating)

The terms motives, motivation and motivating which are derived from the Latin word

‗Mover‘ (to move) are important concept which have distinct connotation. In order to

steer the energies of the employees towards organizational goals accomplishment, it is

essential to grasp the meaning and significance of this concept and also to learn how

to apply them intelligently

Motives: Motive is defined as a inner state that energizes, activates (Or moves) and

directs (or channels) the behavior of individuals towards certain goals the strong

motives or needs are fulfill. In order to minimize the restlessness, and keep it under

control, the individual is propelled into action. Thus motive induce individual to

channel their behavior towards such type of actions as would reduce their state of

restlessness are inner disequilibrium. Thus motives can be thought of as drives that

energize people to action.

Motivation: while motives are energizers of action, motivation is the actual action

that is work behavior itself. For instance, when a employee work hard, his level of

motivation may be consider as low. Thus, the level of motivation of employee is

judged by his actual work behavior

Motivating: It is the term that implies one person induces another to engage in action

or work, behaviour by ensuring that, a channel to direct the motive of the individuals

become available and accessible to the individual.


EMPLOYEE MOTIVATION THEORIES

1. NEED THEORY

Introduction

Need theories see motivation arising from individual needs or desires for things.

These needs and desires can change over time and are different across individuals.

There are three popular perspectives on Need theory:

Maslow‘s Hierarchy of Needs

Alderfer‘s ERG Theory

Herzberg‘s Two-Factor Theory

This lesson briefly highlights the distinctions of each perspective.

A. Maslow’s Hierarchy of Needs

Abraham Maslow proposes that motivation can be represented as a hierarchy of

needs. As lower-level needs are satisfied, workers are likely to be motivated by

higher-level needs. Maslow argues that there are five categories of needs:

physiological, safety, love, esteem, and actualization.

The crux of Maslow‘s theory is that human needs are arranged in hierarchy composed

of five categories. The lowest level needs are physiological and the highest levels are

the self-actualization needs. Maslow starts with the formation that man is a wanting

animal with a hierarchy of needs of which some are lower ins scale and some are in a

higher scale or system of values. As the lower needs are satisfied, higher needs

emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied

need is not a motivator. This resembles the standard economic theory of diminishing

returns. The hierarchy of needs at work in the individual is today a routine tool of

personnel trade and when these needs are active, they act as powerful conditioners of

behavior- as Motivators.


Hierarchy of needs; the main needs of men are five. They are physiological needs,

safety needs, social needs, ego needs and self-actualization needs, as shown in order

of their importance.

Physiological needs - basic biological needs for things such as food, water,

and sex

Safety needs - need for safety and a safe physical environment (e.g., shelter, a

safe workplace)

Love needs - need for friendship and partnership

Esteem needs - need for self-respect and for the respect of others

Self-actualization needs - need for self-improvement, fulfillment of personal

life goals and of one‘_ potential

Tension-reduction - According to Maslow‘s tension-reduction hypothesis, an unmet

need creates a tension to meet that need. For example, if you need food, you feel

tension until the need is met. Maslow believed that needs were arranged

hierarchically such that lower, more basic needs must be met before higher needs

become the point of focus.

Self-

Actualization

Ego Needs

Social Needs

Safety Needs

Physiological Needs


B. Alderfer’s ERG Theory

Alderfer‘s ERG Theory suggests that there are three classes of needs, not five as

Maslow suggests: existence, relatedness, and growth. Another distinction is that

Alderfer proposes that when low-level (existence) needs are not met, they grow. For

example, when you are hungry and do not eat, your hunger grows. On the other hand,

higher-level (relatedness and growth) needs grow when they are met. For example, as

you become more productive, your need to be productive may grow.

Existence needs - need for concrete, tangible things like food, water, and

material possessions.

Relatedness needs - social needs and the need to have relationships with other

people (e.g., family, co-workers, and supervisors).

Growth needs - need for self-improvement or personal growth, expression of

creativity and productivity.

Frustration-regression - According to Alderfer‘s frustration-regression hypothesis,

when we have trouble meeting a particular need, we regress to meet needs at a lower

level. When we are having trouble meeting growth needs, we are more motivated by

relatedness needs. When we are having trouble meeting relatedness needs, we are

motivated by existence needs.

C. Herzberg’s Two-Factor Theory

In his Two-Factor Theory of motivation, Frederick Herzberg argues that there are two

types of factors involved in motivation: extrinsic and intrinsic.

Extrinsic (or hygiene) factors include tangible outcomes and things that focus

on workers‘ physical well-being such as pay and benefits, organizational


policies, quality of supervision, job security, job safety, administrative

practices, and physical work conditions.

Intrinsic factors include intangible outcomes such as recognition,

responsibility, and respect.

Motivational factors:

Motivator factors - Workers are satisfied and motivated when they are happy with

the intrinsic factors (e.g., levels of responsibility and respect at work), which is why

intrinsic factors are also called motivator factors. When workers are not happy with

intrinsic factors, argues Herzberg, they are not satisfied. However, when they feel

respected and enjoy the responsibility, they are more likely to be truly satisfied with

their jobs. This suggests that we should focus our attention on intrinsic factors if we

want to motivate employees.

Non-motivator factors - Herzberg argues that workers will be dissatisfied with their

job when they are not happy with the job‘_ extrinsic factors (e.g., pay). An

appropriate level of extrinsic factors is necessary to avoid job dissatisfaction, but even

when employees are happy with their salary, bonus, vacation, and health benefits,

they will not necessarily feel satisfied or motivated. With extrinsic factors, Herzberg

argues, the best you can hope for is to keep your employees from feeling dissatisfied.

The following chart summarizes these points:

Extrinsic

Factors

Intrinsic

Factors

Dissatisfied Not

Dissatisfied

Not

Satisfied

Satisfied


Summary

Need theory was once very popular, but none of the perspectives discussed have

shown much relation to on-the-job performance. One possible reason is that these

theories are too general. The needs they describe could be satisfied in many different

ways, and so are not necessarily associated with job behavior.

On the other hand, Maslow‘s Hierarchy of Needs, Alderfer‘s ERG Theory, and

Herzberg‘s Two-Factor Theory have contributed to our understanding of motivation

by showing how people can vary in the rewards they want from work.

2. BEHAVIOURAL THEORY

Introduction

Two important motivation theories that stem from behavioral psychology are

reinforcement and expectancy theories. Both emphasize that behavior is shaped by

rewards and punishment.

Behavioral theories of motivation advocate the use of behavior reinforcement

schedules to shape on-the-job performance.

A. Reinforcement theory

The central premise of reinforcement theory is that the consequences (or outcomes) of

behavior influence the likelihood that people will behave the same way again.

For example, let‘s say you make a suggestion in a committee meeting. If people

respond positively, you are more likely to make other suggestions in other meetings.

If people respond negatively, you are less likely to make other suggestions in other

meetings.

Behavior can be motivated in four ways: through positive or negative reinforcement

and by inflicting or removing a punishment.

Positive reinforcement is a form of reward that involves giving the person

something that is liked or wanted as a consequence of some behavior. For example,

organizations give workers bonuses and bosses give praise for jobs well done.


Negative reinforcement is a form of reward that involves taking away something

that is disliked as a consequence of some behavior. For example, the removal of the

sound of an alarm is a reward for waking up enough to turn off the alarm.

Punishment - People can be punished for doing something inappropriate by the

removal of something they like or by the addition of something they dislike. For

example, in response to bad behavior, some parents may take away things that their

children like (e.g., the ability to use the car, talk on the phone, or watch TV). Other

parents may instead give their children something they do not like to receive (e.g., a

spanking, a lecture, or additional chores).

B. Expectancy theory

Whereas Reinforcement Theory explains how different types of reinforcement shape

behavior, Expectancy Theory explains when and why reinforcement impacts

behavior.

The Motivation Formula - According to Expectancy Theory, motivation is a

function of an individual‘_ confidence that he/she can perform a behavior

successfully (expectancy) and that performing successfully will lead to a desirable

outcome (valence and instrumentality). Motivation can be expressed as a

mathematical equation:

Force = Expectancy x (Valences x Instrumentalities)

Force is the amount of motivation a person has to engage in a particular behavior

(e.g., motivation to be highly productive at work).

Expectancy is the confidence an individual feels that he/she can perform the behavior

successfully. This is normally stated as a probability (e.g., 80% confident that I can

be highly productive).

Instrumentality is the confidence an individual feels that performing the behavior

will result in a particular outcome. Again this is expressed as a probability (e.g., 80%

sure that high productivity will lead to a raise or promotion).


Valance is the value a person assigns to that outcome (e.g., a raise would be highly

desirable but a promotion would be even more desirable).

This formula suggests that motivation (force) cannot exist unless the individual

possesses at least some expectancy, instrumentality, and valance.

Summary

An overwhelming amount of research has shown two reliable trends.

(1) When people are rewarded, they are more likely to repeat the behavior that

resulted in the reward.

(2) When people are punished they are less likely to behave in the same way again.

This suggests that organizations can use reinforcements or rewards to promote desired

behaviors... and they do. For example, the Emery Freight Company used

reinforcements to speed up employee's responses to customer requests and to improve

the quality of item packaging. These improvements saved the company 3 million

dollars over 3 years.

C. Self-efficacy theory

Introduction

Albert Bandura‘s (1982) Self-efficacy Theory asserts that motivation and

performance are in part dependent on the degree to which the individual believes

he/she can accomplish the task.

Self-efficacy refers to a person‘_ belief in his/her ability to perform a given task. The

term is similar in meaning to self-confidence and expectancy, though some argue that

there are differences among these terms. Self-efficacy is sometimes confused with

self-esteem also.

Self-efficacy and self-esteem - Self-efficacy is like self-esteem in the sense that it

is related to a person‘s feelings of self-worth. Self-efficacy, however, refers to

one‘s ability to perform a certain task, whereas self-esteem reflects a more general

belief about one‘s self-worth. You can have strong feelings of self-worth while


still recognizing that you are not good at a particular task (e.g., crossword

puzzles). On the other hand, having low self-esteem may cause you to undervalue

your ability to perform a particular task.

Self-efficacy and motivation

Research has found that self-efficacy does predict performance.

Self-efficacy and the self-fulfilling prophecy - Those who have high self-

efficacy are more likely to try hard and exhibit high levels of commitment

(persistence) on a given task. They are more likely to succeed as a result. Those

who have low levels of self-efficacy feel that they are not good at the task and

may not try very hard at all. They are less likely to succeed.

Self-efficacy and success - Self-efficacy may develop from prior good

performance. Similarly, previous failures can lead to low self-efficacy.

Self-efficacy and goal-difficulty - Self-efficacy interacts with goal setting insofar

as people with higher self-efficacy tend to set more challenging goals.

Self-efficacy and goal-commitment –_Commitment (or persistence) refers to

one‗_ ability to overcome obstacles in the pursuit of a goal. With more

demanding goals and higher levels of commitment, people with high self-efficacy

put forth greater effort in performing the task (accomplishing the goal).

D. Empowerment theory

Empowerment theory is an extension or application of self-efficacy theory. It has

been used widely in organizational settings.

According to empowerment theory, motivation will increase when one‘_ feelings of

competence and self-determination increase. When people have high self-efficacy,

they feel more competent and more capable of self-determination. Therefore,

improving self-efficacy is a critical component of empowerment efforts.


Empowerment strategy

Common examples of empowerment strategies are participatory management

practices and flextime.

Participatory decision-making - Sometimes organizations empower employees by

asking them to participate in making organizational decisions (e.g., what can we do to

cut down on the number of accidents?).

Flextime - Flextime is a program that allows workers to design their own work

schedule, within certain constraints. People can choose to work a 9 to 5 day, or an 8

to 4 day, or sometimes a 10 to 6 day. Flextime allows the worker to structure the

workday, but usually requires workers to be at work during core hours (e.g., 10 to 11

and 1 to 4) so that committees can meet and group work can be completed.

Research has shown that participatory decision-making can increase commitment to

the decision that is made and improve motivation.

The research on flextime has shown that job performance and job satisfaction do

benefit from flextime programs, but only sometimes. The most reliable benefit seems

to be reduced absenteeism. Flextime allows time for doctors and dentist‘s visits, late

mornings, early days, and midday engagements, and reduces work-family conflicts.

Summary

Self-efficacy can be useful in improving motivation to perform. Gradually increasing

task (or goal) difficulty enables the learner to improve while experiencing success,

which in turn should improve self-efficacy. Providing training and performance

supports (job aids, quick reference guides, etc.) may also improve self-efficacy.

Empowering people, by increasing their levels of decision-making and control, can

also motivate people to perform, assuming their self-efficacy is high enough to

support feelings of competence and self-determination.

Limitation - One possible limitation of self-efficacy theory is individual ability.

People sometimes don‘_ believe in their ability to perform a task because they really

may not be good at the task and know this from previous experience. Training,


performance support, and graduated task difficulty strategies may not always be able

to overcome a lack of ability.

E. Equity theory

Introduction

J. Stacey Adams‘ (1965) Equity Theory (a.k.a., Social Exchange Theory) suggests

that effort depends on one‘s perceptions of fairness. According to this theory, people

compare their input/output ratio to those of similar others. When the ratio reflects an

inequity, tension is created and so people work to reduce that tension.

Input/output ration

The critical element in this theory is the perceived ratio of one‘s inputs (what I give)

to outputs (what I get in return) with respect to other‘s ratios (what they receive and

what they give).

Inputs include what the person contributes - their qualifications, their past

experiences, seniority, their effort, and the time they spend on the job, and so on.

Outputs include what the person is given in return - for example, pay, benefits,

appreciation, and respect.

Our notion of "equity" is closely linked with our perceptions of justice and fairness.

Adams asserts that as we act to satisfy our needs, we each assess the fairness of the

outcome. Each of us asks, ―Am I getting what I deserve in this exchange?‖

Procedural justice

Equity Theory was popular among industrial/organizational psychologists at one time,

but interest in it began to decline in the mid-1980s. While research has found that

employee perceptions of inequity correlates with intentions to quit and job search

behavior, it is often difficult to tell what workers will perceive as inequitable and how

they will respond to inequities. It may vary by individual even within a given context.

Lacking the ability to use it to predict motivation and performance, Equity Theory has

fallen out of favor. However, in the 1990s, fairness research began to focus on the


idea of procedural justice, which deals with the perceived fairness of the distribution

process. It may be more important to know if employees perceive the reward

distribution process as fair as whether or not they perceive the reward itself as

equitable.

Summary

Equity Theory emphasizes the importance of employee perceptions about input/output

ratios. When employees believe that they are over or underpaid, the resulting tension

motivates them to eliminate the inequity.

Limitation - While this is helpful to know, in that it focuses our attention on potential

inequities, it is not does not necessarily help managers predict when individuals will

feel cheated. Without this predictive capability, the theory has limited application.

Procedural justice theories focus on reward processes, rather than the rewards

themselves. Future equity research is likely to focus on both the equity of the reward

distributions and the fairness of the distribution process.

F. Goal setting theory

Introduction

Building on Bandura‘s self-efficacy research, Edwin Locke and Gary Latham (1990)

proposed Goal-setting Theory. According to Goal-setting Theory, goals direct our

mental and physical actions. Goals serve two functions:

Goals serve as performance targets that we strive to reach.

Goals serve as standards against which we measure our own performance.

Locke and Latham argue that the outcome of your performance can affect your future

effort. In this way, goals provide us with a means of regulating our effort.

Goal specificity

Specific goals benefit motivation and performance more so than vague goals. Specific

goals provide people with a sharper point of focus. For example, the goal ―raise


profitability 10% this year‖ is likely to be more effective than ―Let‘s be more

profitable.‖

Research has shown that people who have vague goals are more likely to be

satisfied with good performance even though they are capable of better

performance.

People also tend to give more effort when they are trying to reach harder goals.

One might think that people would prefer jobs with easy goals, but they usually do

not…jobs with easy goals are usually boring. Also, many organizations provide

better rewards for meeting difficult goals than they do for meeting easier goals.

Performance feedback impacts future effort. By measuring performance against

goals, organizations are able to provide workers with feedback that enables them

to regulate their efforts. Given the right circumstances, failure to meet a goal can

motivate an individual to work harder.

Circumstance

Research has shown that specific and difficult goals do motivate people toward their

best performance. However, this happens only when the proper circumstances exist:

Workers have the necessary qualifications to meet the goal

Feedback is provided to assist the effort-regulation process

Workers believe that they can meet the goal (i.e., have high self-efficacy)

Workers are committed to the goal


Chapter 2

JOB SATISFACTION- AN INTRODUCTION

INTRODUCTION

―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.‖

By Andrew J DuBrins

Job satisfaction is one part of life satisfaction. The environment influences the job.

Similarly, since a job is important part of life, job satisfaction influences one‘s general

life satisfaction. Manager may need to monitor not only the job and immediate work

environment but also their employee‘s attitudes towards other part of life.

Human life has become very complex and completed in now-a-days. In modern

society the needs and requirements of the people are ever increasing and ever

changing. When the people are ever increasing and ever changing, when the people‘s

needs are not fulfilled they become dissatisfied. Dissatisfied people are likely to

contribute very little for any purpose. Job satisfaction of industrial workers us very

important for the industry to function successfully. Apart from managerial and

technical aspects, employers can be considered as backbone of any industrial

development. To utilize their contribution they should be provided with good working

conditions to boost their job satisfaction. Any business can achieve success and peace

only when the problem of satisfaction and dissatisfaction of workers are felt

understood and solved, problem of efficiency absenteeism labour turnover require a

social skill of understanding human problems and dealing with them scientific

investigation serves the purpose to solve the human problems in the industry.

a) Pay.

b) The work itself.

c) Promotion

d) The work group.

e) Working condition.

f) Supervision.


PAY

Wages do play a significant role in determining of satisfaction. Pay is instrumental in

fulfilling so many needs. Money facilities the obtaining of food, shelter, and clothing

and provides the means to enjoy valued leisure interest outside of work. Moreover,

pay can serve as symbol of achievement and a source of recognition. Employees often

see pay as a reflection of organization. Fringe benefits have not been found to have

strong influence on job satisfaction as direct wages.

THE WORK ITSELF

Along with pay, the content of the work itself plays a very major role in determining

how satisfied employees are with their jobs. By and large, workers want jobs that are

challenging; they do want to be doing mindless jobs day after day. The two most

important aspect of the work itself that influence job satisfaction are variety and

control over work methods and work place. In general, job with a moderate amount of

variety produce the most job satisfaction. Jobs with too little variety cause workers to

feel bored and fatigue. Jobs with too much variety and stimulation cause workers to

feel psychologically stressed and ‗burnout‘.

PROMOTION

Promotional opportunities have a moderate impact on job satisfaction. A promotion to

a higher level in an organization typically involves positive changes I supervision, job

content and pay. Jobs that are at the higher level of an organization usually provide

workers with more freedom, more challenging work assignments and high salary.

SUPERVISION

Two dimensions of supervisor style:

1. Employee centered or consideration supervisors who establish a supportive

personal relationship with subordinates and take a personal interest in them.

2. The other dimension of supervisory style influence participation in decision

making, employee who participates in decision that affect their job, display a much

higher level of satisfaction with supervisor an the overall work situation.

WORK GROUP

Having friendly and co-operative co-workers is a modest source of job satisfaction to

individual employees. The working groups also serve as a social support system of

employees. People often used their co-workers as sounding board for their problem of

as a source of comfort.


WORK CONDITION

The employees desire good working condition because they lead to greater physical

comfort. The working conditions are important to employees because they can

influence life outside of work. If people are require working long hours and / or

overtime, they will have very little felt for their families, friends and recreation

outside work.

MODELS OF JOB SATISFACTION

There are various methods and theories of measuring job satisfaction level of

employees in the organization given by different authors.

List of all the theories and methods measuring job satisfaction level is given below:

A MODEL OF FACET SATISFACTION

Affect theory(Edwin A. Locke 1976)

Dispositional Theory( Timothy A. Judge 1988)

Two-Factor Theory (Motivator-Hygiene Theory) (Frederick Herzberg‘s)

Job Characteristics Model (Hackman & Oldham)

Rating scale

Personal interviews

action tendencies

Job enlargement

Job rotation

Change of pace

Scheduled rest periods

http://en.wikipedia.org/wiki/Frederick_Herzberg


MODEL OF FACET OF JOB SATISFACTION

Edward E.lawler in 1973 propoed a model of facet satisfaction, this model is

applicable to understand what determines a person‘s satisfaction with any facet of job.

According to this model actual outcome level plays a key role in a person‘s perception

of what rewards he receives. His perception influenced by his perception of what his

referent others recieves. The higher outcome level of his referent other the lower his

outcome level will appear. This model also focuses on his perception on reward level.

Skill

Experience

Training

Efforts

Age

Seniority

Level

Difficulty

Time span

Amount of responsibility

Perceived

outcome of

referent others

Actual outcome

received

Perceived personal

job inputs

Perceived inputs

& outcomes of

referent others

Perceived job

characteristics

Perceived

amount that

should be

received (a)

Perceived

amount

received

(b)

a=b satisfaction

a>b

dissatisfaction

a<b guilt

Inequity


AFFECT THEORY

Edwin A. Locke‘s Range of Affect Theory (1976) is arguably the most famous job

satisfaction model. The main premise of this theory is that satisfaction is determined

by a discrepancy between what one wants in a job and what one has in a job. Further,

the theory states that how much one values a given facet of work (e.g. the degree of

autonomy in a position) moderates how satisfied/dissatisfied one becomes when

expectations are/aren‘t met. When a person values a particular facet of a job, his

satisfaction is more greatly impacted both positively (when expectations are met) and

negatively (when expectations are not met), compared to one who doesn‘t value that

facet. To illustrate, if Employee A values autonomy in the workplace and Employee B

is indifferent about autonomy, then Employee A would be more satisfied in a position

that offers a high degree of autonomy and less satisfied in a position with little or no

autonomy compared to Employee B. This theory also states that too much of a

particular facet will produce stronger feelings of dissatisfaction the more a worker

values that facet.

DISPOSITIONAL THEORY

Another well-known job satisfaction theory is the Dispositional Theory it is a very

general theory that suggests that people have innate dispositions that cause them to

have tendencies toward a certain level of satisfaction, regardless of one‘s job. This

approach became a notable explanation of job satisfaction in light of evidence that job

satisfaction tends to be stable over time and across careers and jobs. Research also

indicates that identical twins have similar levels of job satisfaction.

A significant model that narrowed the scope of the Dispositional Theory was the Core

Self-evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that

there are four Core Self-evaluations that determine one‘s disposition towards job

satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This

model states that higher levels of self-esteem (the value one places on his self) and

general self-efficacy (the belief in one‘s own competence) lead to higher work

satisfaction. Having an internal locus of control(believing one has control over her\his

own life, as opposed to outside forces having control) leads to higher job satisfaction.

Finally, lower levels of neuroticism lead to higher job satisfaction


TWO-FACTOR THEORY (MOTIVATOR-HYGIENE THEORY)

Frederick Hertzberg‘s Two-factor theory (also known as Motivator Hygiene Theory)

attempts to explain satisfaction and motivation in the workplace. This theory states

that satisfaction and dissatisfaction are driven by different factors – motivation and

hygiene factors, respectively. Motivating factors are those aspects of the job that make

people want to perform, and provide people with satisfaction. These motivating

factors are considered to be intrinsic to the job, or the work carried out. Motivating

factors include aspects of the working environment such as pay, company policies,

supervisory practices, and other working conditions.

While Hertzberg's model has stimulated much research, researchers have been unable

to reliably empirically prove the model, with Hackman & Oldham suggesting that

Hertzberg's original formulation of the model may have been a methodological

artifact Furthermore, the theory does not consider individual differences, conversely

predicting all employees will react in an identical manner to changes in

motivating/hygiene factors. Finally, the model has been criticized in that it does not

specify how motivating/hygiene factors are to be measured.

JOB CHARACTERISTICS MODEL

Hackman & Oldham proposed the Job Characteristics Model, which is widely used as

a framework to study how particular job characteristics impact on job outcomes,

including job satisfaction.

The model states that there are five core job characteristics (skill variety, task identity,

task significance, autonomy, and feedback) which impact three critical psychological

states (experienced meaningfulness, experienced responsibility for outcomes, and

knowledge of the actual results), in turn influencing work outcomes (job satisfaction,

absenteeism, work motivation, etc.).

The five core job characteristics can be combined to form a motivating potential score

(MPS) for a job, which can be used as an index of how likely a job is to affect an

employee's attitudes and behaviors.


A meta-analysis of studies that assess the framework of the model provides some

support for the validity of the JCM.

Measuring job satisfaction

There are many methods for measuring job satisfaction. By far, the most common

method for collecting data regarding job satisfaction is the Likert scale (named after

Rensis Likert). Other less common methods of for gauging job satisfaction include:

Yes/No questions, True/False questions, point systems, checklists, and forced choice

answers. This data is typically collected using an Enterprise Feedback Management

(EFM) system.

The Job Descriptive Index (JDI), created by Smith, Kendall, & Hulin (1969), is a

specific questionnaire of job satisfaction that has been widely used. It measures one‘s

satisfaction in five facets: pay, promotions and promotion opportunities, coworkers,

supervision, and the work itself. The scale is simple, participants answer either yes,

no, or can‘t decide (indicated by ‗?‘) in response to whether given statements

accurately describe one‘s job.

The work itself—responsibility, interest, and growth.

Quality of supervision—technical help and social support.

Relationships with co-workers—social harmony and respect.

Promotion opportunities—chances for further advancement.

Pay—adequacy of pay and perceived equity vis-à-vis others.

The Job in General Index is an overall measurement of job satisfaction. It is an

improvement to the Job Descriptive Index because the JDI focuses too much on

individual facets and not enough on work satisfaction in general.

Other job satisfaction questionnaires include: the Minnesota Satisfaction

Questionnaire (MSQ), the Job Satisfaction Survey (JSS), and the Faces Scale. The

MSQ measures job satisfaction in 20 facets and has a long form with 100 questions

(five items from each facet) and a short form with 20 questions (one item from each

facet). The JSS is a 36 item questionnaire that measures nine facets of job satisfaction.

Finally, the Faces Scale of job satisfaction, one of the first scales used widely,


measured overall job satisfaction with just one item which participants respond to by

choosing a face.

Some general myths relating to Job Satisfaction

Argument: Satisfaction Causes Performance -If job satisfaction causes high levels

of performance, the message to managers is quite simple: To increase employees‘

work performance, make them happy. Research, however, indicates that no simple

and direct link exists between individual job satisfaction at one point in time and work

performance at a later point. This conclusion is widely recognized among OB

scholars, even though some evidence suggests that the relationship holds better for

professional or higher level employees than for nonprofessionals or those at lower job

levels. Job satisfaction alone is not a consistent predictor of individual work

performance.

Argument: Performance Causes Satisfaction: If high levels of performance cause

job satisfaction, the message to managers is quite different. Rather than focusing first

on peoples‘ job satisfaction, attention should be given to helping people achieve high

performance; job satisfaction would be expected to follow. Research indicates an

empirical relationship between individual performance measured at a certain time

period and later job satisfaction. A basic model of this relationship, based on the work

of Edward E. Lawler and Lyman Porter, maintains that performance accomplishment

leads to rewards that, in turn, lead to satisfaction. In this model rewards are

intervening variables; that is, they ―link‖ performance with later satisfaction. In

addition, a moderator variable—perceived equity of rewards—further affects the

relationship. The moderator indicates that performance will lead to satisfaction only if

rewards are perceived as equitable. If an individual feels that his or her performance is

unfairly rewarded, the performance–causes–satisfaction relationship will not hold.

Argument: Rewards Cause Both Satisfaction and Performance: This final

argument in the job satisfaction–performance controversy is the most compelling. It

suggests that a proper allocation of rewards can positively influence both performance

and satisfaction. The key word in the previous sentence is proper. Research indicates

that people who receive high rewards report higher job satisfaction. But research also

indicates that performance-contingent rewards influence a person‘s work


performance. In this case, the size and value of the reward vary in proportion to the

level of one‘s performance accomplishment. Large rewards are given for high

performance; small or no rewards are given for low performance, And whereas giving

a low performer only small rewards initially may lead to dissatisfaction, the

expectation is that the individual will make efforts to improve performance in order to

obtain greater rewards in the future. The point is that managers should consider

satisfaction and performance as two separate but interrelated work results that are

affected by the allocation of rewards. Whereas job satisfaction alone is not a good

predictor of work performance, well-managed rewards can have a positive influence

on both satisfaction and performance.

What kindles dissatisfaction?

Earnings or benefits

Job quality or workplace support

Lack of appreciation

Stagnation or no growth

Lack of freedom

Best Practices -Employee Satisfaction

1) Recruiting and Hiring…it all starts with this

2) Provide a Career / ‗Skill‘ Path

3) Employee Development and Training

4) Strong Supervisors / Good Coaching

5) Work Environment / Company Culture

6) Rewarding work / empowering employees.

7) Recognition (first) and Reward (second)


How to keep Employees Engaged and Happy?

Strengthen work environment Make improvements to mound the company as

an employer of choice

Treat employees as an important part of the organization

Encourage participation in various planning and decision-making aspects

Offer meaningful work and challenging assignments to effectively utilize staff

skills Empower employees and ensure them of job security.

Provide legitimate feedback, genuinely listen to staff concerns and make their

interests a management priority

ROLE OF EMPLOYEE SATISFACTION & MORALE

BOOSTING

Seven social learning processes and strategies were identified that relate to Job

Satisfaction and Morale. These are:

_ Conditions of Service,

_ Recognition & Reward,

_ Organizational Loyalty to Workers,

_ Workplace Design,

_ Job Significance,

_ Performance Management, and

_ Loyalty to the Organization

These seven elements of Job Satisfaction and Morale align with components of the

Job Characteristics Model (Hackman & Oldham, 1980) that are claimed to be

necessary for job satisfaction and the motivation to perform one‘s job well. For

instance, Conditions of Service, Recognition & Reward, Organizational Loyalty to

Workers, and Workplace Design all relate to one‘s satisfaction with the work context,


or to use Hackman and Oldham‘s (1980) terms, ―Job Context Satisfaction‖. Similarly,

Job Significance Pascoe, Ali & Warne (your own belief that your work is important

and has value) and Performance Management relate to Experienced Meaningfulness

of Work‖ and ―Knowledge of Results‖, respectively, both of which are posited as

necessary psychological states for high levels of motivation to work well. Whilst there

appears to be no direct relationship between Loyalty to the Organization and elements

of the Job Characteristics Model, one‘s attitude to the organization for which they

work would influence their motivation to work well.

MODERN METHOD OF MEASURING JOB

SATISFACTION

In this method of measuring job satisfaction the comparison between various

organizational terms and conditions at managerial level and also the organization at a

large

Satisfaction with human resources management policies of the organization:

1. Management has a clear path for employee‘s advancement

2. Decisions are made keeping in mind the good of the employees

3. Management is extremely fair in personal policies

4. Physical working conditions are supportive in attaining targets

5. Innovativeness is encouraged to meet business problems.

Satisfaction with supervision:

1. I feel I can trust what my supervisor tells me

2. My supervisor treats me fairly and with respect

3. My supervisor handles my work-related issues satisfactorily

4. I get frequent appreciation of work done from supervisors


5. I get enough support from the supervisor

6. Individual initiative is encouraged

Satisfaction with compensation levels:

1. Overall I am satisfied with the company‘s compensation package

2. I am satisfied with the medical benefits

3. I am satisfied with the conveyance allowance

4. I am satisfied with the retirement benefits

5. I am satisfied with the reimbursement of the expenses as per the eligibility

6. I am satisfied with the holiday (vacation) eligibilities

Satisfaction with task clarity:

1. Management decisions are Ad Hoc and lack professionalism (reverse scaled)

2. Rules and procedures are followed uncompromisingly

3. My job responsibilities are well defined and clear

Satisfaction with career development:

1. I have adequate opportunities to learn and grow

2. I get opportunities to handle greater responsibilities

3. My skills and abilities are adequately used at work

From all above we can conclude level of job satisfaction of our employees.

Rating scale:

It is one of the most common methods of measuring job satisfaction. The popular

rating scale used to measure Job satisfaction is to include:


Minnesota Satisfaction Questionnaires: It helps to obtain a clear picture of pertinent

satisfactions and dissatisfactions of employees.

Job Description Index: it measures Job satisfaction on the dimension identified by

Smith, Kendall, Hulling.

Porter Need Identification Questionnaires: It is used only for management personnel

and revolves around the problems and challenges faced by managers.

Critical incidents:

Fredrick Hertz berg and his Associates popularized this method of measuring Job

satisfaction. It involves asking employees to described incidents on job when they

were particularly satisfied or dissatisfied. Then the incidents are analyzed in terms of

their contents and identifying those related aspects responsible for the positive and

negative attitudes.

Personal interviews:

This method facilitates an in-depth exploration through interviewing of job attitudes.

The main advantage in this method is that additional information or clarifications can

be obtained promptly.

Action tendencies:

By this method, Job satisfaction can be measured by asking questions and gathering

information on how they feel like behaving with respect to certain aspects of their

jobs. This method provides employees more opportunity to express their in-depth

feeling.

In his study on American employees, hop pock identified six factors that contributed

to job satisfaction among them. These are as follows:

The way individual reacts to unpleasant situations.

The facilities with which he adjust himself to other persons.

His relative‘s status in the social & economic group with which he identifies

himself.


The nature of work in relation to the abilities, interest & preparation of the

workers.

Security.

Loyalty.

Because human resource manager often serve as intermediaries between employees &

management in conflict, they are concern with Job satisfaction or general job attitudes

with the employees.

Philip apple white has listed the five major components of Job satisfaction.

Attitude towards work group

General working conditions.

Attitude towards company.

Monitory benefits &

Attitude towards supervision

Other components that should be added to this five are individual‘s state of mind

about the work itself and about the life in general .the individual‘s health, age, level of

aspiration. Social status and political & social activities can all contribute to the Job

satisfaction. A person‘s attitude toward his or her job may be positive or negative.

Job enlargement:

The concept of job enlargement originated after World War II. It is simply the

organizing of the work so as to relate the contents of the job to the capacity, actual

and potential, of workers. Job enlargement is oblivious forerunner of the concept and

philosophy of job design. Stephan offers three basic assumptions behind the concept

of job enlargement.

Job enlargement is a generic term that broadly means adding more and different tasks

to a specialized job. It may widen the number of task the employee must do that is,

add variety. When additional simple task are added to a job, the process is called

horizontal job enlargement. This also presumably adds interest to the work and

reduces monotony and boredom.


To check harmful effects of specialization, the engineering factors involved in each

individual job must be carefully analyzed. Perhaps, the assembly lines can be

shortened so that there will be more lines and fewer workers on each line. Moreover,

instead of assigning one man to each job and then allowed to decide for himself how

to organize the work. Such changes permit more social contacts and greater control

over the work process.

Job rotation:

Job rotation involves periodic assignments of an employee to completely different

sets of job activities. One way to tackle work routine is to use the job rotation. When

an activity is no longer challenging, the employee is rotated to another job, at the

same level that has similar skill requirements.

Many companies are seeking a solution to on-the-job boredom through systematically

moving workers from one job to another. This practice provides more varieties and

gives employees a chance to learn additional skills. The company also benefits since

the workers are qualified to perform a number of different jobs in the event of an

emergency.

Change of pace:

Anything that will give the worker a chance to change his pace when he wishes will

lend variety to his work. Further if workers are permitted to change their pace that

would give them a sense of accomplishment.

Scheduled rest periods:

Extensive research on the impact of rest periods indicates that they may increase both

morale and productivity. Scheduled rest periods bring many advantages:

They counteract physical fatigue

They provide variety and relieve monotony

They are something to look forward to- getting a break gives a sense of

achievement.

They provide opportunities for social contacts.


DETERMINANTS OF JOB SATISFACTION

While analyzing the various determinants of job satisfaction, we have to keep in mind

that: all individuals do no derive the same degree of satisfaction though they perform

the same job in the same job environment and at the same time. Therefore, it appears

that besides the nature of job and job environment, there are individual variables

which affect job satisfaction. Thus, all those factors which provide a fit among

individual variables, nature of job, and situational variables determine the degree of

job satisfaction. Let us see what these factors are.

Individual factors:

Individuals have certain expectations from their jobs. If their expectations are met

from the jobs, they feel satisfied. These expectations are based on an individual‘s

level of education, age and other factors.

Level of education:

Level of education of an individual is a factor which determines the degree of job

satisfaction. For example, several studies have found negative correlation between the

level of education, particularly higher level of education, and job satisfaction. The

possible reason for this phenomenon may be that highly educated persons have very

high expectations from their jobs which remain unsatisfied. In their case, Peter‘s

principle which suggests that every individual tries to reach his level of incompetence,

applies more quickly.

Age:

Individuals experience different degree of job satisfaction at different stages of their

life. Job satisfaction is high at the initial stage, gets gradually reduced, starts rising up

to certain stage, and finally dips to a low degree. The possible reasons for this

phenomenon are like this. When individuals join an organization, they may have some

unrealistic assumptions about what they are going to drive from their work. These

assumptions make them more satisfied. However, when these assumptions fall short

of reality, job satisfaction goes down. It starts rising again as the people start to assess

the jobs in right perspective and correct their assumptions. 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:

Besides the above two factors, there are other individual factors which affect job

satisfaction. If an individual does not have favourable social and family life, he may

not feel happy at the workplace. Similarly, other personal problems associated with

him may affect his level of job satisfaction. Personal problems associated with him

may affect his level of job satisfaction.

Nature of job:

Nature of job determines job satisfaction which is in the form of occupation level and

job content.

Occupation level:

Higher level jobs provide more satisfaction as compared to lower levels. This happens

because high level jobs carry prestige and status in the society which itself becomes

source of satisfaction for the job holders.

For example, professionals derive more satisfaction as compared to salaried people:

factory workers are least satisfied.

Job content:

Job content refers to the intrinsic value of the job which depends on the requirement

of skills for performing it, and the degree of responsibility and growth it offers. A

higher content of these factors provides higher satisfaction. For example, a routine

and repetitive lesser satisfaction; the degree of satisfaction progressively increases in

job rotation, job enlargement, and job enrichment.

Situational variables:

Situational variables related to job satisfaction lie in organizational context – formal

and informal. Formal organization emerges out of the interaction of individuals in the


organization. Some of the important factors which affect job important factors which

affect job satisfaction are given below:

1. Working conditions:

Working conditions, particularly physical work environment, like conditions of

workplace and associated facilities for performing the job determine job satisfaction.

These work in two ways. First, these provide means job performance. Second,

provision of these conditions affects the individual‘s perception about the

organization. If these factors are favourable, individuals experience higher level of job

satisfaction.

2. Supervision:

The type of supervision affects job satisfaction as in each type of supervision; the

degree of importance attached to individuals varies. In employee-oriented

supervision, there is more concern for people which is perceived favourably by them

and provides them more satisfaction. In job oriented supervision, there is more

emphasis on the performance of the job and people become secondary. This situation

decreases job satisfaction.

3. Equitable rewards:

The type of linkage that is provided between job performance and rewards determines

the degree of job satisfaction. If the reward is perceived to be based on the job

performance and equitable, it offers higher satisfaction. If the reward is perceived to

be based on considerations other than the job performance, it affects job satisfaction

adversely.

4. Opportunity:

It is true that individuals seek satisfaction in their jobs in the context of job nature and

work environment by they also attach importance to opportunities for promotion that

these job offer. If the present job offers opportunity of promotion is lacking, it reduces

satisfaction.


Work group: Individuals work in group either created formally of they develop on

their own to seek emotional satisfaction at the workplace. To the extent such groups

are cohesive; the degree of satisfaction is high. If the group is not cohesive, job

satisfaction is low. In a cohesive group, people derive satisfaction out of their

interpersonal interaction and workplace becomes satisfying leading to job satisfaction.

IMPORTANCE OF JOB SATISFACTION

Job satisfaction is an important indicator of how employees feel about their job and a

predictor of work behavior such as organizational, citizenship, Absenteeism,

Turnover.

Job satisfaction can partially mediate the relationship of personality variables and

deviant work behavior. Common research finding is that job satisfaction is correlated

with life style.

This correlation is reciprocal meaning the people who are satisfied with the life tends

to be satisfied with their jobs and the people who are satisfied their jobs tends to

satisfied with their life.

This is vital piece of information that is job satisfaction and job performance is

directly related to one another. Thus it can be said that, ―A happy worker is a

productive worker.‖

It gives clear evidence that dissatisfied employees skip work more often and more like

to resign and satisfied worker likely to work longer with the organization.

Importance to worker and organization

Job satisfaction and occupational success are major factors in personal satisfaction,

self-respect, self-esteem, and self-development. To the worker, job satisfaction brings

a pleasurable emotional state that can often leads to a positive work attitude. A

satisfied worker is more likely to be creative, flexible, innovative, and loyal.


For the organization, job satisfaction of its workers means a work force that is

motivated and committed to high quality performance. Increased productivity- the

quantity and quality of output per hour worked- seems to be a byproduct of improved

quality of working life. It is important to note that the literature on the relationship

between job satisfaction and productivity is neither conclusive nor consistent.

However, studies dating back to Herzberg‘s (1957) have shown at least low

correlation between high morale and high productivity and it does seem logical that

more satisfied workers will tend to add more value to an organization.

Unhappy employees, who are motivated by fear of loss of job, will not give 100

percent of their effort for very long. Though fear is a powerful motivator, it is also a

temporary one, and also as soon as the threat is lifted performance will decline.

Job satisfaction benefits the organization includes reduction in complaints and

grievances, absenteeism, turnover, and termination; as well as improved punctuality

and worker morale. Job satisfaction is also linked with a healthier work force and has

been found to be a good indicator of longevity.

Although only little correlation has been found between job satisfaction and

productivity, Brown (1996) notes that some employers have found that satisfying or

delighting employees is a prerequisite to satisfying or delighting customers, thus

protecting the ―bottom line‖.

Workers role in job satisfaction

If job satisfaction is a worker benefit, surely the worker must be able to contribute to

his or her own satisfaction and wellbeing on the job. The following suggestions can

help a worker find personal job satisfaction: Seek opportunities to demonstrate skills

and talents. This often leads to more challenging work and greater responsibilities,

with attendant increases in pay and other recognition.

Develop excellent communication skills. Employer‘s value and rewards excellent

reading, listening, writing and speaking skills.

Know more. Acquire new job related knowledge that helps you to perform tasks more

efficiently and effectively. This will relive boredom and often gets one noticed.


Demonstrate creativity and initiative. Qualities like these are valued by most

organizations and often results in recognition as well as in increased responsibilities

and rewards.

Develop teamwork and people skills. A large part of job success is the ability to work

well with others to get the job done.

Accept the diversity in people. Accept people with their differences and their

imperfections and learn how to give and receive criticism constructively.

See the value in your work. Appreciating the significance of what one does can lead

to satisfaction with the work itself. This help to give meaning to one‘s existence, thus

playing a vital role in job satisfaction.

Learn to de-stress. Plan to avoid burn out by developing healthy stress management

techniques.


REASONS AND EFFECT OF LOW JOB SATISFACTION

Reasons why employees may not be completely satisfied with their jobs:

Conflict between co-workers

Conflict between supervisors

Not being opportunity paid for what they do.

Have little or no say in decision making that affect employees.

Fear of losing their job.

Effects of low job satisfaction

High absenteeism

Absenteeism means it is a habitual pattern of absence from duty or obligation.

If there will be low job satisfaction among the employees the rate of

absenteeism will definitely increase and it also effects on productivity of

organization.

In the above diagram line AB shows inverse relationship between job

satisfaction and rate of turnover and rate of absenteeism.

As the job satisfaction is high the rate of both turns over and absenteeism is

low and vice versa.

High turnover

In human resource refers to characteristics of a given company or industry

relative to the rate at which an employer gains and losses the staff.

If the employer is said to be have a high turnover of employees of that

company have shorter tenure than those of other companies.

Training cost increases

As employees leaves organization due to lack of job satisfaction. Then Human

resource manager has to recruit new employees, So that the training

expenditure will increases


Chapter 3

EMPLOYEE BENEFITS AND WELFARE

―Employee welfare is a comprehensive term including various services, benefits and

facilities offered to employees & by the employers. Through such generous fringe

benefits the employer makes life worth living for employees.‖

Welfare includes anything that is done for the comfort and improvement of employees

and is provided over and above the wages. Welfare helps in keeping the morale and

motivation of the employees high so as to retain the employees for longer duration.

The welfare measures need not be in monetary terms only but in any kind/forms.

Employee welfare includes monitoring of working conditions, creation of industrial

harmony through infrastructure for health, industrial relations and insurance against

disease, accident and unemployment for the workers and their families.

Employee welfare entails all those activities of employer which are directed towards

providing the employees with certain facilities and services in addition to wages or

salaries.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal

and satisfied labor force for the organization. The purpose of providing such facilities

is to make their work life better and also to raise their standard of living. The

important benefits of welfare measures can be summarized as follows:

• They provide better physical and mental health to workers and thus promote a

healthy work environment

• Facilities like housing schemes, medical benefits, and education and recreation

facilities for workers‘ families help in raising their standards of living. This

makes workers to pay more attention towards work and thus increases their

productivity.

• Employers get stable labor force by providing welfare facilities. Workers take

active interest in their jobs and work with a feeling of involvement and

participation.

• Employee welfare measures increase the productivity of organization and

promote healthy industrial relations thereby maintaining industrial peace.


• The social evils prevalent among the labors such as substance abuse, etc. are

reduced to a greater extent by the welfare policies.

For example at Bajaj Electricals there are many welfare activities like long service

and retirement awards on 14th July every year for employees, to be categorized into

15 years long service and 25 long service.

There is also welfare trust which formed by Bajaj Electricals for providing loan to

employees for housing needs and also for the reimbursement of medical expenses.

They have created ―social responsibility of business fund‖ to provide scholarship to

employees and children for higher education and also there is emergency assistance in

the form of financial assistance to the family in case of death of any employee in

harness.

Welfare includes anything that is done for the comfort and improvement of employees

and is provided over and above the wages. Welfare helps in keeping the morale and

motivation of the employees high so as to retain the employees for longer duration.

The welfare measures need not be in monetary terms only but in any kind/forms.

Employee welfare includes monitoring of working conditions, creation of industrial

harmony through infrastructure for health, industrial relations and insurance against

disease, accident and unemployment for the workers and their families.

Labor welfare entails all those activities of employer which are directed towards

providing the employees with certain facilities and services in addition to wages or

salaries.

Labor welfare has the following objectives:

To provide better life and health to the workers

To make the workers happy and satisfied

To relieve workers from industrial fatigue and to improve intellectual, cultural

and material conditions of living of the workers

The basic features of labor welfare measures are as follows:


Labor welfare includes various facilities, services and amenities provided to workers

for improving their health, efficiency, economic betterment and social status.

Welfare measures are in addition to regular wages and other economic benefits

available to workers due to legal provisions and collective bargaining Labor welfare

schemes are flexible and ever-changing. New welfare measures are added to the

existing ones from time to time.

Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency. The purpose of labor welfare is to bring about the

development of the whole personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal

and satisfied labor force for the organization. The purpose of providing such facilities

is to make their work life better and also to raise their standard of living. The

important benefits of welfare measures can be summarized as follows:

They provide better physical and mental health to workers and thus promote a healthy

work environment Facilities like housing schemes, medical benefits, and education

and recreation facilities for workers‘ families help in raising their standards of living.

This makes workers to pay more attention towards work and thus increases their

productivity.

Employers get stable labor force by providing welfare facilities. Workers take active

interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace. The social evils

prevalent among the labors such as substance abuse, etc. are reduced to a greater

extent by the welfare policies.


STOCK TAKE PROCESS AND ITS EFFECTS ON

EMPLOYEES

Stock take is process to check the shrinkage in the stock. Earlier it was conducted

once in the three month but now this time it was decided to conduct every month. In

this process complete stock is counted and recounted to find out the exact figure of

shrinkage. Following are the steps taken during the STOCK PROCESS.

1. All the merchandise kept in bin and carton of the ware house is segregated on

the basis of price tag .If Proper price tag is not found in the product then it is

kept for the‘ Dumping‘. This process starts 4-5 days earlier than the scheduled

stock take day.

2. On the same time Scanning process is done in the ware house. In the scanning

process all the merchandise‘s price tag is scanned by the scanner with their

respective fixture number.

3. This scanned data is stored in the system it gives the correct figure of

merchandise present in the ware house.

4. Similarly on the stock take day all the dump items from the floor are removed.

5. Now stock take process goes for whole night. In this night employees are

asked to scan all the items of the floor .After complete scanning i.e. both in the

ware house and on the floor ‗Recounting ‗ process starts.

6. In the Recounting process all the scanned items have to be recounted and note

it down on the format provided by the company.

7. Here associate‘s responsibility is over but till this time complete night is

passed. Now its turn for the managers to compare the data stored in the

computer and that is written on the paper and accordingly a report has to be

sent to the head office informing the correct status of the stock in the store.

In the last stock approximately worth Rs 1.75 lakhs of the stock was missing

and it is a serious concern for the store.

Stock management:

The range of items and materials - stocks - which might be held in Stores is huge. The

variety and quantity of items and materials held in the Store of a particular enterprise

will depend on its size and on its range of activities.


What we refer to as stock Management comprises mainly the clerical and

administrative functions of stores work. It involves:

ensuring that the right types and qualities of items needed for production, sale

and distribution, are always available when required;

ensuring that stock is issued in the correct sequence, that is, ―first in first out‖,

so that ―older‖ stock is not allowed to deteriorate by being kept too long in the

Store, for instance because it has been hidden from view by more recently

received stock;

maintaining records showing the ―movement‖ of items into and out of the

Store, controlling and monitoring those movements and maintaining full

records of the items in the Store;

ensuring that the correct ―stock levels‖ of the various items are set and are

maintained that orders and reorders are made (or requested to be made) in

good time, and that what is ordered is received;

checking, counting or otherwise measuring stock to ensure that records are

accurate and that no losses are occurring due to pilfering, theft, damage or

poor storage;

pricing and valuing the items in the Store;

What is involved in stock management?

The term storekeeping covers the actual handling of the items or materials received

into, held in and issued from the Store. The work involves:

receiving items and materials, including the inspection of them;

storing the various stock items in the most appropriate fashion, binning and/or

racking them by the best methods, and placing them in such a way that any

item or material in the Store can be located quickly and easily when it is

required;

ensuring the safety of all items and materials whilst in the Store - that is,

protecting them from pilfering, theft, damage and deterioration;

ensuring, when necessary, that items issued from the Store are so packed that

they will not be damaged or caused to deteriorate whilst in transit to their

destinations.


DIMENSIONS OF JOB SATIFACTION

Job satisfaction is a complex concept and difficult to measure objectively. The level

of job satisfaction is affected by a wide range of variables relating to individual,

social, cultural, organizational factors as stated below:-

DIMENSIONS

INDIVIDUAL SOCIAL ORGANIZATIONAL ENVIRONMENTAL CULTURAL

FACTORS FACTOR FACTORS FACTOR

Individual: Personality, education, intelligence and abilities, age, marital status,

orientation to work.

Social factors: Relationship with co-workers, group working and norms,

opportunities for interaction, informal relations etc.

Organizational factors: Nature and size, formal structure, personnel policies and

procedures, industrial relation, nature of work, technology and work organization,

supervision and styles of leadership, management systems, working conditions.

Environmental factors: Economic, social, technical and governmental influences.

Cultural factors: Attitudes, beliefs and values.

These factors affect job satisfaction of certain individuals in a given set of

circumstances but not necessarily in others. Some workers may be satisfied with

certain aspects of their work and dissatisfied with other aspects .Thus, overall degree

of job satisfaction may differ from person to person.


Chapter 4

PERFORMANCE AND APPRAISAL OF EMPLOYEES

The history of performance appraisal is quite brief. But this is not very helpful for the

same may be said about almost everything in the field of modern Human resource

management. As a distinct and formal management procedure in the evaluation of

work performance, appraisal really dates from the time of the Second World War –

not more than 60 years ago. Yet in a border sense the practice of performance

appraisal is a very ancient art. In the scale of things historical, it might well lay claim

to being the world‘s second oldest profession.

DEFINITION

Randell:

Organizations attempting to develop their staff appraisal and development

procedures are strongly advised to keep the activities of performance, not only but

also in paperwork, procedure and responsibility. All employing organizations carry

out some form of performance with their implications for design and conduct of

appraisal schemes and emphasis appropriate training of staff involved.

Heyel:

―It is the process of evaluation of the performance and qualifications of the

employees in terms of the requirements of the job for which he is employed, for

purpose of administration including placements, selection for promotion, providing

financial rewards and other action which require differential treatment among the

members of a group as distinguished from action affecting all members equally.‖

Nature of Performance Appraisal:

The Managerial personnel analyses the assessment of employee performance.

The appraisal mainly based on employee performance.


THEORETICAL PERSPECTIVE OF THE STUDY

Performance appraisal are considered to be the vital tool, to measure the performance

of an employee and use the information collected, to optimize the resource of

individuals in an organization. It is systematic evaluation of individuals with respect

to their task performance and their potential for development individually and

collectively. It refers to the assessments of an employee‘s actual performance,

behaviour on jobs and his/her potential for further performance. The main purposes

of appraisal are to assess training need to effect promotion and to give high pay.

We may say that appraising the performance of an individual has been known as merit

rating, but in recent years, we may closure different terminologies have been used to

denote this process such as performance appraisal, performance review, performance

evaluation, employee appraisal, progress appraisal report, personal preview and so on.

ESSENTIALS OF GOOD APPRAISAL SYSTEM:

It must be easily understandable. If the system is too complex or time consuming it

may be anchored to the ground by its own dead – weight of complicated forms which

nobody but the experts understand.

It must have the support of all the people who administer the process of performance

of sales, service evaluation.

The system should be open and participate. Not only should it provide feedback to

the employees on their performance. It should also involve then in the goal setting

process. This helps in planning performance better.

The system should be both valid and reliable. The validity of ratings is the degree to

which they are truly indicative of the tonic merit of employees. The reliability of

ratings is the consistency with which the ratings are made, either by different raters at

different times. Both validity and reliability result from objective database.

The system should have built-in-incentive that is a reward should follow satisfactory

performance. Many authors, however, advocate against a direct linkage between

appraisal and rewards. In their opinion, such a connection throttles downward


communication of performance appraisal because superiors do not like being

questioned by disgruntled subordinate in the event of an adverse appraisal.

The systems have genuine follow-up mechanism to identify employees‘ growth

needs. In the absence of such mechanism, every employee would view the post

appraisal interviews, as a more eyewash or as an exercise by meet to force its views

on him.

The system should make the employee fell that has been treated in a supportive

manner, some authors hold the view that even the best conducted performance

appraisal and review interview do not make the interviewee feel that he has been

treated in a supportive manner. In a study, it was revealed that for 82% of subordinate

personnel involved, the performance review was an ego-deflating experience.

The system should be periodically evaluated to be sure that is continuing to meet its

goals. Not only there is the danger that subjective criteria may become more salient

than the objective standards originally established, there is the further danger that the

system may become rigid in a tangle of rules and procedures, many of which are no

longer useful.

PURPOSE OF APPRAISAL:

Helps promotions.

Aids to training and development program

Develop international relationship

Wages or salaries administration

Employee‘s development

Employees effectiveness

Identifying the strength and weakness

Serves as an feedback to the employee

It provides rational foundation for the payment of piece-work wages, bonus

and so on

Helps management to do planning such as fixing targets, responsibilities.


APPRAISAL PROCESS:

Objectives of Performance Appraisal

Establish job expectations

Design an appraisal programme

Appraise performance

Performance interview

Use appraisal data of appropriate purpose


CRITERIA OF PERFORMANCE APPRAISAL:

Performance criteria for objective:

Quantity and quality of output in a given period

Amount of training necessary

Ratings by supervisors

Number of achievements reached in a given period

Performance criteria for sales targets:

Every sales executive should give a minimum output designed by company.

Performance criteria for service technician’s targets:

Every service executive should perform a minimum output designed by the

company.

The service executive should do installation with a minimum output of

quantum as designed by the company.

Performance criteria for Service Engineers:

They should see the effective loading of the software parameters in the

installations of machines

Performance criteria for Branch Managers:

Return on capital employed

Gain or loss in sales volume

Effective rendering of service to the customers

PRINCIPLES OF PERFORMANCE APPRAISAL:

Any activity off task can be measured by; some combination of cost, time and

quality indices.

Measurement systems provide productivity.

Professional work is measured in a group.

Managers are appraised by effectiveness of their managerial compliance.

The ultimate measurement is the measurement of effectiveness.


METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL

1. Rating Scales

2. Check list

3. Forced Choice Method

4. Critical Incident Method

5. Forced Distribution Method

6. Behavioral anchored rating scales

7. Field review method

8. Performance test and observations

9. Annual confidential reports

10. Essay method

11. Cost accounting approach

12. Comparative evaluation approach

MODERN

1. Assessment center

2. Management by objectives

3. Psychological appraisal

4. The 360o appraisal technique

5. Human asset accounting method


PROBLEM IN PERFORMANCE APPRAISAL

The problem with subjective measure is the rating which is not verifiable by others

and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error

of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and

(e) the recent performance effect

(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of

one trait or behavioral consideration in rating all others traits or behavioral

considerations. One way of minimizing the halo effect is appraising all the employees

by one trait before going to rate on the basis of another trait.

(b) The error of Central Tendency: Some raters follow play safe policy in rating by

rating all the employees around the middle point of the rating scale and they avoid

rating the people at both the extremes of the scale. They follow play safe policy

because of answerability to management or lack of knowledge about the job and

person he is rating or least interest in his job.

(c) The Leniency and Strictness: The leniency bias crops when some raters have a

tendency to be liberal in their rating by assigning higher rates consistently. Such

ratings do not serve any purpose. Equally damaging one is assigning consistently low

rates.

(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate

them at the lower end, which may distort the rating purpose and affect the career of

these employees.

(e) The Recent performance Effect: The raters generally remember the recent

actions, of the employee at the time of rating and rate on the basis of these recent

actions favorable or unfavorable than on the whole activities.

Other factors that are considered as problems are:

Failure of the superiors in conducting performance appraisal and post-performance

appraisal interview is based on subjectivity and less reliability and validity of the

performance appraisal techniques. Negative ratings affect interpersonal relations and

industrial relations system. Influence of external environmental factors and

uncontrollable internal factors. Feedback and post appraisal interview may have a


setback on production. Management emphasizes on punishment rather than

development of an employee in performance appraisal. Some ratings particularly

about the potential appraisal are purely based on guess work.

The other problems of performance appraisal reported by various studies are:

1. Relationship between appraisal rates and performances after promotions was

not significant.

2. Some superiors completed appraisal reports within a few minutes.

3. Absence of inter-rater reliability

4. The situation was unpleasant in feedback interview.

5. Superiors lack that tact of offering the suggestions constructively to

subordinates.

6. Supervisors were often confused due to too many objectives of performance

appraisal.

Advantages of Performance Appraisal through Computers:

There will be an objective analysis of traits of both the superior and subordinate and a

chance to subordinate to express his views even after performance appraisal.

An employee shall express his emotional needs and his value system which may not

be possible direct face to face with superior. Communication through computer

overcomes the communication barrier between the superior and subordinate.

Computer based appraisal will remove the inherent weakness of the appraisal system

that is subjective assessment of vague and abstract performance targets, unclear

guidelines for appraisal etc.


Chapter 5

JOB SATISFACTION AND WORK SATISFACTION

Many of us labor under the misconception that job satisfaction and work satisfaction

are one and the same. When the job sucks, we start thinking, that we are in the wrong

profession and frustration starts building up.

A job is a role, and work is the means to fulfill that role. Job satisfaction can only

come if the role is clear, and the person is guided and developed to fulfill that role.

Work satisfaction pertains more to the work environment, people, boss, and everyday

actions. Put simply a job is the bigger strategic picture and work is the tactical

element of delivering that strategy. These two elements cannot be de-linked a ―job

satisfaction cannot exist without work satisfaction. A clear and fulfilling job role is

not enough without the means to deliver a supportive boss, a positive work

environment, interesting everyday work, and a balanced work-life.

A person don‘ t see anything wrong but there are a mundane routine and feels

nothing towards work life and is just hanging on because he is confused about doing

something else, now that he has spent so much time and effort into the existing

vocation. These are signs that there is something not right about his career.

The solution is the person needs to take a stock of his situation, sit back alone with a

paper and pen and list the things that he don‘t like about his work life. He can write

beginning with the things that he is mildly disappointed about and end the list with

things that he truly hates in his career. Then he must go through the list again and

mark the things that are unsatisfactory in his job (his current place of employment)

and those that have to do with his work the skills and the things that he has to do.

Adding up the things he has labeled in job and work whichever is higher, is the

culprit.

There are four aspects to one career: one is profession or work, and then is his

industry and organization and then his job profile. What one needs to do is find out

which of these is making you unhappy. For instance A is an accountant in an

advertising firm (the industry) working with XYZ Ltd and she has to do payroll


processing, feeding data into computers, employee reimbursements and so on (the job

profile). One needs to find out which of these are problem areas. If he is unhappy with

his profession then he should try to change it, which may not be a practical solution

for many. But it has to be done if it really gives the person in the job a sense of

fulfillment. Then see if it is the industry that is the problem due to high pressure or

any other reason. If that is so, change it and look for an industry switch but keeping

the same profession.

If it is the company that is a problem, then find out what is it in that makes one

unhappy at the colleagues, the money, the vision? If the person cannot see any way of

adjusting then he must look out for a change. However if it is the job profile he is

unhappy about he may try to talk to his superior of the HR and see that he can be

changed or if he feels he needs a transfer to a different department.


COMMON MYTHS ABOUT EMPLOYEE MOTIVATION

The topic of motivating employees is extremely important to managers and

supervisors. Despite the important of the topic, several myths persist -- especially

among new managers and supervisors. Before looking at what management can do to

support the motivation of employees, it's important first to clear up these common

myths.

1. Myth #1 -- "I can motivate people"

Not really -- they have to motivate themselves. You can't motivate people anymore

than you can empower them. Employees have to motivate and empower themselves.

However, you can set up an environment where they best motivate and empower

themselves. The key is knowing how to set up the environment for each of your

employees.

2. Myth #2 -- "Money is a good motivator"

Not really. Certain things like money, a nice office and job security can help people

from becoming less motivated, but they usually don't help people to become more

motivated. A key goal is to understand the motivations of each of your employees.

3. Myth #3 -- "Fear is a damn good motivator"

Fear is a great motivator -- for a very short time. That's why a lot of yelling from the

boss won't seem to "light a spark under employees" for a very long time.

4. Myth #4 -- "I know what motivates me, so I know what motivates my

employees"

Not really. Different people are motivated by different things. I may be greatly

motivated by earning time away from my job to spend more time my family. You

might be motivated much more by recognition of a job well done. People are not

motivated by the same things. Again, a key goal is to understand what motivates each

of your employees.

5. Myth #5 -- "Increased job satisfaction means increased job performance"


Research shows this isn't necessarily true at all. Increased job satisfaction does not

necessarily mean increased job performance. If the goals of the organization are not

aligned with the goals of employees, then employees aren't effectively working

toward the mission of the organization.

6. Myth #6 -- "I can't comprehend employee motivation -- it's a science"

Not true. There are some very basic steps you can take that will go a long way toward

supporting your employees to motivate themselves toward increased performance in

their jobs. (More about these steps is provided later on in this article.)

Basic Principles to Remember

1. Motivating employees starts with motivating yourself

It's amazing how, if you hate your job, it seems like everyone else does, too. If you

are very stressed out, it seems like everyone else is, too. Enthusiasm is contagious. If

you're enthusiastic about your job, it's much easier for others to be, too. Also, if you're

doing a good job of taking care of yourself and your own job, you'll have much

clearer perspective on how others are doing in theirs.

A great place to start learning about motivation is to start understanding your own

motivations. The key to helping to motivate your employees is to understand what

motivates them. So what motivates you? Consider, for example, time with family,

recognition, a job well done, service, learning, etc. How is your job configured to

support your own motivations? What can you do to better motivate yourself?

2. Always work to align goals of the organization with goals of employees

As mentioned above, employees can be all fired up about their work and be working

very hard. However, if the results of their work don't contribute to the goals of the

organization, then the organization is not any better off than if the employees were

sitting on their hands -- maybe worse off! Therefore, it's critical that managers and

supervisors know what they want from their employees. These preferences should be

worded in terms of goals for the organization. Identifying the goals for the

organization is usually done during strategic planning. Whatever steps you take to

support the motivation of your employees (various steps are suggested below), ensure


that employees have strong input to identifying their goals and that these goals are

aligned with goals of the organization.

3. Key to supporting the motivation of your employees understands what

motivates each of them

Each person is motivated by different things. Whatever steps you take to support the

motivation of your employees, they should first include finding out what it is that

really motivates each of your employees. You can find this out by asking them,

listening to them and observing them.

4. Recognize that supporting employee motivation is a process, not a task

Organizations change all the time, as do people. Indeed, it is an ongoing process to

sustain an environment where each employee can strongly motivate themselves. If

you look at sustaining employee motivation as an ongoing process, then you'll be

much more fulfilled and motivated yourself.

5. Support employee motivation by using organizational systems (for example,

policies and procedures) -- don't just count on good intentions

Don't just count on cultivating strong interpersonal relationships with employees to

help motivate them. The nature of these relationships can change greatly, for example,

during times of stress. Instead, use reliable and comprehensive systems in the

workplace to help motivate employees. For example, establish compensation systems,

employee performance systems, organizational policies and procedures, etc., to

support employee motivation. Also, establishing various systems and structures helps

ensure clear understanding and equitable treatment of employees.

Steps You Can Take

The following specific steps can help you go a long way toward supporting your

employees to motivate them in your organization.

1. Do more than read this article -- apply what you're reading here

This maxim is true when reading any management publication.


2. Briefly write down the motivational factors that sustain you and what you can

do to sustain them

This little bit of "motivation planning" can give you strong perspective on how to

think about supporting the motivations of your employees.

3. Make of list of three to five things that motivate each of your employees

Read the checklist of possible motivators. Fill out the list yourself for each of your

employees and then have each of your employees fill out the list for them. Compare

your answers to theirs. Recognize the differences between your impression of what

you think is important to them and what they think is important to them. Then meet

with each of your employees to discuss what they think are the most important

motivational factors to them. Lastly, take some time alone to write down how you will

modify your approaches with each employee to ensure their motivational factors are

being met. (NOTE: This may seem like a "soft, touchy-feely exercise" to you. If it

does, then talk to a peer or your boss about it. Much of what's important in

management is based very much on "soft, touchy-feely exercises". Learn to become

more comfortable with them. The place to start is to recognize their importance.)

4. Work with each employee to ensure their motivational factors are taken into

consideration in your reward systems

For example, their jobs might be redesigned to be more fulfilling. You might find

more means to provide recognition, if that is important to them. You might develop a

personnel policy that rewards employees with more family time, etc.

5. Have one-on-one meetings with each employee

Employees are motivated more by your care and concern for them than by your

attention to them. Get to know your employees, their families, their favorite foods,

names of their children, etc. This can sound manipulative -- and it will be if not done

sincerely. However, even if you sincerely want to get to know each of your

employees, it may not happen unless you intentionally set aside time to be with each

of them.

6. Cultivate strong skills in delegation


Delegation includes conveying responsibility and authority to your employees so they

can carry out certain tasks. However, you leave it up to your employees to decide how

they will carry out the tasks. Skills in delegation can free up a great deal of time for

managers and supervisors. It also allows employees to take a stronger role in their

jobs, which usually means more fulfillment and motivation in their jobs, as well.

7. Reward it when you see it

A critical lesson for new managers and supervisors is to learn to focus on employee

behaviors, not on employee personalities. Performance in the workplace should be

based on behaviors toward goals, not on popularity of employees. You can get in a

great deal of trouble (legally, morally and interpersonally) for focusing only on how

you feel about your employees rather than on what you're seeing with your eyeballs.

8. Reward it soon after you see it

This helps to reinforce the notion that you highly prefer the behaviors that you're

currently seeing from your employees. Often, the shorter the time between an

employee's action and your reward for the action, the clearer it is to the employee that

you highly prefer that action.

9. Implement at least the basic principles of performance management

Good performance management includes identifying goals, measures to indicate if the

goals are being met or not, ongoing attention and feedback about measures toward the

goals, and corrective actions to redirect activities back toward achieving the goals

when necessary. Performance management can focus on organizations, groups,

processes in the organization and employees.

10. Establish goals that are SMARTER

SMARTER goals are: specific, measurable, acceptable, realistic, timely, extending of

capabilities and rewarding to those involved.

11. Clearly convey how employee results contribute to organizational results


Employees often feel strong fulfillment from realizing that they're actually making a

difference. This realization often requires clear communication about organizational

goals, employee progress toward those goals and celebration when the goals are met.

12. Celebrate achievements

This critical step is often forgotten. New managers and supervisors are often focused

on a getting "a lot done". This usually means identifying and solving problems.

Experienced managers come to understand that acknowledging and celebrating a

solution to a problem can be every bit as important as the solution itself. Without

ongoing acknowledgement of success, employees become frustrated, skeptical and

even cynical about efforts in the organization.

13. Let employees hear from their customers (internal or external)

Let employees hear customers proclaim the benefits of the efforts of the employee .

For example, if the employee is working to keep internal computer systems running

for other employees (internal customers) in the organization, then have other

employees express their gratitude to the employee. If an employee is providing a

product or service to external customers, then bring in a customer to express their

appreciation to the employee.

14. Admit to yourself (and to an appropriate someone else) if you don't like an

employee --

Managers and supervisors are people. It's not unusual to just not like someone who

works for you. That someone could, for example, look like an uncle you don't like. In

this case, admit to yourself that you don't like the employee. Then talk to someone

else who is appropriate to hear about your distaste for the employee, for example, a

peer, your boss, your spouse, etc. Indicate to the appropriate person that you want to

explore what it is that you don't like about the employee and would like to come to a

clearer perception of how you can accomplish a positive working relationship with the

employee. It often helps a great deal just to talk out loud about how you feel and get

someone else's opinion about the situation. As noted above, if you continue to focus

on what you see about employee performance, you'll go a long way toward ensuring

that your treatment of employees remains fair and equitable.


Quantity and quality of output in a given period

Amount of training necessary

Ratings by supervisors

Number of achievements reached in a given period

Performance criteria for sales targets:

Every sales executive should give a minimum output designed by company.

Performance criteria for service technician’s targets:

Every service executive should perform a minimum output designed by the

company.

The service executive should do installation with a minimum output of

quantum as designed by the company.

Performance criteria for Service Engineers:

They should see the effective loading of the software parameters in the

installations of machines

Performance criteria for Branch Managers:

Return on capital employed

Gain or loss in sales volume

Effective rendering of service to the customers

PRINCIPLES OF PERFORMANCE APPRAISAL:

Any activity off task can be measured by; some combination of cost, time and

quality indices.

Measurement systems provide productivity.

Professional work is measured in a group.

Managers are appraised by effectiveness of their managerial compliance.

The ultimate measurement is the measurement of effectiveness.

METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL


1. Rating Scales

2. Check list

3. Forced Choice Method

4. Critical Incident Method

5. Forced Distribution Method

6. Behavioral anchored rating scales

7. Field review method

8. Performance test and observations

9. Annual confidential reports

10. Essay method

11. Cost accounting approach

12. Comparative evaluation approach

MODERN

6. Assessment center

7. Management by objectives

8. Psychological appraisal

9. The 360o appraisal technique

10. Human asset accounting method


PROBLEM IN PERFORMANCE APPRAISAL

The problem with subjective measure is the rating which is not verifiable by others

and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error

of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and

(e) the recent performance effect

(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of

one trait or behavioral consideration in rating all others traits or behavioral

considerations. One way of minimizing the halo effect is appraising all the employees

by one trait before going to rate on the basis of another trait.

(b) The error of Central Tendency: Some raters follow play safe policy in rating by

rating all the employees around the middle point of the rating scale and they avoid

rating the people at both the extremes of the scale. They follow play safe policy

because of answerability to management or lack of knowledge about the job and

person he is rating or least interest in his job.

(c) The Leniency and Strictness: The leniency bias crops when some raters have a

tendency to be liberal in their rating by assigning higher rates consistently. Such

ratings do not serve any purpose. Equally damaging one is assigning consistently low

rates.

(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate

them at the lower end, which may distort the rating purpose and affect the career of

these employees.

(e) The Recent performance Effect: The raters generally remember the recent

actions, of the employee at the time of rating and rate on the basis of these recent

actions favorable or unfavorable than on the whole activities.

Other factors that are considered as problems are:

Failure of the superiors in conducting performance appraisal and post-performance

appraisal interview is based on subjectivity and less reliability and validity of the

performance appraisal techniques. Negative ratings affect interpersonal relations and

industrial relations system. Influence of external environmental factors and

uncontrollable internal factors. Feedback and post appraisal interview may have a


setback on production. Management emphasizes on punishment rather than

development of an employee in performance appraisal. Some ratings particularly

about the potential appraisal are purely based on guess work.

The other problems of performance appraisal reported by various studies are:

7. Relationship between appraisal rates and performances after promotions was

not significant.

8. Some superiors completed appraisal reports within a few minutes.

9. Absence of inter-rater reliability

10. The situation was unpleasant in feedback interview.

11. Superiors lack that tact of offering the suggestions constructively to

subordinates.

12. Supervisors were often confused due to too many objectives of performance

appraisal.

Advantages of Performance Appraisal through Computers:

There will be an objective analysis of traits of both the superior and subordinate and a

chance to subordinate to express his views even after performance appraisal.

An employee shall express his emotional needs and his value system which may not

be possible direct face to face with superior. Communication through computer

overcomes the communication barrier between the superior and subordinate.

Computer based appraisal will remove the inherent weakness of the appraisal system

that is subjective assessment of vague and abstract performance targets, unclear

guidelines for appraisal etc.


Chapter 6

STRESS MANAGEMENT

Since the origin of the term 'stress' it is ambiguous 'stress' began life as a variant on

'distress' in the 14th century. It meant the experience of physical hardship, starvation,

torture, and pain. These days, however, the term revolves around the medieval

definition, in which 'stress' simply meant 'hardship'. The recent scientific

developments inform us that 'stress' is actually good for us. Stress is derived from the

Latin word stranger, meaning to draw tight, and was used in the 17th century to

describe hardships or affliction. During the late 18th century stress denoted "force,

pressure, strain or strong effort," referring primarily to an individual or to an

individual's organs or mental powers (Hinkle, 1973).

As has already been noted, stress has been defined as a stimulus, a response, or the

result of an interaction between the two, with the interaction described in terms of

some imbalance between the person developed, particularly that surrounding the

person-environment (P-E) interaction, researches have considered the nature of that

interaction and, more importantly, the psychological processes which it takes place

(Dewey, 1992).

Stress is a physiological and psychological imbalance. It arises due to the demands on

a person and that person‘s inability to meet these demands. Stress is the body‘s way of

reacting to any situation and it can have serious repercussions on an individual‘s life.

Yet, people fail to realize the importance of stress management in their lives.

Effective managers can stay in control of life, without panicking even under stressful

situations. They handle stress by planning work, taking regular breaks, and

rejuvenating them.

Stress: Meaning and Definitions

The term 'stress' has a different meaning for researchers in various disciplines. In the

biological literature, it is used in relation to single organisms, populations of

organisms, and ecosystems. Biologists refer to things such as heat, cold and

inadequate food supply as being sources of stress. Human biologists add to this


microbial infection and taking toxic substances. Social scientists, for their part, are

more concerned about people's interaction with their environment and the resulting

emotional disturbances that can sometimes accompany it (Hinkle, 1987).

The term stress has many definitions (Lazarus & Folk man, 1984). We all define

stress as an internal state which can be caused by physical demands on the body (

disease conditions, exercise, extremes of temperature, and the like) or by

environmental and social situations which a evaluated as potentially, harmful,

uncontrollable, or exceeding resources for coping. The physical, environmental, and

social causes of the stress state are termed stressors.

Stress is a big problem in our society (Allen, 1983). Some75 percent of bodily disease

is said to be stress-related. For example, stress is often a factor in heart disease.

Furthermore, stress-related diseases cost American industry billions of dollars a year;

several billion tranquilizer pills are prescribed in the United.

Stress in individuals is defined as anything that disrupts the normal person‘s physical

or mental well-being. It occurs when the body performs activities outside its

capabilities or when a person faces extraordinary demands. A simple display of stress

may be a bad mood while an extreme display may be an act of violence. The process

of stress has a stressor or a stimulus. A stressor is a factor or stimulant that creates

stress. A stressor is not in itself either positive or negative or good or bad, it is how

one reacts to it that determines its positivity or negativity. For example, one person

may perceive stressor as a motivator, whereas another person may perceive it as a

constraint. One individual may perceive it as a challenge, another as a threat.

Stress can be positive or negative. Positive stress is called estruses and negative stress

is called distress. There is a difference between the ways in which estruses and

distress affect the body. Estruses triggers the body alarm, enhances attention,

performance, and creativity. It has temporary effects. For instance, a person applying

for a visa to the US may be under estruses, and once he/she obtains the visa his/her

stress levels come back to normal. Distress has a negative effect on the body. For

instance, an individual who has lost his/her job may become depressed, which is a

result of distress. Distress, if left unchecked, can have a serious effect on the body

over a period of time. The body‘s nonspecific response to the external situation results


in stress and stress can create a number of health problems both mental and physical.

Some of these problems are sleeplessness, eating disorders, heart problems, and

suicidal tendencies. Stress represents the wear and tear of the human body.

Hens Selye, developed a model called the General Adaptive Syndrome model to

explain the stress phenomenon and the stress levels. This model has three stages. The

first stage, which is the alarm reaction stage, involves the body‘s response to or

familiarizing itself with the new situation or stressor. In this stage, an individual is

under estruses. The second stage is the resistance stage, which involves resisting and

reacting to the situation. In this stage, an individual is in a flight or fight situation (the

body‘s reaction to control stress situation). In this situation, the body prepares to

either escape from the situation or to survive in it. The third stage is the exhaustion

stage, which is the aftermath of resistance. If the resistance stage goes on for a long

period, then the person becomes distressed.

A certain level of stress can act as a motivator. Without stress, a person becomes

lethargic and dull. Good stress encourages a person to perform better. However, if this

stress exceeds the resistance level of the individual, it can turn into distress. The

perception of stress varies from person to person and each person has his/her own

stress limit. There are many reasons and sources of stress for every person. Also,

while some people tend to work better under pressure, there are others who cannot

bear the ‗last minute syndrome.‘ They panic when faced with even the most minor of

stressful situations.

Most of the stress situations people encounter in everyday life are minor and

relatively easy to cope with. When one feels hungry he/she may stop what he/she is

doing and go to the cafeteria for lunch; when he/she feels cold he/she puts on a

sweater or coat. A serious illness requiring major surgery, a broken engagement,

marital discard or divorce, the death of a loved one, flunking out of college, being

arrested, financial pressures or losses, social disapproval, severe guilt feelings and

value conflicts are example of such stressful situation. Stress may involve biological-

or-psychological-level processes. Pneumonia viruses‘ produces stress on a biological

level and the basic adjective reaction involves defense on the biological level. (1) The

basic types of stress we encounter and some of the particular stress that characterize


our time and place in history, (2) factors influencing the severity of stress, and (3)

other key aspects of stress including its cost to the organism.

There are a wide range of environmental obstacles, both physical and social, which

can lead to the frustration of our needs. Earthquakes, famines, fires, accidents, and the

death of loved ones are major sources of the warning in the physical environment.

Pens we are in a hurry, rain when we want to play golf or tennis, advertisements that

make us want things we cannot have, red tape that prevents us from taking a desired

course, and long years of study before we can enter professional field are examples of

the counter less environmentally caused frustrations that plague us in everyday life.

Stress is term which the biological and social science have taken over with only

imperfect success from the physical sciences. In engineering usage a force directed at

an object is said to place it under stress. The resulting distortion or deformation

caused in the object by the stress is called strain. For example a small amount of

weight placed on a bridge would create a mild stress and the resulting strain would be

minimal. Increasing the weight and hence the level of stress.

Living systems-particularly human beings have advantages over nonliving ones in

meeting stress for they can anticipate and prepare for it change their strategies for

coping with it, and sometimes leave the field when it is too severe.

Response – Based Definitions of Stress

The origins of response-based definitions can be found in medicine and are usually

viewed from a physiological perspective a logical stance for a discipline trained to

diagnose and treat symptoms but not necessarily their causes. The work of Hans Selye

in the 1930s and 1940s marks the beginning of this approach to the study of stress. In

1936, Selye introduces the notion of stress-related illness in terms of the general

adaptation syndrome (GAS), suggesting that stress is a non-specific response of the

body to any demand made upon it (Selye, 1956). Selye‘s focus was medical: general

malaise was characterized by loss of motivation, appetite, weight, and strength.

Evidence from animal studies also indicated internal physical degeneration and

deterioration. Responses to stress were considered to be invariant to the nature of the

stressor and therefore to follow a universal pattern.


Although the word stress usually has negative connotations, selye (1976) emphasized

that stress reactions are not automatically bad and that they cannot be avoided because

being alive is synonymous with responding to stress. In fact, a certain level of stress is

necessary for motivation, growth, development, and change has been referred to as

stress. However, unwanted, unmanageable stressor situations are damaging and can

lead to distress.

In a similar manner, any condition that makes an addictive demand on the organism

places it may undergo degree of stress. Mild stress usually causes little pain or strain,

for the individual has ample resources for coping with in and is not likely to see it as a

threat.

Stress as an Interaction

The interaction approach to defining stress focuses on the statistical interaction

between the stimulus and the response. This approach is essentially static (cause and

effect), with any consideration of process being limited to inferential explanations

when the interaction fails to materialize or is different from that predicted. This is

where, according to Lazarus and Launier (1978), description has taken a back seat to

simple cause-effect formulations.


THEORIES OF STRESS

A. Biological theories of stress

1. Somatic-weakness theory

2. Specific-reaction theory

B. Psychological Theories

A. Biological Theories of Stress

These theories explain psychological disorders in terms of specific weakness or hyper

activity of an individual organic system as and when she or he responds to a stressful

experience. The Stress is explained as a responds either the paucity or abundance

requisite quantum of bio-chemical material.

1. Somatic-weakness Theory

The fundamental assumption of somatic-weakness theory is that weak bodily organs

are pre-disposed to generate a specific kind of stress, leading to a particular

physiological disorder. A particular organ system may remain weak in view of several

factors vis-à-vis genetic deficiency, undetected juvenile illness or diet imbalance

deficiency etc. these factors may cumulatively disrupt a particular organ system

making it weak and vulnerable to stress e.g., severe ulcers might be generated owing

to a weak digestive system, which ulcers in their true may lead to serious stressful

events and consequent psychological disorders.

2. Specific-reaction Theory

According to specific-reaction theory, no hard and fast explanation can be

categorically branded as the prime mover or shaker of stress. Different individuals

respond to stress differently and every organic system has its own idiosyncrasies way

to cope up with ongoing situational pressures. This theory maintains that the body

system that is the most responsive may most likely become the locus of a particular

psycho-physiological disorder e.g., high blood-pressure may be more amenable to

hypertension.


B. Psychological Theories

These theories explain the development of various psycho-physiological disorders in

terms of such factors as: unconscious emotional states, personality traits, cognitive

appraisal and specific styles of coping with stress.

1. Psychoanalytic theory

Psychoanalytic theories explaining the development of stress undermine the role of

conscious-emotional states specific to each disorder. According to Alexander (1950)

various psycho-physiological disorders can be explained as a function of our

unconscious emotional states.

Alexander has further argued that repressed hostile impulses invariably lead to

chronic emotional states. Such states, in turn, are responsible for hypertension,

anxieties and worries and depression. "The damming up of such hostile impulses if

continues might develop stronger defensive measures in order to keep pent-up

aggression in check-because of the marked degree of their inhibition. These patients

are less effective in their occupational activities and for that reason tend to fail in

competition and….hostile feeling towards more successful, less inhibited, competitors

are further intensified"

2. Cognitive and behavioral theory

Cognitive and behavioral theories explained stress as a function of cognitive and

behavioral factors. The perceptions and experiences stimulate sympathetic system

activity. However, psychological resentments and regrets are too embedded to be

easily tossed out of one's system. They are not as readily escapable as are the

perceived or real external threats. Nor can they be readily explained away, often they

keep our sympathetic system aroused. Such an arousal keeps the body in a continuous

state of emergency. It is unbearable to sustain a balanced behavioral pattern for long

in such circumstances. The necessary balancing of sympathetic and parasympathetic

action are so gets tougher by the day. More often than not, the equilibrium is lost and

one is overtaken by distress, such a bodily changes that can last longer that they were

meant to. This further contributes to an imbalance between sympathetic and

parasympathetic activity going on in our system. Some psychologists have assumed


that man's higher mental faculties out-compete his physiological endowments. This is

the inbuilt dichotomy operating in human's albeit, very subtly and silently. Moral,

valuation or attitudinal changes may be experienced at very higher or deeper levels of

consciousness and our bodies may not be attuned to such experiences easily and

readily. In fact, it is pointed out that our bodies are not designed to cope up with the

outgoing pressures of our higher mental faculties. They are not built to withstand the

storms brought about by our mental capacities. Thus, life-experience of human beings

seems continuously to be exceeding their resources or capacities to cope with them.

Such a dichotomous state of affair is inherently germane to the fructification of

chronic stresses and conducive to the development of psycho-physiological disorder.

Therefore, most humans are prone to this or that kind of stress-related disorder.

STRESSORS

Almost any change in the environment—even a pleasant change, such as a vacation-

demands some coping; and a little stress is useful in helping us adapt.


STRESS CYCLES

Change Stressors Disease Stressors Phobic Stress

Chemical Stressors Emotional Stressors Physical Stress

Commuting Stressors Environmental Stressors Social Stress

Decision Stressors Family Stressors Work Stress

Stress Overloading

Physiological (e.g.

heightened

muscle tension,

elevated blood

pressure and

rapid heart beat)

Emotional (e.g.

heightened

anxiety,

depression and

anger)

Behavioral (e.g.

over eating and

excessive

alcohol

consumption

Cognitive (e.g.

increased

distraction and

decreased

concentration

Medical disorders

(e.g. headaches,

hypertension and

heart disease)

Emotional

disorders e.g.

chronic anxiety

and depression,

phobias,

personality

changes mental

illness)

Behavioral

disorders (e.g.

obesity and

alcoholism)

Cognitive

disorders (e.g.

many problems,

obsessive

thoughts and

sleep disorder).

Decreased Productivity Decreased Enjoyment

Decreased Intimacy

Where

stress

come s

from

Immediate

effects

Long term

effects

Over all costs


DISTRESS

Stress has a number of immediate effects and, if the stressors are maintained, long-

term behavioral physiological, emotional, and cognitive (thinking) effects occur. If

these effects hinder adaptation to the environment or create discomfort and distress,

they themselves become stressors and, as shown by the dotted arrow in tend to

perpetuate a cycle of distress, On the other hand, many people have developed ways

of coping with stressors so that they are able to respond adaptively. This is the

wellness cycle of. Teaching people adaptive ways of handling stress so as to promote

the wellness.

Change Stressors Disease Stressors Phobic Stress

Chemical Stressors Emotional Stressors Physical Stress

Commuting Stressors Environmental Stressors Social Stress

Stress Overloading

Physiological (e.g. heightened muscle tension, elevated blood pressure and rapid heart beat)

Emotional (e.g.

heightened

anxiety,

depression and

anger)

Behavioral (e.g. over eating and excessive alcohol consumption

Cognitive (e.g.

increased

distraction and

decreased

concentration

Medical

disorders (e.g.

headaches,

hypertension

and heart

disease)

Emotional disorders e.g. chronic anxiety and depression, phobias, personality changes mental illness)

Behavioral

disorders (e.g.

obesity and

alcoholism)

Cognitive

disorders (e.g.

many problems,

obsessive

thoughts and

sleep disorder).

Decreased Productivity

Decreased Enjoyment

Where stress come sfrom

Immediate

effects

Long term

effects

Over all costs


Cause of stress

There are several factors causing stress. Recently, Desai (1999) classified stressors

into three major categories viz., (1) Physiological, (2) Psychological, and (3)

Environmental.

Physiological Causes: The physiological category includes genetic and congenital

factors, life experience, biological rhythms, sleep, posture, diet, fatigue, muscular

tension, and disease of adaptation.

Environmental Causes: This category of stressors consists of those factors which

originate from the environment like ambient environment, physical events,

psychological sub-systems, physiological sub-systems, Social events and biotic

events.

Eysenck (1996) also divided stressors into three broad categories:

Stressful life events: This situation usually occurs mainly as a result of our

relationship with other people; Environmental stressors: The stressors of this category

are like noise, vibration, electric shock and heat; Technological threat: This type of

threat posed by nuclear power advances sophisticated technology (automated devices)

and the sick building syndrome.

Major causes of stress include illness, job changes, boredom, separation and divorces,

deaths in the family and financial difficulties. However, the arrival of a baby, or

entertaining guests, can be stressful.

In his popular book, Future shock (1970), Alvin Toffler, attributes the future shock to

too much change in too short as ―the shattering stress and disorientation that we

induce in individuals by subjecting them to too much change in too short a time.‖

The major job conditions that cause stress for employees include:

(1) work-overload (2) time pressure; (3) poor quality and supervision; (4) role conflict

and ambiguity; (5) change of nay type, especially when it is major or unusual, and (6)

frustration.


Factors in the severity of stress

In General stress is more severe more important the motives blocks the needs

deprived.

The longer the stress situation continues. The greater the number of adductive

demands placed on the individual at once or during a short interval of time. The more

unfamiliar and unexpected the problem the less adequate the individual‘s resources,

including personal resources and social supports

The stronger and more equal the opposing forces in conflict situation.

The closer one gets to the goal in approach avoidance conflict the greater the

perceived threat and the more imminent the threat.

The less tolerance the individual has for this type and degree of stress.

The more the individual sees the threat as imposed on him and beyond his control.

In addition to type source and severity of stress three additional aspects of stress are

of immediate interest. First is the individual nature of our stress. Patterns, however

similar life situation may appear. Second is the finding that as in the case of motives,

we may be only partially aware or even unaware of stress. And third is the problem

that adaptation. And third is the problem that adaptation to stress may be expensive

both physically and psychologically.

Stress may have positive effects

Although severe stress may lead to lowered adaptive efficiency and to wear and tear

on the system, stress can also have positive consequences. The following are some of

the possible positive effects of stress:

An individual may get a cheaper picture of his assets liabilities, and adaptive

potential. Increased competencies after flunking a test an individual may find more

effective methods of study and learn to put more efforts into his work. If he

acknowledges past approaches have not worked well an individual may find more

effective strategies. Persistent failure or frustration may lead an individual to a more

realistic appraisal of the alternatives actually open to him.


Increased to and ―living with‖ difficult stresses, an individual may increase his ability

to meet stress as well as his confidence in his ability to do so. The concept of 'stress' is

elusive because it is poorly defined. There is no single agreed definition in existence.

It is a concept which is familiar to both layman and professional alike. It is understood

by all when used in a general context but by very few when more precise account is

required and this seems to be the central problem (Cox, 1985).

Stress to us is a very general term that means somewhat different though related

things at different levels of analysis. Each of the levels of stress analysis is partially

independent in that it refers to different conditions, and processes (Lazarus & Launier,

1978).

Stress a term borrowed from physics by W. Canon and H. Selye and set to mean the

mutual action of force that takes place across any section of the body is a state of

threatened homeostasis (Stratakis & Chorusos, 1995).

Stress is a subset of emotion (Lazarus, 1993). Stress is caused by a multitude of

demands (stressors), such as an inadequate fit between what we need and what we are

capable of, and what our environment offers and what it demands of us (Levi, 1996).

Stress is the external pressures and tensions the internal pressures (Saunders, 1997).

In the 1950's stress was described by researchers as a "response to internal or external

processes which reach those threshold levels that strain its physical and psychological

integrative capacities to, or beyond, their limit" (Basowitz, Persky, Korchin, &

Grinkler, 1955).

In the 1970s, Lazarus (1976) suggested that an individual's stress reaction "depends

on how the person interprets or appraises (Consciously or unconsciously) the

significance of a harmful, threatening or challenging event." Lazarus's work disagrees

with that of others who see stress simply as environmental pressure. Instead, "the

intensity of the stress experience is determined significantly by how well a person

feels he or she can cope with an identified threat. If a person is unsure of his/her

coping abilities, they are likely to feel helpless and overwhelmed.‖

Cummings and Cooper (1979) have designed and explained a way of understanding

the stress process that can be put in the following points.


Individuals, for the most part, try to keep their thoughts, emotions, and relationships

with the world in a ―steady state‖.

Each factor of a person‘s emotional and physical state has a ―range of stability,‖ in

which that person feels comfortable. On the other hand, when disrupt one of these

factors beyond the range of stability, the individual must act or cope to restore a

feeling of comfort.

An individual‘s behavior aimed at maintaining a steady sate makes up his or her

―adjustment process‖ or coping strategies. A stress is any force that puts a

psychological or physical function beyond its range of stability, producing a strain

within the individual. Knowledge that a stress is likely to occur constitutes a threat to

the individual. A threat can cause a strain because of what it signifies to the person

(Cummings & Cooper, 1979).

Stress at work is a relatively new phenomenon of modern lifestyles. The nature of

work has gone through drastic changes over the last century and it is still changing at

whirlwind speed. They have touched almost all professions, starting from an artist to a

surgeon, or a commercial pilot to a sales executive. With change comes stress,

inevitably. Professional stress or job stress poses a threat to physical health. Work

related stress in the life of organized workers, consequently, affects the health of

organizations.

Job stress is a chronic disease caused by conditions in the workplace that negatively

affect an individual's performance and/or overall well-being of his body and mind.

One or more of a host of physical and mental illnesses manifests job stress. In some

cases, job stress can be disabling. In chronic cases a psychiatric consultation is usually

required to validate the reason and degree of work related stress.

Working on a project on stress at work, Andy Ellis, Ruskin College, Oxford, UK, has

shown in a chart how stress can adversely affect an employee's performance. In the

early stages job stress can 'rev up' the body and enhance performance in the

workplace, thus the term 'I perform better under pressure'. However, if this condition

is allowed to go unchecked and the body is revved up further, the performance

ultimately declines and the person's health degenerates.


Symptoms

The signs of job stress vary from person to person, depending on the particular

situation, how long the individual has been subjected to the stressors, and the intensity

of the stress itself. Typical symptoms of job stress can be:

Insomnia

Loss of mental concentration,

Anxiety, stress

Absenteeism

Depression,

Substance abuse,

Extreme anger and frustration,

Family conflict

Physical illnesses such as heart disease, migraine, headaches, stomach

problems, and back problems.

Causes of Work Place

Job stress may be caused by a complex set of reasons. Some of the most

visible causes of workplace stress.

Job Insecurity

Organized workplaces are going through metamorphic changes under intense

economic transformations and consequent pressures. Reorganizations, takeovers,

mergers, downsizing and other changes have become major stressors for employees,

as companies try to live up to the competition to survive. These reformations have put

demand on everyone, from a CEO to a mere executive.

High Demand for Performance

Unrealistic expectations, especially in the time of corporate reorganizations, which,

sometimes, puts unhealthy and unreasonable pressures on the employee, can be a

tremendous source of stress and suffering. Increased workload, extremely long work

hours and intense pressure to perform at peak levels all the time for the same pay, can

actually leave an employee physically and emotionally drained. Excessive travel and

too much time away from family also contribute to an employee's stressors.


Technology

The expansion of technology - computers, pagers, cell phones, fax machines and the

Internet - has resulted in heightened expectations for productivity, speed and

efficiency, increasing pressure on the individual worker to constantly operate at peak

performance levels. Workers working with heavy machinery are under constant stress

to remain alert. In this case both the worker and their family members live under

constant mental stress. There is also the constant pressure to keep up with

technological breakthroughs and improvisations, forcing employees to learn new

software all the times.

Workplace Culture

Adjusting to the workplace culture, whether in a new company or not, can be

intensely stressful. Making one self-adapt to the various aspects of workplace culture

such as communication patterns, hierarchy, dress code if any, workspace and most

importantly working and behavioral patterns of the boss as well as the co-workers,

can be a lesson of life. Maladjustment to workplace cultures may lead to subtle

conflicts with colleagues or even with superiors. In many cases office politics or

gossips can be major stress inducers.

Personal or Family Problems

Employees going through personal or family problems tend to carry their worries and

anxieties to the workplace. When one is in a depressed mood, his unfocused attention

or lack of motivation affects his ability to carry out job responsibilities.

Stress in the Work Place:

Work plays a powerful role in people's lives and exerts an important on their well-

being. Since the l960s paid work has occupied an increasing proportion of most

people's. Although employment can be an exciting challenge for many individuals, it

can also be a tremendous source of stress. Consequently, as work makes more and

more demands on time and energy, Individuals are increasingly exposed to both the

positive and negative aspects of employment. The relationship between work and

mental and physical health may also contribute to career adjustment as well as to the


productivity and economic viability of companies. Three concepts are important to

understanding this relationship:

Stress an interaction between individuals and any source of demand (stressor) within

their environment.

A stressor is the object or event that the individual perceives to be disruptive. Stress

results from the perception that the demands exceed one's capacity to cope. The

interpretation or appraisal of stress is considered an intermediate step in the

relationship between a given stressor and the individual's response to it.

Appraisals are determined by the values, goals, individual commitment, as personal

resources (e.g. income, family, self-esteem) and coping strategies that employees

bring to the situation.

Newspaper headlines worldwide have heralded an unprecedented concern about the

detrimental effects of work stress. The United Nations World Labor Report attributes

the source of stress to work places that are unstable, impersonal, and hostile. Since the

early 1960s, researchers have been examining the psychosocial and physical demands

of the work environment that trigger stress. Research has identified many

organizational factors contributing to increased stress levels: (a) job insecurity; (b)

shift work; (c) long work hours; (d) role conflict; (e) physical hazard exposures; and

(f) interpersonal conflicts with coworkers or supervisors.

Reciprocally, elevated stress levels in an organization are associated with increased

turnover, absenteeism; sickness, reduced productivity, and low morale. At a personal

level, work stressors are related to depression, anxiety, general mental distress

symptoms, heart disease, ulcers, and chronic pain (Sauter, Hurrell, & Cooper, 1989).

In addition, many people are distressed by efforts to juggle work and family demands,

such as caring for sick or aging parents or children (Wiersma & Berg, 1991).

Therefore, any exploration of the relationship between work conditions and mental

distress must take into account individual factors such as sex, age, race, income,

education, marital and parental status, personality, and ways of coping. To have a

balanced approach to understanding work stress, it is necessary to recognize that

employment provides rewards that are both internal (intrinsic) and external (extrinsic)


(Locke & Taylor, 1990), (e.g., skill development, self-esteem, money, variety from

domestic surroundings, social contacts, and personal identity).

Job control

Lack of control over work, the work place, and employment status have been

identified X both as sources of stress and as a critical health risk for some workers.

Employees who are unable to exert control over their lives at work are more likely to

experience work stress and are therefore more likely to have impaired health. Many

studies have found that heavy job demand, and low control, or decreased decision

latitude lead to job dissatisfaction, mental strain, and cardiovascular disease.

In general, job control is the ability to exert influence over one's environment so that

the environment becomes more rewarding and less threatening. Individuals who have

job control have the ability to influence the planning and execution of work tasks.

Research has found that it is the influence resulting from participation, rather than

participation per se, which affects job stress and health (Israel, House, Schurman,

Heaney, & Mero, 1989). For example, Jackson (1983) found that participation

(attendance at staff meetings) had a negative effect on perceived job stress, and a

positive effect on perceived influence. This, in turn, influenced emotional strain, job

satisfaction, absenteeism, and turnover intention. Similarly, Israel et al., (1989)

concluded that the ability to control or influence work factors (e.g., speed and pacing

of production) is linked to incidence of cardiovascular disease as well as to

psychosomatic disorders, job dissatisfaction, and depression.

Lazarus (1991) has identified three main strategies for reducing work-related stress.

Alter the working conditions so that they are less stressful or more conducive to

effective coping. This strategy is most appropriate for large numbers of workers

working under severe conditions. Examples include altering physical annoyances such

as noise levels, or changing organizational decision-making processes to include

employees.

Help individuals adapt by teaching them better coping strategies for conditions that

are impossible or difficult to change. A limitation to this strategy is that it is costly to

deal with each individual's unique transaction with the environment. Intervention

strategies could include individual counseling services for employees, Employee


Assistance Programs, or specialized stress management programs, such as cognitive

behavioral interventions.

Individuals vary greatly in their capacity to endure stressful situations, and there is,

undoubtedly, self-selection in the kinds of jobs and stressors that individuals choose.

Because sources of stress may vary from worker to worker, providing a solution for

one worker may create stress for another worker. For example, if the organization

provides more opportunity for influence over the work process, the change in control

may be experienced positively by some but negatively by others. A partial solution to

this problem may involve intervening with groups of workers that are formed based

on person-environment relationships, and which contribute to the generation or

reduction of stress.

Sources of stress

Stress is unavoidable and has become an inherent part of human life. As mentioned

earlier, it arises as a result of the imbalance between the demands placed on an

individual and his/her capacity to meet those demands. For instance, if the demands

are way below his/her capacity, then the individual may feel bored and disinterested.

Conversely, if demands are way above his/her capacity, then the individual may feel

overwhelmed and thus feel the pressure. One way to handle such a situation is find a

balance between the demands and capacities. An individual must, therefore, try to

reduce demands from the environment and simultaneously increase his/her internal

capacity. To achieve this balance people must identify the sources of stress. There are

various sources of stress both at home and at work. The common ones can be

classified into internal and external stress.

Internal Stress

Human beings have a tendency to worry about actions that may or may not take place.

Internal stress generally happens when individuals worry about things outside their

control. The personality of an individual plays a vital role in stress management.

Every individual can be categorized into Type A and Type B personalities. An

individual of Type A personality has a continual sense of urgency and has an

excessive competitive drive. He/she is always in a hurry and is impatient. People with

Type A personality are obsessive about winning and do not have the ability to spend


leisure time productively. These people are likely to be under stress even in minor

situations. People with Type B personality never sense the urgency of time. They

work at their own pace, with no need to prove their achievements. These people are

less likely to be under stress. Studies suggest that people with Type A personality are

at greater risk of getting heart attacks than people with Type B personality.

External Stress

This type of stress is the result of environmental influence on an individual. External

stress is a result of stress from the environment. This can be stress from family, work,

peers, and friends. Physical conditions such as poor lighting, loud noise, poor seating

arrangements, and extreme workplace temperatures (a too hot or too cold cabin) are

also stressors. Even the climate where one resides can be a significant contributor to

one‘s stress level. In particular, living in extreme climates can heighten an

individual‘s stress level. Temperature extremes and the amount of sunshine that exists

on a daily, weekly, or monthly basis can affect the level of stress experienced.

Types of Stress

Types of stress that are personal and work related are discussed below.

Personal stress:

This is extra-organizational stress. Individuals play many roles in life like that of a

father, brother, friend or mother, wife, sister, etc. In this process, various factors cause

stress.

Family stress: Family stress may arise from conflict of ideas or relationships with

spouse, children, siblings, parents. This stress may also be caused by the ill-health of a

family member, financial problems, a divorce, or the death of a dear one.

Health related stress: This may be a result of undetected or neglected health problems.

For example, a person may neglect minor ill health, which over a period may develop

into a serious health problem that may require immediate attention. Often people

ignore health and give importance to work. This results in loss of health and in stress.

Society related stress: Society related stress occurs due to the influence of the society

on an individual. Here friends, colleagues, and neighbors are the influencing factors.


For example attending a community meeting after a long workday may seem very

stressful.

Work-related stress

This is organizational stress. Work-related stress relates to the working environment

and policies of the organization. Work related stress can be further classified into

organizational stress and job stress.

Organizational stress: The stress resulting from the conflict of organizational goals

with personal goals is called organizational or work place stress.

Lack of organization skills: Poor organization skills lead to confusion over

Delegation of authority and responsibility: For instance, an employee may be given

many responsibilities without sufficient authority. This would result in stress in

performing the duties and responsibilities.

Long work hours: Everyone has a natural body clock. Working against this clock

can create stress. Attempts to alter the body clock result in stress. Studies on call

center executives show clearly the toll long work hours take in terms of stress-related

illness. A person regularly working long hours without taking a break will be stressed.

Job Insecurity: Job insecurity is a major stress factor. This kind of insecurity and

lack of growth or promotions act as stressors. The higher the uncertainty, higher is the

stress. A sudden change in management and work policies can also result in stress.

For instance, a manager who has not been promoted for a long period may feel

insecure about his/her future prospects in the organization and feel stressed.

Job stress: Stress that occurs due to lack of resources or scarce resources at the

workplace is called job stress. Some of the common job stressors are:

Difficult clients/ Subordinates/ Superiors/ Colleagues: Every employee has to handle

a difficult client at some point of time. A difficult or dissatisfied client is a stress

creator. Uncooperative colleagues and subordinates too can build up high stress levels

at the workplace. Superiors often feel that putting pressure on subordinates brings out

the best in them, but this is not always true. Some employees feel overwhelmed under

stress and cannot work efficiently.


Personal Inadequacy: This can be a lack of knowledge or skills to handle a particular

task or job. This can create stress.

Role conflicts: This is a conflict between a person‘s likes, values, and job

requirements. For instance, a manager may have to take a decision regarding firing a

subordinate keeping the organization‘s interest in mind even though he/she may like

the subordinate‘s work. This creates a conflict between his/her likes and job

responsibilities, resulting in stress.

Setting high goals: Setting high goals for oneself is a major stressor. For example, a

sales manager may fix some high sales target for himself/herself in a month. Not

achieving the target may result in stress and in extreme cases may even lead to

depression.

Overwork and deadlines: Extended periods of work or continuous work can lead to

extreme stress situations. Employees, especially those in the BPO industry are

required to work in shifts that result in irregular rest hours that create stress. Strict

deadlines and rigid plans create stress in employees.

Time and Stress: Stress is a result of doing things at the wrong times. It is a result of

mismanaging time and striving hard to stick to deadlines. By developing the art of

time management, people can reduce stress. Effective time management and stress

management are inter-dependent. Time management includes planning, delegating,

organizing, and performing tasks as per schedule. Working against deadlines can start

to create stress in a person‘s life over a period of time. Stress management deals

indirectly with time management, as time management is a measure to keep stress

under control.

Effects of stress

The human body‘s reaction to stress is natural. It results from the need to resist a

stressful situation. For example, when a person is nervous, there is an increase in

his/her pulse rate. This is a ‗fight or flight‘ response. However, things can go out of

control if too much stress is present. The person can have a heart attack or a nervous

breakdown. Too much of stress can tell upon a person‘s health. If neglected, it can

lead to serious health disorders at a later stage. Stress has both physical and

psychological effects on an individual.


Chapter 7

OVERVIEW OF INDIAN RETAIL SECTOR

Indian retail industry – at a glance

Organized retailing has finally emerged from the shadows of unorganized retailing

and is contributing significantly to the growth of Indian retail sector.

Some facts about the Indian retail sector:

Retail is India‘s largest industry, accounting for over 10% of the country‘s GDP and

around 8% of the employment.

This sector is expected to increase three fold from the present Rs 5 billion.

Organized retail will form 10% of total retailing by the end of this decade (2010).

From 2006 to 2010, the organized sector will grow at the CAGR (Cumulative Annual

Growth Rate) of around 49.53% per annum.

Hypermarket is emerging as the most favorable format for the time being in India.

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.

Indian Retail industry, the industry which stands second in terms of employment

generation after agriculture is undoubtedly characterized by the widely dispersed

retail outlet situated at each nook and corner whether its urban India or rural. It is the

industry which is unlikely known for its unorganized formats. Paanwalas and

kiranawallas, street hawkers present everywhere are the various firms operating hither

and thither; and meeting the basic needs of the general public and creating a means of


earning livelihood for many. In India, the retail industry is broadly divided into the

organized and unorganized sectors. The total market in 2005 stood at Rs. 10,000

billion, accounting for about 9-10% of the country s gross domestic product (GDP).

Of this total market, the organized sector accounted for Rs. 350 billion (about 3.5 %

of the total) of the total revenues. According to AT Kearney, the organized retailing

industry is expected to cross Rs. 1000 billion revenue mark by 2010. Traditionally,

the retail industry in India comprised of large, medium and small grocery stores and

drug stores which could be categorized as unorganized retailing. Most of the

organized retailing in India had recently started and was mainly concentrated in

metropolitan cities. Within a short span of five years retail sector in India has

witnessed great changes mainly on account of a gradual increase in the disposable

incomes of the middle and upper-middle class households. In order to reap the benefit

of growing economy more and more corporate houses including large real estate

companies are coming into the retail business, directly or indirectly, in the form of

mall and shopping center builders and managers, hence the sea change in retail secto

is highly evident.

ANTICIPATED GROWTH

Current market size is roughly US$ 286 bn

96% of the 12 Million stores are less than 500 Sq. ft.

Forecast Growth rate for the retailing industry is roughly 8.3% for 2003-2008

Sales from large format stores would rise by 24-49%

Formal and modern format retailing would enjoy rapid growth

Industry dynamics

Low domestic competition

Because of fragmented nature of industry

Lack of exposure to global best practices

Low entry barriers for unorganized retailing

Moderate entry barriers for organized retailing

Wholesale system under-invested leading to 20-40% wastage

Non level playing field issues

Wide differences in treatment of small and large retailers


EMPLOYMENT IN RETAILING

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, Spencer‘s 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 d istribution partners like retailers and

distributors. The paper also delves in to 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.

Employment in Retailing

0

10

20

30

40

50

60

90 91 92 93 94 95 96 97 98 99 00 01

Year

Em

plo

ym

en

t in

Re

tail

an

d

wh

ole

sa

le (

Mn

)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

% o

f T

ota

l L

ab

or

forc

e

Employment %


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, Spencer‘s

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 in

to 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

EMERGING RETAIL FORMATS IN INDIA

India is watching resurgence of Retail sector whereby it has grown from the

traditional Mom and Pop stores present here and there in the neighborhood catering to

the convenience of the consumers to the emergence of shopping centers mainly in

urban centers with facilities like car parking and finally growth of modern retail

formats like hyper and super markets trying to provide customer with 3 V s- Value,

Variety and Volume (Lakshmi Narayanaswamy, Mudit Sharma,). A brief description

of the various modern formats of retailing emerging in India:


MALLS

Malls are an upcoming trend in retail market. They form largest share 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 DLF City Center, The Metropolitan and Big Bazaar

around Delhi, Crossroads and R-Mall in Mumbai and Spencer s in Chennai are

revolutionizing the way middle class Indian consumers shop. These malls have very

efficient and effective supply chains which ensure product availability and tracking of

the product is feasible easily.

SPECIALITY STORES

A specialty store concentrates on a limited number of complementary merchandise

categories and provides a high level of service in an area typically under 8,000 square

feet (Levy, Michael 2006); 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. Since this format has less diverse product range

thus it is comparatively easy to manage supply chains.

DISCOUNT STORES

According to Levy and Weitz a Discount Store is a retailer that offers a broad variety

of merchandise, limited service, and low prices. Discount stores offer both private

labels and national brands, but these brands are typically less fashion-oriented than

brands in department stores. The discount stores or factory outlets, offer discounts on

the MRP through selling in bulk reaching economies of scale or excess stock left over

at the season. The product category can range from a variety of perishable/

nonperishable goods. The coverage of products in this kind of format is quite

extensive and the demand fluctuation is also high thus if offers challenges in

managing supply chains effectively.


DEPARTMENT STORES

Department stores as the retailers that carry a broad variety and deep assortment, offer

some customer services, and are organized into separate departments for displaying

merchandise. These are the large stores ranging from 20000-50000 sq. ft, catering to a

variety of consumer needs. They can be further classified into localized departments

such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take

over the apparel business from exclusive brand showrooms. Among these, the biggest

success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than

seven large stores (over 30,000 sq. ft) across India and even has its own in store brand

for clothes called Stop!. It is one of the most complicated retail formats catering to the

most diversified set of consumer needs. It becomes very difficult to manage the

inventory of so many products and brands.

SUPER MARKET

As defined by Food Marketing Institute Supermarket is self-service food store with

grocery, meat and produce department and minimum annual sales of 2 million . In

India, there is growing number of such stores especially in metros and big cities

(Anjali, Gupta 2006). 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.

HYPERMARKET

Combination food and drug stores average 4,600 square meters of selling space.

Hyper markets are even larger, ranging between 7,400 and 20,400 square meters. The

Hyper markets combines supermarket, discount warehouse retailing principles. Its

product assortment goes beyond routinely purchased goods and includes furniture,

large and small appliances, clothing and many items. The basic approach is bulk

display and minimum handling by stores personnel, with discounts offered to

customers who are willing to carry heavy appliances and furniture out of the stores.

Pantaloon Retail India Ltd. (PRIL) is now emerging as India s first Hyper Market


chain. Modeled along the lines of global Hyper Market Chains like Wal-Mart, the Big

Bazaar will stock several product categories.

CONVINIENCE 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.

MBOs

Multi Brand outlets, also known as Category Killers, offer several brands across a

single product category. These usually do well in busy market places and Metros.


EVOLUTION OF THE INDIAN RETAIL INDUSTRY

The Indian retail industry is evolving in line with changing customer aspirations

across product groups, with modern formats of retailing emerging. This is in line with

what has been observed in other developed markets. Organized retailing in most

economies has typically passed through four distinct phases in its evolution cycle. In

the first phase, new entrants create awareness of modern formats and raise consumer

expectations. In the second phase,

Consumers demand modern formats as the market develop - thereby leading to strong

growth. As the market matures, intense competition forces retailers to invest in back-

end operating efficiency. In the final phase, retailers explore new markets as well as

inorganic opportunities as growth tapers off.

India is currently in the second phase of this evolution, with Indian customers

becoming more demanding with their rising standard of living and changing lifestyles.

Change in customers' focus from just buying to shopping (buying, entertainment and

experience) has led to a pickup in the momentum of organized formats of retailing.

As the sector enters the third phase of evolution, supply chain management will attain

top priority. Fierce competition will force retailers to quickly respond to changes in

the market - bringing forth the importance of supply chain management in managing

stock availability, supplier relationships, new value added services and cost cutting.

Traditional retailers are expected to enhance their investments in supply chain, whilst

new entrants are likely to look at supply chain first before rolling out their national

reach. Foreign Direct Investment (FDI) if allowed will help bring in world class retail

practices and also provide boost to the supply chain infrastructure, which is at not as

responsive to the changing and flexible demands of the customers.

Growth in Organized Retail:

Indian Retail Market is by large unorganized. Organized retailing constitutes just 3%

of Rs. 9,30,00,000 Lakhs Indian retail market. However, the scale of organized

activity is not equally spread out across all sectors. The Watches sector is the most

organized of all with almost 40 percent of the market being controlled by branded and

organized players.


The next most organized segment is that of Footwear (25%) followed by Clothing

(13.6%). Of all the retail sectors, the least organized one are Food & Grocery (1%),

Jewellery (2%) and Health & Beauty (2%). All three sectors are huge in size. F&G is

the largest of all sectors (worth Rs.6,15,00,000 Lakhs); India is the world's biggest

market for gold and jewellery though there is hardly any retailer with a national

presence in this sector other than a few; Health and beauty consciousness among

Indian consumers, especially the urban youth, is on the rise and consumers will

readily accept any quality offering in this context, service as well as product. There

exists huge potential in these and all other sectors.

Organized retail sector has been growing at 28% per annum but has only 3% market

share in the highly fragmented retail industry in India. AT Kearney has ranked India

as the second most attractive retail market after Russia, in its Global Retail

Development Index 2004 Report. The top ten cities account for 96% of total

organized retail, of which the top six cater to 82%.

The retailing industry in India, estimated at Rs. 9,30,00,000 Lakhs (2003-04) is

expected to grow at 5 percent per annum. The size of the organized retailing market in

2004 stood at Rs. 28,00,000 Lakhs, thereby making up a mere 3% of the total retailing

market. In line with predictions made by the first IMAGES-KSA Retail Report 2002,

organized retailing is well on its way to become a Rs. 35,00,000 Lakhs market by

end- 2005. Moving forward, organized retailing is projected to grow at the rate of 25-

30 percent per annum and is estimated to reach an astounding Rs. 1,00,00,000 Lakhs

by 2010.

Further, its contribution to total retail sales is likely to rise to 9 percent by the end of

the decade. Within the organized retail sector, clothing & textile dominate with a 39%

share of the pie followed by Food & Grocery, which have an 11% market share.

Going forward watches, jewellery and footwear will also increase their share of the

pie with increasing number of super & hypermarkets.


Chapter 8

COMPANY PROFILE

History:

Our Company was incorporated as Lakme Limited (Lakme) on 5th December,

1952. It was promoted by The Tata Oil Mills Company Limited (TOMCO) as its

wholly owned subsidiary. Lakme was in the business of manufacturing, sale and

export of cosmetics, toiletries and perfumery products. The name of Lakme was

changed from Lakme Limited to Lakme Private Limited in December 07, 1954.

In 1981, Lakme set up a separate pharmaceutical division called Tata Pharma for the

manufacture, sale and export of drugs and pharmaceutical products.

In 1982, Lakme became a listed public company, pursuant to the public issue of

equity shares and divestment by TOMCO of part of its stake in Lakme.

In 1989, Lakme set up Lakme Exports Limited (Lakme Exports) a 100% export-

oriented unit in the Kandla Free Trade Zone. Lakme Exports was a 100% subsidiary

of Lakme.

In 1990, Lakme, through its Subsidiary Lakme Exports, acquired control and

management of a company called Miaami Pharma and Chemicals Private Limited

(MPCL), which was engaged in the manufacture and sale of intravenous fluids.

In 1993, Tata Oil Mills Company Limited was acquired by Hindustan Lever Limited

(HLL). The shares of Lakme held by TOMCO were acquired by Tata Sons Limited

(TSL) by virtue of which TSL became Promoter of Lakme.

In the year 1994, MPCL amalgamated with Lakme. Tata Pharma, the pharmaceutical

division of Lakme, was transferred, as a going concern to a separate Company called

Tata Pharma Limited, with effect from 1st April 1995. However, Lakme retained the

MPCL operations.

With effect from 1st January 1996, the sales and marketing infrastructure of Lakme

and its subsidiary were transferred to a joint venture company called Lakme Lever

Limited (Lakme Lever), which was a joint venture between Lakme and Hindustan


Lever Limited (HLL), with each party holding 50% of the equity capital of the joint

venture company. At the same time, Lakme also transferred its brands, technologies

and related intellectual properties to its 100% subsidiary called Lakme Brands

Limited (Lakme Brands).

With effect from 1st September 1996, the MPCL Division was transferred to Bal

Pharma Limited, as a going concern.

In 1998, Lakme decided to divest from its cosmetics business and accordingly

transferred its entire holding in the capital of Lakme Lever to HLL. Lakme also

transferred its manufacturing facilities situated at Deonar, Mumbai to HLL. Lakme

Exports transferred its manufacturing activities situated at the Kandla Free Trade

Zone to HLL. The trademarks and other intellectual properties held by Lakme Brands

were also transferred to HLL.

Having divested from the cosmetic business, the management of Lakme saw a huge

opportunity in the area of apparel retailing, given the absence of established brands in

areas like ladies wear, kids wear, and household and gift articles. It was therefore

decided that Lakme would establish a strong presence in the apparel and soft goods

retailing market by opening a chain of Departmental Stores across the country, while

catering to requirements of customers in men's wear, ladies wear, kids wear, play

shop, household, gift shop and lingerie.

With this objective, in March 1998, Lakme acquired 100% Equity Shares of

Littlewoods International (India) Private Limited (LIIPL) from Littlewoods

International Limited, U.K. LIIPL was in the business of retailing of readymade

garments for men, ladies and children, household and gift items, accessories etc.

With effect from 1st January 1998, Lakme Exports was amalgamated with LIIPL and

the merged entity was named as Trent Limited.

Trent Limited, formerly known as Littlewoods International (India) Limited was

amalgamated with Lakme, with effect from 1st July 1998, and the name of Lakme

Limited was changed to Trent Limited.


In September 2002, our Company along with its subsidiary, Trent Brands Limited

acquired shares in the capital of Fiora Services Limited (FSL), thereby making FSL a

subsidiary of our Company. FSL is engaged in the business of sourcing, warehousing

and clearing and forwarding services.

In October, 2004 our Company entered the mass-retailing segment by opening a

hypermarket store under the name and style of STAR INDIA BAZAAR, at

Ahmedabad.

In September 2004, our Company acquired 100% of the share capital of Satnam

Developers & Finance Private Limited (SDFPL). SDFPL is engaged in the business

of development of commercial property.

In August 2005, Fiora Link Road Properties Limited (FLRP) was formed. Entire share

capital of FLRP is held by our Company. FLRP is engaged in the business of

development of commercial property.

In September 2005, our Company acquired 100% of the share capital of Nahar

Theatres Private Ltd (Nahar). Nahar is engaged in the business of development of

commercial property.

In August 2005, our Company entered the books and music retail market with the

acquisition of 75% share in Landmark, a partnership firm and further acquired a 3%

share in March 2006. With effect from March 31, 2006, Landmark was converted into

limited company- Landmark Limited (Landmark).

During February 2007, Landmark acquired 2,40,000 equity shares (52.18%) of East

West Books (Madras) Private Limited (East West) for a total consideration of Rs.

1,14,76,800 making it a subsidiary of Landmark.

Landmark is a leading book and music retailer in the country and is poised for rapid

expansion. Landmark operates 9 stores located in various cities. Landmark has over

100,000 book titles and is a treasure trove for avid readers. Besides this it has a strong

presence in toys and furnishings.

Currently, our Company is carrying on the business of retailing of readymade

garments for men, ladies and children, household and gift items, footwear,


accessories, toys etc., under the name "Westside" and mass retailing under the name

"STAR INDIA BAZAAR". Since the takeover of LIIPL, our Company has grown

from one store to twenty six stores of Westside, which are located at various places in

India and one store of STAR INDIA BAZAAR at Ahmedabad.

One of the distinguishing features of our Company is that it sells the products under

its own exclusive brand names. Our Company's brands "Westside", "Trent", "SRC",

"Richmond", "Sassy", "Street Blues", "Gia", "2 Fast 4 U", "Asscot" and "West sport"

have been well accepted and are fast gaining popularity. Our Company provides

quality products at reasonable prices to its customers. Value for money, styling, and a

pleasant and comfortable shopping ambience, accompanied by courteous service has

contributed to our Company's products being well accepted and well recognized.

Our Company has adopted the Tata Business Excellence Model in order to enhance

the quality of our Company's service and products. Our Company has also adopted the

Tata Code of Conduct and adheres to good corporate practices vide a Tata Brand

Equity and Business Promotion Agreement dated December 23, 1999. Our Company

vide the said agreement, can use and is associated with the Tata name, Mark and

Marketing Indicia in respect of our Company's products and services or other uses as

applicable.

Westside is established in 1998 as part of the Tata Group, Trent Ltd. And is one of the

India‘s largest and fastest growing chains of retail stores.

Style, affordable prices, quality these are the factors that have shaped Westside

success story in the retail fashion stores business. Launched in 1998 in Bangalore, the

Westside chain has, ever since, been setting the standards for other fashion retailers to

follow.

The Westside story really began in 1997, when the Tata‘s sold Lakme, their cosmetics

business, to Hindustan Lever and acquired the Britain-based Littlewoods retail chain.

A new entity called Trent Limited emerged from this move and Littlewoods was

renamed Westside.


Vision and Mission:

At Westside our mission is to be regarded by our customers as the most relevant

retailer in the country.

In order to achieve this goal, we shall develop a comprehensive understanding of their

need, strive to win their confidence, and offer them best-in-class products and services

at affordable price.

We shall always obey in the forefront of fashion and services by anticipating and

exceeding the expectation of our customers.

Our leadership will be the product of our styling, quality and service consciousness.

We will continue to scale new heights of excellence through teamwork, in an

atmosphere that encourages creativity and innovativeness.

It is our policy to satisfy our customers with the large, quality and value of the

products we offer. However, if they are dissatisfied with any item that they might

have purchased we would take the necessary measures to assist them.

We expect our customers to return unused merchandise along with its receipt within

30 days; we would exchange the returned items or give our customers a complete

refund.

In the event that they do not have the receipt we would offer them an exchange or

provide them a gift voucher to current or last known selling price.

We have complete confidence in the quality of our merchandise however should our

customers have any grievances, we would be happy to address them once they are

brought to our attention.


Head office and Branch office:

Registered office:

Bombay House

24, Homi Mody Street

Mumbai 400001, Maharashtra, India

Contact No.: +91-22-66658282

Fax No.: +91-22-22042081

Trent Limited Trent House

G Block, Plot No. C- 60,

Beside Citibank

Bandra Kurla Complex,

Bandra (East), Mumbai 51

Board no. 67009000 reception: 67009026/67009027

E-mail of the company: [email protected]

Contact No. +91-022-66767575

Fax no.: +91-022-26106193


PRODUCTS OF THE WESTSIDE

Ladies wear-

Ladies wear is displayed on the ground floor as well as on the first floor .Ground

floor is fully dedicated to Ladies western wear and first floor is for the Indian Ethnic

wear. During my 2 month program I was asked to look after the sale and stock of

ladies wear. Apart from apparel it also includes toiletries items. Ladies wear contain

only in-house brands.

Nuon: Nuon is the in house brand targeting to the ‗TEENAGERS‘ of the age

between 13-18 years. It includes latest merchandise of latest fashion. Which is easily

taken by the young girls? Nuon is the brand which has good sense of latest fashion .It

includes Sorts, Single pieces dress, Party wear dress, and designer dress.

Gia: Gia is unique collection is very good example of market segmentations. It is

targeted to plus sizes women who rarely find their dress at any stores. I personally

found that Gia has their own customer who regularly to check whether is there any

new stock in the display. Gia manages to achieve its target quite easily due to latest

collection and unique target customer.

Western Formal: Western formal includes corporate dresses and is targeted to office

going women and girls. It has wide range of collection of formal suiting‘s .Now a

days formal cloths are in need for corporate society so it is easily purchased by the

people.

Western Casual: Western Casual is meant for every on and it has widest range of

collection. Its price starts from 199 to 799 and size varying from extra-small to extra-

large. It has large collection and selected by the customer on one glimpse.

Ethnic Section: Ethnic section has the good collection of Indian wear i.e. salwar suit

and traditional kurta. That was most preferred by the women.

Toiletries: Toiletries includes cosmetic which comprises different outside brand such

as LAKME, REVELON, and CHAMBOR. It also includes hand bags which is from

both in-house and outside. Outside brand is Firoolee. Jewellery section is located at

center area of the ground floor which has 2 outside brand i.e. Gili and Cygnus.


House hold section-

House hold section is divided into two parts soft goods and hard goods.

Soft good: it includes all these,

Towels: Towels are of two types Luxury and Friendly. Both contain Bath towel (70

by 140), Hand towel (40 by 60) and Face towel (35 by 35). The main difference

between these two towels are, that Luxury towel is made of large GSM (Grand

Square Meter).Which can absorb 1 drop of water in 1 second.

Bed linen section: Which include Bed cover single (60by90) and double (90 by108).

Pillow cover (17 by 27), Cushion cover (12by12) and (16 by 16).Bed linen are also of

two types Luxury and Friendly.

Table linen: Rectangle table cover is of two type friendly and luxury (60by100).

Square table cover is of two type friendly and luxury. Round table cover are of two

type friendly and luxury (60by60), Runner (14by72), Napkin (16by16) 2 pieces set,

Mat (13 by 19) 2pieces set, filler, pillow, cushion, booster.

Foot wear section-

Footwear section is occupying the least floor space but it can easily achieve its target.

Foot wear section is the only section having no authorized departmental manager and

sales officer. It is being taken by the senior sales associates.

Male:

In-house brands – Azzurro, David jones, Wespores

Outside brands- Id, Lee cooper, Provogue

Female:

In-house brands- Boho (Light weight), Head Over Hills (khola puri), and its Sholes

are of different material- Polyurethen, PVC, TRP (Tarry Rubber Plastic), Sweat

Leather.


Kids wear section-

Kids wear department is further divided into four sub department.

Boys:

In-house brand-Street Blues

Outside brand- Harry porter

Girls:

In-house brand-Girls rule

Outside brand-Hanna Montanna

Infants: Includes new born and turny born

Play shop: Play shop has all outside brand some of them are as follow

1. Fisher price

2. My baby excel

3. Maesto

4. World republic

5. Toy craft

6. Barbie

7. Match box

8. Funskool

9. Hot wheel

10. Nuby


Entry into Retail

The operating store in Bangalore and the knowledge of the retail industry in LIIPL

provided our Company with a sound foundation and the foray into the apparel retail

business was made under a brand name "Westside".

In a short span of 8 years Westside has positioned itself as one of the leading

organized apparel retailers in India taking the shortest time to break even in the

organized apparel retail sector in India. Our company has expanded its Westside

Stores in the major metros and mini-metros of India, and has its presence in 20 cities

and is spread across all the 5 regions. Our Company in a short span of over 8 years

has carved out a name for itself using a different business model of uniquely

positioning Westside as a chain of stores offering own label products. This business

model is not only a difficult model to implement successfully but is also difficult to

replicate thereby giving our Company a unique advantage.

Our competitors are now trying to change their business strategy to increase the share

of own labels. After having established its name in the apparel sector our Company

has expanded its focus to food and grocery business as a part of its strategy. This was

done to tap the huge potential lying in the food and grocery business with its target

segment being the SEC B /C. In 2004 we opened our first Hypermarket store under

the brand name - "Star India Bazaar"

The company has already established 36 Westside departmental stores (measuring

15,000 - 30,000 square feet each) in Ahmedabad, Bangalore, Chennai, Delhi,

Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hyderabad, Indore, Jaipur,

Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Pune, Rajkot, Surat,

Vadodara and Jammu. The company hopes to expand rapidly with similar format

stores that offer a fine balance between style and price retailing.

Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an

ample assortment of products made available at the lowest prices, aptly exemplifying

its ‗Chota Budget, Lambi Shopping‘ motto. At present Star Bazaar has 4 stores in 3

cities located in Ahmedabad, Mumbai and Bangalore. This store offers customers an

eclectic array of products that include staple foods, beverages, health and beauty


products, vegetables, fruits, dairy products, consumer electronics and household

items at the most affordable prices. Star Bazaar also includes a larger range of

fashionable in-house garments for men, women and children, exclusively available at

the store.

In addition, Trent recently acquired a 76% stake in Landmark, one of the largest

books & music retail chains in the country. Landmark began operations in 1987 with

its first store in Chennai with a floor space of 5500 sq. ft. At present Landmark have

10 stores, varying in size from 12,000 sq. ft. to 45,000 sq. ft, 3 in Chennai and 1 each

in Bangalore, Gurgaon, Mumbai, Vadodara, Gurgaon, Pune, Lucknow and

Ahmedabad. Until 1996, Landmark‘s product portfolio comprised books, stationery,

and greeting cards. It was later that music was added to it. Landmark also sparked the

trend of stocking curios, toys and other gift items. What separates Landmark from

other stores of its kind is the range and depth of its stock.


TATA CODE OF CONDUCT

1. National Interest

A Tata company shall be committed in all its actions to benefit the economic

development of the countries in which it operates. It shall not engage in any activity

that adversely affects such an objective. It shall not undertake any project or activity

to the detriment of the nation's interests, or those that will have any adverse impact on

the social and cultural life patterns of its citizens. A Tata company shall conduct its

business affairs in accordance with the economic, development and foreign policies,

objectives and priorities of the nation's government, and shall strive to make a positive

contribution to the achievement of such goals at the international, national and

regional level, as appropriate.

2. Financial Reporting and Records

A Tata company shall prepare and maintain its accounts fairly and accurately in

accordance with the accounting and financial reporting standards which represent the

generally accepted guidelines, principles, standards, laws and regulations of the

country in which the company conducts its business affairs.

Internal accounting and audit procedures shall fairly and accurately reflect all of the

company's business transactions and disposition of assets. All required information

shall be accessible to company auditors and other authorized parties and government

agencies. There shall be no willful omissions of any company transactions from the

books and records, no advance income recognition, and no hidden bank account and

funds.

Any willful material misrepresentation of and/or misinformation on the financial

accounts and reports shall be regarded as a violation of this code, apart from inviting

appropriate civil or criminal action under the relevant laws.

3. Competition

A Tata company shall fully strive for the establishment and support of a competitive,

open market economy in India and abroad, and shall cooperate in efforts to promote

the progressive and judicious liberalization of trade and investment by a country.


Specifically, a Tata company shall not engage in activities that generate or support the

formation of monopolies, dominant market positions, cartels and similar unfair trade

practices.

A Tata company shall market its products and services on its own merits and shall not

make unfair and misleading statements about competitors' products and services. Any

collection of competitive information shall be made only in the normal course of

business and shall be obtained only through legally permitted sources and means.

4. Equal - Opportunities Employer

A Tata company shall provide equal opportunities to all its employees and all

qualified applicants for employment, without regard to their race, caste, religion,

colour, ancestry, marital status, sex, age, nationality and disability. Employees of a

Tata company shall be treated with dignity and in accordance with the Tata policy of

maintaining a work environment free of sexual harassment, whether physical, verbal

or psychological.

Employee policies and practices shall be administered in a manner that ensures that in

all matters equal opportunity is provided to those eligible and that decisions are based

on merit.

5. Gifts and donations

A Tata company and its employees shall neither receive nor offer or make, directly or

indirectly, any illegal payments, remuneration, gifts, donations or comparable benefits

which are intended to or perceived to obtain business or uncompetitive favours for the

conduct of its business. However, a Tata company and its employees may accept and

offer nominal gifts, which are customarily given and are of a commemorative nature,

for special events.

6. Government Agencies

A Tata company and its employees shall not offer or give any company funds or

property as donation to any government agencies or their representatives, directly or

through intermediaries, in order to obtain any favourable performance of official

duties


7. Political Non-Alignment

A Tata company shall be committed to and support a functioning democratic

constitution and system with a transparent and fair electoral system in India. A Tata

company shall not support, directly or indirectly, any specific political party or

candidate for political office. The company shall not offer or give any company funds

or property as donations, directly or indirectly, to any specific political party,

candidate or campaign.

8. Health, Safety and Environment

A Tata company shall strive to provide a safe and healthy working environment and

comply, in the conduct of its business affairs, with all regulations regarding the

preservation of the environment of the territory it operates in. A Tata company shall

be committed to prevent the wasteful use of natural resources and minimize any

hazardous impact of the development, production, use and disposal of any of its

products and services on the ecological environment.

9. Quality of Products and Services

A Tata company shall be committed to supplying goods and services of the highest

quality standards, backed by efficient after-sales service consistent with the

requirements of the customers to ensure their total satisfaction. The quality standards

of the company's goods and services should meet the required national standards, and

the company should endeavour to achieve international standards.

10. Corporate Citizenship

A Tata company shall be committed to be a good corporate citizen, not only in

compliance with all relevant laws and regulations, but also by actively assisting in the

improvement of the quality of life of the people in the communities in which it

operates, with the objective of making them self-reliant.

Such social responsibility would comprise: initiating and supporting initiatives in the

field of community health and family welfare, water management, vocational training,

education and literacy, and encouraging the application of modern scientific and


managerial techniques and expertise. This will be reviewed periodically in

consonance with national and regional priorities.

The company shall also not treat these activities as optional ones, but shall strive to

incorporate them as integral part of its business plan. The company shall also

encourage volunteering among its employees and help them to work in the

community. Tata companies are encouraged to develop social accounting systems and

to carry out social audits of their operations.

11. Cooperation of Tata Companies

A Tata company shall cooperate with other Tata companies by sharing physical,

human and management resources as long as this does not adversely affect its

business interests and shareholder value.

In the procurement of products and services, a Tata company shall give preference to

another Tata company as long as it can provide these on competitive terms relative to

third parties.

12. Public representation of the company and the Group

A Tata company shall honour the information requirements of the public and its

stakeholders. In all its public appearance with respect to disclosing company and

business information to public constituencies such as the media, the financial

community, employees and shareholders, a Tata company or the Tata Group shall be

represented only by specifically authorized directors and employees. It will be the

sole responsibility of these authorized representatives to disclose information on the

company or the group.

13. Third-Party Representation

Parties which have business dealings with the Tata Group but are not members of the

group, such as consultants, agents, sales representatives, distributors, contractors,

suppliers, etc. shall not be authorized to represent a Tata company if their business

conduct and ethics are known to be inconsistent with this code.


14. Use of the Tata Brand

The use of the Tata name and trademark owned by Tata Sons shall be governed by

manuals, codes and agreements issued by Tata Sons. The use of the Tata brand is

defined in and regulated by the Tata Brand Equity & Business Promotion Agreement.

15. Ethical Conduct

Every employee of a Tata company, including whole-time directors and the managing

director, shall deal on behalf of the company with professionalism, honesty and

integrity, as well as high moral and ethical standards. Such conduct shall be fair and

transparent and be perceived to be as such by third parties.

16. Group Policies

A Tata company shall recommend to its board of directors the adoption of policies

and guidelines periodically formulated by Tata Sons.

17. Shareholders

A Tata company shall be committed to enhance shareholder value and comply with

all regulations and laws that govern shareholders' rights. The board of directors of a

Tata company shall duly and fairly inform its shareholders about all relevant aspects

of the company's business, and disclose such information in accordance with the

respective regulations and agreements.

Every employee shall be responsible for the implementation of and compliance with

this code in his or her professional environment. Failure to adhere to the code could

attract the most severe consequences, including termination of employment.

8. Regulatory Compliance

Every employee of a Tata company shall, in his or her business conduct, comply with

all applicable laws and regulations, both in letter and in spirit, in all the territories in

which he or she operates. If the ethical and professional standards set out in the

applicable laws and regulations are below that of the code, then the standards of the

code shall prevail.


19. Concurrent Employment

An employee of a Tata company shall not, without the prior approval of the managing

director of the company, accept employment or a position of responsibility (such as a

consultant or a director) with any other company, nor provide 'freelance' services to

anyone. In the case of a whole-time director or the managing director, prior approval

must be obtained for providing such services from the board of directors of the

company.

20. Conflict of Interest

An employee of a Tata company shall not engage in any business, relationship or

activity, which might detrimentally conflict with the interest of his company or the

Group. A conflict of interest, actual or potential, may arise where, directly or

indirectly:

• An employee of a Tata company engages in a business, relationship or activity

with anyone who is party to a transaction with his or her company;

• An employee is in a position to derive a personal benefit or a benefit to any of

his or her relatives by making or influencing decisions relating to any

transaction;

• An independent judgment of the company's or Group's best interest cannot be

exercised.

The main areas of such actual or potential conflicts of interest would include the

following:

• Financial interest of an employee of a Tata company or his relatives, including

the holding of an investment in the subscribed share capital of any company or

a share in any firm which is an actual or potential competitor, supplier,

customer, distributor, joint venture or other alliance partner of the Tata

company. (The ownership of up to 1 per cent of the subscribed share capital of


a publicly held company shall not ordinarily constitute a financial interest for

this purpose.)

• An employee of a Tata company conducting business on behalf of his or her

company, or being in a position to influence a decision with regard to his or

her company's business with a supplier or customer of which his or her

relative is a principal, officer or representative, resulting in a benefit to

him/her or his/her relative.

• Award of benefits such as increase in salary or other remuneration, posting,

promotion or recruitment of a relative of an employee of a Tata company,

where such an individual is in a position to influence the decision with regard

to such benefits.

• Acceptance of gifts, donations, hospitality and/or entertainment beyond the

customary level from existing or potential suppliers, customers or other third

parties which have business dealings with the company.

Notwithstanding that such or other instances of conflict of interest exist due to any

historical reasons, adequate and full disclosure by the interested employees should be

made to the company's management. It is also incumbent upon every employee to

make a full disclosure of any interest which the employee or the employee's

immediate family, which would include parents, spouse and children, may have in a

company or firm which is a supplier, customer, distributor of or has other business

dealings with his or her company.

Every employee who is required to make a disclosure as mentioned above shall do so,

in writing, to his or her immediate superior, who shall forward the information along

with comments to the person designated for this purpose by the MD/CEO, who in turn

will place it before the MD/CEO and/or the board of directors/executive committee

appointed by the board and, upon a decision being taken in the matter, the employee

concerned will be required to take necessary action as advised to resolve/avoid the

conflict.

If an employee fails to make a disclosure as required herein, and the management of

its own accord becomes aware of an instance of conflict of interest that ought to have


been disclosed by the employee, the management shall take a serious view of the

matter and consider suitable disciplinary action against the employee.

21. Securities transactions and confidential information

An employee of a Tata company and his or her immediate family shall not derive any

benefit or assist others to derive any benefit from access to and possession of

information about the company or the Group, which is not in the public domain and

thus constitutes insider information.

An employee of a Tata company shall not use or proliferate information which is not

available to the investing public and which therefore constitutes insider information

for making or giving advice on investment decisions on the securities of the

respective Tata company on which such insider information has been obtained. Such

insider information might include the following:

• Acquisition and divestiture of businesses or business units;

• Financial information such as profits, earnings and dividends;

• Announcement of new product introductions or developments;

• Asset revaluations;

• Investment decisions/plans;

• Restructuring plans;

• Major supply and delivery agreements;

• raising finances.

22. Protecting Company Assets

The assets of a Tata company shall not be misused but shall be employed for the

purpose of conducting the business for which they are duly authorized. These include

tangible assets such as equipment and machinery, systems, facilities, materials and

resources as well as intangible assets such as proprietary information, relationships

with customers and suppliers, etc.


23. Citizenship

An employee of a Tata company shall in his or her private life be free to pursue an

active role in civic or political affairs as long as it does not adversely affect the

business or interests of the company or the Group.

24. Integrity of Data Furnished

Every employee of a Tata company shall ensure, at all times, the integrity of data or

information furnished by him or her to the company.

25. Reporting Concerns

Every employee of a Tata company shall promptly report to the management any

actual or possible violation of this code, or an event he or she becomes aware of that

could affect the business or reputation of his/her or any other Tata company.


Chapter 9

HR POLICIES

As we know that for production there are four M's required. These are Man,

Machine, Material, and Money. These all resources have equal importance in the

organization. To run the all other resources we need Man, broadly called as Human

Resources. To operate this large human resource effectively and efficiently we have

Human Resource Management. HRM is a process of acquiring, developing, maintain

and retaining the human resources.

These days we see that every economy is in era of Liberalization, Privatization and

Globalization. These trends have entered into retail market also. In India itself we see

that, FDI in Retail Sector is increasing. As in job distribution in India, Retail Sector is

the second largest employer after the agriculture (8%). In china this sector accounts

for 50 % of total jobs and growing at 15 % constantly.

These developments have been reflected in terms of increase in GDP, NI and other

indicators. But as its size has been increasing, tasks of HRM has also become too

complex. Acquiring, developing and retaining the human resources have become a

challenge. Consumer's habits are changing as media and advertisement trends. It is

going more difficult to deal with various customers.

So, the challenges OF HRM have become challenging in the retail sector, in India as

well in whole world.

Human Resource Management …

Human Resource Management deals with the man power of any organization. It

concerns about their procurement, developing and how to retain them. It‘s all how to

get the best of the human resources. It focuses on the working people. It is the

effective use of people to achieve both organizational and individual goals.

HRM consists of mainly two functions.

i. Managerial.

ii. Operational.


In all it includes the following activities:

i. Procurement.

ii. Development.

iii. Compensation.

iv. After retirement.

As the organizations are expanding their scale the importance of human resources has

been increasing. Now a days we see that companies are going global, not in only

home country they are operating in other countries also, so the role of Human

Resource Management has become more crucial. Acquiring labor and getting work

from them is very difficult, because of cultural differences. In the meanwhile the

HRM is playing a vital role in any organization.

HR Policies related to the compensation system

Compensation Management is an integral part of the management of the organization.

Compensation Management contributes to the overall success of the organization in

several ways. To be effective, the managers must appreciate the value of competitive

pay, their human resources, and have an investment view of payroll costs. It is of

prime importance for an organization to maintain pay levels that attract and retain

quality employees while recognizing the need to manage payroll costs.

About compensation

The compensation management policy and the reward system of an organization are

viewed by the employees as indicators of the management attitude and concern for

them. A good compensation management system should be able to attract and retain

employee, give them a fair deal, keep the organization competitive and motivate

employees to perform their best.

Scope of compensation

In today‘s world organizations tries more to assess the worth of an individual in terms

of his performance and contribution to the organizations. With the growing demand of

workforce and constant challenges in the business environment, organizations have to

evolve and accurate system for evaluating jobs and assessing their worth.


Compensation helps to determine the relative worth of a job in an organization in a

systematic, consistent and accurate manner. It also helps in estimating the basic pay

for each job in accordance with the importance of the job in the organizational

hierarchy. Once a basic pay is determined, the rewards, incentives and benefits

attached worth the pay, positions and performance are also determined. The basic

wages, incentives and rewards and benefits, together form the compensation package

of an employee.

A generalized compensation package across the industries:

Base pay

Base pay is the fixed compensation paid to an employee for performing specific job

responsibilities. It is typically paid as a salary, hourly or piece rate.

In the State, employee base pay is first determined when hired. Changes to an

employee's base pay can be made as he/she go through his/her career in these ways:

Change in job

When an employee changes job responsibilities, he/she may receive a:

Promotion - a change in duty assignment of an agency employee in one job class to

another job class in a salary group with a higher minimum salary rate. A promotion to

a higher level job class requires higher qualifications such as greater skills or more

experience and involves more responsibility. Employees promoted to positions in

Salary Schedules A or B will receive at least a one increment increase in salary (or 3.4

percent) or the minimum salary rate of their new salary group, whichever is higher.

Demotion - a change in duty assignment of an agency employee in one job class to

another job class that is in a salary group with a lower minimum salary rate. The

salary of a demoted employee in Schedule A or B must be reduced at least one step

(or 3.4 percent) below the employee's salary prior to the demotion. However, an

agency is not required to reduce an employee's salary if the employee accepts a

demotion in lieu of a layoff or is selected for a position in a lower salary group

because of applying for the position.


Lateral transfer - a change in duty assignment of an agency employee that moves to

another job class in the same salary group.

Pay for performance

An employee may also receive a change in base pay for their performance in the same

job:

Merit increase - a movement in a Schedule A or B employee's salary to a higher rate

in his/her same salary group. The employee must demonstrate job performance and

productivity that are consistently above what is normally expected or required. To

receive a merit, employees must have been with the agency for six continuous months

and six months must have elapsed since their last promotion, merit, or one-time merit.

One time merit increase - a lump sum payment to an employee in a classified

position. The same rules for merit increases apply to these increases.

Salary reduction - an employee's salary can be reduced based on poor performance.

The disciplinary reduction in pay can go no lower than the minimum rate of the

employee's current salary group. Employees may have their pay restored to any rate in

the same salary group, up to and including their prior rate, as their performance

improves.

Differential pay

Differential pay is non-performance based pay usually given to accommodate a

specific working condition. The State offers several types of differential pay to

employees.

There are both state and federal requirements on how to address employee overtime.

The Overtime Management Guide addresses most questions regarding this subject.

I. FLSA Overtime - federal guidelines for paying employees who work overtime.

II. State Comp Time - state guidelines for paying employees who work overtime.

III. Longevity Pay - state guidelines for paying employees based on state service time.


IV. Shift Differential - state guidelines for paying employees that work shifts different

than a normal schedule.

V. Hazardous Duty Pay - state guidelines for paying employees based on performing

work that could be hazardous to their health.

VI. On-Call Pay - state guidelines for paying employees for being on-call.

VII. Benefits Replacement Pay - state guidelines for paying employees the employer's

portion of Social Security taxes.

Variable pay

Variable pay is compensation that is contingent on discretion, performance or results.

It may be referred to as "pay at risk."

Enhanced Compensation Award - Agencies that meet certain performance criteria

may grant awards to employees who directly contribute to these performance

successes.

Retention Bonus - Bonuses paid in order to retain employees in state government.

Employee Recognition Award - Awards given to employees for recognition.

Indirect compensation:

Pay for time at work

Breaks - Rest periods of short duration, running from 5 minutes to about 20 minutes,

they are used to promote the efficiency of the employee and are customarily paid for

as working time. They must be counted as hours worked. Within the State of Texas,

these benefits are a matter of agreement between the employer and the employee.

Agency Events - Special events or programs planned by an agency to foster and

develop an agency‘s culture planned during an agency‘s work hours.

Training Hours - The time that employees are allowed for training activities and for

which they receive pay.


Not at work:

Sick leave

State employees are entitled eight hours of sick leave per month. Sick leave with pay

may be taken when an employee is prevented from performing duties because of

sickness, injury, or pregnancy and confinement. Sick leave may also be taken if an

employee needs to care for a member of his or her immediate family who is actually

ill. Sick leave may be taken to care for members of an employee's family who do not

reside in the same household only if the time taken is necessary to provide care to a

spouse, child, or parent of the employee who needs such care as a direct result of a

documented medical condition.

To be eligible for accumulated sick leave with pay for a continuous period of more

than three working days, an employee must send the administrative head of his or her

agency a doctor's certification, or an acceptable written statement of facts, showing

the nature of the illness.

Agency heads may grant employees extended sick leave if they believe it is

warranted.

Each agency may establish a sick leave pool where employees donate hours to the

pool to be used by other employees who experience a catastrophic illness or injury

that forces an employee to use all of their sick leave time.

Holiday

State agency employees are entitled to a paid day off from work on national and state

holidays observed by the state. These holidays are specified by the Legislature each

session. A state agency must have enough state employees on duty during a state

holiday to conduct the public business of the agency except for those state holidays

that fall on a Saturday or Sunday, the Friday after Thanksgiving Day, December 24th,

or December 26th.

Employees who actually work on a national holiday or a state holiday will be allowed

compensatory time off during the 12-month period following the date of the holiday

worked.


Admin leave

Agency heads are allowed to grant 32 hours of administrative leave per fiscal year to

employees for outstanding performance.

Vacation

Employees receive vacation leave based on length of their service.

Jury Service

A state employee is entitled to serve on a jury without any deduction from wages.

Officers or employees of the Senate, the House of Representatives, or any

organization in the legislative branch of state government establish exemption from

state jury service.

Emergency leave

State employees are entitled to time off with pay for a death in the family. An

employee's family is defined as the employee's spouse, the employee's and the

spouse's parents, and children, brothers, sisters, grandparents, and grandchildren of

the employee. An agency head may also grant emergency leave for other reasons

determined to be for good cause.

Income protection program

Mandated income protection programs

There are some federally mandated income protection programs.

Workers' Compensation - A benefit paid to an employee who suffers a work-related

injury or illness.

Unemployment Insurance - A program designed to provide a financial safety net for

individuals who become unemployed through no fault of their own.

Social Security and Medicare Taxes (FICA) - Taxes intended to help the elderly with

retirement and health care costs.


Voluntary income protection programs

The State of Texas also offers some income protection programs for state employees:

Health Insurance - insurance against loss by illness or bodily injury

Life Insurance - insurance to be paid to a beneficiary when the insured dies

Retirement - program designed to provide an income for your retirement and other

future financial needs.

Deferred Compensation Plans - employer deduction from pay where employee does

not pay tax until they receive the distributions at a later date.

Non-financial compensation

Non-financial compensation is different incentives given to employees that are not in

the form of direct pay.

Alternative Work Schedules - there are many alternatives to a traditional 5 day, 8 hour

work schedule.

On-the-Job Training- showing workers how to perform tasks by observing others.

Work/Life Balance - when an employer understands the needs employees have to

juggle in their lives.

Developmental Opportunities - training and other opportunities for employees to

expand their knowledge and improve their skills.

Casual Dress - allowing employees to relax their dress code at work.

Types of incentive compensation

Two types of incentives are commissions and bonuses. A commission is a

compensation based on a fixed formula such as 2 percent of sales. For example many

retail sales people compensation is based on a fix percentage of the merchandise they

sale. A bonus is additional compensation awarded periodically base on an evaluation

of the employees performance. For example store managers often receive bonus at the


end of the year based on their stores performance relative to its budgeted sales and

profit.

Besides incentives based on individual performance, retail managers often receive

additional income based on their performance, these profit sharing arrangements can

be offered as cash bonus based on firms profit or as a grant of stock option that link

additional income to performance of the firms stock

A number of retailer such as Walmart and home depot use stock incentives to

motivate and reward all employees, including sales associates. Employees are

encouraged to buy shares in their companies at discounted price through pay role

deduction plans. These stock incentives align employees‘ interest with those of

companies and can be very rewarding when company does well. However if growth

of the company stock price declines, employees morale declines too, corporate culture

is threatened, and demand for higher wages and more benefit develops.


KEY STAFF

Managerial hierarchy:

Sales associate

Sales officer

Trainee department manager

Department manager

Assistant manager operation

Deptu manager operation

Manager operation (store)

Area manager

Regional manager

Operation head

Vice president Operation and HR head

Managing director

Chairperson

Board of directors

Board of directors of the company:

Name Designation

Mr. Farrokh K. Kavarana Chairman

Mr. Noshir A. Soonawala Director

Mr. Bakhtiar S. Bhesania Independent Director

Mr. Aspy D. Cooper Independent Director

Mr. Khushroo N. Suntook Independent Director

Mr. Zubin S. Dubash Independent Director

Mr. Noel N. Tata Managing Director


Brief Description of the Chairman and Managing Director:

Chairman:

Upon retirement of Mrs. S. N. Tata as the Chairman, Mr. Farrokh K. Kavarana has

been appointed as the Chairman of the Board of Director of our Company, with effect

from October 31, 2006. Mrs. S. N. Tata has been appointed as the Chairman Emeritus

with effect from the same date. Mr. Farrokh K. Kavarana is also a Special Director

on the Board of Director of our Company, appointed by Tata Sons Limited, Promoter

of our Company in terms of Article 124 of the Article of Association of our

Company. A Director appointed as a Special Director shall not be liable to retire by

rotation or subject to the provision of the Act be removed from the office except by

Tata Sons Limited or its nominees or its successors. Mr. Farrokh K. Kavarana is also

the Chairman on the Board of other companies viz., Trent Brands Limited, Tata

Projects Limited, Tata AIG Life Insurance Company Limited, Tata AIG General

Insurance Company Limited, Tata Asset Management Limited, Tata Tea Inc.,

Tatatech Inc., Exegenix Canada Inc. and Inter Consumer Goods AG.

Managing Director:

Mr. Noel N. Tata was appointed on the Board of Directors with effect from.

December 18, 1997. He has been appointed as the Managing Director of our

Company with effect from June 15, 1999. Mr. Noel N. Tata, is a Graduate of Sussex

University (U.K.) and IEP (INSEAD). He has worked for two years with Nestle,

U.K., as a product manager. He has also worked as senior general manager with Tata

Exports Limited (now Tata International Limited) for 13 years. Mr. Noel N. Tata

possesses the necessary experience and expertise in the retail business.

Company Secretary & Compliance Officer:

Mrs. H.R. Wadia

Company Secretary

Taj Building, 2nd floor, 210, Dr. D.N. Road

Mumbai 400001, India


Tel. No. : +91-22- 2207 7205; +91-22-2207 1464

Fax No. : +91-22-2207 0216

Email: [email protected]

Website: www.mywestside.com

Domestic Legal Advisors to the Lead Manager

M/s. Crawford Bayley & Co

State Bank Buildings, 4th floor

N.G.N Vaidya Marg, Mumbai 400 023

IndiaTel.: +91-22-2266 3713

Fax. : +91-22-2266 3978 Email: [email protected]

mailto:[email protected]


Key people at store level:

Store Manager

(Mr. Rajesh Shrivastav )

Assistant Manager Operation

(Mr. Sudhir Gupta

Sales officers

Rahis Khan Anand Kumar

Alok Bhatt Trilok

Minjan Pal Krishna

Rohit Chopra Deepu

Sales associate

Department Manager

Ladies Wear Mr. Naveen

Kinds Wear Mr. Biswajit

Men’s Wear Household Mr.Rakesh

Foot Wear

Store manager

(Mr. Rajesh Shrivastav )


DUTIES AND RESPONSIBILITIES OF KEY STAFF

I have joined the Westside as a ‗Sales Associate‘. Duties and responsibilities

of a ‗Sales Associate‘ is as follow

JOB TITLE: Sales Associates

REPORT TO – Sales Officers, Department Manager, Assistant Manager-Operation

manager and other Authorized person.

JOB CONTEXT:

1. Each store has a number of departments, which consist of Menswear, Ladies

wear, Children‘s wear, Household, gift shop, play shop, coffee shop, etc. it

includes all types of merchandise. There will typically be a number of

jobholders within the department, each of whom will tend to ‗specialize‘ in a

section or more from one department as sales volumes allow. In addition to

this section/s on which the job holder concentrates, in case of exigencies of

work requirement, the service of the job holder would be utilized in other

departments, stockroom, customer service desk, other stores at the same

location or any other location etc. also.

2. The sales associate attends to the customer effectively and efficiently.

3. Ensures stock level on sales floor is maintained.

JOB CONTENT:

The main duties are summarized below:

Filling up on stock:

1. The job holder keeps a check on the levels of stock in his/her section. The

jobholder brings the stock from the stock room to the shop floor.

2. Where stock room stock levels are low, the jobholder will inform the Dept.

Manager/Assistant Manager Operations.

3. To bring/take merchandise from/to the delivery van to the stockroom/store.


4. Stock is placed on the racks in the correct position. Where items are not

priced, the jobholder will check, process and price the Merchandise before

placing stock on sale.

5. The jobholder shall ensure that merchandise is laid out as per display

principle, i.e. sizes & ration are maintained.

Till operations:

1. The job holder operations tills, accepting cash, credit cards and vouchers.

When necessary, change will be obtained from cash office under instruction

from DM/AMO of his her department.

2. The job holder shall ensure that efficient and correct billing is done. He/she is

responsible for any till discrepancies.

3. The job holder has to ensure that he/she always has enough carry bags,

stationary, audit rolls and wrapping paper at the till point.

Customer service:

1. The job involves sales assistance to customers. The jobholder is expected to be

polite and helpful when dealing with customer queries or complaints- referring

them to DM/AMO when necessary.

2. To take responsibility for customer‘ follow up.

3. The jobholder should try and maximize sales through multiple purchases

without inconveniencing the customer.

Cleaning/Tidying:

1. This involves the maintenance of an excellent standard of presentation and

tidiness of the sales floor and till areas in which the jobholder works. To clean

and maintain all fixtures and fittings/bins so that they are dust/stain free at all

times.

2. The merchandise should be tidy and presentable at all times.


Other duties:

1. When necessary, the jobholder may undertake duties such as, assisting with

layout changes-including moving, assembling fixtures and counters, providing

sales assistance to other departments of the store.

2. The jobholder shall always remain alert to ensure that shop lifting/internal

shrinkage in minimal.

3. The jobholder shall assist in visual merchandising/promotions inside and

outside the store.

4. To carry out all other duties ancillary and incidental thereto as well as other

duties assigned from time to time.

JOB ACCOUNTABILITIES:

1. Customer service

2. Replenishment

3. Till operation

4. Cleaning/Tidying

5. Stock take

RELATIONSHIPS:

External:

Customers- Serving or answering queries-Daily

Internal:

1. Assistant Manager- Operation and Departmental Manager-

Instructions/constant interaction and working contacts.

2. Other sales staff-Working contacts-Daily

SKILLS, KNOWLEDGE AND EXPERIENCE:

1. The jobholder must have at least passed SSC or possess equivalent

qualifications, must be able to speak English fluently and must have good

interpersonal/communication skills besides possessing a pleasant and

presentable personality.


2. Knowledge of one of the local languages would be advantageous and

experience of at least one year in a reputed retail organization, though not

essential would be considered as an asset.

JOB CHALLENGES:

1. Catering to the varied needs of vast range of the customers, sometimes under

intense pressure at crowded counters and on the shop floor.

2. Has to be mentally alert and physically agile throughout working hours.

3. Act as the first and best interface between the organization and customers and

help the organization reach its prime target of ‗CUSTOMER DELIGHT‘. To

ensure that stock levels on the shop floor are maintained, stock is correctly

organized, the department is kept clean and tidy and to provide exceptional

service to our customers.

4. Dull sessions can be demotivating, countering this can be a big challenges.


Chapter 10

FINDINGS

After doing of two months job, I can say that Westside‘s policies are very well mix of

theoretical and practical knowledge.

If I have been asked for the USP of Westside, I would say that Westside‘s promotion

is very much focused on world of mouth and publicity

One another fact I also find that Westside 80% to 90% target market is only 2%

population of India who are having more than 50000 per month income

Westside‘s staff training is one of the best training in industry. There was a concept of

coach. In every one section there is a coach and they are provided with coaching

material.


LEARNING

It was a great experience for me to start my career from TATA, a globally recognized

company. As I was working as an employee I have been treated as a member of Tata

family. I learnt some of the important thing which I cannot learn if I would have done

summer training. This is the USP of my last two months of hard work. Other

concerned factor of my training is I have to carry cartons and other similar work as it

was the part of job. There were total 5 departments – ladies wear, menswear,

household, children wear and footwear. I was working in ladies wear department but

I have been trained in every field so that I can be transferred anywhere in store.

I have been trained in

1. induction

2. Customer service

3. Product knowledge

4. Till operation Billing (service as a cashier)

5. Inventory management

6. First aid and fir safety training

7. Manager opening closing

8. On the job training

My first week was totally devoted to understanding the environment of

store I have been giving training under the head of induction. In this I have

been given knowledge about company structure, in-house brand, outside

brand, shop in shop in store, section in store subsection in store, customer

service desk and about customer service.

In second week I have been explored to other modules of customer

service and product knowledge. I have been trained in different qualities,

aspects, clothes making process and other things. In customer service training

I have been explored to different need of customer and how can I satisfy them.

I have been also taught on job about handling customer queries product

knowledge etc.


On the job I have learned lot of things as visual merchandising,

handling customer complaints, register maintenances etc. this time I have

learnt most significant part of training that is till operation in this I have been

explored to do billing, convincing for membership, paid membership and other

programmers.

Since after attacking on Tata in Bombay training for any emergency

condition become very significant. There were more than five mock drills for

handling situations of fire and bomb threat etc. This time another experience

happen; company changes its vision because of recession

It was a great time to learn because sale was just going to start from 2nd

of July 2009 I did pricing of stock, category management other significant

work to learn. I have been also trained in how to start a day and how to close it

(manager opening closing)

Hard schedules, big public and target pressure, and lot of experience but these

40 days was great – great learning I have been totally explored to practical

culture of retail industry, it was my fortune that I am doing my summer

training from TATA. My designation was sales associate, my division was

retail operation.


SUGGESTIONS AND RECOMMENDATIONS

One of the lacking factors of Westside is their timing schedules of workers. I have to

work for 12 to 14 hours daily. Due to this our effectiveness goes slow and we do not

provide perfect service to our customer.

Another factor is that no good distribution of job. In management it is important to

assign jobs, responsibilities but their a sales associate also does a work of manger as

well as a work of house keeping

Lack of promotion is another factor on that Westside management should work. There

is a very much lack of promotion, most of the population does not know about

Westside and its offer.

As a Tata enterprise this organization is not able to give a stereo effect. Even most of

the people do not know that this a TATA enterprises

Their most of the top level employees are from internal promotion. They are not

explored to management theories because of this they are unable to work effectively.

There was a problem of security tag, sometime at the time of billing some products

were missed to remove tags that‘s why at the exit gate beep were siren then it was a

very embarrassing for the customer as well as employee of that store and I think that

employee should do the tags it in a proper manner.


WORD OF THANKS

I take the opportunity to pay heart y regards to Dr. D. K. GARG

(Chairman), Mr. M. K. VERMA (Dean) and placement head Mr. T. K.

GUHA for lending me their kind support for completion of my project.

I thank all those who directly or indirectly supported me morally,

financially and through providing knowledge by which I could

complete my summer training.

Last but not the least I am thankful to the management of Westside

team & especially to my guide Mr. Rajesh Shrivastav whose co-

operation and guidance was a milestone in completion of my project.


BIBLIOGRAPHY

Books:

Marketing Management : By Philip Kotler

Marketing management : By Ramaswami

Retail marketing : By Swapna Pradhan

Retail marketing : By Chetan & Bajaj

Business magazines:

Business Today

Business World

4P‘s

India today

Newspapers:

The Times Of India

Economics Time

Web sites:

http://www.mywestside.com

http://www.en.wikipedia.org

http://www.about.com

Employee motivation and job satisfaction in retail sector with reference to Tata Retail Enterprise

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