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KOTAK MAHINDRA MUTUAL FUND

CHAPTER 1

INTRODUCTION

HISTORY AND PROFILE OF MUTUAL FUND INDUSTRYThe origin of mutual fund industry in India was with the introduction of the concept

of mutual fund by UTI - Unit Trust of India in the year 1963. Though the growth was

slow, but it accelerated from the year 1987 when non-UTI players entered the

industry. In the past decade, Indian mutual fund industry had seen dramatic

improvements, both quality wise as well as quantity wise. Before, the monopoly of

the market had seen an ending phase; the Assets Under Management (AUM) was Rs.

67billion. The private sector entry to the fund family rose the AUM to Rs. 470 billion

in March 1993 and till April 2004, it reached the height of 1,540 billion. The mutual

fund industry can be broadly put into four phases according to the development of the

sector. Each phase is briefly described as under:

FIRST PHASE - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set

up by the Reserve Bank of India and functioned under the regulatory and

administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from

the RBI and the Industrial Development Bank of India (IDBI) took over the

regulatory and administrative control in place of RBI. The first scheme launched by

UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crore of assets

under management.

SECOND PHASE - 1987-1993

1987 marked the entry of Public Sector mutual funds setup by Public Sector Banks

and Life Insurance corporation Of India (LIC) and General Insurance Corporation of

India (GIC). SBI Mutual Fund was the first followed by Canbank Mutual Fund

(December 1987), Punjab National Bank Mutual Fund (August 1989), Indian Bank

Mutual Fund (November 1989), Bank of India (June 1990), Bank of Baroda Mutual

Fund (October 1992). LIC in 1989 and GIC in 1990. The end of 1993 marked

Rs.47,004 as assets under management.

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THIRD PHASE - 1993-2003

With the entry of private sector funds in 1993, a new era started in the Indian mutual

fund industry, giving the Indian investors a wider choice of fund families. Also, 1993

was the year in which the first Mutual Fund Regulations came into being, under

which all mutual funds, except UTI were to be registered and governed. The erstwhile

Kothari Pioneer (now merged with Franklin Templeton) was the first private sector

mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now

functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual

fund houses went on increasing, with many foreign mutual funds setting up funds in

India and also the industry has witnessed several mergers and acquisitions. As at the

end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805

crores. The Unit Trust of India with Rs.44,541 crores of assets under management

was way ahead of other mutual funds.

FOURTH PHASE - SINCE FEBRUARY 2003

This phase had a bitter experience for UTI. It was bifurcated into two separate

entities. One is the Specified Undertaking of the Unit Trust of India with AUM of

Rs.29,835 crore (as on January 2003). The Specified Undertaking of Unit Trust of

India, functioning under an administrator and under the rules framed by Government

of India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is

registered with SEBI and functions under the Mutual Fund Regulations. With the

bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000

crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the

SEBI Mutual Fund Regulations, and with recent mergers taking place among

different private sector funds, the mutual fund industry has entered its current phase

of consolidation and growth. As at the end of September, 2004, there were 29 funds,

which manage assets of Rs.153108 crores under 421 schemes.

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MUTUAL FUND AND ITS CONCEPT

A Mutual Fund is a trust that pools the savings of a number ofinvestors

who share a common financial goal. The money thus collected is then invested in

capital market

instruments such as shares, debentures and other securities. The income earned

through these investments

and the capital appreciation realised are shared by its unit holders in proportion to the

number of units owned by them. Thus, a Mutual Fund is the most suitable investment

for the common man as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low cost. The flow chart

below describes broadly the working of a mutual fund:

With the increase in mutual fund players in India, a need for mutual fund association

in India was generated to function as a non-profit organization. Association of Mutual

Funds in India (AMFI) was incorporated on 22nd August, 1995. AMFI is an apex

body of all Asset Management Companies (AMC) which has been registered with

SEBI. Till date all the Asset Management Companies that have launched mutual fund

schemes are its members. It functions under the supervision and guidelines of its

Board of Directors. Association of Mutual Funds India has brought down the Indian

Mutual Fund Industry to a professional and healthy market with ethical lines

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high esteem. Mr. Anand Mahindra, an MBA from Harvard University, is the

Managing Director of one of Indias most reputed industrial firms, Mahindra &

MahindraLimited.

Kotak Mahindra Finance Limited started with a capital base of Rs. 30.88 lakh. From

being a provider of a single financial product, Kotak Mahindra Finance Limited grew

substantially during the seventeen years of its existence into a highly diversified

financial services company and has now converted into a Bank. As on March 31,

2008, the net worth (capital plus reserves & surplus) of Kotak Bank is Rs. 3,535.49

crore and combined with its subsidiaries, the Group net worth (before minority

interest) is Rs. 5824 crore. There are over 92,200 shareholders of Kotak Bank. The

Sponsor and its subsidiaries/associates offer wide ranging financial services such as

loans, lease and hire purchase, consumer finance, home loans, commercial vehicles

and car finance, investment banking, stock broking, mutual funds, primary market

distribution of equity and debt products and life insurance. The group has offices

(including representative offices and franchise offices) in 370 Indian cities and also

present internationally in Mauritius, San Francisco, London, Dubai, New York and

Singapore. Kotak Mahindra (UK) Limited, a subsidiary of Kotak Bank, is the first

company owned from India to be registered with the Financial Services Authority in

UK. Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between

Kotak Bank and Old Mutual based in the UK and with large presence in the South

African insurance market. Some of the other subsidiaries of Kotak Bank are Kotak

Investment Advisors Ltd formerly known as (Kotak Mahindra Securities Limited),

Kotak Mahindra Prime Limited, Kotak Mahindra (International) Limited, Kotak

Mahindra Trusteeship Services Limited (formerly known as Kotak Mahindra Private-

Equity Trustee Limited), Kotak Mahindra Investments Limited, and Kotak Forex

Brokerage Limied

KOTAK MAHINDRA ASSET MANAGEMENT CO. LTD

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned

subsidiary of Kotak Mahindra Bank Ltd.(KMBL), is the Asset Manager for Kotak

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Mahindra Mutual Fund (KMMF). Kotak Mahindra Asset Management Company

Limited started operations in December 1998 and has over 4 Lac investors in various

schemes.

The company offers innovative investment solutions and world-class services and

conveniences to facilitate wealth creation for their investors. Kotak Mahindra Asset

Management company started its unit in cochin in 2001. After that there were a

number of branches opened in the main hubs of Kerala. The regional office of

Kerala is in Kochi and the main operational and sales activities are handled from this

branch.

The Kotak Vision

A global Indian financial services brand

The most trusted financial services company

The most preferred employer in financial services industry

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CHAPTER 3

JOB SATISFACTION

Job satisfaction has been defined as a pleasurable emotional state resulting from the

appraisal of ones job; an affective reaction to ones job and an attitude towards ones

job. Job satisfaction describes how content an individual is with his or her job. There

are a variety of reasons that can influence a persons level of job satisfaction. Some of

these include the level of pay and benefits, the perceived fairness of the promotion

system within the company, the quality of the working conditions, leadership and

social relationships and even sometimes the job itself.

The happier people are within their jobs, the more satisfied they are said to be. The

more unsatisfied with their jobs greater the chances of them seeking out jobs that

appeal to their desires and thereby creating a cost of recruiting, training and

maintaining new employees.

REASONS FOR LACK OF JOB SATISFACTION.

International Consulting Group, Kepner-Tregoe, found among 1,290 managers

surveyed, over two thirds revealed retention had actually worsened despite a

concerted effort to retain people. In the US the average turnover rate in companies is

now 23% per annum. Worse still, almost a quarter of these companies have a turnover

rate between 30% and 50%.

Employees cited the following three top reasons they would begin searching for a

new job:

53 percent seek better compensation and benefits.

35 percent cited dissatisfaction with potential career development.

12 percent said they were ready for a new experience

The Management Consulting firm, McKinsey & Company, found that mid and senior

managers rated the following as "critical" factors:

Interesting and challenging work 59 %

Can meet personal and family commitments 51%

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Company is well managed 48 %

Passionate about the work 45 %

Good relations with the boss 43 %

Listened to and can impact decisions 41 %

Good culture and values 39 %

Recognized and rewarded for individual contribution 39 %

Career development opportunities 37 %

Loss of human assets, lower productivity, and lower performance levels are the

negative results of high turnover. The management must provide good retention

strategy to improve human assets. Creative Human Asset Retention Strategies have to

be emphasized. Opportunity to grow and learn at work is emerging as a primarydeterminant of attracting and retaining employees. Cash is not the main factor that

keeps employee in their current job or attracts them a way to a new job.

A recent Chandler Hill Partners poll asking job seekers to comment on the level of

satisfaction with their current job indicated that only 27 percent of respondents

considered their jobs to be satisfying.

A 27 percent satisfaction rate is an alarmingly low number considering that job

satisfaction impacts productivity levels, quality of interaction in the corporate culture

and society in general as workers return to their private lives with the stress and

frustrations accumulated during the workday.

What does it take to be satisfied in ones job?

Money, yes certainly, as a society we are still validated somewhat by the salaries we

command individually, but another poll taken by Chandler Hill Partners indicates that

money isnt the only ingredient in job satisfaction.

Recognition and reward are the goals when human resource departments sit down to

design Employee Motivation Programs, but our clients tell us other things play even

larger roles; issues such as personal challenge, personal reputation, the companys

image in the community and its impact to humanitarian and environmental concerns.

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Certainly organizations have a moral and legal obligation to create working

conditions that foster satisfaction by eliminating negative factors such as unfair pay,

discrimination, hostility, harassment, and safety and security risks.

Those legal issues in and of themselves however will not grant the kind of satisfaction

most people seek. For some it will forever remain an elusive pursuit while others will

find satisfaction regardless of the conditions, pay, or behavior of the employer.

Obviously personal attitude and individual perception play a role.

A breakdown or prescription of individual, measurable elements helps in this pursuit

of job satisfaction:

Self Knowledge Understanding ones personal combination of acquired skills and

innate talents is critical. Satisfaction will only happen when an ability to excel is

present and when one can feel proud of the days accomplishments. Identifying these

skills and talents then is the first step in determining whether or not a particular job

has any chance at all of providing satisfaction to an individual.

Environment Clearly if a person is to be satisfied he or she must be in an

environment that provides a foundation on which they can utilize those skills and

talents in ways that give outlet to creative expression, or quiet participation

whatever the level of the individual, the environment must be conducive.

Growth and Challenge None of us want to be in the same position when we

finish our careers as when we started. Even those who are not high achievers or less

aggressive in their pursuit of promotion and career advancement still want to know

that there is space for them to move forward.

Recognition and Reward Just like none of us want to be stuck in the same no-

growth, no-advancement position for all of our lives as workers, most want to be

recognized and rewarded for their positive contributions.

This prescription works equally well for the employer or human resource department

who want to make sure that each employee is properly matched to the demands of the

specific job, has an environment resplendent with the appropriate tools, license, and

space to function optimally, is provided growth opportunity and opportunity to learn

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and be challenged, and finally, who cares enough about the individual employee to

recognize and reward appropriately.

With this litmus test, (1) self knowledge, (2) environment (3) growth and challenge

(4) recognition and reward, any individual can begin an analytical evaluation of their

current situation and look critically at the world of work around them to determine

where and what might bring them greater job satisfaction and thus enhance the

quality of their lives at work and at home. Employers can apply the same critical

evaluation when developing role definitions and structuring their organizational

charts. Their motive is, of course, the bottom line. Less waste and absenteeism, and

greater productivity are the rewards of a satisfied, empowered workforce.

What makes an employee to quit?

Lack of training programs: Organizations should plan training programs that

helpful to improve the employee competencies with current trends.

Lack of Challenging Atmosphere: Employer must provide challenging

environment, that help to prove the employees. Challenging atmosphere help the

employees prove their worth and bring out their skills.

Lack of Autonomy: Employer maintains centralization, employees feel some in

convince. Giving employees responsible positions, they work in their own style.

Lack of work place relationships: In case employers failed to maintain healthy

relationships among the staff members that causes for all disputes.

In attractive compensation : Compensation plays an important role in motivating

employees.

MODELS OF JOB SATISFACTION

A) DISPOSITIONAL THEORY

Dispositional theory 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 ones 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. However the scope of the theory was narrowed by the theory put

forward by Timothy A. Judge in 1998 (Core Self-evaluations Model), which argued

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that there are four core Self-evaluations that determine ones disposition towards job

satisfaction. They were self esteem, general self efficacy, locus of control and

neuroticism. The model suggested that at higher levels of self esteem and general self

efficacy brought forth higher work satisfaction; having an internal locus of control

lead to higher job satisfaction and lower levels of neuroticism also contributed to

higher job satisfaction.

B) TWO FACTOR THEORY

Frederick Hertzbergs Two factor theory (also known as Motivator Hygiene theory)

attempts to explain satisfaction and motivation in the work place. The 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. For example

achievement in work, recognition, promotion opportunities etc. These motivating

factors are considered intrinsic to the job or the work carried out. Hygiene factors

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

supervisory practices and other working conditions.

The theory could not be empirically proved since it does not consider individual

differences, conversely predicting that all employees will react in an identical manner

to changes in motivating/ hygiene factors. The model is also criticized in that it does

not specify how motivation/hygiene factors are to be measured.

C) AFFECT THEORY

Edwin A. Lockes Range of Affect theory states that satisfaction is determined by a

discrepancy between what one wants in a job and what one has in a job. The theory

further states that how much one values a given facet of work moderates how

satisfied/dissatisfied one becomes when expectations are/are not 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 does not value the 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 higher degree of

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autonomy and less satisfied in a position with little to no autonomy compared to

employee B.

The theory also states that too much of a particular facet will produce stronger

feelings of dissatisfaction the more a worker values that facet.

D) JOB CHARACTERISTICS MODEL

Hackman and 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; which in turn

influence work outcomes like 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

employees attitudes and behaviours.

MEASUREMENT OF JOB SATISFACTION

There are many methods for measuring job satisfaction. The most common method

for collecting data regarding job satisfaction is the Likert scale so named after Rensis

Likert. Point systems, yes/no questions, checklists, open ended questions and forced

choice answers are some other less common methods used to measure job

satisfaction.

The Job Descriptive Index (JDI), was created by Smith, Kendall and Hulin as a

specific questionnaire of job satisfaction that measures ones satisfaction in five

facets:- promotions, pay, promotion opportunities, co-workers, supervision and the

work itself.

The Job in General Index is an improvement to the JDI as it focuses too much on

individual facets and not enough on work satisfaction in general

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Minnesota Satisfaction Questionnaire measures job satisfaction in 20 facets and has

a long form with 100 questions (5 for each facet) and a short form of 20 questions

(one item from each facet)

The Job Satisfaction Survey is a 36 item questionnaire that measures nine facets of

job satisfaction.

The Faces Scale of Job Satisfaction measures overall job satisfaction with just one

item which the participants respond to by choosing a facet

CHAPTER 4

DATA ANALYSIS & INTERPRETATION

This study mainly focuses on the job satisfaction of the employees of Kotak

Mahindra Asset Management Company Kochi. For this purpose a sample of 100

employees were drawn at random from the existing pool of 300 employees. These

selected employees were provided with a questionnaire (see annexure) designed to

assess the employees job satisfaction at their present job.

The questionnaire is designed to evaluate job satisfaction on the basis of four

variables that would provide an overall score to the total job satisfaction of the

employee, as well as provide a glimpse into the employees feelings toward the

companys policies of compensation and provision of opportunities to further

themselves, the environment in which the employee operates and the effect it has on

his work and the recognition that the employee receives for the work he/she has done.

The questionnaire provides a series of statements relating to the four independent

variables of the study and respondents are requested to indicate their level of response

by utilizing the rating scale provided. The values placed in the rating scale are

provided as the maximum toward a positive answer and the least to a negative

answer. The data so collected has been tabulated and using percentage analysis aswell as regression analysis, the data has been interpreted to represent the views and

opinions of the employees. The regression analysis undertaken, through the aid of

SPSS software, has been to show the relative effect each of the independent variables

have on the total job satisfaction of the employees.

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The statements interpreted have been shown graphically in the form of pie diagrams,

bar charts and tables. The personal information of the employees has been graphically

documented to provide an overview on the employee constitution of Kotak Mahindra

Asset Management Co. Ltd. Kochi.

Age

Age c lassification

50 and above

35 to 50

25 to 35

below 25

Table T1

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AGE CLASSIFICATION NO. OF RESPONDENTS

Below 25 14

25 to 35 40

35 to 50 40

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Tenure

T e n u r e

25 and above20 to 2515 to 2010 to 155 to 101 to 5

No.

ofrespond

ents

30

20

10

0

Fig. 2

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Tenure in years NO. OF RESPONDENTS

1 to 5 19

5 to 10 23

10 to 15 24

15 to 20 10

20 to 25 16

25 and above 8


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Educational Qualification

Educational Qualif ication

diploma holder

post graduategraduate

Fig. 3

Educational Qualification NO. OF RESPONDENTS

Graduate 56

Post Graduate 30

Diploma Holders 14

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Income

Income Distribution

30000 and above

20000 to 30000

10000 to 20000

Fig. 4

INCOME CLASSIFICATION (RS) NO. OF RESPONDENTS

10,000 TO 20,000 pm 44

20,000 TO 30,000 pm 32

30,000 and above 24

STATEMENT 1: You feel you are well paid for your current job position/

responsibilities

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You fee l you are wel l pa id for yo ur cu rrent job po si tio

highly sa t isf iedsatisf iedneutra l

Count

60

50

40

30

20

10

0

Fig. 5

INTERPRETATION:

A majority of 56 respondents felt that they were well paid in terms of parity between

job responsibility and compensation.

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STATEMENT 2: You are satisfied with the benefits that form part of your salary

package.

you are satisfied with the benefits that form your salary package

highly satisfiedsatisfiedneutralunsatisfied

Count

50

40

30

20

10

0

Fig. 6

INTERPRETATION:

A total of 46 respondents felt satisfied with the benefits that formed their salary

package. This was followed closely by 40 neutral responses.

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STATEMENT 3: You are satisfied with the amount of paid vacation/ sick leave

offered by your company.

you are satisfied with the amount of paid vacation/leave offered.


Count

50

40

30

20

10

Fig. 7

INTERPRETATION:

42 respondents said that neutral feelings toward the amount of paid vacation or leave.

There were 22 satisfied responses and 16 respondents that felt unsatisfied.

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STATEMENT 4: You are satisfied with the reasonableness of your work

responsibilities.

you are satisfied with the reasonableness of your work duties

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

50

40

30

20

10

0

Fig. 8

INTERPRETATION:

A total of 46 respondents were satisfied with the reasonableness of their work, 12

were highly satisfied, while 2 respondents were highly unsatisfied.

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STATEMENT 5: Your job provides you opportunities to utilize your skills and

talents.

your job provides you opportunities to utilize your skills and talent

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

40

30

20

10

0

Fig. 9

INTERPRETATION:

32 respondents said they were unsatisfied that their skills and talents were not fully

utilized, while 8 were highly unsatisfied. 28 respondents were satisfied.

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STATEMENT 6: Your work gives you a sense of personal accomplishment

your work gives you a sense of personal accomplishment


Count

50

40

30

20

10

0

Fig. 10

INTERPRETATION:

44 respondents claimed a neutral response, while 16 respondents were unsatisfied. 10

respondents were highly satisfied.

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STATEMENT 7: You feel secure in your job.

you feel secure in your job

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

50

40

30

20

10

0

Fig. 11

INTERPRETATION:

42 respondents were satisfied with the sense of security in their jobs. A total of 20

respondents were unsatisfied with job security.

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STATEMENT 8: You are confident of a job promotion.

you are confident of a job promotion

highly confident

confident

neutral

unconfident

highly unconfident

Count

50

40

30

20

10

0

Fig. 12

INTERPRETATION:

44 respondents were neutral in their feelings toward receiving a promotion. 22

respondents were confident of a job promotion.

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STATEMENT 9: Your Companys promotion policy appeals to you.

your company's promotion policy appeals to you

highly appealing

appealing

neutral

unappealing

highly unappealing

Count

40

30

20

10

0

Fig. 13

INTERPRETATION:

38 respondents were neutral to the companys promotion policy. 28 respondents

found the policy appealing. However a total of 26 respondents found the policy

unappealing.

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STATEMENT 10: You are satisfied with your companys current training

programme

you are satisfied with your company's current training programme


Count

60

50

40

30

20

10

0

Fig. 14

INTERPRETATION:

50 respondents were satisfied with the companys current training programme.

However 4 respondents were unsatisfied.

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STATEMENT 11: Your Company encourages /facilitates further learning.

your company encourages further learning

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

40

30

20

10

0

Fig. 15

INTERPRETATION:

34 respondents possessed a neutral position toward the companys policy of further

learning. 28 respondents were unsatisfied when asked if their company encourages

further learning.

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STATEMENT 12: You feel sufficiently capable at your job with the current training

received

you feel sufficiently capable at your job with the current training

highly satisfiedsatisfiedneutralhighly unsatisfied

Count

60

50

40

30

20

10

0

Fig. 16

INTERPRETATION:

48 respondents were neutral to the capability of the training programme. 44

respondents were satisfied with the training programme.

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STATEMENT 13: Your company provides adequate opportunities for periodic

changes in duties.

your company provides opportunities for changes in duties

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

30

20

10

0

Fig. 17

INTERPRETATION:

28 respondents were highly unsatisfied at chances of job rotation. 26 respondents

were neutral while 24 were satisfied with the job rotation opportunities.

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STATEMENT 14: You have the materials/equipment required to do your job

efficiently.

you have the materials required to do your job efficiently

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

70

60

50

40

30

20

10

0

Fig. 18

INTERPRETATION:

A total of 58 respondents were satisfied with the availability of required materials to

perform their work.

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STATEMENT 15: The mission/vision statement of the company influences the effort

you put into your work.

the mission/vision of the company influences the effort you put in

highly affected

partially affected

neutral

unaffected

Count

50

40

30

20

10

0

Fig. 19

INTERPRETATION:

40 respondents were partially affected by the mission/vision of the company. 10

respondents were unaffected by the mission/vision of the company.

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STATEMENT 16: The effectiveness of communication among you and your co-

workers

the effectiveness of communication among you and your co workers

highly satisfiedsatisfiedneutralhighly unsatisfied

Count

60

50

40

30

20

10

0

Fig. 20

INTERPRETATION:

A majority of 48 respondents were satisfied with inter personnel communication

flow.

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STATEMENT 17: You are satisfied with your work environment

you are satisfied with your work environment

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

60

50

40

30

20

10

0

Fig. 21

INTERPRETATION:

A total of 48 respondents were satisfied with their work environment.

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STATEMENT 18: You are satisfied with the counseling/grievance measures offered.

you are satisfied with the grievance/counselling measures offered

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

50

40

30

20

10

0

Fig. 22

INTERPRETATION:

40 respondents were neutral to the grievance measures offered while 28 respondents

were unsatisfied.

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STATEMENT 19: You are able to maintain a reasonable work/life balance.

you are able to maintain a reasonable work life balance


Count

60

50

40

30

20

10

0

Fig. 23

INTERPRETATION:

A majority of 50 respondents were neutral about being able to maintain a reasonable

work/life balance. 34 respondents satisfactorily maintain a reasonable work/life

balance.

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STATEMENT 20: You are satisfied with your companys performance appraisal

system

you are satisfied with your company's performance appraisal system

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

50

40

30

20

10

0

Fig. 24

INTERPRETATION:

42 respondents were satisfied with the companys performance appraisal system. A

total of 8 respondents were unsatisfied.

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STATEMENT 21: You are able to freely approach your supervisors with

problems/doubts.

you are able to freely approach your supervisors with problems/doubts

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

40

30

20

10

0

Fig. 25

INTERPRETATION:

A majority of 38 respondents were satisfied with their freedom to approach their

supervisors with doubts or problems.

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STATEMENT 22: You define your relationship with your subordinates.

you define your relationship with your subordinates as

highly satisfactorysatisfactoryneutral

Count

40

38

36

34

32

30

28

26

Fig. 26

INTERPRETATION:

A total of 38 respondents were satisfied with their relationships with their

subordinates.

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STATEMENT 23: You feel you are able to contribute to the decision making process.

you feel you are able to contribute to the decision making process

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

70

60

50

40

30

20

10

0

Fig. 27

INTERPRETATION:

A majority of 60 were neutral on their involvement in the decision making process. A

total of 12 respondents were unsatisfied with the involvement in the decision making

process.

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STATEMENT 24: You feel that you receive appropriate recognition for your

contributions.

you feel that you recieve appropriate recognition for your contributions

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

50

40

30

20

10

0

Fig. 28

INTERPRETATION:

A majority of 40 respondents were neutral on receiving recognition for their

contributions. 36 respondents were satisfied with the recognition received.

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STATEMENT 25: You are provided ample opportunities to exercise independence at

work.

you are provided ample opportunities to exercise independence at work

highly satisfied

satisfied

neutral

unsatisfed

highly unsatisfied

Count

40

30

20

10

0

Fig. 29

INTERPRETATION:

32 respondents were satisfied with opportunities to exercise independence at work.

However 22 respondents were unsatisfied while 12 respondents were highly

unsatisfied.

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STATEMENT 26: You are able to function well in a collaborated effort.

you are ablr to function well in a collaborated effort


Count

60

50

40

30

20

10

0

Fig. 30

INTERPRETATION:

A majority of 48 respondents were neutral to the ability to function in a collaborated

effort. 46 respondents were satisfied with their ability to function in a group effort.

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STATEMENT 27: You are satisfied with the sense of empowerment you have to

influence the quality of work.

you are satisfied with the empowerment to influence thequality of work

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

40

30

20

10

0

Fig. 31

INTERPRETATION:

A majority of 30 respondents were neutral to the empowerment they feel to influence

their work. 28 respondents were unsatisfied with their sense of empowerment.

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STATEMENT 28: You receive adequate constructive feedback from your

supervisors.

you recieve adequate constructive feedback from your supervisors

highly satisfied

satisfied

neutral

unsatisfied

highly unsatisfied

Count

60

50

40

30

20

10

0

Fig. 32

INTERPRETATION:

A majority of 56 respondents were satisfied with constructive feedback they received

from their supervisors.

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HYPOTHESIS TESTING

TEST 1: Impact of compensation on job satisfaction.

INDEPENDENT VARIABLE: Compensation.

DEPENDENT VARIABLE: Job Satisfaction.

Hypothesis:

Ho: There is no significant impact of compensation on job satisfaction.

Ha: There is a significant impact of compensation on job satisfaction.

Analysis:

Model Summary

.865a .748 .745 7.7578

Model

1

R R Square

Adjusted

R Square

Std. Error

of the

Estimate

Predictors: (Constant), TOTCOMPa.

TABLE TH1.1

ANOVAb

17493.624 1 17493.624 290.674 .000a

5897.936 98 60.183

23391.560 99

Regression

Residual

Total

Model

1

Sum of

Squares df

Mean

Square F Sig.

Predictors: (Constant), TOTCOMPa.

Dependent Variable: TOTALJSb.

TABLE TH1.2

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Coefficientsa

25.262 4.358 5.796 .000

2.888 .169 .865 17.049 .000

(Constant)

TOTCOMP

Model

1

B Std. Error

Unstandardized

Coefficients

Beta

Standardi

zed

Coefficien

ts

t Sig.

Dependent Variable: TOTALJSa.

TABLE TH1.3

INTERPRETATION:

1) If the significance value of t is less than 0.05 we can safely reject the null

hypothesis in favor for the alternate hypothesis

Here the significance of t is 0.000, which is lower than 0.05. Hence we can reject

the null hypothesis in favor of the alternate which is:

Ha: There is a significant impact of compensation on job satisfaction.

2) The value of r squared represents the strength of association between the

independent and dependent variables. R squared is read in percentage.

Here r squared is .748 read as 74.8% which explains that 74.8% variability in job

satisfaction can be explained by the compensation variable.

TEST 2: Impact of opportunity on job satisfaction.

INDEPENDENT VARIABLE: Opportunity

DEPENDENT VARIABLE: Job Satisfaction

Hypothesis:

Ho: There is no significant impact between opportunity and job satisfaction

Ha: There is a significant impact between opportunity and job satisfaction

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Analysis:

Model Summary

.894a .800 .798 6.9131Model1

R R Square

Adjusted

R Square

Std. Error

of the

Estimate

Predictors: (Constant), TOTOPPa.

TABLE TH2.1

ANOVAb

18708.010 1 18708.010 391.452 .000a

4683.550 98 47.791

23391.560 99

Regression

Residual

Total

Model

1

Sum of

Squares df

Mean

Square F Sig.

Predictors: (Constant), TOTOPPa.


TABLE TH2.2

Coefficientsa

35.678 3.244 10.999 .000

3.314 .168 .894 19.785 .000

(Constant)

TOTOPP

Model

1

B Std. Error

Unstandardized

Coefficients

Beta

Standardi

zed

Coefficien

ts

t Sig.


TABLE TH2.3

INTERPRETATION:


hypothesis in favor for the alternate hypothesis.

Here the significance of t is 0.000, which is lower than 0.05. Hence we can reject

the null hypothesis in favor of the alternate which is:

Ha: There is a significant impact between opportunity and job satisfaction

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Here r squared is .800 read as 80% which explains that 80% variability in job

satisfaction can be explained by the opportunity variable.

TEST 3: Impact of environment on job satisfaction.

INDEPENDENT VARIABLE: Environment


Hypothesis:

Ho: There is no significant impact between environment and job satisfaction.

Ha: There is a significant impact between environment and job satisfaction.

Analysis:

Model Summary

.346a

.120 .114 6.4540

Model

1

R R Square

Adjusted

R Square

Std. Error

of the

Estimate

Predictors: (Constant), TOTENVa.

TABLE TH3.1

ANOVAb

19309.396 1 19309.396 463.558 .000a

4082.164 98 41.655

23391.560 99

Regression

Residual

Total

Model

1

Sum of

Squares df

Mean

Square F Sig.

Predictors: (Constant), TOTENVa.


TABLE TH3.2

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Coefficientsa

1.921 4.526 .424 .672

2.923 .136 .909 21.530 .000

(Constant)

TOTENV

Model

1

B Std. Error

Unstandardized

Coefficients

Beta

Standardi

zed

Coefficien

ts

t Sig.


TABLE TH3.3

INTERPRETATION:



Here the significance of t is 0.672, which is greater than 0.05. Hence we can reject

the alternate hypothesis in favor of the null hypothesis which is:

Ho: There is no significant impact between environment and job satisfaction.

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TEST 4: Impact of recognition on job satisfaction.

INDEPENDENT VARIABLE: Recognition


Hypothesis:

Ho: There is no significant impact between recognition and job satisfaction

Ha: There is a significant impact between recognition and job satisfaction

Analysis:

Model Summary

.904a .817 .815 6.6120

Model

1

R R Square

Adjusted

R Square

Std. Error

of the

Estimate

Predictors: (Constant), TOTRECOGa.

TABLE TH4.1

ANOVAb

19107.154 1 19107.154 437.050 .000a

4284.406 98 43.718

23391.560 99

Regression

Residual

Total

Model

1

Sum of

Squares df

Mean

Square F Sig.

Predictors: (Constant), TOTRECOGa.


TABLE TH4.2

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Coefficientsa

18.909 3.858 4.901 .000

3.759 .180 .904 20.906 .000

(Constant)

TOTRECOG

Model

1

B Std. Error

Unstandardized

Coefficients

Beta

Standardi

zed

Coefficien

ts

t Sig.


TABLE TH4.3

INTERPRETATION:



Here the significance of t is 0.000, which is less than 0.05. Hence we can reject the

null hypothesis in favor of the alternate which is:

Ha: There is a significant impact between recognition and job satisfaction.



Here r squared is .817 read as 81.7% which explains that 81.7% variability in job

satisfaction can be explained by the environment variable.

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FINDINGS:

1. In this study sample, it was discovered that the majority of respondents were

in the age group of 25 to 35 years and 35 to 50 years.

2. In the survey, a greater number of employees showed an experience record of

10 years and greater.

3. A greater number of graduates also formed the majority of the survey.

4. On the whole, most employees were satisfied their compensation packages.

56% surveyed were satisfied with the pay they received for their current job

position and 46% were satisfied with the benefits that formed part of their

salary packages.

5. It was discovered that a majority of 32% surveyed were unsatisfied with their

jobs inability to incorporate the skills and talents of the job holder into his

work requirements.

6. 50% of respondents were satisfied with the current training programme

conducted in the company. It was also discovered that 44% of respondents

were satisfied that their current training greatly aided them in their job

performance.

7. It was discovered that a majority of 28 respondents were highly unsatisfied

with the companys policy of incorporating job rotation in the work place. A

majority of 34 % also felt neutral toward the companys policy of encouraging

further learning, while another 28% were unsatisfied.

8. A majority of 48% of respondents felt satisfied in their work environments.

9. 48% of respondents were satisfied with the communication flow among them

and their co workers. This was further supported by the fact that a majority of

38% of respondents said that they could freely approach their supervisors with

doubts and questions and that a majority of 38% of respondents defined their

relationships with their subordinates as satisfactory. It was also observed that

46% of respondents were able to function in a group effort satisfactorily.

Further proof of a good communication flow was that 56% of respondents

were satisfied with the feedback they received from their supervisors.

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10. 40% of respondents held a neutral outlook to the grievance measure provided

by the company, while a further 28% were unsatisfied.

11. It was also discovered that 42% of respondents were satisfied with the

companys performance appraisal system.

12. Through the use of regression analysis, it was discovered that the employees

put recognition (81.7% effect on total job satisfaction) before any other when

it came to being satisfied in their jobs. Next came opportunities for growth

and betterment (80% effect on total job satisfaction) and finally compensation

which showed a 74% effect on total job satisfaction.

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CHAPTER 5

CONCLUSION AND SUGGESTIONS

The project was conducted to evaluate the job satisfaction enjoyed by the staff at

Kotak Mahindra Mutual fund over a 4 month period. A sample of 100 employees wasrandomly drawn from the existing staff strength of 500 members. The employees

were drawn randomly and provided a questionnaire designed to evaluate the total job

satisfaction of the managerial employees of Kotak Mutual Fund.

The questionnaire was prepared to measure job satisfaction utilizing four major

factors: compensation, opportunity, recognition and environment. These factor

responses produce the total job satisfaction mean score. Respondents were required to

indicate their responses by utilizing a five point scale to answer to each statement.

The data was then collected and tabulated was interpreted to form useful and

informative conclusions about the state of affairs regarding the four parameters used

for determining job satisfaction. The tests used were probability analysis, regression

analysis which was used to evaluate the relationships between the independent

variables and the dependent variable job satisfaction.

The analysis of data brought out the fact that employees of Kotak Mahindra Asset

Management Company Ltd . responded to recognition the most, followed by

opportunity and finally compensation. The environment variable was shown to have

no significant impact on job satisfaction. Suitable recommendations were provided to

the company. This study has been able to fulfill the objectives that were the basis of

the study .

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SUGGESTION

As a majority of employees surveyed were shown to have an excess of 10 years

experience, they represent a substantial source of knowledge and experience to the

firm. Greater care must be taken to ensure that they remain satisfied. If due care is not

taken, it may result in greater costs to r

1. As 56% of the employees are graduates, the importance of further learning

cannot be stressed enough. In the study, it was revealed that 34% of

respondents held a neutral view toward the companys policy toward further

learning, while a further 28% were unsatisfied. It is important that employees

are given chances to improve on their educational roster. This is beneficial to

the company because it increases the value of the employee in terms of his/her

worth to the company and it would lead to increase in productivity, reduced

costs in training and developmental needs as well as providing a sense of self

esteem to the employees themselves.

2. It was also discovered that 32% of respondents were unsatisfied that their

skills and talents were not fully utilized. It is necessary that a jobs design

incorporate the utilization of the individual employees skills and talents, else

work becomes monotonous. When employees feel they are able to contribute

something of their own to the work they do, they are able to integrate their

own ideas and creativity into the work and get more involved in the work they

do thereby giving it their best effort.

3. Supplementing the above point, the study revealed that a majority of 30% of

respondents held a neutral view to the sense of empowerment they felt in

influencing the outcome of their work, while 28% were unsatisfied with the

sense of empowerment they felt. When employees feel they can positively

affect the outcome of their work they become more responsible and

committed to the work they do. This greatly affects productivity.

4. The company should also encourage job rotation wherever possible. In the

study it was revealed that 28% of respondents were highly unsatisfied with

their chances at job rotation, while 26% possessed a neutral view to the same.

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Job rotation allows employees to experience other jobs and allows them to

gain experience in different aspects of the companys workings. It is

beneficial to the company as it makes employees proficient in a number of

tasks, solves turnover crunches and reduces monotony in their work.

5. Every job brings with it a certain amount of stress and tensions. By offering

remedial solutions to cut down such stress it allows the employee to function

better and increase productivity. In the study 40% of the respondents

possessed a neutral attitude toward the measures offered by MRF, while

another 28% were unsatisfied. Measures should be adopted to ensure that

grievance and counseling measures should be stepped up and address the root

problem of the underlying stress.

6. A further symptom of the above may be the majority response of 50%

claiming that employees held a neutral view in being able to maintain a

reasonable work/life balance.

7. Another area to be looked into carefully would be employee involvement in

decision making. The study reveals that 60% of respondents were neutral

toward involvement in decision making while a further 12% were unsatisfied.

Employee involvement in decision making can be beneficial to the company

as it allows employees to exercise their work experience and knowledge to

solve the companys problems. It also fosters greater affinity toward the

company as the employee feels cherished that his opinion was taken into

account.

8. 40% of respondents held a neutral view toward receiving recognition for their

contributions to the company. Unless appropriate recognition is given to work

well done it will not provide the required motivation to put in the employees

best effort.

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BIBLIOGRAPHY

1) CHHABRA, T.N; HUMAN RESOURCE MANAGEMENT CONCEPTS AND

ISSUES; FIFTH REVISED EDITION; DHANPAT RAI & CO.(P) LTD.

2) GUPTA, C.B, HUMAN RESOURCE MANAGEMENT; FOURTH EDITION;

SULTAN CHAND & SONS, NEW DELHI 1999

3) KOTHARI, C.R; RESEARCH METHODOLOGY METHODS AND

TECHNIQUES; NEW AGE INTERNATIONAL (P) LTD, PUBLISHERS.

4) ROBBINS .P. STEPHEN, ORGANIZATIONAL BEHAVIOR, PEARSON

EDUCATION, 2005; 4: 80-85.

5) WARR P, COOK J, WALL T. SCALES FOR THE MEASUREMENT OF

SOME WORK ATTITUDES AND ASPECTS OF PSYCHOLOGICAL WELL

BEING, 1979;52: 129-148

WEBSITES:

www.fadaweb.com/indiantyreindustry.html

www.tonymorganlive.com/2008/10/14/12-questions-on-job-

satisfaction/#ixzz0dgzLUQJC&B

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http://www.fadaweb.com/indiantyreindustry.htmlhttp://www.tonymorganlive.com/2008/10/14/12-questions-on-job-satisfaction/#ixzz0dgzLUQJC&Bhttp://www.tonymorganlive.com/2008/10/14/12-questions-on-job-satisfaction/#ixzz0dgzLUQJC&Bhttp://www.fadaweb.com/indiantyreindustry.htmlhttp://www.tonymorganlive.com/2008/10/14/12-questions-on-job-satisfaction/#ixzz0dgzLUQJC&Bhttp://www.tonymorganlive.com/2008/10/14/12-questions-on-job-satisfaction/#ixzz0dgzLUQJC&B


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QUESTIONNAIRE ON JOB SATISFACTION

The following is a questionnaire surveying job satisfaction, as part of my project,

required for my MBA course. Utilizing the rating scale below, please indicate your

level of response to the statements wherever applicable.

All information will remain confidential.

RATING SCALE

1 2 3 4 5

Not at all somewhat extremely

satisfied satisfied satisfied

PERSONAL INFORMATION:

AGE: below 25 25-35 35-50 50 and above

GENDER: Male Female

TENURE AT MRF:

DESIGNATION:

INCOME (p.m): less than 10,000 10,000-20,000 20,000-

30,000

30,000 and above

EDUCATIONAL QUALIFICATION

QUESTIONS 1 2 3 4 5

1. Are you familiar with your jobs salary level in the

industry?

YES / NO

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2. You feel you are well paid for your current job position/

responsibilities.

3. You are satisfied with the benefits that form part of your

salary package

4. You are satisfied with the amount of paid vacation/ sick

leave offered by your company.

5. You are satisfied with the reasonableness of your work

responsibilities.

6. Your job provides you opportunities to utilize your skills

and talents.

7. Your work gives you a sense of personal accomplishment

8. You feel secure in your job.

9. You are confident of a job promotion.

10. Your companys promotion policy appeals to you.

11. You are satisfied with your companys current training

programme.

12. Your company encourages /facilitates further learning.

13. You feel sufficiently capable at your job with the current

training received.

14. Your company provides adequate opportunities for

periodic changes in duties.

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15. You have the materials/equipment required to do your job

efficiently.

16. The mission/vision statement of the company influences

the effort you put into your work.

17. The effectiveness of communication among you and your

co-workers.

18. You are satisfied with your work environment.

19. You are satisfied with the counseling/grievance measures

offered.

20. You are able to maintain a reasonable work/life balance.

21. You are satisfied with your companys performance

appraisal system.

22. You are able to freely approach your supervisors with

problems/doubts.

23. You define your relationship with your subordinates.

(if applicable)

24. You feel you are able to contribute to the decision making

process.

25. Work well done garners appreciation/commendation. YES / NO

26. You feel that you receive appropriate recognition for your

contributions.

27. You are provided ample opportunities to exercise

independence at work.

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28. You are able to function well in a collaborated effort.

29. You are satisfied with the sense of empowerment you have

to influence the quality of work.

30. You receive adequate feedback from your supervisors.

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