A

PROJECT REPORT
ON
EMPLOYEE SATISFACTION
AT
LG ELECTRONICS LIMITED
Submitted
By
B. NIRUPAMA
H.T.NO: 1302-18-672-264
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA’S PG COLLEGE (MCA)
RAMANTHAPUR
(Affiliated to Osmania University)
2018-2020
 INTRODUCTION

Employee satisfaction is the terminology used to describe whether employees are happy
and contented and fulfilling their desires and needs at work. Many measures purport
that employee satisfaction is a factor in employee motivation , employee goal
achievement, and positive employee morale in the workplace. Factors contributing to
employee satisfaction include treating employees with respect, providing regular
employee recognition, empowering employees, offering above industry-average benefits
and compensation, providing employee perks and company activities and positive
management within a success framework of goals, measurements, and expectations.
Employee satisfaction is often measured by anonymous employee satisfaction surveys
administered periodically that gauge employee satisfaction. Employee satisfaction is
looked at in areas such as Management, Understanding of mission and vision,
Empowerment, Teamwork, Communication, and Co-worker interaction.

Importance to Worker and Organization

Frequently, work underlies self-esteem and identity while unemployment lowers self-
worth and produces anxiety. At the same time, monotonous jobs can erode a worker's
initiative and enthusiasm and can lead to absenteeism and unnecessary turnover. Employee
Satisfaction and occupational success are major factors in personal satisfaction, self-respect,
self-esteem, and self-development. To the worker, employee Satisfaction brings a pleasurable
emotional state that often leads to a positive work attitude. A satisfied worker is more likely
to be creative, flexible, innovative, and loyal.

For the organization, employee 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 employee
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 job loss, will not give
100 percent of their effort for very long. Though fear is a powerful motivator, it is also a
temporary one, and as soon as the threat is lifted performance will decline.

Tangible ways in which employee Satisfaction benefits the organization include

reduction in complaints and grievances, absenteeism, turnover, and termination; as well as
improved punctuality and worker morale. Employee Satisfaction is also linked to a healthier
work force and has been found to be a good indicator of longevity. And although only little
correlation has been found between employee 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." No
wonder Andrew Carnegie is quoted as saying: "Take away my people, but leave my factories,
and soon grass will grow on the factory floors. Take away my factories, but leave my people,
and soon we will have a new and better factory"

Creating Employee Satisfaction

So, how is employee Satisfaction created? What are the elements of a job that create
employee Satisfaction? Organizations can help to create employee Satisfaction by putting
systems in place that will ensure that workers are challenged and then rewarded for being
successful. Organizations that aspire to creating a work environment that enhances employee
Satisfaction need to incorporate the following:

 Flexible work arrangements, possibly including telecommuting

 Training and other professional growth opportunities
 Interesting work that offers variety and challenge and allows the worker opportunities
to "put his or her signature" on the finished product
 Opportunities to use one's talents and to be creative
 Opportunities to take responsibility and direct one's own work
 A stable, secure work environment that includes job security/continuity
 An environment in which workers are supported by an accessible supervisor who
provides timely feedback as well as congenial team members
 Flexible benefits, such as child-care and exercise facilities
 Up-to-date technology
 Competitive salary and opportunities for promotion.
NEED FOR THE STUDY

Employee satisfaction has become a very important determinant of a company’s

productivity. Employees are demanding more and more from their organization in exchange
for their services. Employee turnover is very high in most industries, and retaining good
talented employees has become a tedious task for even the best companies across the world
today.
Every company is faced with thee challenge of understanding what drives employees
most. Satisfied employees not only remain with the company but are more productive. They
are also loyal and are most likely to recommend their company’s products and services
whenever and wherever possible. They would also help the company to attract the best talent
for future recruitment. Almost every company conducts employee satisfaction surveys now
and then to feel the pulse of the employees.A happy employee is a productive worker. For a
worker to be productive, he should be extremely happy with his job. Similarly since a job is
an important part of life, it is very important that organization take necessary measures to
improve the satisfaction levels of employees. There is a need for the study of employee
satisfaction because of the following factors.

1. Rapidly growing organization :

When an organization is growing quickly, it is critical to fmd out how employees feel
about their jobs, the organization, and their fit and future within it.
2. High or growing turnover rate:
While some organizations have a naturally high turnover, growing turnover is a
problem for any organization. If the absolute level of turnover exceeds the industry average,
that can be solved by conducting an employee satisfaction survey.
3. Excessive rumors:
A strong rumor will lead to other problems in the organization. These can include
communications, trust and fear. Only a survey can uncover the extent to which any of these
issues exists.
4. Planned or recent organizational changes :
Planned or recent organizational changes, including change of leadership. Change can
be difficult for many people. If not handled properly, productivity and profits can decline.
5. Contemplated changes in pay and benefits :
 It means knowing what needs to be “fixed” and how much “fixing” it needs to
maximize return on invested money and people resources.

OBJECTIVES OF THE STUDY

The study has the following objectives:

1. To understand the employee satisfaction.

2. To identify the important factors which contribute toward employee satisfaction

SCOPE OF THE STUDY

This study enables us to understand the employees satisfaction regarding the pay

structure and also the overall job satisfaction, which includes the following...

1. Work, recognition and rewards

2. Remuneration

3. Motivation

4. Training and Development

5. Individual Goals

6. Welfare

7. Employee Benefits

8. Career Planning Development

METHODOLOGY
The procedures by which researchers go about their work of describing, explaining and
predicting phenomena are called methodology. Methods comprise the procedures used for
generating, collecting and evaluating data. Methods are ways of obtaining information useful
for assessing explanations.
Geographical Area Covered
The survey was conducted in LG ELECTRONICS LIMITED.
Method of Data Collection
Sources used for collecting the data are
Primary Data
Information obtained directly from the mechanics and during the course of action
is termed as primary data.
Secondary Data
Secondary data was collected with the help of company records.

Research Design
The type of research used in this project is descriptive in nature. Descriptive studies
aim at portraying accurately the characteristics of a particular group or situation.

Sampling Design
Sample size
The sample size for the study is 100 respondents
Sampling procedure
The sampling techniques used in the study is non-probability convenience sampling
adapted and used for the study
Convenience sampling
Convenience sampling as the name implies is based on the convenience of the
researcher who is to select a sample. This type of sampling is also called accidental sampling
as the respondent in the sample are included into merely on account of their being available
and the spot where the survey is in progress. Many times the researcher is work under certain
constraints.
3.8Research Instrument
The instrument used by the researcher to collect the information is through the
questionnaire method.
Questionnaire method
The form of the question may be either closed (i.e. ‘Yes’ or ‘No’ type) or open
(i.e., inviting free response) but should be stated in advance and not constructed during
questioning.
I have prepared a questionnaire with both closed and open structure.

TOOLS
 Percentage analysis

 chi-square test as a non-parametric test

Percentage analysis
The expression of date in terms of percentages is one of the simplest statistical
devices used in the interpretation of business and economic statistics percentage is useful
chiefly for the purpose of aiding comparison. A percent is the number of hundred parts on
number is of another. Using the algebraic notation in which
P% represent the number of parts of 100, i.e. percentage to represent the base used for
comparison, b1 represents given data to be compared with the base then the percentage of the
given number in the base may be defined as
P% = b1/b0*100
Generally percentages are recorded to one decimal place, sometimes to grasp the
relationships. Whole percentages should not be calculated if the absolute number is small,
especially if the base is appreciably less than 100.
Chi-Square as a non-parametric test
Chi-square is an important non-parametric test and such no rigid assumptions are
necessary in respect of the type of population. We require only the degrees of freedom
(implicitly of course the size of the sample) for using this test. As a non-parametric test, chi-
square can be used (i) as a test of goodness of fit and (ii) as a test of independence.

Chi-square
The level of significance for the test is 5%
Steps for using Chi-square test
 First of all calculate the expected frequency on the basis of given hypothesis or on the
basis of null hypothesis. Usually in case of a 2*2 or any contingency table, the
expected frequency for any given call is worked out as under. Expected frequency of
any cell = (row total for the row that cell * column total cell) (grand total).

 Obtain the deference between observed and expected frequencies and find out the
square of such differences that is calculated (Oij-Eij)2

 Divide the quality (Oij-Eij)2 obtained as stated above by the corresponding expected
frequency to get (Oij-Eij)2/Eij and this should be done of all the cell frequencies or the
group frequencies.

 Find the summation of (Oij-Eij)2/Eij values

 This is the required chi-square value.

 The required chi-square value obtained as such should be compared with relevant
table value of chi-square.

 The result is based on the following rules.

 If the calculated value is less than the table value the null hypothesis is accepted.

 If calculated value is greater than the table value the null hypothesis is rejected.
LITERATURE REVIEW
SURVEY BY HEAWOOD RESEARCH LIMITED

This employee satisfaction survey is carried out by Heawood Research Limited for
East Staffordshire Borough Council (ESBC), between 2007 and 2009. Heawood were chosen
in a competitive tender process because of their proven ability in achieving high response
rates, value for money. This study illustrates how employee satisfaction surveys can provide
fast, effective benchmarking of staff opinions and organizational culture at ESBC.
Heawood had developed and tested employee satisfaction surveys focusing on lIP
(Investors In People), with the support of an lIP Assessor. Their survey had achieved a
response rate of 40%. Heawood initiated an extensive internal marketing campaign to support
the survey. Tools like Team briefings, Pre-launch e-mails and letters from the Chief
Executive to all staff; Informal walk-about discussions in every department by the Learning
& Development Officer were used. Heawood used both paper and an on-line survey, hosted
on its on website, with invitations to participate distributed by e-maiL The survey was left
open for 4 weeks, and reminders were issued each week.
The response rate was considered to be extremely good, reaching 64% overall with
46% from the paper survey and 82% from the on-line survey. This demonstrated that staffs
were responding to a request for involvement. the positive outcomes of the survey are
customer service was seen to have a relatively high priority, friendly and helpful atmosphere
existed, council service enabled satisfactory work-life balance, job roles were generally clear,
only 7% rated it a poor place to work, the staff were optimistic about the future. Negative
outcomes were widespread view that there was a lack of two way communication, an
inconsistent culture existed across the organization, and management style was in need of
attention.
Suggestions were made as to changes in management behaviours that could address
the issues. It was also suggested that a series of focus groups should be held to flesh out the
issues and identify solutions from within the workforce. A meet and greet programme should
be instigated to begin the process of two-way communication between managers and staff. A
training programme should be formulated to help behavioural change amongst managers.
SOURCES OF EMPLOYEE SATISFACTION

Several job elements contribute to Employee Satisfaction. The most important

amongst them are wage structure, nature of work, promotion changes, quality of supervision,
work group, and working conditions.
 SALARY :
Salary plays a significant role in influencing Employee Satisfaction. This is because
of two reasons. Firstly, money is an important instrument in fulfilling one’s needs; and
secondly, employees often have seen pay as a reflection of management’s concern for them.
 NATURE OF WORK :
Most employees crave intellectual challenges on jobs. They tend to prefer being given
opportunities to use their skills and abilities and being offered a variety of tasks, freedom, and
feedback on how well they are doing. These characteristics make jobs mentally challenging.
Job that has too little challenge creates monotony. But too much challenge creates frustration
and a feeling of failure. Under conditions of moderate challenge employees’ experience
pleasure and satisfaction.
 PROMOTIONS:
Promotional opportunities affect employee satisfaction considerably. The desire for
promotion is generally strong among employees as it involves change in job content, pays,
responsibility, independence, status and the like. It is no surprise that the employee takes
promotion as the ultimate achievement in his career and when it is realized, he feels
extremely satisfied.
 SUPERVISION:
There is a positive relationship between the quality of supervision and Employee
Satisfaction. Supervisors who establish a supportive personal relationship with subordinates
and take a personal interest in them contribute to their Employee Satisfaction. The supervisor
is good if he is able to produce and establish a climate of good team spirit. Supervision brings
out a great amount of satisfaction as well as dissatisfaction. The role of supervisor is a focal
point for attitude formation. Bad supervision results in absenteeism and turnover.
 WORK GROUP:
The work group does serve as a source of satisfaction to individual employees. It does so,
primarily by providing group members, with opportunities for interaction, with each other. It
is well known that, for many employees work fills the need for social interaction.

Gupta & Joshi (2008) concluded in their study that Employee Satisfaction is an
important technique used to motivate the employees to work harder. It had often said that, "A
HAPPY EMPLOYEE IS A PRODUCTIVE EMPLPOYEE." Employee Satisfaction is very
important because most of the people spend a major of their life at their work place.

Khan (2006) reveals in his study has Hoppack brought Employee Satisfaction to
limelight. He observed Employee Satisfaction in the combination of psychological &
environmental circumstances that cause person to fully say, "I am satisfied with my job"

Rao (2005), reveal in his study that Employee Satisfaction refer to person feelings of
satisfaction on the job, which acts as a motivation to work. It is not the self satisfaction,
happiness or self-contentment but the satisfaction of the job.
 BIBLIOGRAPHY
BOOKS :

 UNDERSTANDING JOB SATISFACTION by Micheal M. Grunberg.

 ORGANIZATIONAL BEHAVIOUR by Stephen P. Robbins

 PERSONNEL MANAGEMENT by P. Subba Rao

 ORGANIZATIONAL BEHAVIOUR by K. Ashwatappa.

WEBSITES :

 www.hr_survey.com - employee attitude.html

 www.hrsolutionsinc.com

 www.human links.com

 www.question pro.com

 www.teamtechnology.co.uk / employee - satisfaction - survey.html.

 www.knowledgenetwork.gov.uk