Emplyee Satisfactin in IOCL

AN IN-DEPTH STUDY OF
Employee satisfaction at IOCL, Noonmati REFINERY

Organizational guide: Faculty guide:
Ankita Srivastava Dr. Pradeep Kumer Jain
IOCL Department of Business Administration
Gauhati University

Submitted by:

Project Report at a Glance
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Prepared By:
Project Title: An in-depth study of Employee Satisfaction at IOCL, Guwahati
Refinary.

Organization: IOCL, Guwahati Refinary

Period: 1
st
June 2011 to 3th July 2011.

Organizational guide: Ankita Srivastava
IOCL , Guwahati Refinary

Faculty guide: Dr. Pradeep Kumer Jain
Reader, Department of Business Administration
Gauhati University,Guwahati

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DECLARATION

I, Jitumoni Choudhury do hereby declare that the Project titled an in depth study of Employee
satisfaction at IOCL , GUWAHATI REFINERY is a genuine research work undertaken by me
and it has not been published anywhere earlier.

Date: Jitumoni Choudhury
Place: MBA 3
rd
Semester
Department of Business Administration
Gauhati University

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Certificate by the institutional guide

This is to certify that the project report entitled an in depth study of Employee satisfaction at IOCL
,GUWAHATI REFINERY ,Guwahati done by , under my supervision in
partial fulfillment of
3rd
semester examination of MBA curriculum from.., and
submitted in partial fulfillment of the requirements of MBA program of Business Administration
Department, Gauhati University. This study is an original piece of work and it has not been
submitted earlier for any award of degree or diploma in any institution or university or in any
other place.
The undersigned wishes her success in all endeavors of life.

Date

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PREFACE
The MBA program is well structured and integrated course of business studies. The main
objective of practical training at MBA level is to develop skill in student by supplement to the
theoretical study of business management in general. Industrial training helps to gain real life
knowledge about the industrial environment and business practices. The MBA program provides
student with a fundamental knowledge of business and organizational functions and activities,
as well as an exposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give us
theoretical knowledge of various subjects in the college but we are practically exposed of such
subjects when we get the training in the organization. It is only the training through which I come
to know that what an industry is and how it works. I can learn about various departmental
operations being performed in the industry, which would, in return, help me in the future
when I will enter the practical field.
Training is an integral part of MBA and each and every student has to undergo the training for 2
months in a company and then prepare a project report on the same after the
completion of training.
During this whole training I got a lot of experience and came to know about the management
practices in real that how it differs from those of theoretical knowledge and the practically in
the real life.
In todays globalize world, where cutthroat competition is prevailing in the market, theoretical
knowledge is not sufficient. Beside this one need to have practical knowledge, which
would help an individual in his/her carrier activities and it is true that Experience
is best teacher.

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EXECUTIVE SUMMARY

PROJECT TITLE: An in depth study of Employee satisfaction at IOCL, Noonmati REFINERY
PROJECT DURATION: 2 months ( 1
st
JUNE TO 31
st
JULY)
PROJECT PLACE: IOCL, Noonmati Refinery
Objective of the study:
To analyze satisfaction level among age group of different employees, among employees
with different tenure and among officers and non officer category of employees.
To analyze employees satisfaction on the following aspects:
Leadership and planning
Corporate Culture
Communications
Career Development
Role played
Recognition and Rewards
Teamwork and Cooperation
Working Conditions
Immediate Superior
Training Program
Fringe Benefits
METHODOLOGY OF THE STUDY:
Primary Data
The Primary Data required for this project work will be collected through Questionnaires. This
method consisted of preparing detailed questions covering the Employee satisfaction standards in
the Company. Thereafter it will be distributed amongst a total of 120 personnel of the Company
(respondents) who will be randomly selected.

Secondary Data
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Secondary Data as per the requirement of the project will be collected from the company website.

FINDINGS:
The Analysis revealed that the satisfaction level of the employees of officer level are fairly
higher as compared to those of the non officer category. The satisfaction level was measured on
the basis of the following organizational aspects:
Corporate Culture
Communications
Career Development
Role played
Working Conditions
Immediate Superior
Training Program
Fringe Benefits

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CONTENTS Page no

DECLARATION 3

PREFACE 6

EXECUTIVE SUMMARY 7-8

CHAPTER1: INTRODUCTION TO THE TOPIC 11-25

CHAPTER 2: LITERATURE REVIEW 27

CHAPTER 3: 29-31
Statement of the Problem
Scope of the Study
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
HYPOTHESIS FORMULATION

CHAPTER 4: PROFILE OF THE ORGANIZATION 33-36

CHAPTER 5: Data Analysis, Summary, Findings
and Suggestions 38-83

CHAPTER 6: CONCLUSION & recommendations 85-86

CHAPTER 7: BIBLIOGRAPHY 87

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CHAPTER 1
INTRODUCTION TO THE TOPIC
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EMPLOYEE SATISFACTION
People are our greatest asset is a mantra that companies have been chanting for years. But only a
few companies have started putting Human Resources Management (HRM) systems in place that
support this philosophy. There are a number of challenges in the Indian industry which require the
serious attention of HR managers to find the right candidate and build a conducive work
environment which will be beneficial for the employees, as well as the organization. The industry
is already under stress on account of persistent problems such as attrition, confidentiality, and
loyalty. Other problems are managing people, motivation to adopt new technology changes,
recruitment and training, performance management, development, and compensation management.
With these challenges, it is timely for organizations to rethink the ways they manage their people.
Managing HR in the knowledge based industry is a significant challenge for HR managers as it
involves a multi task responsibility. In the present scenario, HR managers perform a variety of
responsibilities. Earlier their role was confined to administrative functions like managing
manpower requirements and maintaining rolls for the organization. Now it is more strategic as per
the demands of the industry.

Managing People
In view of the industry dynamics, in the current times, there is a greater demand for knowledge
workers. Resumes abound, yet companies still fervently search for the people who can make a
difference to the business. Often talented professionals enjoy high bargaining power due to their
knowledge and skills in hand. The attitude is different for those who are taking up responsibilities
at a lesser age and experience. These factors have resulted in the clear shift in approach to
individualized career management from organization career commitment.

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Motivating the Workforce
As the competition is growing rapidly in the global market, a technological edge supported by a
talent pool has become a crucial factor for survival in the market. Naturally, as a result every
organization gives top priority to technology advancement programs. HR managers are now
performing the role of motivators for their knowledge workers to adopt new changes.

Competency Development
Human capital is the real asset for any organization, and this makes the HR role important in
recruiting, managing, and retaining the best. The HR department has a clear role in this process and
determines the success tempo of any organization. An urgent priority for most of the organizations
is to have an innovative and competent HR pool; sound in HR management practices with strong
business knowledge.
Recruitment and Training
Recruitment has become a major function from an imperative sub system in HR, particularly in the
industry. HR managers play a vital role in creating assets for the organization in the form of quality
manpower. Attracting new talent also is a top priority for software companies, but less so for
smaller companies. Another challenge for HR managers is to put systems in place to make the
people a perfect fit for the job. Skill redundancy is fast in the industry. To overcome this problem,
organizations give the utmost priority to training and skill enhancement programs on a continuous
basis. Many companies are providing technical training to the employees on a quarterly basis.
These trainings are quite useful also in terms of providing security to the employees.

The Trust Factor
Low levels of trust inhibit tacit knowledge sharing in the knowledge based industry. It is essential
that Our Company takes more initiatives to improve the security levels of the employees.

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Work life Balance Factor
Another dimension to the challenges faced by our company is the growing pace of talent
acquisition. This aspect creates with it the challenge of a smoother assimilation and the cultural
binding of the new comers into the organization fold. The pressure of delivering the best of
quality services in a reduced time frame calls for ensuring that employees maintain a work life
balance.

Attrition/Retention of the Talent Pool
One of the toughest challenges for the HR managers in the industry is to deal with the prevalent
high attrition levels. Though there is an adequate supply of qualified staff at entry level, there are
huge gaps in the middle and senior level management in the industry. Further, the salary growth
plan for each employee is not well defined. This situation has resulted in increased levels of
poaching and attrition between organizations. The industry average attrition rate is 30-35 per cent
and could range up to 60 per cent.

Bridging the Demand Supply Gap
HR managers have to bridge the gap between the demand and supply of professionals. They
have to maintain consistency in performance and have to keep the motivation levels of
employees high, despite the monotonous nature of work. The same also leads to recurring
training costs. Inconsistent performance directly affects revenues. Dwindling motivation levels
lead to a loss of interest in the job and a higher number of errors. The most common purpose for
surveying employees is satisfaction. Employee satisfaction surveys deal with workplace issues,
such as benefits, commitment to diversity, and effective communications. The data from these
surveys helps paint a portrait of employee attitudes and opinions. These kinds of surveys are
particularly useful after a company has undergone some sort of change, such as a layoff, an
acquisition, or a new department head. They also help employers isolate the root causes of
persistent problems, such as low productivity or high expenses.
Employee satisfaction surveys help employers measure and understand their employees' attitude,
opinions, motivation, and general satisfaction with their work environment.

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DEFINITION
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 is
the favorableness or un-favorableness with which the employee views his work.

It expresses the amount of agreement between ones expectation of the job and the rewards that
the job provides. Job Satisfaction is a part of life satisfaction. The nature of ones environment of job
is an important part of life as Job Satisfaction influences ones 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 employees 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.

WORKERS NEED IN JOB SATISFACTION
Major specifics of what workers need in job satisfaction include self-esteem and identity. A
significant portion of job satisfaction often comes just from the sheer fact of being employed.
The Compensation provided by the organization should be adequate so that employees are
satisfied and motivated and finally it will reflect on the performance of their work.
If work creates positive features about being employed, unemployment almost invariably lowers
self-worth. Genuine job satisfaction comes from a feeling of security whereby one's performance is
judged objectively by the quality of work performance rather than artificial criteria such as being related
to highly placed executives or to relatives in the firm. Yet at the same time, monotonous jobs can almost
shatter a worker's initiative and enthusiasm. Employees have definite needs that they feel are
essential to activate as they spend their working hours and years expending their efforts on behalf of their
employers.

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IMPORTANCE TO BOTH WORKER AND ORGANIZATION

For the organization, high levels of job satisfaction of its workers strongly suggest a workforce
that is motivated and committed to high-quality performance. Increased productivity quantity and
quality of output per hour workedwould seem to be almost an automatic by-product of improved
quality of workmanship.

It is important to note, however, that the literature on the relationship between job satisfaction
and productivity is neither conclusive nor consistent. Studies dating back to Frederick Herzberg's
(1957) have shown surprisingly only a low correlation between high morale and high productivity. But this is
contrary to easily formed logic that satisfied workers tend to add more value to an organization.
Unhappy employees, motivated by fear of job loss, will give 100 percent of their effort for a
while, but not for very long. Though fear is a powerful motivator, it is also a temporary one. As soon the
threat is lifted, the performance declines. Tangible ways in which job satisfaction benefits the
organization include reduction in complaints and grievances, absenteeism, turnover, and
termination, as well as improved punctuality and worker morale. Job satisfaction also appears to
be linked to a healthier workforce and has been found to be quite a good indicator of longevity.
Although only low correlation has been found between job satisfaction and productivity, 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 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" (quoted in Brown, 1996,
p. 123). Job satisfaction and occupational success can result not only in job satisfaction but also
in complete personal satisfaction.

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PROMOTING JOB SATISFACTION
Job satisfaction does not come automatically to business organizations. In a broad sense, the job
satisfaction program needs to exist and should have activities carefully designed to achieve the
intended job satisfaction goals.

It must be an action program. And it should be carefully monitored to ensure that changes are
periodically made as needed. Most large organizations now include human resource departments
within their management structure. At one time human resource departments were limited to
handling the acquisition of new workers. Today, however, many human resource programs take
the worthwhile initiative of helping to develop complete programs of personnel practices, such as
conducting research on current wage structures. Most human resource departments learn about
employees through interviews, administration of insurance policies, study of legislation that deals
with workers, and participation in decisions that affect employees' jobs. These activities must be
carefully designed to concentrate in a positive manner on job satisfaction so that employees feel
that all the personnel activity is for their benefit. A primary reason for the emergence of labor
unions during the early 1920s was to develop safety measures for working conditions and
equipment. Throughout the years labor unions appear to have played an uncertain role in
achieving job satisfaction.
In some cases, employees join labor unions primarily because they are the only organizations that
bring health insurance benefits and increased legal benefits. Sometimes union members get better
vacation and retirement benefits than do nonunion members.

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EMPLOYEE COMPENSATION / WAGES

In exchange for job performance and commitment, an employer offers rewards to employees.
Adequate rewards and compensations potentially attract a quality work force, maintain the
satisfaction of existing employees, keep quality employees from leaving, and motivate them in the
workplace. A proper design of reward and compensation systems requires careful review of the
labor market, thorough analysis of jobs, and a systematic study of pay structures. There are a
number of ways of classifying rewards. A commonly discussed dichotomy is intrinsic versus
extrinsic rewards.

Intrinsic rewards are satisfactions one gets from the job itself, such as a feeling of achievement,
responsibility, or autonomy. Extrinsic rewards include monetary compensation, promotion, and
tangible benefits. Compensation frequently refers to extrinsic, monetary rewards that employees
receive in exchange for their work. Usually, compensation is composed of the base wage or
salary, any incentives or bonuses, and other benefits. Base wage or salary is the hourly, weekly, or monthly pay
that employees receive.

Incentives or bonuses are rewards offered in addition to the base wage when employees achieve a
high level of performance. Benefits are rewards offered for being a member of the company and
can include paid vacation, health and life insurance, and retirement pension. A company's
compensation system must include policies, procedures, and rules that provide clear and
unambiguous determination and administration of employee compensation. Otherwise, there can
be confusion, diminished employee satisfaction, and potentially costly litigation.

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Models of job satisfaction

Affect Theory
Edwin A. Lockes 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/arent 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 doesnt 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 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. 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 ones 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/her self) and general self-
efficacy (the belief in ones own competence) lead to higher work satisfaction.

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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.\

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 behavior ----. 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 ones 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 cant decide (indicated by ?) in response to whether given statements accurately describe
ones job.

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T he 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--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 20facets 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.

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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 persons work performance.
In this case, the size and value of the reward vary in proportion to the level of ones performance
accomplishment. Large rewards are given for high performance; small or no rewards are given
for low performance. And whereas giving 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.

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DETERMINANT S OF COMPENSATION

Fair and adequate compensation is critical to motivating employees attracting high-potential
employees, and retaining competent employees. Compensation has to be fair and equitable
among all workers in the same company (internal equity).
Internal equity can be achieved when pay is proportionate to the individual employee's
qualifications and contributions to a company. On the other hand, compensation also has to be fair and
equitable in comparison to the external market (external equity).
If a company pays its employees below the market rate, it may lose competent employees.
In determining adequate pay for employees, a manager must consider the three major factors: the labor market,
the nature and scope of the job, and characteristics of the individual employee. Potential
employees are recruited from a certain geographic areathe labor market. The actual boundary of
a labor market varies depending on the type of job, company, and industry.
For example, an opening for a systems analyst at IBM may attract candidates from across the
country, whereas a secretarial position at an elementary school may attract candidates only from
the immediate local area of the school. Pay for a job even within the same labor market may vary
widely because of many factors, such as the industry, type of job, cost of living, and location of the job.
Compensation managers must be aware of these differences. To help compensation managers
understand the market rate of labor, a compensation survey is conducted. A compensation survey
obtains data regarding what other firms pay for specific jobs or job classes in a given geographic
market. Large companies periodically conduct compensation surveys and review their
compensation system to assure external equity. There are professional organizations that conduct
compensation surveys and provide their analysis to smaller companies for a fee. Several factors
are generally considered in evaluating the market rate of a job. They include the cost of living of
the area, union contracts, and broader economic conditions. Urban or metropolitan areas
generally have a higher cost of living than rural areas. Usually, in calculating the real pay, a cost-
of-living allowance (COLA) is added to the base wage or salary. Cost-of-living indexes are
published periodically in major business journals. During an economically depressed period, the
labor supply usually exceeds the demand in the labor market, resulting in lower labor rates. The
characteristics of an individual employee are also important in determining compensation. An
individual's job qualifications, abilities and skills, prior experiences, and even willingness to

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work in hardship conditions are determining factors. Within the reasonable range of a market
rate, companies offer additional compensation to attract and retain competent employees.
In principle, compensation must be designed around the job, not the person. Person-based pay
frequently results in discriminatory practices, which violates Title VII of the Civil Rights Act,
and job-based compensation is the employer's most powerful defense in court. For job-based
compensation, management must conduct a systematic job analysis, identifying and describing
what is happening on the job. Each job must be carefully examined to list the necessary tasks and
actions, identify skills and abilities required, and establish desirable behaviors for successful
completion of the job.
With complete and comprehensive data about all the jobs, job analysts must conduct systematic
comparisons of them and determine their relative worth. Numerous techniques have been
developed for the analysis of relative worth, including the simple point method, job classification
method, job ranking method, and the factor comparison method.
Information resulting from the comprehensive job analysis will be used for establishing pay or
wage grades. Assume that twenty-five jobs range from 10 to 50 points in their job scores based
on the job point method. All twenty-five of these jobs are reviewed carefully for their relative worth
and plotted on Figure 1. The x-axis represents job points and the ordinate (y-axis) represents relative worth
or wage rates. Once a manager can identify fair and realistic wages of two or more jobs,
desirably top and bottom ones, then all the rest can be prorated along the wage curve in the diagram.

In order to simplify the administration of a wage structure, similar jobs in the approximate cluster
are grouped together into a class or grade for pay purpose. Figure 2shows how twenty-five jobs are
grouped into five pay grades. Employees move up intheir pay within each grade, typically by seniority. Once a
person hits the top pay in the grade, he or she can only increase the pay by moving to a higher grade. Under certain
unusual circumstances, it is possible for an outstanding performer in a lower grade to be paid
more than a person at the bottom of the next-highest level.

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INNOVATIONS IN COMPENSATION SYSTEMS
As the market becomes more dynamic and competitive, companies are trying harder to improve
performance. Since companies cannot afford to continually increase wages by ascertain
percentage, they are introducing many innovative compensation plans tied to performance.
Several of these plans are discussed in this section.

Incentive Compensation Plan
Incentive compensation pays proportionately to employee performance. Incentives are typically
given in addition to the base wage; they can be paid on the basis of individual, group, or plant-
wide performance. While individual incentive plans encourage competition among employees,
group or plant-wide incentive plans encourage cooperation and direct the efforts of all employees
toward achieving overall company performance

Skill-Based or Knowledge-Based Compensation
Skill-based pay is a system that pays employees based on the skills they possess or master, not
for the job they hold. Some managers believe that mastery of certain sets of skills leads to higher
productivity and therefore want their employees to master a series of skill sets. As employees
gain one skill and then another, their wage rate goes up until they have mastered all the skills.
Similar to skill-based pay is knowledge-based pay. While skill-based pay evolved in the
manufacturing sector, pay-for-knowledge developed in the service sector (Henderson, 1997). For
example, public school teachers with a bachelor's degree receive the lowest rate of pay, those
with a master's degree receive a higher rate, and those with a doctorate receive the highest.

Team-Based Compensation
As many companies introduce team-based management practices such as self-managed work
teams, they begin to offer team-based pay. Recognizing the importance of close cooperation and
mutual development in a work group, companies want to encourage employees to work as a team by
offering pay based on the overall effectiveness of the team.

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Performance-Based Compensation
In the traditional sense, pay is considered entitlement that employees deserve in exchange for
showing up at work and doing well enough to avoid being fired. While base pay is given to employees
regardless of performance, incentives and bonuses are extra rewards given in appreciation of
their extra efforts. Pay-for-performance is a new movement away from this entitlement concept
(Milkovich and Newman, 2005). A pay-for-performance plan increases even the base payso-
called merit increasesto reflect how highly employees are rated on a performance evaluation.
Other incentives and bonuses are calculated based on this new merit pay, resulting in substantially more total
dollars for highly ranked employee performance. Frequently, employees also receive an end-of-
year lump sum bonus that does not build into base pay.

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CHAPTER 2
LITERATURE REVIEW

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The efficiency wage theory predicts that higher levels of wages lead to higher levels
of productivity by employees. Expanding this to an efficiency compensation theory as in
Meyeretal(2001) implies that a well-constructed compensation package will enhance productivity
through attraction of higher levels of talent, increased effort, and reduced turnover.
In general, relative to companies with less-satisfactory compensation packages, employees who are
well-satisfied with their compensation package (and work environment) should be expected to generate
greater levels of productivity. The result for shareholders, therefore, should be relatively higher levels of
return.Employee satisfaction may arise from a number of sources including a high level of wages,
excellent company provided benefits (e.g., educational offerings/reimbursements, health care, on-site
childcare, counseling ser-vices, etc.), opportunities for within-company mobility, and an innovative or
creative work environment. Each of these offerings is costly to the firm, however.
Indeed, prior research has indicated that while some policies may enhance shareholder wealth, others,
at best, may not benefit shareholders, and, in some instances may reduce share-holder wealth. For
example, Levine (1992) and Wadhwani and Wall (1992) find a positive correlation between wages and
productivity, implying greater levels of wages lead to enhanced productivity. Jones and Murrell (2001) find that
firms named to Working Mother magazines list of Americas Most Family-Friendly Companies for the
first time have a positive and significant mean abnormal return during the announcement period. The Working
Mother criterions for inclusion are relative wages, advancement opportunities for women, on-site
childcare, and other family-friendly benefits. Thus, market participants infer that these companies
employees are more productive than those in other firms. Perry-Smith and Blum (2000) find that
companies with greater levels of family-friendly policies exhibit higher levels of product quality,
increases in market share, and increases in profits. On the other hand, Meyer, et al. (2001) find that,
while policies such as leave of absence to care for family members and adoption benefits increase
profitability, more common benefits such as on-site childcare and job sharing negatively affect profits.
Also, Filbeck (2001) finds a significantly negative mean abnormal return to the announcement of
inclusion on Mother Jones magazines 20Better Places to Work. This list includes companies that are
environment-friendly, provide innovative benefits, and have satisfied employees.
Filbeck (2001) also finds that these firms do not perform significantly better than a matched sample of
firms in the calendar year following the announcement.

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CHAPTER 3
Research methodology

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Statement of the Problem:

Human behaviour is unpredictable. One can act according to ones own decision. No one can
expect the same type of behaviour from any one at all circumstances. Human behaviour is highly
influenced by the environment. Because of this factor, we cannot expect that one can act in the
same way on a particular problem in all situations.

Scope of the Study: This project report is wide in scope which will evaluate employees
satisfaction on the following aspects:
Organizations programs and policies
Working environment
Corporate culture
Recognition and rewards
Career development and training
Fringe benefits
Job profile
Job security

Objective of the study:
To analyze satisfaction level among age group of different employees, among employees
with different tenure and among officers and non officer category of employees.
To analyze employees satisfaction on the following aspects:
Corporate Culture
Communications
Career Development
Role played

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Working Conditions
Immediate Superior
Training Program
Fringe Benefits

RESEARCH METHODOLOGY:

SOURCES OF DATA
Following are the sources for the collection of data:
(a) Primary source
(b) Secondary source

Data Collection Methods
There are three main methods of data collection
(a) Observation
(b) Experimentation
(c) Survey
(d) Direct interview method
I have used survey method of data collection which is one of the very common and widely used
methods for collection of primary data. We can gather wide range of valuable information about
the behavior of the employee attitude, motive and options etc.

Primary Data
The Primary Data required for this project work will be collected through Questionnaires. This
method consisted of preparing detailed questions covering the Employee satisfaction standards in
the Company. Thereafter it will be distributed amongst a total of 120 personnel of the Company
(respondents) who will be randomly selected.

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Secondary Data
Secondary Data as per the requirement of the project will be collected from the company website.

Sampling

Sampling Technique: Convenience sampling - Non probability samples that are
unrestricted are called convenience samples. Non probability sampling (A non
probability sampling technique is that in which each element in the population does
not have an equal chance of getting selected)

Sample Unit: Supervisory and Managerial level employees of different departments in
IOCL.

Sample size : 120 respondents ( 60 OFFICERS & 60 NON OFFICERS)

HYPOTHESIS

Hypothesis is a proposition formulated for empirical testing; a tentative descriptive statement that
describes the relationship between two and more variables. Considering the objectives of the
study, the present scientific investigation will be conducted after testing the hypothesis.
.It was considered better to frame null hypothesis in which we assume 0 amount of difference
between the mean scores of two variables.
If the difference is sizeable, the null hypothesis is rejected; and if it is attributable, it is accepted. The
following null hypothesis will be considered for the study:-
Ho: There is no significant relationship between age and level of satisfaction.
H1: There is no significant relationship between experience and level of satisfaction.
H2: There is no significant relationship between category of jobs (officers and non officers) and
level of satisfaction.

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CHAPTER 4
profile of the organization

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Indian Oil Corporation Limited, or Indian Oil, (BSE: 530965,
NSE: IOC) is an Indian state-owned oil and gas company
headquartered at Mumbai, India. It is Indias largest
commercial enterprise, ranking 98th on the Fortune Global
500 list in 2011. Indian Oil and its subsidiaries account for a
47% share in the petroleum products market, 34.8% share in
refining capacity and 67% downstream sector pipelines
capacity in India. The Indian Oil Group of Companies owns
and operates 10 of India's 19 refineries with a combined refining capacity of 65.7 million metric
tons per year.
IndianOil operates the largest and the widest network of fuel stations in the country, numbering
about 17606 (15557 regular ROs & 2049 Kissan Sewa Kendra). It has also started Auto LPG
Dispensing Stations (ALDS). It supplies Indane cooking gas to over 47.5 million households
through a network of 4,990 Indian distributors. In addition, IndianOil's Research and
Development Center (R&D) at Faridabad supports, develops and provides the necessary
technology solutions to the operating divisions of the corporation and its customers within the
country and abroad. Subsequently, IndianOil Technologies Limited - a wholly owned subsidiary,
was set up in 2003, with a vision to market the technologies developed at IndianOil's Research
and Development Center. It has been modeled on the R&D marketing arms of Royal Dutch Shell
and British Petroleum
History
IndianOil began operation in 1964 as Indian Oil Company Ltd. The Indian Oil Corporation was
formed in 1964, with the merger of Indian Refineries Ltd. Feroze Gandhi was the first chairman
of Indian Oil Corporation Limited.

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Products
IndianOil's product range covers petrol, diesel, LPG, auto LPG, aviation turbine fuel, lubricants,
naphtha, bitumen, paraffin, kerosene etc. Xtra Premium petrol, Xtra Mile diesel, Servo
lubricants, Indane LPG, Autogas LPG, Indian Oil Aviation are some of its prominent brands.
Recently Indian Oil has also introduced a new business line of supplying LNG (liquefied natural
gas) by cryogenic transportation. This is called "LNG at Doorstep". LNG headquarters are
located at the Scope Complex, Lodhi Road, Delhi.
Refineries
Digboi Refinery, in Upper Assam, is India's oldest refinery and was commissioned in 1901.
Originally a part of Assam Oil Company, it became part of IndianOil in 1981. Its original
refining capacity had been 0.5 MMTPA since 1901. Modernisation project of this refinery
has been completed and the refinery now has an increased capacity of 0.65 MMTPA.
Guwahati Refinery, the first public sector refinery of the country, was built with Romanian
collaboration and was inaugurated by Late Pt. Jawaharlal Nehru, the first Prime Minister of
India, on 1 January 1962.
Barauni Refinery, in Bihar, was built in collaboration with Russia and Romania. It was
commissioned in 1964 with a capacity of 1 MMTPA. Its capacity today is 6 MMTPA.
Gujarat Refinery, at Koyali in Gujarat in Western India, is IndianOils largest refinery. The
refinery was commissioned in 1965. It also houses the first hydrocracking unit of the country.
Its present capacity is 13.70 MMTPA.
Haldia Refinery is the only coastal refinery of the Corporation, situated 136 km downstream
of Kolkata in the Purba Medinipur (East Midnapore) district. It was commissioned in 1975
with a capacity of 2.5 MMTPA, which has since been increased to 5.8 MMTPA
Mathura Refinery was commissioned in 1982 as the sixth refinery in the fold of IndianOil
and with an original capacity of 6.0 MMTPA. Located strategically between the historic
cities of Delhi and Agra, the capacity of Mathura refinery was increased to 7.5 MMTPA.
Panipat Refinery is the seventh refinery of IndianOil. The original refinery with 6 MMTPA
capacity was built and commissioned in 1998. Panipat Refinery has doubled its refining
capacity from 6 MMT/yr to 12 MMTPA with the commissioning of its Expansion Project.

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Bongaigaon Refinery is the eight refinery of Indian Oil. It became the eighth refinery of
Indian Oil Corporation Limited after merger of Bongaigaon Refinery & Petrochemicals
Limited with IOCL w.e.f. 25th March 2009. It is located at Dhaligaon in Chirang district of
Assam, 200 Kms west of Guwahati.The present crude processing capacity of the refinery is
2.35 MMTPA. The refinery has two Crude Distillation Units of 1.35 MMTPA and 1.00
MMTPA capacities, two Delayed Coker Units each of 0.5 MMTPA capacity, one Coke
Calcination Unit of 0.075 MMTPA and a Catalytic Reformer of 160,000 MTPA naphtha feed
capacity and an LPG Bottling Plant.
It is believed that the future IOCL refinery Will be Paradeep Refinery. It is expected to be
handover at 2012.
Subsidiary refineries Chennai Petroleum (9.5 MMTPA)
Group companies and joint ventures
IndianOil Technologies Ltd : IndianOil Technologies Ltd. is the marketing arm of IOCL
which markets the entire range of technologies developed at the IndianOil R&D Centre,
Faridabad. IndianOil Technologies Ltd. headquarters is located at the IndianOil R&D Centre.
IndianOil (Mauritius) Ltd.
Lanka IOC PLC - Group company for retail and storage operations in Sri Lanka. It is listed in
the Colombo Stock Exchange. It was locked into a bitter subsidy payment dispute with Sri
Lanka's Government which has since been resolved.
[citation needed]

IOC Middle East FZE
Chennai Petroleum Corporation Limited
Green Gas Ltd. - a joint venture with Gas Authority of India Ltd. for city-wide gas
distribution networks.
Indo Cat Pvt. Ltd., with Intercat, USA, for manufacturing 15,000 tonnes per annum of FCC
(fluidised catalytic cracking) catalysts & additives in India.
Indian Oil - CREDA Biofuels Ltd. , a joint venture with Chattisgarh government for
production and marketing of Bio-fuels.

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Numerous exploration and production ventures with Oil India Ltd., Oil and Natural Gas
Corporation
International rankings
Indian Oil is the highest ranked Indian company in the Fortune Global 500 listing, 125
th
position
in 2010. It is also the 18th largest petroleum company in the world and the number one petroleum
trading company among the National Oil Companies in the Asia-Pacific region. IOCL was
featured on the 2010 Forbes Global 2000 at position 313. It is fifth most valued brand in India
according to an annual survey conducted by Brand Finance and The Economic Times in 2010.
[2]

Loyalty programs
XTRAPOWER Fleet Card Program is aimed at Large Fleet Operators. Currently it has 1 million
customer base. XTRAREWARDS is a recently launched loyalty program for retail customers
where customers can earn reward points on their purchases.in the org
Competitors
Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan
Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two private
competitors, Reliance Industries and Essar Oil.Other competitors are coming faster.
Concerns
The volatility in the crude market & subsidy burden on the IOCL has dented the company
performance like other PSU oil companies. This is also reflected in its FORTUNE rating this
year. Moreover, bureaucratic hurdles in projects are hurting company advancement. IOCL has
one of the best technical manpower for execution of jobs.

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CHAPTER 5
Data Analysis Summary and Findings

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1. Response to satisfaction level of employees with reference to the their salary

Officer level
Table 1
Attributes Number of Respondents (Percentage)
Satisfied 54%
Not satisfied 20%
Neutral 26%

The above chart & table depicts the satisfaction level regarding salary package of employees of
officer level. Accordingly it is seen that, 54% of employees are satisfied with the salary package
paid to them followed by 20% as not satisfied and 26% with neutral response.

Non officers
54%
20%
26%
Salary package
Satisfied
Not satisfied
Neutral
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Table 2
Attributes

Number of respondents (Percentage)

Satisfied
80%
Neutral
20%

The above chart & table2 depicts the satisfaction level regarding salary package of employees of non
officer level. Accordingly it is seen that, 80% of employees are satisfied with the salary package paid to
them followed by 20% with neutral response. While doing the survey dissatisfaction regarding the salary
package among the employees of non officer category was not found.

Both officers & non officers
Table 3
Attributes Number of respondents(Percentage)
Satisfied 67%
Not satisfied 10%
Neutral 23%

80%
20%
Salary package
Satisfied
Neutral
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The above chart & table3 depicts the satisfaction level regarding salary package of employees of both
officer and non-officer level. Accordingly it is seen that, 67% of employees are satisfied with the salary
package paid to them followed by 10% as not satisfied and 23% with neutral response.

Satisfaction level regarding their job profile

1(one - very dissatisfied 4(four) - neutral
2(two - dissatisfied 5(five) - somewhat satisfied
3(three) - somewhat dissatisfied 6(six) - satisfied
7(seven) - very satisfied
Officers
Table 4
Scoring satisfaction level Number of respondents
Four(4) 12
Five(5) 14
Six(6) 26
Seven(7) 8

67%
10%
23%
Salary package
Satisfied
Not satisfied
Neutral
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The table 4 depicts the satisfaction level of employees of officer level. The satisfaction level has been
measured on the basis of scores given to the job profile. All the scores have been given out of 7(seven)
which indicates maximum level of satisfaction.

Thus, table 4 and the above chart depicts that maximum number of employees of officer level are satisfied
with their job profile followed by employees who are somewhat satisfied.
Non officers
Table5

Scoring satisfaction level

Number of respondents
Two(2)
2
Four(4)
8
Five(5)
14
Six(6)
28
Seven(7)
8

0
5
10
15
20
25
30
Four(4) Five(5) Six(6) Seven(7)
Job profile
No. of respondents
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Thus, table 5 and the above chart depicts that maximum number of employees of non officer level are
satisfied with their job profile followed by employees who are somewhat satisfied and very satisfied.

Officer & non-officer
Table 6
No of respondents
Two(2)
2
Four(4)
20
Five(5)
28
Six(6)
54
Seven(7)
10

0
5
10
15
20
25
30
Two(2) Four(4) Five(5) Six(6) Seven(7)
Job profile
No. of respondents
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Thus, table 6 and the above chart depicts that maximum number of employees of both officer & non
officer level are satisfied with their job profile followed by employees who are somewhat satisfied and
neutral responses.

Satisfaction level regarding their leadership and planning

1(one) - dissatisfied 4(four) - somewhat satisfied
2(two) - somewhat dissatisfied 5(five) - satisfied
3(three) - neutral

0
10
20
30
40
50
60
Two(2) Four(4) Five(5) Six(6) Seven(7)
Job profile
No. of respondents
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Non officers
Table 7
One (1) 8
Two (2) 8
Three (3) 16
Four (4) 24
Five (5) 4

The table 7 depicts the satisfaction level of employees of officer level. The satisfaction level has been
measured on the basis of scores given to leadership & planning. All the scores have been given out of
5(seven) which indicates maximum level of satisfaction.

somewhat satisfied with leadership & planning followed by neutral responses.

Employee Satisfaction Index (ESI)

Ratings Count R*C ESI
1
8
8
2
8
16
3
16
48
0
5
10
15
20
25
30
1(one) 2(two) 3(three) 4(four) 5(five)
Leadership & planning
No. of respondents
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4
24
96
5
4
20
Total 60 188 3.13=neutral

As calculated we got ESI to be 3.13. Thus, ESI as in case of leadership and planning ( non officers) is
neutral.
Officers
Table 8
One(1) 0
Two(2) 4
Three(3) 12
Four(4) 30
Five(5) 14

Thus, table 8 and the above chart depicts that maximum number of employees of officer level are
somewhat satisfied with leadership & planning followed by satisfied responses.
Employee Satisfaction Index (ESI)
1
0
0
2
4
8
3
12
36
4
30
120
0
5
10
15
20
25
30
35
Leadership & Planning
No. of respondents
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5
14
70
Total 60 234 3.9=Somewhat satisfied

As calculated we got ESI to be 3.9. Thus, ESI as in case of leadership and planning (officers) is Somewhat
satisfied.
Officer and Non officers
Table 9
One(1)
8
Two(2)
12
Three(3)
28
Four(4)
54
Five(5)
18

officer level are somewhat satisfied with leadership & planning followed by neutral responses.
1
8
8
2
12
24
0
10
20
30
40
50
60
Leadership & Planning
No. of respondents
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3
28
84
4
54
216
5
18
90
422 3.51=somewhat satisfied

As calculated we got ESI to be 3.51. Thus, ESI as in case of leadership and planning (both non officers
and officers) is Somewhat satisfied.

Response to the satisfaction level with reference to the Corporate Culture
Non officer
Table 10
One(1)
8
Two(2)
20
Three(3)
20
Four(4)
10
Five(5)
2

somewhat dissatisfied with corporate culture followed by neutral responses.
0
5
10
15
20
25
Corporate Culture
No. of respondents
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1
8
8
2
20
40
3
20
60
4
10
40
5
2
10
158 2.63=somewhat dissatisfied

As calculated we got ESI to be 2.63. Thus, ESI as in case of Corporate culture (non officers) is Somewhat
dissatisfied.
Officer
Table 11
One(1)
4
Two(2)
6
Three(3)
15
Four(4)
20
Five(5)
15
.

0
5
10
15
20
25
Corporate Culture
No. of respondents
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somewhat satisfied with corporate culture followed by neutral & satisfied responses.
1
4
4
2
6
12
3
15
45
4
20
80
5
15
75

As calculated we got ESI to be 3.6. Thus, ESI as in case of corporate culture (officers) is Somewhat
satisfied.
Officers and non officers
Scoring Satisfaction level Number of respondents
One(1) 12
Two(2) 26
Three(3) 35
Four(4) 30
Five(5) 17

Thus the above table and chart depicts that maximum number of employees of officer & non officer level
are neutral regarding their corporate culture followed by somewhat satisfied.
0
5
10
15
20
25
30
35
40
One(1) Two(2) Three(3) Four(4) Five(5)
Corporate Culture
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1 12 12
2 26 52
3 35 105
4 30 120
5 17 85
374 3.11=somewhat
satisfied

As calculated we got ESI to be 3.11. Thus, ESI as in case of corporate culture (both officers and non
officers) is Somewhat satisfied.

Response to the satisfaction level with reference to the Communications
Non officers
Table 13
One(1)
2
Two(2)
4
Three(3)
6
Four(4)
20
Five(5)
28

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satisfied with communication followed by somewhat satisfied.
1
2
2
2
4
8
3
6
18
4
20
80
5
28
140
248 4.13=Satisfied

As calculated we got ESI to be 4.13. Thus, ESI as in case of communication (non officers) is satisfied.
Officers
Table 14
One(1)
2
Two(2)
4
Three(3)
32
Four(4)
10
Five(5)
12

0
5
10
15
20
25
30
Communication
No. of respondents
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Thus, table 14 and the above chart depicts that maximum number of employees of officer level are neutral
about communication followed by somewhat satisfied.
1
2
2
2
4
8
3
32
96
4
10
40
5
12
60
206 3.43=Somewhat Satisfied

As calculated we got ESI to be 3.43. Thus, ESI as in case of communication (officers) is somewhat
satisfied.
Officers and non officers
Table 15
One(1)
4
Two(2)
8
Three(3)
38
Four(4)
30
Five(5)
40

0
5
10
15
20
25
30
35
Communication
No. of respondents
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Thus, table 15 and the above chart depicts that maximum number of employees of both officers & non
officer level are satisfied with communication followed by neutral responses.
1
4
4
2
8
16
3
38
114
4
30
120
5
40
200

As calculated we got ESI to be 3.8. Thus, ESI as in case of communication (both non officers and
officers) is somewhat satisfied.
\
Response to the satisfaction level with reference to the Career development
Non officers
Table 16
One(1)
4
Two(2)
6
Three(3)
38
0
5
10
15
20
25
30
35
40
45
Communication
No. of respondents
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Four(4)
7
Five(5)
5

neutral about career development followed by somewhat satisfied.
1
4
4
2
6
12
3
38
114
4
7
28
5
5
25
183 3.05=neutral

As calculated we got ESI to be 3.05. Thus, ESI as in case of career development (non officers) is neutral.
Officers
Table 17
One(1)
3
Two(2)
4
Three(3)
8
Four(4)
25
Five(5)
20
0
5
10
15
20
25
30
35
40
Career Development
No. of respondents
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55

somewhat satisfied with career development followed by satisfied.
1
3
3
2
4
8
3
8
24
4
25
100
5
20
100

As calculated we got ESI to be 3.92. Thus, ESI as in case of career development (officers) is somewhat
satisfied.
Officers & non officers
Table 18
One(1)
7
Two(2)
10
Three(3)
46
Four(4)
32
Five(5)
25

0
5
10
15
20
25
30
Career development
No. of respondents
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56

Thus, table 18 and the above chart depicts that maximum number of employees of both non officer &
officer level are neutral about career development followed by somewhat satisfied.
1
7
7
2
10
20
3
46
138
4
32
128
5
25
125
418 3.48=neutral

As calculated we got ESI to be 3.48. Thus, ESI as in case of career development (non officers and
officers) is neutral.

Response to the satisfaction level with reference to their Role
Non officers
Table 19
One(1)
2
Two(2)
4
0
10
20
30
40
50
Career development
No. of respondents
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Three(3)
22
Four(4)
20
Five(5)
12

neutral about their role followed by somewhat satisfied.
1
2
2
2
4
8
3
22
66
4
20
80
5
12
60

As calculated we got ESI to be 3.6. Thus, ESI as in case of Role (non officers) is somewhat satisfied.
Officers
Table 20
One(1)
2
Two(2)
2
0
5
10
15
20
25
Role
No. of respondents
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Three(3)
10
Four(4)
24
Five(5)
22

somewhat satisfied with their role followed by satisfied.
1
2
2
2
2
4
3
10
30
4
24
96
5
22
110
242 4.03=somewhat
satisfied
As calculated we got ESI to be 4.03. Thus, ESI as in case of Role (officers) is somewhat satisfied.

Table 21
One(1)
4
Two(2)
6
0
5
10
15
20
25
30
Role
No. of respondents
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Three(3)
32
Four(4)
44
Five(5)
34

officer level are somewhat satisfied with their role followed by satisfied.
1
4
4
2
6
12
3
32
96
4
44
176
5
34
170

As calculated we got ESI to be 3.82. Thus, ESI as in case of Role (both non officers and officers) is
somewhat satisfied.
Response to the satisfaction level with reference to the Recognition & rewards
Non officers
Table 22
0
5
10
15
20
25
30
35
40
45
50
Role
No. of respondents
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One(1)
1
Two(2)
2
Three(3)
11
Four(4)
16
Five(5)
30

somewhat satisfied with rewards & recognition given followed by somewhat satisfied.

1
1
1
2
2
4
3
11
33
4
16
64
5
30
150

As calculated we got ESI to be 4.2. Thus, ESI as in case of Recognition and rewards (non officers) is
somewhat satisfied.
0
5
10
15
20
25
30
35
Recognition ad rewards
No. of respondents
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Officers
Table 23
One(1)
1
Two(2)
2
Three(3)
30
Four(4)
15
Five(5)
12

about rewards & recognition given followed by somewhat satisfied.
1
1
1
2
2
4
3
30
90
4
15
60
5
12
60

0
5
10
15
20
25
30
35
Recognition and rewards
No. of respondents
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As calculated we got ESI to be 3.58. Thus, ESI as in case of Recognition and rewards (officers) is
somewhat satisfied.
Non officers & officers
Table 24
One(1)
2
Two(2)
4
Three(3)
41
Four(4)
31
Five(5)
42

about rewards & recognition given followed by satisfied.
1
2
2
2
4
8
3
41
123
4
31
123
5
42
210

0
10
20
30
40
50
Recognition & Rewards
No. of respondents
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63

As calculated we got ESI to be 3.9. Thus, ESI as in case of Recognition and rewards (both non-officers
and officers) is somewhat satisfied.
Response to the satisfaction level with reference to teamwork & cooperation
Non officers
Table 25
One(1)
2
Two(2)
4
Three(3)
10
Four(4)
17
Five(5)
27

satisfied with team work & cooperation followed by somewhat satisfied.
1
2
2
2
4
8
3
10
30
4
17
51
5
27
135

0
5
10
15
20
25
30
Teamwork and cooperation
No. of respondents
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64

As calculated we got ESI to be 4.05. Thus, ESI as in case of teamwork and cooperation (non-officers) is
somewhat satisfied.
Officers

Table 26
One(1)
2
Two(2)
4
Three(3)
27
Four(4)
17
Five(5)
10

about their team work & cooperation followed by somewhat satisfied.
1
2
2
2
4
8
3
27
81
4
17
51
5
10
50
209 3.48=neutral

0
5
10
15
20
25
30
teamwork and cooperation
No. of respondents
GU MBA

65

As calculated we got ESI to be 3.48. Thus, ESI as in case of teamwork and cooperation (officers) is
neutral.
Table 27
One(1)
4
Two(2)
8
Three(3)
37
Four(4)
44
Five(5)
27

officer level are somewhat satisfied with their team work & cooperation followed by neutral responses.
1
4
4
2
8
16
3
37
111
4
44
136
5
27
185

0
10
20
30
40
50
Teamwork and cooperation
No. of respondents
GU MBA

66

As calculated we got ESI to be 3.77. Thus, ESI as in case of teamwork and cooperation (non officers and
Response to the satisfaction level with reference to their Immediate superior
Non officers
Table 28
One(1)
0
Two(2)
2
Three(3)
24
Four(4)
20
Five(5)
14

neutral about immediate superior followed by neutral responses.
1
0
0
2
2
4
3
24
72
4
20
80
5
14
70

0
5
10
15
20
25
30
immediate superior
No. of respondents
GU MBA

67

As calculated we got ESI to be 3.77. Thus, ESI as in case of immediate superior (non officers) is
somewhat satisfied.
Officers
Table 29

One(1)
0
Two(2)
2
Three(3)
10
Four(4)
20
Five(5)
28

satisfied with their immediate superior followed by somewhat satisfied.
1
0
0
2
2
4
3
10
30
4
20
80
5
28
140

0
5
10
15
20
25
30
Immediate superior
No. of respondents
GU MBA

68

As calculated we got ESI to be 4.23. Thus, ESI as in case of immediate superior (officers) is somewhat
satisfied.
Table 30

One(1)
0
Two(2)
4
Three(3)
34
Four(4)
40
Five(5)
42

Thus, table 30 and the above chart depicts that maximum number of employees of officer & non officer
level are satisfied with their immediate superior followed by somewhat satisfied.
1
0
0
2
4
8
3
34
102
4
40
160
5
42
210
480 4=somewhat satisfied

0
10
20
30
40
50
Immediate superior
No. of respondents
GU MBA

69

As calculated we got ESI to be 4. Thus, ESI as in case of immediate superior (both non officers and
Response to the satisfaction level with reference to the Benefit
Non officers
Table 31

One(1)
0
Two(2)
2
Three(3)
25
Four(4)
20
Five(5)
13

neutral about benefits provided to them followed by somewhat satisfied.
1
0
0
2
2
4
3
25
75
4
20
80
0
5
10
15
20
25
30
Benefits
No. of respondents
GU MBA

70

5
13
65

As calculated we got ESI to be 3.73. Thus, ESI as in case of benefits (non officers) is somewhat satisfied.
Officers
Table 32

One(1)
0
Two(2)
2
Three(3)
12
Four(4)
20
Five(5)
26

satisfied with benefits provided to them followed by somewhat satisfied.
1
0
0
2
2
4
3
12
36
0
5
10
15
20
25
30
Benefits
No. of respondents
GU MBA

71

4
20
80
5
26
130

As calculated we got ESI to be 4.17. Thus, ESI as in case of benefits (officers) is somewhat satisfied.
Table 33

One(1)
0
Two(2)
4
Three(3)
37
Four(4)
40
Five(5)
39

Thus, table 33 and the above chart depicts that maximum number of employees of officer & non officer
level are somewhat satisfied with benefits provided to them followed by satisfied.
1
0
0
2
4
8
0
10
20
30
40
50
Benefits
No. of respondents
GU MBA

72

3
37
111
4
40
160
5
39
195

As calculated we got ESI to be 3.95. Thus, ESI as in case of benefits (non officers and officers) is
somewhat satisfied.

Response to the satisfaction level with reference to the training Program
Non officers
Table 34

One(1)
0
Two(2)
2
Three(3)
27
Four(4)
20
Five(5)
11

GU MBA

73

neutral about training programs followed by somewhat satisfied.

1
0
0
2
2
4
3
27
81
4
20
80
5
11
55

As calculated we got ESI to be 3.67. Thus, ESI as in case of training program (non officers) is somewhat
satisfied.
Officers
Table 35

0
5
10
15
20
25
30
training program
No. of respondents
GU MBA

74

One(1)
0
Two(2)
2
Three(3)
8
Four(4)
30
Five(5)
20

somewhat satisfied with training programs followed by satisfied.
1
0
0
2
2
4
3
8
24
4
30
120
5
20
100

As calculated we got ESI to be 4.13. Thus, ESI as in case of training program (officers) is somewhat
satisfied.
0
5
10
15
20
25
30
35
Training program
No. of respondents
GU MBA

75

Table 36

One(1)
0
Two(2)
4
Three(3)
35
Four(4)
50
Five(5)
31

officer level are somewhat satisfied with training programs followed by neutral responses.
1
0
0
2
4
8
3
35
105
4
50
200
5
31
155

As calculated we got ESI to be 3.9. Thus, ESI as in case of training program (both non officers and
0
10
20
30
40
50
60
Training Program
No. of respondents
GU MBA

76

Response to the satisfaction level with reference to the working condition
Non officers
Table 37

One(1) 1
2(two) 4
3(three) 10
4(four) 30
5(five) 15

somewhat satisfied with working conditions followed by satisfied.
1
1
1
2
4
8
3
10
30
4
30
120
5
15
75

0
5
10
15
20
25
30
35
working conditions
No. of respondents
GU MBA

77

As calculated we got ESI to be 3.9. Thus, ESI as in case of working conditions (non officers) is somewhat
satisfied.

Officers
Table 38

One(1)
1
Two(2)
4
Three(3)
5
Four(4)
30
Five(5)
20

0
5
10
15
20
25
30
35
working conditions
No. of respondents
GU MBA

78

1
1
1
2
4
8
3
5
15
4
30
120
5
20
100

As calculated we got ESI to be 4.07. Thus, ESI as in case of working conditions(officers) is somewhat
satisfied.
Officers and Non officers
Table 39

One(1)
2
Two(2)
8
Three(3)
15
Four(4)
60
Five(5)
35

GU MBA

79

1
2
2
2
8
16
3
15
45
4
60
216
5
35
175
As calculated we got ESI to be 3.95. Thus, ESI as in case of working conditions (both non officers and
officers) is somewhat satisfied
TWO-WAY ANALYSIS
1. Age
Satisfaction Level
AGE High Medium Low Total
Less than 35 20 11 1 32
35 to 45 40 17 1 58
45 or older 14 10 6 30
Total 74 38 8 120

2. EXPERIENCE

Satisfaction Level
0
10
20
30
40
50
60
70
working conditions
No. of respondents
GU MBA

80

Experience High Medium Low Total
Less than 5 yrs 14 12 1 27
5 yrs to 10 yrs 36 13 1 50
10 yrs or more 22 15 6 43
Total 72 40 8 120

3. OFFICERS AND NON OFFICERS

Satisfaction
Level
High Medium Low Total
Officers 40 12 8 60
Non-officers 18 20 22 60
Total 58 32 30 120

CHI- SQUARE TEST:
Chi-square test is applied to test the goodness of fit, to verify the distribution of observed data with
assumed theoretical distribution. Therefore it is a measure to study the divergence of actual and expected
frequencies; Karl Pearsons has developed a method to test the difference between the theoretical
(hypothesis) & the observed value.
Chi - square test (X2) - (O - E) 2 / E
Degrees Of Freedom - V - (R - 1) (C -1)
Where,
O = Observed Frequency
E= Expected Frequency
R = Number of Rows
C = Number of Columns
For all the chi-square test the table value has taken @ 1% level of significance.

CHI-SQUARE TEST IS CONDUCTED TO EXTENT THE RELATION SHIP BETWEEN
THE AGE AND LEVEL OF SATISFACTION
GU MBA

81

Hypothesis:
Ho: There is no significant relationship between age and level of satisfaction.
O( observed E(expected (O-E) (O-E)^2 (O-E)^2/E
frequency) frequency)
20 19.74 0.26 0.0676 0.0034
40 35.76 4.24 17.9776 0.5027
14 18.5 -4.5 20.25 1.0945
11 10.1 0.9 0.81 0.0801
17 18.36 -1.36 1.8496 0.1007
10 9.5 0.5 0.25 0.0263
1 2.13 -1.13 1.2769 0.5994
1 3.86 -2.86 8.1796 2.119
6 2 4 16 8
TOTAL 12.5261

Degree of freedom - 4

Table value 13.277

Calculated value 12.5261

INFERENCE:
Since the calculated value is less than the table value. So the Null hypothesis is accepted. Hence, there is
no significant relationship between age and level of satisfaction.

CHI- SQUARE TEST IS CONDUCTED TO EXTENT THE RELATIONSHIP BETWEEN
THE EXPERIENCE AND LEVEL OF SATSFACTION

Hypothesis:

H1: There is no significant relationship between experience and level of satisfaction.

GU MBA

82

14 16.2 -2.2 4.84 0.2987
36 30 6 36 1.2
22 25.8 -3.8 14.44 0.5596
12 9 3 9 1
13 16.67 -3.67 13.4689 0.8079
15 14.34 0.66 0.4356 0.0303
1 1.8 -0.8 0.64 0.3556
1 3.34 -2.34 5.4756 1.6394
6 2.86 3.14 9.8596 3.4474
TOTAL 9.3389


Table value 13.277


INFERENCE:

Since the calculated value is less than the table value. So the Null hypothesis is accepted. Hence, there is
no significant relationship between EXPERIENCE and level of satisfaction.

CHI- S Q U ARE TEST IS CONDUCTED TO EXTENT THE RELATIONSHIP BETWEEN
CATEGORY OF JOB (OFFICERS AND NON OFFICERS) AND LEVEL OF SATSFACTION

Hypothesis:

H2: There is no significant relationship between category of job( officers and non officers)and level
of satisfaction.

40 29 11 121 4.1724
18 29 -11 121 4.1724
GU MBA

83

12 16 -4 16 1
20 16 4 16 1
8 15 -7 49 3.2667
22 15 7 49 3.2667
TOTAL 16.8782


Table value 9.210


INFERENCE:

Since the calculated value is more than the table value. So the Null hypothesis is rejected. Hence, there is
significant relationship between job category (officers and non officers) and level of satisfaction.

GU MBA

84

CHAPTER 6
recommendations & CONCLUSION

GU MBA

85

Analysis of the finding reveal that as per employees satisfaction is concerned, the employees of officer
level are fairly satisfied with different organizational aspects like:
Corporate Culture
Communications
Career Development
Role played
Working Conditions
Immediate Superior
Training Program
Fringe Benefits
However, the satisfaction level of the employees of non-officers category was low as compared to
employees of officers category.
Also the hypothesis: Thereis no significant relationship between category of job( officers and non
officers)and level of satisfaction , was rejected signifying that employees satisfaction level varies between
the two job categories i.e. officers and non officers.

RECOMMENDATIONS: As the satisfaction level of non officers was found to be low as compared to
officers, the following may be recommended to improve so:

Do provide them the opportunities to develop their ability to the fullest through effective training
program.
Recognition of their achievements and performances through increase in perks, benefits, rewards,
promotions etc.
Providing them the Scope for continuous improvement.
Providing them the opportunity to climb up to officer & managerial level posts through
organizing periodic Exams and providing accurate effective training later on.
Enable them to understand the policies, goals and corporate culture of the organization.
Measure Employee Engagement - Start measuring employees' passion about work and the work
environment by issuing an employee satisfaction survey. Employee satisfaction surveys using a
GU MBA

86

scale of agreement (a Likert Scale) provide a quantitative measurement that can be combined with
open-ended comments to identify opportunities to make employees happy.

Identify What Employees Like - By gathering compliments through employee satisfaction
surveys in addition to concerns, your company can find out if its engagement efforts make a
meaningful, lasting contribution to employees.

Help Employees See the Big Picture - Employees want to feel that they are contributing and
making a difference. Help your employees to see the big picture and how they contribute to a
functioning whole. This will also empower employees to make decisions and improve employee
satisfaction.

Use Training to Increase Confidence - Managers who cut training budgets to save costs do not
understand how service delivery and morale can suffer as a result. Employees need training to do
their job confidently and to facilitate career advancement within the company.

Establish Mentoring Programs - Train and encourage seasoned employees to be mentors. A
mentoring program can facilitate dynamic skill growth through an organization and foster a sense
of community while improving employee satisfaction and employee engagement.

Promote Team Building - Encourage team building activities among employee groups to create
trust and acceptance. Strong, loyal teams provide one level of acceptance, and teamwork between
departments provides another.

Build a Supportive Environment - Often, dissatisfaction with wages and benefits masks problems
that relate back to acceptance by a team or manager. Employees may need help with coping skills,
problem-solving skills, tactics for handling difficult situations, or expressing their personal
feelings.

Recognize Employee Contributions - Recognition from a supervisor of at least two ranks above
an employee makes a meaningful, engaging difference in employee morale and employee loyalty.

Use Technology to Manage Employee Engagement - Technology is available to help you go
beyond a single employee satisfaction survey annually or an email link on the company Intranet.
Enterprise Feedback Management systems can be used to centralize employee satisfaction
surveys and employee feedback and track both qualitative and quantitative information. Third-
party systems provide for employee anonymity, which encourages open and honest employee
feedback
GU MBA

87

CHAPTER6: BIBLIOGRAPHY

Okpara, J. (1996), An Examination of the Relationship of MotivationNeeds, Cultural Factors,
and Job Satisfaction among Managers in SelectedBusiness Enterprises in Nigeria unpublished
doctoral dissertation, NewYork University, New York. 2)

Oshagbemi, T. (1999b), Overall Job Satisfaction: How Good Are SingleVersus Multiple-item
Measures,Journal of Managerial Psychology. (1994).

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AN IN-DEPTH STUDY OF

Employee satisfaction at IOCL, Noonmati REFINERY

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