A PROJECT REPORT ON STUDY OF EMPLOYEE SATISFACTION LEVEL UNDER TAKEN AT

VARDHMAN TEXTILES LIMITED

In partial fulfillment of the requirement for the degree of Master in Business Administration (MBA) (2008-2010)
UNDER THE GUIDANCE OF: MR. SAPAN JAIN ASSISTANT EXECUTIVE SUBMITTED BY: KARUNA CHAUHAN ROLL NO-7026220852

STUDENT OF
BUDHA COLLEGE OF MANAGEMENT RAMBHA (KARNAL INDRI ROAD)

CERTIFICATE OF APPROVAL
The following Summer Project Report titled Employee satisfaction level at Vardhman Textiles Ltd. is hereby approved as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post Graduate Degree in Business Management for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted. Summer Project Report Examination Committee for evaluation of Summer Project Report Name Signature ..

PG Summer Project college guide

ACKNOWLEDGEMENT

A project work is a combination of views, ideas, suggestions & contributions of many people. Thus, one of the pleasant part of writing the report is the opportunity to thank those who have contributed towards it fulfillment. Behind every success there is certainly an unseen power of almighty God but an aim is the internal condition of success which is attainable at perfection in everything by who preserves with association of the predecessors, teachers, family members, friends and colleagues. I consider it as great privilege to have esteemed Lect. Ms GEETA SACHDEVA as my project guide. I take this opportunity to express my sincere gratitude to her through constant advice and constructive criticism nourished my interest in the subject and provided a free and pleasant atmosphere to work against all odd situations. I avail this opportunity to extend my heartfelt thanks and deep respect to faculty members for their able guidance during the course of this project.

PREFACE
This project is the result of eight weeks training at Vardhman Group Ludhiana. Summer training is an integral part of Master in Business management course and it aims at providing a first hand experience of industry to students. This practical experience helps the students to view the real Business World closely. Which inturn influence our perception. I am privileged that I got an opportunity to pursue my summer training in such a reputed ,well established,fast growing and professionally managed organization. The project assigned to me dealt with the study of satisfaction level of employees working in Vardhman so I got an opportunity to deal with the workers and also see and understand that how various departments in an organization work and are managed. In the end I would like to express our deepest gratitude to entire faculty members who have been guiding force behind this project and encouraged me for successful completition of my project.

KARUNA CHAUHAN

TABLE OF CONTENTS
I. TITLE PAGE II. CERTIFICATE OF APPROVAL III. ACKNOWLEDGEMENT IV. PREFACE V. EXECUTIVE SUMMARY CHAPTER 1. 1. Introduction to employee satisfaction CHAPTER 2 Company profile CHAPTER 3 Objectives of the study Research methodology Research design Sample design and size Sources of data Scope of the study CHAPTER 4 Data coding Data analysis CHAPTER 5 Findings Recommendations Conclusion Limitations APPENDIX Bibliography Questionnaire

EXECUTIVE SUMMARY
PROJECT TITLE:- To study the employee satisfaction level at Vardhman. DURATION:- 2 months Our project is on Employee Satisfaction at Vardhman Textiles Ltd .In this Project , I have tried to measure the satisfaction level of employees. Although this is an abstract concept, I have tried to measure it with the help of questionnaire method. In this, we have asked questions related to work environment, training and development, compensation, career growth and welfare facilities and all other factors. By data analysis we got the findings. We found that more than 50% of the employees are satisfied with the company. There are certain areas which are very good and employees are satisfied by those areas like work culture, work environment, relationship of the employees with the management but in certain areas the company needs improvement like welfare facilities, training development programs, salary structure, transport facilities and infrastructure etc.

CHAPTER 1
6

INTRODUCTION TO EMPLOYEE SATISFACTION

Employee satisfaction is an abstract concept.The actual manifestation of the state of satisfaction vary from person to person. The state of satisfaction depend on the number of both physical and psychological variables. Employee satisfaction is a comprehensive term including satisfaction of employees by the organization.. Why employee satisfaction survey is required? Research shows that satisfied, motivated employees facilitate higher customer satisfaction and, in turn, positively influence organizational performance. Organizations that invest in measuring employee opinions and attitudes, by incorporating Employee Satisfaction Surveys into their existing HR processes, can develop such a workforce. Study of "Employee satisfaction" helps the company to maintain standards & increase productivity by motivating the employees. this study tells us how much the employees are capable & their interest at work place? what are the things still to be satisfy to the employees. although "human resource" are the most important resources for any organization, so to study on employees satisfaction helps to know the working conditions & what are the things that affects them not to work properly. always majority of done by the machines/equipments but without any manual moments nothing can be done. so to study on employee satisfaction is necessary High levels of employee satisfaction are coorelated to high levels of productivity and low levels of absenteeism so companys can save money by contracting a consulting firm to measure employee satisfaction and to identify areas that can be improved to increase employee satisfaction. High employee satisfaction levels can reduce turnover By establishing frequent and consistent employee feedback processes, Confirmit solutions enable enterprises to retain and develop their most vital asset - employees.so measurement of satisfaction level of employees is necessary. Satisfied employees contribute to development and growth to organization Employee satisfaction surveys can provide fast, effective benchmarking of staff opinions and organisational culture. It is an obvious statement but high employee satisfaction levels can reduce employee turnover. Dissatisfied employees tend to perform below their capabilities, result in high 7

turnover of staff and leave their jobs relatively quickly, and are not very likely to recommend your company as an employer. Employee satisfaction research gives employees a voice and also allows the pinpointing of problematic areas, leading to the raising of staff satisfaction levels, developing and reviewing of staff management, and optimising corporate communications. Importance of employee satisfaction in an organization Employee satisfaction is supremely important in an organization because it is what productivity depends on. If your employees are satisfied they would produce superior quality performance in optimal time and lead to growing profits. Satisfied employees are also more likely to be creative and innovative and come up with breakthroughs that allows a company to grow and change positively with time and changing market conditions. The HRM Monitor is a research solution to measure and improve the satisfaction and commitment of employees. It provides insight into:

The satisfaction and commitment of employees The motivation and loyalty of employees Opportunities for improvement

This will help you realize:

Opportunities to increase commitment Better performing employees Reduced employee absenteeism Employees who are more satisfied and motivated

REVIEW OF LITERATURE

(1) Dail.l. Fields1, Terry.c blum2 Employee satisfaction in work groups with different gender composition has been done by employees. This study investigates the relationship between the gender composition of an employee's work group and the employee's job satisfaction, using a random sample over 1600 U.S. workers. After controlling possible confounding variables, our analysis shows that the level of an employee's job satisfaction is related to the gender composition of the employee's work group, and that the relationship of these variables does not differ between male and female employees. Both men and women working in gender-balanced groups have higher levels of job satisfaction than those who work in homogeneous groups. Employees working in groups containing mostly men have the lowest levels of job satisfaction, with those working in groups containing mostly women falling in the middle. These results are consistent with predictions based on Blau's theory of social structure, that satisfaction would be highest for employees in more heterogeneous groups. (2) Dainy.N.garrison The first study of its kind, The Impact of Employee Attitudes on Market Response and Financial Performance sheds light on how employee satisfaction and engagement drive an organizations bottom-line success, even if those employees have no direct contact with customers. Results of the study suggest that influencing customer behavior goes beyond advertising, beyond delivering on a brands promise, beyond customer service and beyond product research and development. Influencing customer behavior, which in turn effects an organizations success, also requires specific efforts to maximize employee engagement and satisfaction. The study addresses a universal business principal: it is far less costly, and more fiscally prudent, to serve and nurture relationships with current customers than it is to acquire new customers. It behooves managers to recognize and cultivate employee engagement and satisfaction since they do indeed influence market outcomes and an organizations financial performance. Dr. James L. Oakley, assistant professor of marketing, at Purdue Universitys Krannert School of Management, supervised the research in which 110,000 surveys were mailed out, with a 34% response rate, to 100 randomly sampled public and private media companies.

Financial data was provided to a third party and was derived directly from financial reports for these organizations (3) Hackman, J. Richard; Oldham, Greg R. The report describes the Job Diagnostic Survey (JDS), an instrument designed to measure the following classes of variables: (1) objective job characteristics, particularly the degree to which jobs are designed so that they enhance work motivation and job satisfaction; (2) personnel affective reactions of individuals to their jobs and work setting; the readiness of individuals to respond positively to "enriched" jobs--jobs with high potential for generating internal work motivation. Based on a specific theory of how jobs affect employee motivation, the JDS is intended to: (1) diagnose existing jobs to determine if (and how) redesigning could improve employee productivity and satisfaction; and (2) evaluate the effect of job changes on employees--whether the changes derive from deliberate "job enrichment" projects or from naturally occurring modifications of technology or work systems. The JDS has gone through three cycles of revision and pretesting. Reliability and validity data are summarized for 658 employees in 62 different jobs in seven organizations who have responded to the revised instrument. Two supplementary instruments are also described: (1) a rating form for assessing "target" jobs; and (2) a short form of the JDS. All instruments and scoring keys are appended. (4) John Wiley & Sons, Ltd.(1997) This study investigates the relationship between the gender composition of an employee's work group and the employee's job satisfaction, using a random sample over 1600 U.S. workers. After controlling possible confounding variables, our analysis shows that the level of an employee's job satisfaction is related to the gender composition of the employee's work group, and that the relationship of these variables does not differ between male and female employees. Both men and women working in gender-balanced groups have higher levels of job satisfaction than those who work in homogeneous groups. Employees working in groups containing mostly men have the lowest levels of job satisfaction, with those working in groups containing mostly women falling in the middle. These results are consistent with predictions based on Blau's theory of social structure, that satisfaction would be highest for employees in more heterogeneous groups

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CHAPTER 2
INDIAN TEXTILE INDUSTRY
Textile accounts for 14 % of Indias industrial production and around 27% of its exports earnings. Textile industry in India covers a wide gamut of activities ranging from production of raw material like cotton, jute, silk and wool to provide high quality products such as fabrics and garments to consumers. Man made fibers account for around 40% share in a cotton dominated Indian textile industry. India accounts for 15% of worlds total cotton crop production and records largest producer of silk. Industry uses a wide variety of fibers ranging from natural fibers like cotton, jute, silk and wool to man made fibers like polyester, viscose, acrylic and multiple blends of such fibers and filament yarns. Textile industry plays a significant role in Indian economy by providing direct employment to an estimated 35 million people, by contributing 4% of GDP and accounting for 35% of gross export earnings. Textile sector contributes 14% of value addition in manufacturing sector. It is the second largest employer after the agriculture sector in both rural and urban areas. India has large pool of skilled labor, experienced in technology skills. Almost all sectors of textile industry have shown significant achievement. Sector has shown a 3.66% CAGR over the last five years. Textile exports during the period of April-February 2003-2004 amounted to $ 11,698 million as against $11,142 million during the same period, showing increase of around 5 percent.

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ABOUT VARDHMAN GROUP

Establishment of Vardhman
The industrial city of Ludhiana, located in the fertile Malwa region of Central Punjab is otherwise known as the MANCHESTER OF INDIA. Within the precincts of this city is located the Corporate Headquarters of the Vardhman Group, a household name in Northern India has carved out a niche for itself in textile industry. The Vardhman Group, born in 1965, under the entrepreneurship of Late Lala Rattan Chand Oswal, has today blossomed into one of the largest Textile Business houses in India. Father of present Chairman cum managing director, SH. S.P.OSWAL.

Introduction
The Vardhman Group is one of the largest textile houses in the country. The group has the sizeable presence in Spinning, Weaving, Sewing Threads, Fabrics Processing, Acrylic Fiber manufacturing and Alloy Steels. In 1965, at the time when India was awakening to the need for industrial investment, Ludhiana, a bustling town in the fertile Malwa belt of Punjab, witnessed the establishment of Vardhman which started as a 14,000 spindle spinning unit under the entrepreneurship of Late Lala Rattan Chand Oswal . Vardhman has grown into full fledged textile group, with a range of textile products stretching from fiber to fabric. Over the years, Vardhman has expanded its spinning capacities besides adding new business. In 1982, the group entered the sewing thread market and has grown to be the second largest producer of sewing thread. In 1992, it undertook forward integration in the weaving business. It has also made its mark as the quality producer of Grey poplin/sheeting/shirting in the domestic as well as foreign market In 1990,the group went in for another diversification by entering the weaving business. A grey fabric weaving facility was set up in Baddi, in Himachal Pradesh with a

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capacity of 20,000 meters per day. Soon after the group entered into fabric processing by setting up a unit by name of Auro Textiles in Baddi itself. This unit today has a processing capacity of 1 lac meters/day.

In 1999,the group went in for diversifying into a business where it didnt have sufficient expertise when it set up an acrylic fibre manufacturing facility in Bharuch(Gujarat).But this shortcoming was overcome by bringing in the technological capabilities of two able Japanese partners, Marubeni and Exlan, into the venture. So a joint venture Vardhman Acrylics Ltd was set with a two Japanese companies of late the company setting up man integrated textile manufacturing facility in Budni and Satlapur(M.P.) where it is setting up a captive power generation unit, a spinning unitSatlapur as a composite unit (spinning and weaving)- Budni.The facilities are expected to add 2.5 lac spindle to the already massive 5,00,000 spindle capacity of the group. More importantly it would give its a manufacturing presence in central India from where it can better serve its western and south Indian clients. Until now the company had all its manufacturing units in the northern India which not only made it difficult to serve its far off clients but also posed the problem of capacity constraints for the company at the existing units just when demand for Textile is expected to pick up in the post quotes scenario. The capacity is expected to solve both these problems and is expected to become operational by 2008. During the year 2004 -05 Vardhman Spinning and General Mills Ltd. (VSGML) merged into Mahavir Spinning Mills Ltd.(MSML) and VSGML became a holding company. Today companies of the Group like Vardhman Spinning & General Mills Ltd. (VSML) and Mahavir Spinning Mills Ltd. (MSML) are listed and trade on various Stock Exchanges in India. The Groups joint ventures include VMT Spinning Company Ltd. (A joint ventures with Toho Rayon Co. Ltd. and Marubeni of Japan) and Vardhman Acrylics Ltd. (A joint venture with Japan Exlan and Marubeni, Japan) Vardhman is also the largest manufacturer and exporter of Cotton yarns from India. It is the second largest producer of sewing threads in India and a large producer of acrylic 13

fibre and greige/ finished woven fabrics. The company has been awarded the prestigious Texprocil award for outstanding achievements in exports regularly over the last decade. Adherence to systems and true dedication to quality has resulted in obtaining the coveted ISO-9002, ISO-14002 quality award which is the first in the Textile Industry in India and yet another laurel to its credit.Vardhmans endeavor to provide its customers with stateof-the art products has been felicitated time and again, by the industry and the Government.

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MISSION STATEMENT

Vardhman aims to be the world class Textile organization producing diverse range of products for the global Textile market. Vardhman seeks to achieve Customer delight through excellence in manufacturing and customer service based on creative combination of state of the art technology and human resources. Vardhman is committed to be a responsible corporate citizen. The mission of the Vardhman Group can be summed up in a single line i.e. BEING WORLD CLASS SPINNERS BY PROVIDING HIGHEST QUALITY PRODUCTS WITHIN MINIMUM COST.

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LOGO OF VARDHMAN GROUP

The Flame signifies growth i.e. growth of the company along with the growth of each and every individual associated with it whether he/she is a worker , a white collar employee, a shareholder or a customer. The Stick symbolizes cotton that is the basic raw material of the core product of Vardhman. The V stands for the Vardhman Group.

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CULTURE AND ITS ASPECTS

1. Professionalism 2. System Approach 3. Commitment To Quality 4. Excellence With Economy 5. Cost Consciousness 6. Human Resource Regarded As Valuable Asset 7. Emphasis On Teaching and Development 8. Preference To Human Value 9. Management By Participation 10. Open Door Policy In Sharing Ideas And Suggestions 11. Group Synergy 12. Emphasis on effective communication and coordination 13. Managerial strength and acceptance to change 14. Cordial Environment 15. Customer Focus 16. Honor And Reward

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GROUP PHILOSOPHY

The Vardhman Group has always emphasized on total customer focus in all operational areas. It has continuously monitored and nurtured relationships with all the customers and business associates. Vardhman believes in:-

The fact that change is a way of life. Absolute market orientation for a quick and positive response to the customers needs. An uncompromising commitment to a flexible, professional and personalized service from within a stimulating result oriented environment. Delivery to a constant standard and on time. Response approach to the benefits of R&D and the modern technology. Having faith in individual potential and respect for human values.

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Being a responsible corporate citizen with due respect to the laws of the land and its environment. Product to be the best available quality for premium market segment. These underline the corporate philosophy, which has shaped VARDHMAN OF YESTER YEARS into VARDHMAN OF TODAY. Encouraging innovation for constant improvement to achieve excellence in all functional areas

PRODUCT RANGE OF THE GROUP

Yarns

The constant endeavor to excel has transformed Vardhman into being the countrys largest manufacturer and exporter of cotton yarns from India. Catering to the diverse requirements of the local and global clients, Vardhman offers a wide range of specialized grey, dyed and a variety of blended yarns in cotton, polyester and acrylic. Technical tie-ups with the world class leaders from Switzerland, Germany, Japan and Korea have provided state-of-the art machinery that has ensured a range of products admired across the globe for their impeccable quality and service. Latest technology, sourced from best available around the world, combined with dexterous hands has made Vardhman a Super Market of High Quality Yarns 1994 was another milestone towards its mission to supply quality products. Vardhman further improved the value addition to its existing range of tops, fiber dyed and cone dyed yarns. This was result of new phenomena that emerged on the horizons of Vardhman and also of Indian Textiles. A fully integrated dyeing plant was commissioned with technology from Nihon Sanmo Dyeing Co. Ltd., Japan, the leader in dyeing technology in the world. It has a capacity of processing 22 tones fiber/tops and 10-tonnes of yarns per day. 19

Today Vardhman Group has over 50 tones of dyeing capacity per day, spread over various plants.

PRODUCTS Cotton Hosiery Yarn Woven Yarn Tyre Cord yarn Acrylic Yarn Hand Knitting Yarn

APPLICATIONS All kinds of knitted garments Shirts and Trousers Manufacturing of Tyres Sweaters and Shawls Knitting

Sewing Thread and industrial thread

Vardhman is the second largest producer of sewing thread in the country next to Madura coats Ltd.. The sewing thread manufacturing capacity is being expanded from present 17 tons per day to 22 tons per day in its sewing thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 12 percent of the group turnover. It also manufactures high quality specialty threads at its unit in Baddi.

SEGMENT Apparel Sewing Threads Specialty Threads

APPLICATIONS Clothing, Tailoring, Hosiery Sports, Leather Goods, Gloves, Mattresses, Quilting, Parachutes etc. Embroidery, Crochet Tapestry etc. 20

Textile Crafts

Kite Flying

Kite Flying

Weaving

Continuing its onward march on the value curve, Vardhman group entered weaving business in 1992 with a capacity of 7 million meter per annum. This capacity has been subsequently expanded to 25 million meters per annum. The group has already made its mark as a quality producer of grey poplin/ suiting/ shirting in the home market and has also entered the highly competitive export market within this short span, now exporting fairly large volume of its production.

Fabric

Vardhmans recent entry into grey fabric weaving at Baddi (H.P.) commissioned in mid 1992 with a capacity of 70,000 meters per day. It has already made its mark as a quality producer of grey poplin/suiting/shirting in the home market and also entered the highly competitive export market within a short span, now exporting 90% of the production of Auro Weaving, the weaving unit at Baddi. The group has initiated further forward

21

integration by setting up a fabric processing plant at Baddi. This plant Auro Textile has a capacity of processing 70,000 meters of fabric everyday.

Fibre

Vardhman ventured into the manufacture of acrylic fibre in 1999. The joint venture, VAL, was set up together with two leading Japanese business houses namely Japan Exlan Company Ltd., a part of Toyobo group of Japan & Marubeni Corporation, Japan. It has a manufacturing capacity of 18000 MT per annum at Jhagadia, Gujarat in Western India. The products are marketed under the brand name VARLAN. Varlan fibre has acquired Indian Market for its use in a wide variety of applications such as Hand Knitting Yarns; Machine knitting yarns for blankets, jerseys, sweaters, saris, dress material, upholstery, furnishing fabrics, velvets, Carpets etc. The Group is one of the largest consumers of Acrylic Staple Fibre in India.

Special Steel

The steel business was setup in 1973 as diversification with a capacity of 35000 mt per annum. Later on group acquired a steel plant from Mohta Group of Industries (now

22

known as Vardhman Special Steel) in 1986 and converted this loss making unit into a profitable business in first year of operation with the group. Subsequently the steel mill has been modernized and expanded to a capacity of 1.80 lacs mt per annum. Catering to high technology quality conscious alloy steel segment, the unit has a reputation of being a dependable source of supply of special and alloy steel to Indian/International standards.

COMPANY PROFILE
Registered office/ corporate office Date of incorporation Listings on Stock Exchange -Bombay Stock Exchange, Bombay -Delhi Stock Exchange Association Ltd. New Delhi -Ludhiana Stock Exchange Association Ltd. Ludhiana Chandigarh Road, Ludhiana (PB.) 27 December, 1962

VSGM LTD includes:-

1. VSGM UNIT I 2. VSGM UNIT II 3. AURO SPINNING MILL 4. AURO WEAVING MILL 5. AURO DYEING, BADDI

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6. AURO TEXTILES, BADDI 7. VSGM (100% EOU), BADDI

Board of Directors:-

SHRI PAUL OSWAL SH. BAL KRISHAN BATRA SH. SURINDER KUMAR BANSAL SH. SURINDER SINGH BAGII AIR MARSHAL K.S.BHATIA (RTD.) SH. CHAMAN LAL JAIN SH. S.K. BIJALANI SH. RAJENDRA SH. BAL KRISHAN CHOWDARY SH. SUCHIT JAIN SMT. SUCHITA JAIN

CHAIRMAN CUM MANAGING DIRECTOR NOMINEE OF IDBI LTD. NOMINEE OF IFCI LTD.

EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

Company Secretary
MRS. SHAKTI JINDAL

Auditors

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M/S S.C. VASUDEVA & CO. NEW DELHI

Bankers
1. Allahabad bank 2. State Bank Of India 3. Bank Of America 4. ICICI Bank Ltd 5. Canara Bank 6. State Bank Of Patiala 7. Standard Chartered Bank 8. Deutsche Bank

Corporate General Manager (Finance, Accounts &MIS)

MR. NEERAJ JAIN

A Brief Detail Of Various Products Is Given Below: Yarns

1. 100% Cotton 2. 100% Acrylic 3. Acrylic / Cotton 4. Polyester / Cotton 5. Melange 6. Carded / Combed 7. Single / Multifold 8. Cones / Hanks 9. Raw white / Bleached / Dyed.

Hand knitting yarn

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1. Fancy 2. Twisted

Sewing threads
1. Cotton 2. Polyester 3. Threads

Fabrics
1. Poplin 2. Shirting 3. Sheeting 4. Dress Material

Special Steels
1. Alloy Steels 2. Low Carbon Steels 3. Spring Steels

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 Group Units
1. Mahavir Spinning Mills Ltd. Unit Mahavir Spinning Mills Ltd.(Unit 1, 2,3) Auro Spinning Mills Auro Dyeing Mills Auro Weaving Mills Auro Textile Mills VSGM Location Ludhiana Baddi Baddi Baddi Baddi Baddi Product Range Cotton blended, Acrylic, HKY Cotton blended, Fibre Dyed yarn Yarns and Fibre dyeing Grey Popline, Sheeting and Shirting Fabric processing Cotton yarns

2. Mahavir Spinning Mills Ltd Unit Location Product Range

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Mahavir Spinning Mills Ltd (Unit 1) Arihant Spinning Mills Arisht Spinning Mills Arisht Spinning Mills (100% EOU) Anant Spinning Mills Vardhman Special Steel MSML Sewing Thread

Hoshiarpur Malerkotla Baddi Baddi

Sewing thread and Industrial Thread Cotton, Blended, Melange yarns Cotton, Blended yarns Cotton, Blended yarns Cotton, Blended yarns

Ludhiana Ludhiana

Special steel, Alloy steel, Low carbon steel Sewing thread and Industrial thread

3. VMT Spinning Co. Ltd. Unit Vardhman Spinning Co. Location Baddi Product Range Cotton yarns

4. Vardhman Acrylics Ltd Unit Vardhman Acrylic Ltd Location Bharuch (Guj) Product Range Acrylic fibre

5. Vardhman Threads Ltd Unit Vardhman Threads Ltd Location Baddi Product Range Industrial Threads

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Manufacturing and Distribution Network

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BUSINESS PORTFOLIO
Vardhman group has its presence in various businesses as yarns, hand knitting yarns, sewingthreads, fabrics, and Special steel.

Share of each business group turnover:-

fibe r 7 % tra he d 1% 0

s el te 8 %

yr an fa r bic yr an 5% 5 tra he d fibe r s el te

fa r bic 2% 0

Vardhman exports turnover:-

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688.67 495.73 482.93 402.67

\

445.81 Series1

2008-09

2007-08

2006-07

2005-06

2004-05

Product wise turnover

(Value in Crores)
2,000.00 1,500.00 1,000.00 2008-09 500.00 0.00 Yarns Sewing Steel Thread Fabric Acrylic Fibre 2007-08

MARKET POSITION
1. Largest Spinning capacity in India - over half a million spindles. 2. Largest producer of Cotton, Synthetics and Blended yarns in the country. 3. Largest Dyeing Capacity of Fiber and Yarn.

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4. Largest Exporter of Cotton Yarn. 5. Market Leader in Hand Knitting Yarns in India. 6. Largest range of Textile products. 7. Second largest producer of Sewing Thread in the country. 8. Collaborations with specialist worldwide.
9. ERP (Enterprise Resource Planning) enabled solutions for online order tracking.

GROUP CORPORATE OFFICE

Vardhman has a modern centrally air-conditioned multi stored corporate building that serves as the original place from where all strategies, policies, programs, rules and regulation take shape. The corporate building houses the offices of the top bosses including chairman cum managing director, executive director, corporate general manager and corporate vice president of the various functional areas. The other facilities at the corporate office include meeting rooms, boardroom, conference halls etc.

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Different departments of VSGM: Commercial Department

1. Marketing 2. Costing 3. Finance 4. Material

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 Administrative Department
1. Industrial relations 2. Personnel department 3. Transport 4. Security 5. Establishment (dispatch & issue) 6. Electronic data process

Production Department
1. Spinning I 2. Spinning II 3. Post Spinning I 4. Post Spinning 5. Worsted I, II 6. Hand Knitting section 7. Research & Development 8. Dye house unit- II

Engineering Department
1. Electronic department 2. Civil department 3. Mechanical department

ORGANISATIONAL STRUCTURE
BOARD OF DIRECTORS

CHAIRMAN MANAGING DIRECTOR

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CORPORATE GENERAL MANAGER

VICE PRESIDENT

MANAGER

EXECUTIVE

OFFICERS

STAFF

SUB STAFF

SWOT ANALYSIS OF THE VARDHMAN GROUP

Strengths:1. Good Brand Equity 2. Good technological base with Foreign Collaboration 3. High Quality Standards 4. High Production Capacity 5. Own Research and Development department 6. Commitment for growth

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7. Human Capital 8. Zero Defect and optimum production with zero wastage 9. Its culture and philosophy

Weaknesses:1. Comparatively high prices 2. Lesser degree of promotional activity 3. Long Hierarchy

Opportunities:1. As quality is good and prices are comparatively high, Vardhman can always easily liquidate stock pressure by slight reduction in prices. 2. As brand image is very good and production is too wide, Vardhman can have some good customers with whom direct business can be established. With this Vardhman will have better Quantity and Regularity of sales. 3. Strict payments are strengths at times as well as weakness. If a moderate policy, as per present conditions are adopted, the dealers and customers shall be attracted to buy more and regularly. 4. Shortened hierarchy shall provide hope for better customer service.

Threats:1. Smaller players in the market are using Vardhmans process as a shield to push their product at lower prices. 2. Companies from south are entering into Ludhiana market. 3. Capacity of Yarn Spinning is increasing rapidly in comparison to increase in market size, resulting into the addition of new players. This would result in price cuts, liberalization of payment, terms and conditions etc. the various functional areas. 36

CHAPTER 3

OBJECTIVES OF THE STUDY

To find out the satisfaction level of the employees at Vardhman . To observe the working environment. To find out the reasons why the employees feel dissatisfied. To suggest measures to improve the satisfaction level of employees. .To examine the provisions of growth and opportunities. 37

To find out the areas of improvement in the company. To know the kind of relationship between superiors and subordinates.

RESEARCH METHODOLOGY
Employee satisfaction research encompasses many different research techniques but the measurement of satisfaction is only the first step to improving employee satisfaction

Research Design

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It is very important part of research methodology. To gain familiarity with the phenomena or to achieve new insights into the study we go for exploratory research design

Sample Design and Size

The population of are study is Corporate office, Vardhman Textiles Ltd. And the sample size of sixty employees working in Corporate office, Vardhman Textiles Ltd. For sampling we have used the technique namely stratified random sampling. We have chosen this technique because the population is divided into stratas i.e officers and staff and data is selected from each strata.

Method of Data Collection

The fourth step of research methodology is data collection. It can be done through primary or secondary techniques. In my study I have taken both the techniques to collect the data. To collect primary data I have done a survey on Employee Satisfaction through a questionnaire which was filled by the employees of Corporate Office. The questionnaire consisted of 25 questions (23-close ended and 2-open ended) and technique used to prepare the questionnaire is LIKERTs Scaling. For secondary data I have reffered journals, magazines and largely internet.

Scope of the study

Employee Satisfaction survey helps employers to measure and understand their employees attitude, opinions, required motivation, commitment and satisfaction. It has wide scope for the employees as well as the employers. 1. It will lead to improvement in the satisfaction level of employees of Vardhman. 2. The results of the survey could be use for increasing the productivity of the organisation. 3. Company can take measures to remove the loopholes whereever they exist. 4. Company can work on strengthning their core competencies which came out as the result of the survey.

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5. Organisation can identify the root causes of job issues and problems , and can create solutions for improvement with an accurate perspective of employee views. 6. This survey provides the information needed to improve levels of productivity , job satisfaction and loyalty. 7. By working on the areas of improvement, organisation can imrove the quality and quantity of workdone by the employees 8. Employees would feel that the management is amphethetic enough to understand their view point point and this would create a feeling of trustworthiness among employees for the management.

CHAPTER 4 DATA CODING

QUESTION STRONGLY AGREE INDIFFERENT DISAGREE STRONGLY TOTAL NO: AGREE DISAGREE 1 13 39 4 4 60 40

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23(a) 23(b) 23(c) 23(d) 23(e) 23(f) 23(g) 23(h) 23(i)

6 4 5 8 7 6 6 4 8 3 14 10 5 1 8 5 4 7 2 2 6 4 3 2 9 8

37 35 28 36 38 30 18 26 15 26 24 30 35 33 31 39 37 30 31 12 14 24 26 21 33 20 27 24 24 22

9 8 15 7 5 7 14 7 14 15 7 5 11 9 9 10 9 9 16 20 23 15 8 4 7 14 8 9 10 8

6 11 11 6 9 11 19 20 21 11 11 13 7 12 8 7 5 12 8 21 19 9 19 25 9 12 14 15 11 9

2 2 1 3 1 6 7 3 2 5 4 2 2 5 4 4 4 5 5 7 8 5 5 8 5 10 8 10 6 13

60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60

QUESTION NO:26

YES 30

NO 5

CANT SAY 25

TOTAL 60

Question 1:- The environment of workplace is comfortable and safe. 41

Responses:Strongly Agree Agree Indifferent Disagree Strongly Disagree

13 39 4 4

7% 0%

7%

22% Strongly Agree Agree Indifferent Disagree Strongly Disagree

64%

Question 2:- I feel there is proper co-ordination and teamwork within my department. Responses:Strongly Agree 6 Agree 37 Indifferent 9 Disagree 6 Strongly Disagree 2

40 30 20 10 0

Strongly Agree 6

Agree 37

Indifferent Disagree 9 6

Strongly Disagree 2

Series1

Question 3:- I feel my department gets proper support and teamwork from other departments.

42

Responses:Strongly Agree Agree Indifferent Disagree Strongly Disagree

4 35 8 11 2

2 11

4 Strongly Agree Agree Indifferent

8 35

Disagree Strongly Disagree

Question 4:- I am provided with optimum resources for my work assignments. Responses:Strongly Agree 5 Agree 28 Indifferent 15 Disagree 11 Strongly Disagree 1

30 25 20 15 10 5 0 Strongly Agree Indifferent 5 28 15 Strongly Agree Agree Indifferent 11 1 Strongly Disagree Disagree Strongly Disagree

43

Question 5:- I am treated with respect by management and fellow employees. Responses:Strongly Agree 8 Agree 36 Indifferent 7 Disagree 6 Strongly Disagree 3
40 35 30 25 20 15 10 5 0 Strongly Agree Agree Indifferent Disagree Strongly Disagree

Series1 Series2

Question 6:- There is a good superior subordinate relationship within my organization. Responses:Strongly Agree Agree Indifferent Disagree Strongly Disagree 7 38 5 9 1

15% 8%

2%

12% Strongly Agree Agree Indifferent Disagree Strongly Disagree 63%

44

Question 7:- Management is flexible and understands the importance of balancing my work and personal life. Responses:Strongly Agree 6 Agree 30 Indifferent 7 Disagree 11 Strongly Disagree 6

1 0% 1 8%

1 0% Strongly Agree Agree Indifferent Disagree Strongly Disagree 50%

1 2%

Question 8:- Company policies provide enough welfare programs for employees. Responses:-

45

Strongly Agree Agree Indifferent Disagree Strongly Disagree

6 18 14 19. 7

Strongly Disagree 11% Disagree 30%

Strongly Agree 9% Agree 28%

Indifferent 22%

Question 9:- I am involved in decision making that effects my job. Responses:46

Strongly Agree Agree Indifferent Disagree Strongly Disagree

4 26 7 20 3

5% 33%

7% Strongly Agree Agree Indifferent 43% Disagree Strongly Disagree

12%

Question 10:- The employee welfare and engagement activities adopted by the company results in improvement of productivity. Responses:Strongly Agree 8 47

Agree Indifferent Disagree Strongly Disagree

15 14 21 2

25 20 15 10 5 0 Strongly Agree Agree Indifferent Disagree Strongly Disagree Series2

Question 11:- My training and development needs are timely identified and addressed. Responses:Strongly Agree 3 Agree 26 Indifferent 15 Disagree 11 Strongly Disagree 5
30 25 20 15 10 5 0 Strongly Agree Indifferent Strongly Disagree 3 15 11 5 26 Strongly Agree Agree Indifferent Disagree Strongly Disagree

Question12:- My company spends reasonable time, effort and money in training and development of employees. Responses:Strongly Agree 14 48

Agree Indifferent Disagree Strongly Disagree

24 7 11 4

7% 18%

23%

Strongly Agree Agree Indifferent Disagree

12% 40%

Strongly Disagree

Question 13:- The training provided really helps in development of employees. Responses:Strongly Agree 10 Agree 30 Indifferent 5 Disagree 13 Strongly Disagree 2

3% 22%

17% Strongly Agree Agree Indifferent

8%

Disagree Strongly Disagree 50%

Question 14:- Quality of training and development provided to me is good. Responses:Strongly Agree 5 Agree 35 49

Indifferent Disagree Strongly Disagree

11 7 2

Strongly Disagree Disagree Indifferent Agree Strongly Agree 0% 20% 40%

2 7 11 35 5 60% 80% 100% Strongly Agree Agree Indifferent Disagree Strongly Disagree

Question 15:- I am encouraged to develop new and more efficient ways to do my work. Responses:Strongly Agree 1 Agree 33 Indifferent 9 Disagree 12 Strongly Disagree 5

8% 2% Strongly Agree Agree Indifferent 55% 15% Disagree Strongly Disagree

20%

Question 16:- My job profile is according to my competency and qualification. Responses:Strongly Agree 8 Agree 31 50

Indifferent Disagree Strongly Disagree

9 8 4

40 30 20 10 0 Strongly Agree Agree Indifferent Disagree 8 31 9 8 4 Strongly Disagree Strongly Agree Agree Indifferent Disagree S1 Strongly Disagree

Question 17:- Management recognizes and makes use of my abilities and skills. Responses:51

Strongly Agree Agree Indifferent Disagree Strongly Disagree

-

39 10 7 4

12%

7% Agree Indifferent Disagree 64% Strongly Disagree

17%

Question 18:- My superior provide me with constant feedback to help me. Responses:Strongly Agree 5 Agree 37 Indifferent 9 Disagree 5 Strongly Disagree 4

8% 15%

7%

8% Strongly Agree Agree Indifferent Disagree 62% Strongly Disagree

Question 19:- Overall I am satisfied with my job at company. Responses:Strongly Agree Agree

4 30 52

Indifferent Disagree Strongly Disagree

9 12 5

8% 20%

7%

Strongly Agree Agree Indifferent Disagree Strongly Disagree

15%

50%

Question 20:- I am provided with proper growth and development company. Responses:Strongly Agree Agree Indifferent Disagree Strongly Disagree

opportunities in the 31 16 8 5

13%

8% Agree Indifferent 52% Disagree Strongly Disagree

27%

Question 21:- Employees are treated fairly and equally regarding compensation and increment. Responses:Strongly Agree 53

Agree Indifferent Disagree Strongly Disagree

-

12 20 21 7

12%

20% Agree Indifferent Disagree

35% 33%

Strongly Disagree

Question 22:- I am granted timely and unbiased promotions. Responses:Strongly Agree Agree Indifferent Disagree Strongly Disagree

14 23 19 8

13%

22% Agree Indifferent Disagree

30% 35%

Strongly Disagree

Questions 23:- The following facilities and benefits provided to you are satisfactory. (a) Leave facilities 54

Strongly Agree Agree Indifferent Disagree Strongly Disagree

7 24 15 9 5

8% 15%

12%

Strongly Agree Agree Indifferent Disagree Strongly Disagree

25%

40%

(b) Housing facilities Strongly Agree Agree Indifferent Disagree Strongly Disagree 2 26 8 19 5

8% 32%

3%

Strongly Agree Agree 44% Indifferent Disagree Strongly Disagree

13%

(c) Transportation facilities Strongly Agree Agree 2 21

55

Indifferent Disagree Strongly Disagree

4 25 8

13%

3% Strongly Agree 35% Agree Indifferent Disagree

42% 7%

Strongly Disagree

(d) life Insurance Strongly Agree Agree Indifferent Disagree Strongly Disagree 6 33 7 9 5

8% 15%

10% Strongly Agree Agree Indifferent Disagree 55% Strongly Disagree

12%

(e) Education assistance Strongly Agree 4

56

Agree Indifferent Disagree Strongly Disagree

20 14 12 10

17%

7% Strongly Agree 33% Agree Indifferent Disagree Strongly Disagree 23%

20%

(f) Retirement benefits Strongly Agree Agree Indifferent Disagree Strongly Disagree 3 27 8 14 8

13%

5% Strongly Agree Agree Indifferent

23% 13%

46%

Disagree Strongly Disagree

(g) Disability Benefits

57

Strongly Agree Agree Indifferent Disagree Strongly Disagree

2 24 9 15 10

17%

3% Strongly Agree 40% Agree Indifferent Disagree Strongly Disagree 15%

25%

(h) Health benefits Strongly Agree Agree Indifferent Disagree Strongly Disagree 9 24 10 11 6

10% 18%

15% Strongly Agree Agree Indifferent Disagree Strongly Disagree

17%

40%

(i) company picnics & parties

58

Strongly Agree Agree Indifferent Disagree Strongly Disagree

8 22 8 9 13

22%

13%

Strongly Agree Agree Indifferent Disagree Strongly Disagree

15% 13%

37%

24) I would recommend others to work for the company. Responses:Yes No Cant say 30 5 25

42%

Yes No 50% 8% Cant say

OVERALL SATISFACTION:-

59

Strongly Agree Agree Indifferent Disagree Strongly Disagree

9% 47% 17% 19% 8%

8% 19%

9% Strongly Agree Agree Indifferent Disagree 47% Strongly Disagree

17%

60

CHAPTER 5

FINDINGS
The employees are satisfied with the environment of the workplace. Most of the employees are satisfied with the co-ordination and teamwork within their as well as other departments. Employees feel there is healthy superior-subordinate relationship within the organization. Employees are not much satisfied with the companys welfare programs. Most of the employees say that the management is flexible towards the employees. Employees are satisfied with the training and development programs organized by the company. Most of the employees are happy with their job and job profile. A greater percentage of employees are not satisfied with compensations, increments and promotions given by the company Mostly the employees are satisfied with the benefits and facilities provided by the company except transportation facility. Half of the percentage of employees would recommend others to the company.

CONCLUSION
61

As we know that human resources are the biggest assets of any organisation so relying upon this criterion we can say that their satisfaction towards their job is very important, as if they are satisfied they will work to the best of their ability which will contribute towards the profitability of the organization and better productivity. Hence, every organisation should always make sure that their employees are satisfied. If their employees are not satisfied with the organisation then necessary steps should be taken to make them satisfied because it will ultimately lead to improvement in their work which will then contribute towards the success of organisation. From the results of the survey, we found that more than 50% of the employees are satisfied with the company. There are certain areas which are very good and employees are satisfied by those areas like work culture, work environment, relationship of the employees with the management but in certain areas the company needs improvement such as welfare facilities, training development programs, salary structure, transport facilities and infrastructure etc. Though the management of Vardhman is continuously taking measures to improve the satisfaction level of the employees but still the satisfaction level of employees is not up to the mark so there is a scope of improvement in the policies of the company.

Limitations:62

Identifying the employee satisfaction level in any company is not possible without certain hindrances and limitations due to variation in satisfaction at different levels of employees within the organization. Certain hindrances and limitations that were being faced during the project are as follows. TIME:- There was lack of time on the part of respondents as the employees have a busy schedule and well-defined job profile. They cant afford to miss out their own job responsibilities and perform other works. AUTHENTICITY OF FEEDBACK:- Most of the study was based on the feedback from the employees which we got in the form filled questionnaire. The responses of the employees may be biased as observed. e.g- The questions whose possible response would have been disagree or disagree, the employees opted for marking the indifferent option. ATTITUDE AND BEHAVIOUR:- Whole of the analysis is based on the feedback of the employees through the medium of filled questionnaire and it was based on their personal perception and attitudes which may vary from individual to individual. Though all efforts have been made to include all areas related to employee satisfaction to be covered in the project work, but some issues may have been missed. LIMITED KNOWLEDGE:- Though all efforts have been made to include all areas related to employee satisfaction to be covered in the project work but some issues may have been missed as the knowledge level of a student and an employee may differ to a large extent. These limitations were faced as they were an integral part of the research however they did not affect the quality and parameter of the finding. stongly

SUGGESTIONS AND RECOMMENDATIONS

63

Company needs to revise the pay scale of the employees. Timely and adequate increments should be there for the employees. Company should have improve its infrastructure. Organization should have better transportation facilities. Employee involvement should be encouraged. Training and development programs needs to be paid more attention. There is a need to pay proper attention towards the employee welfare programs. Employee motivation should be encouraged. Work hours should be clearly defined. Organization should provide better leave facilities.

Questionnaire for Employee Satisfaction Survey:Dear respondent, 64

I am an MBA student, I want to get some information for the fulfillment of my training report. You are assured that the data being filled by you regarding your views on your working with the organisation ,will remain confidential and will not be shared with anyone. This is only for my project purpose. Further I dont require your name, designation, experience or department etc, so that the questionnaire is filled in true spirit. Personal information:(a) Sex (b) Age Below 20 20.30 30-40 Above 40 (c) Marital status Instructions:Rate the following factors on a scale ranging from 1-5. Tick the response you feel most appropriate .Your free and frank response will be appreciated. Here 1 = strongly agree 2 = agree 3 = Indifferent 4 = disagree 5 = strongly disagree Please avoid option 3 unless it is very genuine. Questions:(1) The environment of workplace is comfortable and safe. 1( ) 2( ) 3( ) 4( ) 5( ) Male ( Married ( ) Female ( )

Unmarried (

(2) I feel there is proper co-ordination and team work within my department. 1( ) 2( ) 3( ) 4( ) 5( ) (3) I feel my department gets proper support and team work from other departments. 1( ) 2( ) 3( ) 4( ) 5( ) (4) I am provided with optimum resources for my work assignments. 1( ) 2( ) 3( ) 4( ) 5( ) (5) I am treated with respect by management & fellow employees. 1( ) 2( ) 3( ) 4( ) 5( )

65

(6) There is a good superior subordinate relationship within my organization. 1( ) 2( ) 3( ) 4( ) 5( ) (7) Management is flexible and understands the importance of balancing my work and personal life. 1( ) 2( ) 3( ) 4( ) 5( ) (8) Company policies provide enough welfare programs for employees. 1( ) 2( ) 3( ) 4( ) 5( ) (9) I am involved in decision making that effects my job. 1( ) 2( ) 3( ) 4( ) 5( )

(10) The employee welfare and engagement activities adopted by the company results in improvement of productivity. 1( ) 2( ) 3( ) 4( ) 5( ) (11) My training and development needs are timely identified and addressed. 1( ) 2( ) 3( ) 4( ) 5( ) (12) My company spends reasonable time, effort and money in training and development of employees. 1( ) 2( ) 3( ) 4( ) 5( ) (13) The training provided really helps in development of employees. 1( ) 2( ) 3( ) 4( ) 5( ) (14) Quality of training and development provided to me is good. 1( ) 2( ) 3( ) 4( ) 5( )

(15) I am encouraged to develop new and more efficient ways to do my work. 1( ) 2( ) 3( ) 4( ) 5( ) (16) My job profile is according to my competency and qualification. 1( ) 2( ) 3( ) 4( ) 5( ) (17) Management recognises and makes use of my abilities and skills. 1( ) 2( ) 3( ) 4( ) 5( ) (18) My superiors provide me with constant feedback to help me. 1( ) 2( ) 3( ) 4( ) 5( (19) Overeall i am satisfied with my job at company. )

66

1(

2(

3(

4(

5(

(20) I am provided with proper growth and development opportunities in company. 1( ) 2( ) 3( ) 4( ) 5( ) (21) Employees are treated fairly and equally regarding compensation and increment. 1( ) 2( ) 3( ) 4( ) 5( ) (22) I am granted timely and unbiased promotions. 1( ) 2( ) 3( ) 4( ) 5( )

(23) The following facilities and benefits provided to you are satisfactory:Here 1 = strongly agree, 2 = agree, 3 = Indifferent, 4 = disagree 5 = strongly disagree 1 (a) (b) (c) (d) (e) (f) (g) (h) (i) Leave facilities Housing facilities Transportation facilities Life insurance Education assistance Retirement benefits Disability benefits Health benefits Company picnics & parties ( ( ( ( ( ( ( ( ( ) ) ) ) ) ) ) ) ) ( ( ( ( ( ( ( ( ( 2 ) ) ) ) ) ) ) ) ) ( ( ( ( ( ( ( ( ( 3 ) ) ) ) ) ) ) ) ) ( ( ( ( ( ( ( ( ( 4 ) ) ) ) ) ) ) ) ) ( ( ( ( ( ( ( ( ( 5 ) ) ) ) ) ) ) ) )

(24) What do you like the most while working for the company. ... ... ... (25) Suggest some areas of improvement in the company. . . .

(26) I would recommend others to work for the company. Yes ( ) No ( ) Cant say ( )

Thanks for your kind co-operation.

67

BIBLIOGRAPHY
Websites http://www.integronresearch.com/employee-satisfaction/employee-satisfaction-perindustry.html 68

http://www.questia.com/googleScholar.qst?docId=5001708742 http://www.emeraldinsight.com/10.1108/09544780510603198 http://www.quest ia.com/googleScholar.qst?docId=5001708742 http://wiki.answers.com http://www.integronresearch.com/employee-satisfaction/employee-satisfaction-perindustry.html http://www.accenture.com/Global/Consulting/Human_Resources_Mgmt/R_and_I/Positiv e_Environments.ht http://www.zoomerang.com/casestudy/study-stanley.htm

Journal articles &Research paper Journal article by Paul Toulson, Mike Smith; Public Personnel Management, Vol. 23, 1994 Journal article by Ronald J. Burke, Jim Graham, Frank Smith; The TQM Magazine,Vol.17,issue:4,page 358-363 Journal article by Titus Oshagbemi;Employee Relations,Vol.22,page:88-106,2000 Journal articles by Roland T. Rust, Greg L. Stewart, Heather Miller, Debbie Pielack,volume 7,issue:5,page:62-80

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70