SUMMARY OF THE PROJECT

A survey on “EMPLOYEE WELFARE AND JOB SATISFACTION” was conducted

in LOTTE CORPORATION INDIA LIMITED, CHENNAI.

STATEMENT OF THE PROBLEM

A study on Job Satisfaction and Employee Welfare among the employees of Lotte

Corp India Ltd, Chennai.

OBJECTIVES OF THE RESEARCH

To examine job satisfaction in detail

To examine that whether they have good communication between the employees

To analyse whether the employees are satisfied with the welfare facilities given to

them

To examine whether the employees are satisfied with their job and benifits

To examine whether the employees are satisfied in solving the problems by the top

management

LOCATION OF THE STUDY

The location of the study is Chennai.

PROJECT DURATION

The duration of the study is 45 days.

METHODOLOGY

The project methodology was based on the survey, i.e. data collection from the

employees through structured questionnaire, observations and interviews.

SAMPLE SIZE

A sample size of 50 was collected through questionnaire.

ANALYSIS AND INTERPRETATION

The information collected was put in the form of database using MS Access package.

Using simple tools such as sorting, the required information was collected out and analyzed.

Simple techniques such as proportion, percentages, and central tendencies are used as part of

analysis.

1. INTRODUCTION

JOB SATISFACTION

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

happier people are within their job, the more satisfied they are said to be. Job satisfaction is

not the same as motivation, although it is clearly linked. Job design aims to enhance job

satisfaction and performance, methods include job rotation, job enlargement and job

enrichment. Other influences on satisfaction include the management style and culture,

employee involvement, empowerment and autonomous work position . Job satisfaction is a

very important attribute which is frequently measured by organizations. The most common

way of measurement is the use of rating scales where employees report their reactions to their

jobs. Questions relate to rate of pay, work responsibilities, variety of tasks, promotional

opportunities, the work itself and co-workers.

DEFINITION

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

appraisal of one’s job; an affective reaction to one’s job; and an attitude towards one’s job.

Job satisfaction is an attitude but points out that researchers should clearly distinguish the

objects of cognitive evaluation which are affect (emotion), beliefs and behaviours. This

definition suggests that we form attitudes towards our jobs by taking into account our

feelings, our beliefs, and our behaviours.

Job satisfaction can also be seen within the broader context of the range of issues

which affect an individual's experience of work, or their quality of working life. Job

satisfaction can be understood in terms of its relationships with other key factors, such as

general well-being, stress at work, control at work, home-work interface, and working

conditions.

MODELS OF JOB SATISFACTION

AFFECT THEORY

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

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

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

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

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

expectations are/aren’t met.

When a person values a particular facet of a job, his satisfaction is more greatly

impacted both positively (when expectations are met) and negatively (when expectations are

not met), compared to one who doesn’t value that facet. To illustrate, if Employee A values

autonomy in the workplace and Employee B is indifferent about autonomy, then Employee A

would be more satisfied in a position that offers a high degree of autonomy and less satisfied

in a position with little or no autonomy compared to Employee B. This theory also states that

too much of a particular facet will produce stronger feelings of dissatisfaction the more a

worker values that facet.

DISPOSITIONAL THEORY

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

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

tendencies toward a certain level of satisfaction, regardless of one’s job. This approach

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

tends to be stable over time and across careers and jobs. Research also indicates that identical

twins have similar levels of job satisfaction.

This model states that higher levels of self-esteem (the value one places on his/her

self) and general self-efficiency (the belief in one’s own competence) lead to higher work

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

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

TWO-FACTOR THEORY (MOTIVATOR-HYGIENE THEORY)

This theory states that satisfaction and dissatisfaction are driven by different factors –

motivation and hygiene factors, respectively. An employee’s motivation to work is

continually related to job satisfaction of a subordinate. Motivation can be seen as an inner

force that drives individuals to attain personal and organizational goals. Motivating factors

are those aspects of the job that make people want to perform, and provide people with

satisfaction, for example achievement in work, recognition, promotion opportunities. These

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

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

policies, supervisory practices, and other working conditions.

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. 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 are sometimes collected using

an Enterprise Feedback Management (EFM) system.

The Job Descriptive Index (JDI), is a specific questionnaire of job satisfaction that

has been widely used. It measures one’s satisfaction in five facets: pay, promotions and

promotion opportunities, coworkers, supervision, and the work itself. The scale is simple,

participants answer either yes, no, or can’t decide (indicated by ‘?’) in response to whether

given statements accurately describe one’s job.

The 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.

RELATIONSHIPS AND PRACTICAL IMPLICATIONS

Job Satisfaction can be an important indicator of how employees feel about their jobs

and a predictor of work behaviours such as organizational citizenship, absenteeism, and

turnover. Further, job satisfaction can partially mediate the relationship of personality

variables and deviant work behaviors.

One common research finding is that job satisfaction is correlated with life

satisfaction. This correlation is reciprocal, meaning people who are satisfied with life tend to

be satisfied with their job and people who are satisfied with their job tend to be satisfied with

life. However, some research has found that job satisfaction is not significantly related to life

satisfaction when other variables such as non-work satisfaction and core self-evaluations are

taken into account.

EMPLOYEE WELFARE

DEFINITION

Employee welfare defines as “efforts to make life worth living for workmen”.  These

efforts have their origin either in some statute formed by the state or in some local custom or

in collective agreement or in the employer’s own initiative.

To win over employee’s loyalty and increase their morale.

To combat trade unionism and socialist ideas.

To build up stable labour force, to reduce labour turnover and absenteeism.

To develop efficiency and productivity among workers.

To save oneself from heavy taxes on surplus profits.

To earn goodwill and enhance public image.

To reduce the threat of further government intervention.

To make recruitment more effective.

PRINCIPLES OF EMPLOYEE WELFARE SERVICE

These principles to be followed in setting up a employee welfare service:

The service should satisfy real needs of the workers.  This means that the manager

must first determine what the employee’s real needs are with the active participation

of workers.

The service should such as can be handled by cafeteria approach.  Due to the

difference in Sex, age, marital status, number of children, type of job and the income

level of employees there are large differences in their choice of a particular benefit. 

This is known as the cafeteria approach.  Such an approach individualises the benefit

system though it may be difficult to operate and administer.

The cost of the service should be calculate and its financing established on a sound

basis.

There should be periodical assessment or evaluation of the service and necessary

timely on the basis of feedback.

 TYPES OF WELFARE FACILITIES:

INTRAMURAL FACILITIES: Which are provided within the establishment such

as rest centres canteen, uniforms.

EXTRAMURAL: Activities which are undertaken outside the establishment such as

child welfare, transport facility etc.

Intramural Extramural

Drinking water

Toilets

Crèches

Washing & bathing facilities

Rest shelters

Uniforms and protective clothing

Recreating facilities

Canteens

Subsidised food

Medical aid

Housing

Education facilities

Maternity benefits

Transportation

Sports facilities

Leave travel

Vocational training

Holiday homes

Cooperative stores

Fair price shops

Social insurence

EMPLOYEE WELFARE SCHEMES

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

DRINKING WATER: At all the working places safe hygienic drinking water should be

provided.

FACILITIES FOR SITTING: In every organization, especially factories, suitable seating

arrangements are to be provided.

FIRST AID APPLIANCES: First aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to the

needed employee.

LATRINES AND URINALS: A sufficient number of latrines and urinals are to be provided

in the office and factory premises and are also to be maintained in a neat and clean condition.

CANTEEN FACILITIES: Cafeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

SPITTOONS: In every work place, such as ware houses, store places, in the dock area and

office premises spittoons are to be provided in convenient places and same are to be

maintained in a hygienic condition.

LIGHTING: Proper and sufficient lights are to be provided for employees so that they can

work safely during the night shifts.

WASHING PLACES: Adequate washing places such as bathrooms, wash basins with tap

and tap on the stand pipe are provided in the port area in the vicinity of the work places.

CHANGING ROOMS: Adequate changing rooms are to be provided for workers to change

their cloth in the factory area and office premises. Adequate lockers are also provided to the

workers to keep their clothes and belongings.

REST ROOMS: Adequate numbers of restrooms are provided to the workers with

provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following schemes:

PERSONAL HEALTH CARE (Regular medical check-ups): Some of the companies

provide the facility for extensive health check-up

FLEXI-TIME: The main objective of the flexitime policy is to provide opportunity to

employees to work with flexible working schedules. Flexible work schedules are initiated by

employees and approved by management to meet business commitments while supporting

employee personal life needs

EMPLOYEE ASSISTANCE PROGRAMS: Various assistant programs are arranged like

external counselling service so that employees or members of their immediate family can get

counselling on various matters.

HARASSMENT POLICY: To protect an employee from harassments of any kind,

guidelines are provided for proper action and also for protecting the aggrieved employee.

MATERNITY & ADOPTION LEAVE : Employees can avail maternity or adoption leaves.

Paternity leave policies have also been introduced by various companies.

MEDICAL-CLAIM INSURANCE SCHEME: This insurance scheme provides adequate

insurance coverage of employees for expenses related to hospitalization due to illness,

disease or injury or pregnancy.

EMPLOYEE REFERRAL SCHEME: In several companies employee referral scheme is

implemented to encourage employees to refer friends and relatives for employment in the

organization.

SAFETY OF EMPLOYEES

FENCING OF MACHINERY -  All dangerous and moving parts of a machinery shall be

securely fenced.  Screws, bolts and teeth shall be completely encased to prevent danger.

WORK ON OR NEAR MACHINERY IN MOTION- Lubrication or other adjusting

operation on a moving machinery shall be done only by a specially trained adult male worker.

EMPLOYMENT OF YOUNG PERSONS ON DANGEROUS MACHINES- No young

person shall be allowed to work on any dangerous machine (so prescribed by the state

government) unless he is sufficiently trained or is working under the supervision

of knowledgeable person.

DEVICE FOR CUTTING OFF POWER.  Suitable device for cutting of power in

emergencies shall be provided.

HOISTS AND LIFTS.  These shall be made of good material and strength, thoroughly

examined at least once in every six months and suitably protected to prevent any person or

thing from being trapped.

 WELFARE OF EMPLOYEES

There shall be separate and adequately screened washing facilities for the use of male and female employees.

There shall be suitable places provided for clothing not worn during working hours

and for the dying of wet clothing.

There shall be suitable arrangement for all workers to sit for taking rest if they are

obliged to work in a standing position.

There shall be provided the required number of first-aid boxes or cupboard (at the rate

of one for every 150 workers) equipped with the prescribed contents readily available

during the working hours of the factory.

The State Government may make rules requiring that in any specified factory

employing more than 250 employees a canteen shall be provided and maintained by

the occupier for the use of the employee.

There shall be provided sufficiently lighted and ventilated lunch room if the number

of employees ordinarily employed is more than 150.

SOCIAL SECURITY IN INDIA

At present both types of social security schemes are in trend in our country. Among

the social assistance schemes are the most important.

            The social insurance method, which has gained much wider acceptance than the social

assistance method, consists of the following enactments.

The workmen’s Compensation Act, 1961.

The Employee’s State Insurance Act, 1948.

The employees’ State Insurance Act, 1948.

The Maternity Benefit Act, 1961.

1) EMPLOYEES’ COMPENSATION ACT, 1923

Coverage-  This Act covers all workers employed in factories, mines, plantations,

transport undertakings, construction works, railways, ships, circus and other hazardous

occupations specified in schedule II of the Act.

The Act empowers the State Government to extend the coverage of the Act by adding

any hazardous occupation to the list of such occupations is schedule II.

Administration-  The Act is administered by the State Government which appoints

Commissioners for this purpose under sec. 20 of the Act.

Benefits- Under the Act, compensation is payable by the employer to a workman for

all personal injuries caused to him by accident arising out of and in the course of his

employment which disable him for more than 3 days.

2) EMPLOYEES’ STATE INSURANCE ACT, 1948

Administratio-  The Act is administered by the ESI corporation, an autonomous body

consisting of representatives of the Central and State Governments, employers, employees,

medical profession and parliament.

Benefits- The Act, which provides for a system of compulsory insurance, is a

landmark in the history of social security legislation in India.

Medical Benefit-  An insured person or (where medical benefit bas been extended to

his family) a member of his family who requires medical treatment is entitled to receive

medical benefit free of charge.

Sickness Benefit- An insured person, when he is sick, is also entitled to get sickness

benefit at the standard benefit rate corresponding to his average daily wage.

An insured woman is entitled to receive maternity benefit (which is twice the sickness

benefit rate) for all days on which she does not work for remaining during a period of 12

weeks of which not more than 6 weeks shall precede the expected date of confinement.

The Act makes a three-fold classification of injuries in the same way as is done in the

workmen’s compensation Act.

Dependant’s Benefit- If an insured person meets with an accident in the course of his

employment an dies as a result thereof, his dependants, i.e. his widow, legitimate or adopted

sons and legitimate unmarried daughters get this benefit.

3)  THE MATERNITY BENEFIT ACT, 1961

Maternity benefit is one of the important benefits provided under the;

Employees State Insurance Act, 1948.  Another important legislation in this respect

is the Maternity Benefit Act, 1961.  The Act covers only those persons who are not covered

by the Employees State Insurance Act.  The Act entitles a woman employee to claim

maternity leave from her employer if she has actually worked for a period of at least 160 days

in the 12 months immediately proceeding the day of her expected delivery.

The act further provides for the payment of medical bonus of Rs. 250to the confined woman worker.The committee on the status of women in India 1974 has, there fore,recommended the following changes in the Act:

The administration of the fund should follow the pattern already established by the ESIC.

For casual labour a minimum of 3 months of service should be considered as qualification service for this benefit.

This will provide greater incentive to women workers to participate in trade union

activities.

4)  THE PAYMENT OF GRATUITY ACT, 1972

Coverage-  The Act applies to every factory, mine, oilfield, plantation, port and

railway company and to every shop or establishment in which 10 or more persons are

employed, or were employed, on any day of the preceding 12 months.

Administration- The Act is administered by a controlling authority appointed by the

appropriate Government.

Benefits-Under the Act gratuity is payable to an employee on the termination of his

employment after he has rendered continuous service for not less than five years.  The

completion of continuous service of five years is, how ever, not necessary where the

termination of the employment is due to death or disablementGratuity is payable at the rate of

15 days’ wages based on the rate of wages last drawn by the employee for every complete

year of service or part thereof in excess of six months.  But the amount of gratuity payable to

an employee shall not exceed Rs. 3.5 lakh.

Source of Funds-Under the Act gratuity is payable entirely by the Employer.  For this

purpose is required either (i) to obtain insurance with the Life Insurance Corporation, or (ii)

to establish a gratuity fund. Thus it is his liability to pay the premium in the first case to make

the contribution in the second case.

INDUSTRY PROFILE

CONFECTIONERY INDUSTRY

Confectionery Industry, a manufacturing sector made up of companies primarily

involved in processing candies, chocolate and cocoa products and chewing gum.

Confectionery manufacturing started to emerge as an important industry in the late 1800s.

One of the earliest commercial operations, McCormick's Ltd, was established in London,

Ont, in 1857. Robertson Brothers Ltd was in the candy business in Toronto by 1864, and

Ganong Brothers opened in St Stephen, NB, in 1873. In 1873 Moirs Ltd, originally a bakery,

commenced candy production in Halifax, NS. Robert Watson Co started in Toronto in 1874,

and by 1879 Viau Ltée was in production in Montréal.

In Toronto, Patterson Candy Co was established in 1888, and the Cowan Co in 1890.

Confectionery production greatly increased in Canada in the early 1900s with the

establishment of several major producers, including William Neilson Ltd in Toronto in 1908,

Willard's Chocolates Ltd, Toronto, 1914, and Fry-Cadbury Ltd, Montréal, 1920. Walter M.

Lowney Co of Montréal and Walter Baker Co of Canada, Toronto, also became established

during this period. In these formative years the industry was concentrated in Eastern Canada,

a situation that prevails today, although in Western Canada a number of smaller

manufacturers emerged during this period and new companies are still appearing.

During the past 2 decades, a considerable amount of plant consolidation has taken

place. In 1961 the industry had 194 plants in production. By the end of the century Statistics

Canada reported 94 plants in production: NS had 4; NB, 2; Qué, 29; Ont, 41; Man, 3; Sask, 0;

Alta, 2; and BC, 13. As is the case in most other food sectors, the major cause of the

reduction has been the steady phasing out of smaller, obsolete production facilities and their

replacement with fewer, larger, highly efficient operations.

The confectionery industry is unique among segments of the Canadian FOOD AND

BEVERAGE manufacturing system in that it is dependent on foreign supply for 2 of its

primary ingredients: sugar and cocoa. Unfortunately, these commodities are subject to rapidly

changing prices in spite of accords such as the International Sugar Agreement. This factor, in

turn, can seriously affect the industry's sales volumes and profit margins.

Any sharp increase in the international price of raw sugarcane or cocoa beans is

quickly translated into increased production costs and higher consumer prices; a downturn in

production volumes usually follows.

Steadily increasing provincial sales taxes are another indirect cost that can have a

negative effect on industry sales. However, over the long term, production volumes in most

categories have shown slow, steady growth. For example, in 1973 the industry produced 68

895 t of all types of chocolate products, including chocolate bars, boxed chocolates, seasonal

novelties and chocolate products sold in bulk and other forms. By 1984 the production of

chocolate confectionery had increased to 90 003 t. Similarly, in 1971, 16 772 t of chewing-

gum products came off the industry's production lines; by 1984 this amount had increased to

19 565 t. Trends in sugar confectionery, which includes hard candy, pan goods (hard and

soft) and similar products, fluctuate. In 1971 the industry produced 49 114 t of sugar

confectionery; in 1984 the volume was 52 264 t.

Importation of hard-candy products affects the trend. The UK has always been a

major Canadian supplier of high-quality candies, but imports are increasing from S American

countries, notably Brazil and Argentina.

Statistics Canada reported that in 1997 the industry made shipments valued at $1.48

billion. The industry is represented by the Confectionery Manufacturers Association of

Canada, Toronto.

COMPANY PROFILE

LOTTE INDIA CORPORATION LIMITED

It’s a story born in the age of British Raj. When children in India found confectionery

hard to come by. It had to be imported from across the seas until the year 1914, When Parry’s

picked up the gauntlet and pioneered the manufacture of sweets - the first to do so in the

country. Parry’s sweets went on to become a household name- a name that people recollect

with warmth and a smile. Ever since, the Parry’s factory was set up in Nellikuppam, in the

Cuddalore District of Tamilnadu in South India. Parry’s has become synonymous with

Sweets and Confectionery. With the penchant we Indians have for sweets is not surprising

that this smooth, milky and irresistibly delicious confectionery is the best gift any child could

get. And an obsession with quality ensured that children had a choice of nothing but the very

best in confectionery.

In the nine decades since, the scenario has undergone a dramatic change. There are a

number of offerings in the market today, each wooing children with a wide array of products.

But Parry’s still finds a prominent place in the heart of consumers.

Parry’s has always stayed at the top, having weathered the vicissitudes of change,

with our ear close to the ground - and to the hearts of children, changing, adapting and

growing with the times - But never losing sight of its values traditions and ethics. At the turn

of this century, Parry’s is poised on the threshold of greater challenges in a global village,

where dynamism and innovation is the very law of survival.

In the backdrop of India joining the WTO, and the global giants eyeing the Indian

Market with enthusiasm, the company needed to strengthen itself and broaden its base to

delight customers across the country and abroad. With this vision in the mind, Murugappa

Group, promoters of Parry’s Confectionery Limited entered in to an agreement with Lotte

Confectionery Limited, South Korea, by which the, entire shares which Murugappa Group,

the founders of Parrys Confectionery Limited, held was divested to Lotte Confectionery

Limited -A South Korean Multinational giant.

Lotte Confectionery is the first Company of the Lotte family of Companies founded

by Mr. Shin Kyuk-ho. The three L’s in the Lotte Emblem stand for Love, Liberty and

Life. The Corporate philosophy and idealism of Lotte is driven by dream of a world full of

Love where people care for each other and respect each other’s thoughts. The Lotte Group

has presence in Food & Beverages, Distribution, Tourism and Leisure business; Heavy

Chemicals, Construction and Machinery; Information, Communication and Electronics,

Trading and Services apart from Welfare Research and Support Services. The Lotte

Confectionery Co. Ltd. is the Lotte Group’s flagship Company in Foods and Beverages

category. Lotte Confectionery, Korea, was established with 500 employees in 1967 and today

it has more than 6000 Employees. It has over 500 products produced at 5 large-scale plants in

Korea. Lotte has been actively working towards establishment of overseas branches,

production facilities and has a presence in more than 70 countries. Lotte Confectionery’s

annual Sales are over USD 900 millions, Apart from Korea, Lotte has overseas investments

in production facilities in China, Philippines and Vietnam. Lotte Confectionery’s Main line

products are Chewing Gum (Lotte Xylitol, Lotte Juicy & Fresh, Lotte Spearmint, Lotte

Fresh Mint, Flavono, White & E, Spout Café Coffee) Candy, Biscuits, Chocolates,

Snacks, Ice cream, and health care product.

LOTTE INDIA CHENNAI

Lotte India Corporation Limited, a subsidiary of South Korean multinational giant

Lotte Confectionery Limited, on Wednesday inaugurated a new facility at Nemam village

near Chennai. The company has invested around $70 million (around Rs 322 crore) in the

facility. The company said it was interested in Indian hotel and retail sector.

South Korean snacks manufacturer Lotte Confectionery has started to manufacture its

Choco Pie biscuit brand at a newly-completed plant in Chennai, southern India. A Lotte

spokesman said the company wanted to boost Indian production of Choco Pie, which, he

claimed was popular locally, for its convenience. 

"Instead of having a big meal, several pieces of Choco Pies can make your stomach

full.Choco Pie will dominate production at the plant but the facility will produce other snacks

and sweets later, the spokesman said. 

Operated by Lotte India Corp., also located in Chennai, the plant has a planned 6,000

tonnes annual capacity.The plant cost about US$70m to build and is currently focusing on the

Indian market. However, in future, it could supply the Middle East and Africa.

Lotte Confectionery, a subsidiary of the Lotte Group, entered India through exports

before acquiring Indian confectionery company Parry's in 2004. "Through years of retailing

businesses in India, we found out that the nation holds a market with huge potential to Lotte.

OUR PRODUCT

OTHER PRODUCTS OF LOTTE CORPORATION INDIA LTD

RESEARCH METHODOLOGY

INTRODUCTION

An organized, systematic, data-based, critical, objective, scientific inquiry or investigations into a specific problems undertaken with the purpose of finding answers or solutions to it. In essence, research provides the needed information that guide to make inform the decisions to successfully deal with the problems. It comprises of defining and redefining of problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data making alterations and reaching conclusion

SOURCES OF DATA

There are two types of data

1. Primary data

2. Secondary data

PRIMARY DATA

Primary data is collected for the first time by the researcher. The major tool of data

collection that has been used in this study is questionnaire. The questionnaire has been

constructed with special reference aspects influencing the market study on automobile

filters

SECONDARY DATA

Secondary data can be internal or external. The secondary data has been collected

from various records, files, journals, text book, and internet.

SAMPLING DESIGN

SAMPLE UNIT

Automobile outlets in and Bangalore city has been selected as samples for the study.

SAMPLE SIZE

Samples of 50 automobile outlets in Bangalore city has been selected for the study.

SAMPLING PROCEDURE

Convenience sampling technique is used for collecting data from the population.

RESEARCH INSTRUMENT

Structured questionnaire was used to collect the information from

automobile outlet. Questionnaire is a mixture of open ended, closed ended and ranking scale.

TOOLS USED FOR ANALYSIS

The tools used for the analysis are

1. Percentage Analysis

2. Chi-Square Test

PERCENTAGE ANALYSIS

Percentage Analysis which is a common tool used in which data are reduced to

standard form with equal base to 100, which helps relative comparison.

Percentage analysis = No. of respondents / 100.

CHI-SQUARE TEST

The Chi-Square test is an important test amongst the several tests of significance

developed by Statisticians. Chi-Square symbolically is a statistical measure used in the

context of sampling analysis for comparing a variance to theoretical variance. As a non-

parametric test, it "can be used to determine if categorical data shows dependency or the two

classifications are independent. It can be also used to make comparisons between theoretical

populations and actual data when categories are used". The test is, in fact, a technique

through the use of which it is possible for all researchers to (1) test the goodness of fit,

(2) test the significance of association between two attributes, and (3) test the homogeneity or

the significance of population variance.

Conditions for the Application of Chi-square Test

The following conditions would be satisfied before chi-square test can be applied:

1. Observations receded and used are collected on a random basis:

2. All the items in the sample must be independent:

3. The overall number of items must also be reasonably large. . It should normally be at

least 50, howsoever small the number of groups maybe.

Step involved in Applying Chi-square Test

The various steps involved are as follows:

1. First of all calculate the expected frequencies on the basis of given hypothesis or on

the basis of null hypothesis. Usually the expected frequency for my given cell is

worked out as under:

EF = Row total for the row of that cell x Column total for the column of that cell

Grand Total

EF = Expected Frequency of the cell

2. Obtain the difference between observed and expected frequencies and find out the

squares of such differences i.e., calculate (Oij-Ejj)2

3. Divide the quantity (Ojj-Ejj)2 obtained as stated above by the corresponding

frequencies to get (Ojj-Ejj)2/Eij and this should be done for all the cells frequencies or

the group frequencies.

4. Find the summation of (Ojj-Ejj)2/Eij values or what we call this is the required chi-

square value.

The Chi-Square value obtained as such should be compared with relevant table value of chi-

square and then influence be drawn as stated above.

FIELD WORK

The survey was conducted in Bangalore. Customers for the survey were retailers, service

centre, authorized dealers and workshops.

LIMITATIONS OF THE STUDY

It was very difficult to collect response from respondents because of their busy

involvement in their work.

The study was restricted to Bangalore city.

There may be errors due to the bias opinions of respondents.

DATA ANALYSIS AND INTERPRETATION

4.1 ANALYSIS OF DATA