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: SUBMITTED BY:

MR. SAPAN JAIN KARUNA CHAUHAN

ASSISTANT EXECUTIVE ROLL NO-7026220852

STUDENT OF

BUDHA COLLEGE OF MANAGEMENT

RAMBHA (KARNAL INDRI ROAD)

1

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 ……………………..

2

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.

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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

4

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

5

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

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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

8

(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 organization’s 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 brand’s “promise,” beyond customer service

and beyond product research and development. Influencing customer behavior, which in

turn effects an organization’s 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 organization’s financial performance. Dr. James L.

Oakley, assistant professor of marketing, at Purdue University’s 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.

9

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 pre-

testing. 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 India’s 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 world‘s 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 didn’t 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 unit-

Satlapur 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 it’s 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 Group’s 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

fibre and greige/ finished woven fabrics. The company has been awarded the prestigious

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‘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.Vardhman’s endeavor to provide its customers with state-

of-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

17

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 customer’s

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.

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.

18

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 country’s

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.

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

various plants.

PRODUCTS APPLICATIONS

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Cotton Hosiery Yarn All kinds of knitted garments

Woven Yarn Shirts and Trousers

Tyre Cord yarn Manufacturing of Tyres

Acrylic Yarn Sweaters and Shawls

Hand Knitting Yarn 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 APPLICATIONS

Apparel Sewing Threads Clothing, Tailoring, Hosiery

Specialty Threads Sports, Leather Goods,

Gloves, Mattresses,

Quilting, Parachutes etc.

Textile Crafts Embroidery, Crochet

Tapestry etc.

Kite Flying Kite Flying

20

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

Vardhman’s 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

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.

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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

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.

22

COMPANY PROFILE

Registered office/ corporate office Chandigarh Road, Ludhiana (PB.)

Date of incorporation 27 December, 1962

Listings on Stock Exchange

-Bombay Stock Exchange, Bombay

-Delhi Stock Exchange Association Ltd. New Delhi

-Ludhiana Stock Exchange Association Ltd. Ludhiana

VSGM LTD includes :-

1. VSGM UNIT I

2. VSGM UNIT II

3. AURO SPINNING MILL

4. AURO WEAVING MILL

5. AURO DYEING, BADDI

6. AURO TEXTILES, BADDI

7. VSGM (100% EOU), BADDI

23

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

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

24

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

1. Fancy

2. Twisted

Sewing threads

1. Cotton

2. Polyester

3. Threads

Fabrics

1. Poplin

25

2. Shirting

3. Sheeting

4. Dress Material

Special Steels

1. Alloy Steels

2. Low Carbon Steels

3. Spring Steels

26

Group Units

1. Mahavir Spinning Mills Ltd.

Unit Location Product Range

Mahavir Spinning Mills Ltd.(Unit 1, 2,3) Ludhiana Cotton blended, Acrylic, HKY

Auro Spinning Mills Baddi Cotton blended, Fibre Dyed yarn

Auro Dyeing Mills Baddi Yarns and Fibre dyeing

Auro Weaving Mills Baddi Grey Popline, Sheeting and Shirting

Auro Textile Mills Baddi Fabric processing

VSGM Baddi Cotton yarns

2. Mahavir Spinning Mills Ltd

Unit Location Product Range

Mahavir Spinning Mills Ltd (Unit 1) Hoshiarpur Sewing thread and Industrial Thread

Arihant Spinning Mills Malerkotla Cotton, Blended, Melange yarns

Arisht Spinning Mills Baddi Cotton, Blended yarns

Arisht Spinning Mills (100% EOU) Baddi Cotton, Blended yarns

Anant Spinning Mills Cotton, Blended yarns

Vardhman Special Steel Ludhiana Special steel, Alloy steel, Low carbon steel

MSML Sewing Thread Ludhiana Sewing thread and Industrial thread

27

3. VMT Spinning Co. Ltd.

Unit Location Product Range

Vardhman Spinning Co. Baddi Cotton yarns

4. Vardhman Acrylics Ltd

Unit Location Product Range

Vardhman Acrylic Ltd Bharuch (Guj) Acrylic fibre

5. Vardhman Threads Ltd

Unit Location Product Range

Vardhman Threads Ltd Baddi Industrial Threads

28

Manufacturing and Distribution Network

29

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:-

yarn55%

fabric20%

thread10%

fibre7%

steel8%

yarn

fabric

thread

fibre

steel

Vardhman exports turnover:-

688.67

495.73 482.93402.67

445.81

2008-09 2007-08 2006-07 2005-06 2004-05

Series1\

30

Product wise turnover

(Value in Crores)

Yarns SewingThread

Steel Fabric AcrylicFibre

0.00

500.00

1,000.00

1,500.00

2,000.00

2008-09

2007-08

MARKET POSITION1. 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.

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

31

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.

Different departments of VSGM :-

32

Commercial Department

1. Marketing

2. Costing

3. Finance

4. Material

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

33

BOARD OF DIRECTORS

CHAIRMAN MANAGING DIRECTOR

CORPORATE GENERAL MANAGER

VICE PRESIDENT

MANAGER

EXECUTIVE

OFFICERS

STAFF

SUB STAFF

34

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

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.

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Threats:-

1. Smaller players in the market are using Vardhman’s 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.

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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.

To find out the areas of improvement in the company.

To know the kind of relationship between superiors and subordinates.

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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

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 LIKERT’s 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

employee’s 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.

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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.

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.

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CHAPTER 4 DATA CODING

QUESTION NO:

STRONGLY AGREE

AGREE INDIFFERENT DISAGREE STRONGLY DISAGREE

TOTAL

1 13 39 4 - 4 602 6 37 9 6 2 603 4 35 8 11 2 604 5 28 15 11 1 605 8 36 7 6 3 606 7 38 5 9 1 607 6 30 7 11 6 608 6 18 14 19 7 609 4 26 7 20 3 6010 8 15 14 21 2 6011 3 26 15 11 5 6012 14 24 7 11 4 6013 10 30 5 13 2 6014 5 35 11 7 2 6015 1 33 9 12 5 6016 8 31 9 8 4 6017 - 39 10 7 4 6018 5 37 9 5 4 6019 4 30 9 12 5 6020 - 31 16 8 5 6021 - 12 20 21 7 6022 - 14 23 19 8 60

23(a) 7 24 15 9 5 6023(b) 2 26 8 19 5 6023(c) 2 21 4 25 8 6023(d) 6 33 7 9 5 6023(e) 4 20 14 12 10 6023(f) 3 27 8 14 8 6023(g) 2 24 9 15 10 6023(h) 9 24 10 11 6 6023(i) 8 22 8 9 13 60

QUESTION NO:-

YES NO CAN’T SAY TOTAL

26 30 5 25 60

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Question 1:- The environment of workplace is comfortable and safe.Responses:- Strongly Agree 13Agree 39Indifferent 4Disagree -Strongly Disagree 4

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

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0

10

20

30

40

Series1 6 37 9 6 2

Strongly Agree

Agree Indifferent DisagreeStrongly Disagree

Question 3:- I feel my department gets proper support and teamwork from other departments.Responses:- Strongly Agree 4Agree 35Indifferent 8Disagree 11Strongly Disagree 2

4

35

8

11

2

Strongly Agree

Agree

Indifferent

Disagree

Strongly Disagree

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

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Strongly Disagree 1

Question 5:- I am treated with respect by management and fellow employees.Responses:- Strongly Agree 8Agree 36Indifferent 7Disagree 6Strongly Disagree 3

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

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Strongly Disagree 1

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

44

Question 8:- Company policies provide enough welfare programs for employees.Responses:- Strongly Agree 6Agree 18Indifferent 14Disagree 19.Strongly Disagree 7

45

Question 9:- I am involved in decision making that effects my job.Responses:- Strongly Agree 4Agree 26Indifferent 7Disagree 20Strongly Disagree 3

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Question 10:- The employee welfare and engagement activities adopted by the company results in improvement of productivity.Responses:- Strongly Agree 8Agree 15Indifferent 14Disagree 21Strongly Disagree 2

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

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Question12:- My company spends reasonable time, effort and money in training and development of employees.Responses:- Strongly Agree 14Agree 24Indifferent 7Disagree 11Strongly Disagree 4

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

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Question 14:- Quality of training and development provided to me is good.Responses:- Strongly Agree 5Agree 35Indifferent 11Disagree 7Strongly Disagree 2

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

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Question 16:- My job profile is according to my competency and qualification.Responses:- Strongly Agree 8Agree 31Indifferent 9Disagree 8Strongly Disagree 4

50

Question 17:- Management recognizes and makes use of my abilities and skills.Responses:- Strongly Agree -Agree 39Indifferent 10Disagree 7Strongly Disagree 4

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

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Question 19:- Overall I am satisfied with my job at company.Responses:- Strongly Agree 4Agree 30Indifferent 9Disagree 12Strongly Disagree 5

Question 20:- I am provided with proper growth and development opportunities in the company.Responses:- Strongly Agree -Agree 31Indifferent 16Disagree 8Strongly Disagree 5

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Question 21:- Employees are treated fairly and equally regarding compensation and increment.Responses:- Strongly Agree -Agree 12Indifferent 20Disagree 21Strongly Disagree 7

Question 22:- I am granted timely and unbiased promotions.Responses:- Strongly Agree -Agree 14Indifferent 23Disagree 19Strongly Disagree 8

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

Strongly Agree 7Agree 24Indifferent 15Disagree 9Strongly Disagree 5

(b) Housing facilities

Strongly Agree 2Agree 26Indifferent 8Disagree 19

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Strongly Disagree 5

(c) Transportation facilities

Strongly Agree 2Agree 21Indifferent 4Disagree 25Strongly Disagree 8

(d) life Insurance

Strongly Agree 6Agree 33Indifferent 7Disagree 9Strongly Disagree 5

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(e) Education assistance

Strongly Agree 4Agree 20Indifferent 14Disagree 12Strongly Disagree 10

(f) Retirement benefits

Strongly Agree 3Agree 27Indifferent 8Disagree 14

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Strongly Disagree 8

(g) Disability Benefits

Strongly Agree 2Agree 24Indifferent 9Disagree 15Strongly Disagree 10

(h) Health benefits

Strongly Agree 9Agree 24Indifferent 10

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Disagree 11Strongly Disagree 6

(i) company picnics & parties

Strongly Agree 8Agree 22Indifferent 8Disagree 9Strongly Disagree 13

24) I would recommend others to work for the company.Responses:-

Yes 30No 5Can’t say 25

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OVERALL SATISFACTION:-

Strongly Agree 9%Agree 47%Indifferent 17%Disagree 19%Strongly Disagree 8%

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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 company’s 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.

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CONCLUSION

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.

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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:-

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 can’t 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 stongly

disagree, the employees opted for marking the indifferent option.

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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.

SUGGESTIONS AND RECOMMENDATIONS

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.

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Questionnaire for Employee Satisfaction Survey:-

Dear respondent, 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 don’t require your name, designation, experience or department etc, so that the questionnaire is filled in true spirit. Personal information:-

(a) Sex Male ( ) Female ( )(b) Age Below 20 ……

20-30 …… 30-40 …… Above 40 …… (c) Marital status Married ( ) Unmarried ( ) 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.

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Here 1 = strongly agree 2 = agree 3 = Indifferent 4 = disagree 5 = strongly disagreePlease avoid option 3 unless it is very genuine. Questions:-

(1) The environment of workplace is comfortable and safe. 1 ( ) 2 ( ) 3 ( ) 4 ( ) 5 ( )

(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 ( )

(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.

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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. 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 2 3 4 5 (a) Leave facilities ( ) ( ) ( ) ( ) ( ) (b) Housing facilities ( ) ( ) ( ) ( ) ( ) (c) Transportation facilities ( ) ( ) ( ) ( ) ( )

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(d) Life insurance ( ) ( ) ( ) ( ) ( ) (e) Education assistance ( ) ( ) ( ) ( ) ( ) (f) Retirement benefits ( ) ( ) ( ) ( ) ( ) (g) Disability benefits ( ) ( ) ( ) ( ) ( ) (h) Health benefits ( ) ( ) ( ) ( ) ( ) (i) Company picnics & parties ( ) ( ) ( ) ( ) ( )

(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 ( ) Can’t say ( )

Thanks for your kind co-operation.

67

BIBLIOGRAPHY

Websites

http://www.integronresearch.com/employee-satisfaction/employee-satisfaction-per-

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http://www.questia.com/googleScholar.qst?docId=5001708742

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http://www.integronresearch.com/employee-satisfaction/employee-satisfaction-per-

industry.html 

http://www.accenture.com/Global/Consulting/Human_Resources_Mgmt/R_and_I/

Positive_Environments.ht

http://www.zoomerang.com/casestudy/study-stanley.htm

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