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“A STUDY ON JOB SATISFACTION OF EMPLOYEES IN CHOLAMANDALAM MS GENERAL INSURANCE LIMITED CHENNAI”

MAJOR PROJECT REPORT Submitted by

R.MUTHUKUMAR 06BA078 Under the guidance of

Mr. BRIGHTON ANBU Lecturer KSM

Submitted in partial fulfillment of the requirements for the award of the degree of ” MASTER OF BUSINESS ADMINISTRATION” of Karunya university

KARUNYA SCHOOL OF MANAGEMENT KARUNYA UNIVERSITY COIMBATORE-641114

KARUNYA SCHOOL OF MANAGEMENT KARUNYA UNIVERSITY

DECLARATION

I hereby declare, the project work entitled “A STUDY ON JOB SATISFACTION IN CHOLAMANDALAM MS GENERAL INSURANCE LIMITED, CHENNAI” for partial fulfillment of the requirements for the award of the degree of “MASTER OF BUSINESS ADMINISTRATION”, as a record of original work done by me under the supervision and guidance of Mr. BRIGHTON ANBU, Karunya school of management, Karunya university, COIMBATORE. This project work has not formed the basis for the award of any Degree /Diploma/Associateship/Fellowship of similar titles to any candidate of any university.

Place: Date:

Signature of the student

ACKNOWLEDGMENT

I am indebted to the all powerful ALMIGHTY GOD for all the blessings he showered on me and for being with me throughout the study. I would like to express my sincere thanks to Mr. Dr. REVEES WESLY, HOS Karunya School of management who provided me an opportunity to do this project. I am deeply obliged to Mr. RAYMOND LOBO (VICE PRESIDENT-HR) AND MS. MALINI (HR-MANAGER) for his exemplary guidance and support without whose help this project would not have been success. I would like to place on record my sincere gratitude and appreciation to my project guide Mr. BRIGHTON ANBU Karunya school of management, for his kind cooperation and guidance which enabled me to complete my project. I also take this opportunity to express my deed gratitude to my loving parents and

friends who are a constant source of motivation and for their never ending support and encouragement during this project.

INTRODUCTION Job Satisfaction: Job Satisfaction is the favorableness or un-favorableness with which the employee views his work. It expresses the amount of agreement between one’s expectation of the job and the rewards that the job provides. Job Satisfaction is a part of life satisfaction. The nature of one’s environment of job is an important part of life as Job Satisfaction influences one’s general life satisfaction.

Job Satisfaction, thus, is the result of various attitudes possessed by an employee. In a narrow sense, these attitudes are related to the job under condition with such specific factors such as wages. Supervisors of employment, conditions of work, social relation on the job, prompt settlement of grievances and fair treatment by employer.

However, more comprehensive approach requires that many factors are to be included before a complete understanding of job satisfaction can be obtained. Such factors as employee’s age, health temperature, desire and level of aspiration should be considered. Further his family relationship, Social status, recreational outlets, activity in the organizations etc. Contribute ultimately to job satisfaction.

FACTORS INFLUENCING JOB SATISFACTION

The major factors influencing job satisfaction are presented below:

SUPERVISION To a worker, Supervision is equally a strong contributor to the job satisfaction as well as to the job dissatisfaction. The feelings of workers towards his supervisors are usually similar to his feeling towards the company. The role of supervisor is a focal point for attitude formation. Bad supervision results in absenteeism and labor turnover. Good supervision results in higher production and good industrial relations.

CO-WORKERS Various studies had traced this factor as a factor of intermediate importance. One’s associates with others had frequently been motivated as a factor in job satisfaction. Certainly, this seems reasonable because people like to be near their friends. The workers derive satisfaction when the co-workers are helpful, friendly and co-operative.

PAY Studies also show that most of the workers felt satisfied when they are paid more adequately to the work performed by them. The relative important of pay would probably changing factor in job satisfaction or dissatisfaction. AGE Age has also been found to have a direct relationship to level job of satisfaction of employees. In some groups job satisfaction is higher with

increasing age, in other groups job satisfaction is lower and in other there is no difference at all. MARITAL STATUS Marital status has an important role in deciding the job satisfaction. Most of the studies have revealed that the married person finds dissatisfaction in his job than his unmarried counterpart. The reasons stated to be are that wages were insufficient due to increased cost of living, educations to children etc. EDUCATION Studies conducted among various workers revealed that most of workers who had not completed their school education showed higher satisfaction level. However, educated workers felt less satisfied in their job. WORKING CONDITION The result of various studies shows that working condition is an important factor. Good working atmosphere and pleasant surroundings help increasing the production of industry. Working conditions are more important to women workers than men workers.

JOB SATISFACTION OF EMPLOYEES This study attempts to evaluate job satisfaction of bank officers in Bangladesh.

It focuses on the relative importance of job satisfaction

factors and their impacts on the overall job satisfaction of officers. It also investigates the impacts of bank type, work experience, age, and sex differences on the attitudes toward job Satisfaction. The

result

shows

that

salary,

efficiency

in

work,

fringe

supervision, and co-worker relation are the most important factors contributing to job satisfaction. Private bank officers have higher

levels

of job satisfaction than those from public sectors as they enjoy better facilities and supportive work environment. Sex and age differences have relatively lower level of impact on it. The overall job satisfaction of the bank officers is at the positive level.

Objective of the study: 1. To Study the job satisfaction of employees in Cholamandalam MS General Insurance, Chennai. 2. To Measure the satisfaction levels of employees on various factors and give suggestions for improving the same. 3. To find out whether experience have an effect on Job Factors. 4. To find the significance difference among age groups with respect to job Factors. 5. To find the significance difference among male and female employees with respect to job Factors.

Limitations of the study: 1. Sample size of the study is only 50. 2. Some of the respondents were not responding to some of the questions. 3. Due to time constraint the researcher was not able to complete the project to desired level.

INDUSTRY PROFILE

2.1 Industry INSURANCE: We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance is a way of protecting against these financial losses. For a payment (premium), an insurance company will take the responsibility of compensating your financial losses. Insurance can be termed as a form of risk management which is mainly used to protect an individual against the risk of prospective financial loss, if any. Insurance can be used as a tool to shield an individual against potential risks like travel accidents, death, unemployment, theft, property destruction by natural calamities, fire mishaps etc.

Life insurance: Loss of a family member is a catastrophe which glooms a family’s life. But even more tragic is the death of a sole bread earner for the family, who then has to go through the pain of losing their loved one, as well as the financial loss putting their survival in jeopardy. This financial hardship due to a sudden death of a family member or a disability resulting to a loss of job or inability to Work can be avoided to a great extent by taking up a life insurance policy. A Life insurance or disability insurance covers such losses and pays a family, compensation to restore the earnings lost by them due to a Sudden death or disability. The monthly premiums for a life insurance are generally based upon the age, health, and occupation information of the applicant, in addition to the total benefits to be paid to him for his policy.

General Insurance: Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a ratable proportion of the loss. For instance if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- (50% of the loss being borne by the insured for underinsuring the property by 50%). This concept is quite often not understood by most insured. Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims.

Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts. Liability insurance covers such as Motor Third Party Liability Insurance, Workmen’s Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes— Motor Vehicles Act, The Workmen’s Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmen’s Compensation policy) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well.

COMPANY PROFILE

2.2 The Murugappa Group: The Murugappa Group, a century old group with a turnover of Rs.7300 crores, is a 1.85 billion USD conglomerate with business interests. It has 29 companies under its umbrella of which eight are listed and actively traded as the National Stock Exchange and the Bombay Stock Exchange.

The Murugappa Group is the recipient of the Distinguished Family Business Award – 2001 from the International Institute of Management Development (IIMD) in Switzerland. It is the only business group in Asia to have received this prestigious award.

The Murugappa Group, a century old group with a turnover of Rs.7300 crores. •

Diversified plantations,

businesses sugar,

–

abrasives,

bio-products,

engineering,

chemicals,

farm

inputs,

nutraceuticals

and

financial services. •

Industry leader in many fields – first Indian corporate house that evolved from being a family-owned business to a professionally run organization, committed to corporate governance.

•

Key Strengths – highly people-oriented people, with a workforce of nearly 28,000 satisfied employees.

•

Deeply committed to various social concerns – be it healthcare, education or field research to help rural India.

Group Companies The Major group Companies are:

Tube Investments of India Ltd.

– Core business areas are in the

manufacturing of bicycles, steel strips tubing and auto components. Leading Brands – BSA and Hercules.

EID Parry India Ltd.

– The Company has interest in Sugar and bio-

chemicals. Erstwhile Sanitary ware division was recently spun off as Joint Venture with ROCA, Spain.

Carborundum Universal Ltd.

– A pioneer and industry leader in

abrasives, electro chemicals, refractories and industrial ceramics. Leading brands – Ball master, Ajax and Jawan.

Coromandel Fertilizers

– Bringing world-class technology to the

Indian farmer enabling him to produce more from small land holdings. Assisting India achieve self-sufficiency in food.

Godavari Fertilisers

– Godavari Fertilizers, a Company acquired from

the Government of Andhra Pradesh manufacturers phosphatic fertilizers in Kakinada.

Chola DBS Finance Company LTd.

– Strong presence in the

financial service sector, with a solid reputation in automobile financing.

Parry Agro Industries Ltd. – Part of the Group’s plantation business, has many firsts to its credit. It is the first tea factory in the world to be computerized and the first CTC factory to obtain the ISO 9000 certification.

Parry Nutraceuticals Ltd.

– A major player in the field of healthcare.

Leading Brands - Beta Carotene and Spirulina, both highly successful nutritional supplements.

Mitsui Sumitomo Insurance Group Mitsui Sumitomo Insurance Group is one of the largest insurance groups in the world. Today the group operates in non-life insurance, life insurance, financial services and risk management services. With non-life insurance as its core business, the Mitsui Sumitomo Insurance Groups operations span 38 countries across the globe. With A GWP of 13.74 billion USD in 2005, MS is the second largest insurance group in Japan, in terms of net premium and is rated AA – Standard & Poor and Aa3 by Moody’s Mitsui Sumitomo Insurance has 733 sales bases, 257 claims handling offices and approximately 75,000 agents throughout Japan to form a sales network of the highest class in the industry. The company also offers global services with 61 sales bases in 38 countries and regions overseas.

Cholamandalam Financial Services Group Chola DBS Finance Company LTd. is a financial service conglomerate that has achieved a high compound annual growth rate. Cholamandalam today has a strong presence in the financial service sector, with a solid reputation in automobile financing. With a strong focus on growth, Cholamandalam has widened its services by diversifying into mutual funds, insurance sector and recently into personal finance.

The Business Units The business units within Cholamandalam are: •

Cholamandalam MS General Insurance Company Ltd. (General Insurance )

•

Chola DBS Finance Company Ltd (CDFL)

(Asset Finance: Leasing, Hire purchase, Corporate Finance, Capital market Finance) •

DBS Cholamandalam Asset Management Co. Ltd. (CAMC)

(Mutual Funds) •

DBS Cholamandalam Distribution Services Ltd. (CDS)

(Retail Distribution of Financial Products) •

DBS Cholamandalam Securities Ltd. (CSec)(Stock Broking)

•

Cholamandalam MS Risk Management Services Ltd. (CMSRS)(Risk Inspection and Management Consulting)

Cholamandalam MS General Insurance Company Ltd: Cholamandalam MS General Insurance Company Ltd. is a Joint Venture between the $2.0 billion Murugappa Group, one of India’s largest familypromoted, professionally managed business groups enjoying leadership position in many of its several diversified businesses and Mitsui Sumitomo Insurance Group of Japan, one of the top ten General Insurance companies globally and Japans second largest Insurance

Group. Cholamandalam MS offers a rich range of comprehensive product solutions panning almost all non-life Insurance offerings ranging from Motor Insurance, Health, Home, Travel, to Accident, Property, Marine and

Engineering.

The

Organizations’

commitment

to

consumer

orientation is seen right from Underwriting and product development, its product differentiation, high operational efficiency for policy issuances, to excellent customer redressal mechanisms for fair and quick Claims settlement. With its competencies and consumer focus, Cholamandalam MS is poised to become one of the large players in the Industry. The company was incorporated as Cholamandalam General Insurance Company Limited on November 2, 2001 under the companies Act, 1956 and received its Certificate of Registration from the Insurance Regulatory and Development Authority on July 15, 2002 to transact general insurance business. During the year 2003-2004 the company inducted Mitsui Sumitomo Insurance Company Limited, Japan as a strategic alliance partner with a 26% stake and the company’s name was consequently changed to Cholamandalam MS General Insurance Company Limited effective May 8, 2003. Board of Directors M A Alagappan Chairman M Anandan Managing Director (w.e.f. April 1, 2006) V Natarajan Director R Srinivasan Director

Suresh N Talwar Director Makoto Toyoshima Director Isamu Endo Director (w.e.f. April 25, 2006) Susumu Uchida Director (till April 25, 2006) Junichi Kitamura Wholetime Director Senior Management Team M Anandan Managing Director Junichi Kitamura Wholetime Director S S Gopalarathnam Executive Vice President V Suryanarayanan Vice President -Finance Shivkumar Shankar Business Head-Retail M Subramanian Business Head-Commercial S N Roy Head-Information Technology Kaira Gangaiah Head-Human Resources Suresh Krishnan Company Secretary

Auditors M/s. Price Waterhouse, Chennai M/s. S.B. Billimoria & Co., Chennai Bankers Standard Chartered Bank, Chennai Hongkong & Shanghai Banking Corporation, Chennai HDFC Bank Ltd., Chennai ICICI Bank Ltd., Chennai

Bank of Tokyo- Mitsubishi Ltd., Chennai American Express Bank Ltd., Chennai

RESEARCH METHODOLOGY: The methodology followed for conducting the study includes the specification of research design, sample design, questionnaire design, data collection and statistical tools used for analyzing the collected data.

Research design: The research design used for this study is of the descriptive type. Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual or a group. .

3.3 Sampling design: Since it is difficult to contact the entire population, sampling technique was adopted. The employees were interviewed using convenience sampling techniques.

Data collection

The primary data was collected by using questionnaires. The questionnaire has 28 questions excluding marital status, age, factor prompted to join reliance. A five point scale was used such as strongly disagree, disagree, neutral, agree and strongly agree.

Statistical tools used for analysis: The collected data were analyzed by using following techniques:

•

Percentage analysis

DATA ANALYSIS AND INTERPRETATION Table1:

Gender 80

60

Frequency

40

20

0 male

Gender

Table2:

Chart no: 2

female

Monthly AIncome 50

40

30

Frequency

20

10

0 below rs.10000

10000-20000

20000-30000

Monthly AIncome

Table No: 3

Chart No: 3 Education qualification 60

50

40

Frequency

30

20

10

0 P.G

Education qualification

Table No: 4

U.G

above 30000

Chart no: 4 Marital Status 60

50

40

Frequency

30

20

10

0 married

Marital Status

Table No: 5

Chart Mo: 5

Unmarried

Years of Experience 30

Frequency

20

10

0 Less than 1yr

1-2 yrs

Years of Experience

Table:6

Chart No: 6

2-3yrs

3-4yrs

Above 4yrs

Working hours are convenient for me 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

W orking hours are convenient for me

Interpretation: From the above chart and table it is clearly evident that 34% of the respondents strongly agree that working hours are convenient from them and 32% agree with that and 18% neither agree nor disagree and 13% disagree with the working hours and 3% are strongly against working hours. Table No: 7

Chart No: 7

I'm happy iwth my work place 50

40

Frequency

30

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

I'm happy iwth m y work place

Interpretation: From the above table it is clear that 30% respondents strongly agree and 39% respondents agree that they are happy with their work place only 13% disagreed and 18% have no idea towards their work place. Table No: 8

Chart No: 8

I feel i have too much work to do 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

I feel i have too much work to do

Interpretation: From the above table it is quite clear that the work load is not high, 37% of the respondents disagreed with the question” I feel I have too much work” and another 22% strongly disagreed, 18% admits they have too much work and 23% have no idea towards this question. Table No: 9

Chart No: 9

safety measures provided by the company 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

safety measures provided by the company

Interpretation: From the above table it is evident that the safety measures provided by the organizations are good as 28 and 31% of the respondents agree with that and only 11& 6% disagreed and 24% neither agreed nor disagreed. Table No: 10

Chart No: 10

I'm satisfied with the refreshment facilities 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

I'm satisfied with the refreshment facilities

Interpretation: From the above table it is clear that the employees are not satisfied with the refreshment facilities offered by the company as 26% of respondents disagreed and 15% strongly disagreed and 30% neither agreed nor disagreed and only 29% agreed. Table No: 11

Chart No: 11

We are provided with the rest and lunch room and they ar 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

W e are provided with the rest and lunch room and they are good

Interpretation: From the above table it is quite evident that 24% strongly disagreed and 30% of the respondents disagreed and 22% neither agreed nor disagreed and only 24% of the respondents are satisfied with the rest and lunch room provided. Table No: 12

Chart No: 12

I fell I'm paid a fair amount for the work i do 50

40

Frequency

30

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

I fell I'm paid a fair amount for the work i do

Interpretation: From the above table it is evident that the respondents are satisfied with their salary as 39% agree and 15% strongly agree. Only `3% disagree and 8% strongly disagree, 25% neither agree nor disagree. Table No: 13

Chart No: 13

The salary we receive are good as other organizations o 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

The salary we receive are good as other organizations offer pay to their

Interpretation: From the above table it is quite clear that the salary in this organization is at par to the industry as 37% agree and 27% strongly agree. Only 6% disagree and 4% strongly disagree, 26% neither agree nor disagree. Table No: 14

Chart No: 14

I'm satisfied with the allownaces provided by the organizat 50

40

Frequency

30

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

I'm satisfied with the allownaces provided by the organization

Interpretation: From the above table it is clear that the employees are satisfied with the allowances and other benefits provided by the organization as 42% agree and 19% strongly agree. Only 11% disagree and 7% strongly disagree, 21% neither agree nor disagree. Table No: 15

Chart No: 15

I feel my boss motivate me to achieve the organizational go 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

I feel my boss motivate me to achieve the organizational goals

Interpretation: From the above table it is evident that employees boss are motivating to achieve organizational goals as 33% agree and 11% strongly agree. 22% disagree this is quite high compared to other factors and 9% strongly disagree and 25% neither agree nor disagree. Table No: 16

Chart No: 16

My supervisor motivates me to increase my efficiency a 50

40

Frequency

30

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

My supervisor motivates me to increase my efficiency at times when i'm n

Interpretation: From the above table it is evident that employees boss motivates the employee when he is unproductive and help him to be productive as 44% agree and 18% strongly agree. Only 7% strongly disagree and 7% disagree, 18% neither agree nor disagree. Table No: 17

Chart No: 17

W ork assignments are explained clearly to me 50

40

Frequency

30

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

W ork assignments are explained clearly to me

Interpretation: From the above table it is evident that respondents are quite happy with the way work assignments are explained as 41% agree and 17% strongly agree. Only 10% strongly disagree and 17% agree, 15% neither agree nor disagree. Table No: 18

Chart No: 18

Overall I'm satisfied with my job 40

30

Frequency

20

10

0 strongly agree

neither agree nor di agree

strongly disagree disagree

Overall I'm satisfied with m y job

Interpretation: From the above table it is evident that Overall satisfactions of the respondents are good as 33% agree and 21% strongly agree. Only 6% strongly disagree and 15% disagree and 25% neither agree nor disagree.

Questionnaire “A study on Job Satisfaction of Employees in Cholamandalam MS General Insurance Ltd”

1. Name: …………………………………………………………………… … 2. Age: ………… 3. Gender: Male

Female

4. Monthly Income: A) Below Rest. 10,000 B) 10,000- 20000 C) 20,000-30000 D) Above 30,000 5. Education Qualification: A) Under graduation B) Post – graduation 6. Marital Status A) Married B) Unmarried 7. Years of experience: A) Less than 1yr B) 1-2 yrs C) 2-3 yrs D) 3-4 yrs E) Above 4yrs Please indicate your level of agreement in connection with various factors: 1. Strongly agree 2. Agree 3. Neither agree nor disagree 4. Disagree 5. Strongly Disagree Work Environment and nature of work S. Particulars 1 2 3 4 5 No 1. Working hours are convenient for me 2. I’m happy with my work place 3. The lighting and other arrangements in the office are satisfactory 4. I feel I have too much work to do 5. I’m satisfied with the safety measures provided by my company 6 I feel I’m being paid a fair amount for the work I do 7 The salaries we receive are good as other organizations pay to their employees.

8

I’m satisfied with the allowances provided by my organization

S. No 9

Particulars

10 11 12

I feel that my Boss motivate me to achieve the organization goal My supervisor motivates me to increase my efficiency at times when I’m not productive Work assignments are explained clearly to me Overall, I’m satisfied with my job

1

2

3

4

5