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SUMMER TRAINING REPORT ON

Job Satisfaction and employee commitment at Vodafone

2013

Prepared By PallabiPattanayak

REGD. NO: 1261333001 BATCH: 2012-14

SUMMER TRAINING REPORT ON Job Satisfaction and employee commitment


AT Vodafone BHUBANESWAR

Prepared By PallabiPattanayak
REGD. NO: 1261333001 BATCH: 2012-14

EXTERNAL GUIDE
Mrs. Pragnya Paramita Mohapatra Asst. MANAGER (HR) Vodafone, Bhubaneswar

INTERNAL GUIDE
Dr. P.K Swain Asst. Professor, IBCS, SOA University, BBSR

INSTITUTE OF BUSINESS AND COMPUTER STUDIES BHUBANESWAR

CERTIFICATE
This is to certify that the project report entitled Job satisfaction and employee committment is an authentic record of the project work done byPallabiPattanayakofINSTITUTE OF BUSINESS & COMPUTER STUDIES, during the year 2012-2014 in this organization under my guidance and supervision for the partial fulfilment of the MBA course.

Date: Place:

Mrs. Pragnya ParamitaMohapatra

(Asst. HR MANAGER) Project Guide

DECLARATION

I, PallabiPattanayak, hereby declare that the project report submitted by me entitled, Job Satisfaction and employee commitment at Vodafone in the partial fulfilment for the degree of MBA to IBCS, SOA University, Bhubaneswar, is the record of original work done by me. No part of the content of this report has been submitted to any institution / university for the award of any other degree. Previous works in this field have been duly acknowledged as and when they have been referred.

Date : - 29-08-2013 PallabiPattanayak Place : - SOA UNIVERSITY

ACKNOWLEDGEMENT
This is serve gratitude to all those people without whom this PROJECT would have never seen the light of the day. An endeavor is difficult to even initiate without the help of many souls who were always there by the grace of god. This project is a blessing from them. My project has become a reality only because of cooperation of many people who had helped me in completing this project. I sincerely extend my gratitude to Mrs.Pragnya Paramita Mohapatra who has given me this golden opportunity to have an insight in the corporate world and who has been a source of inspiration, guidance and support. I PallabiPattanayak sincerely thank my esteemed guide Mrs.Pragyan Paramita Mohapatra (Asst. HR MANAGER) for her valuable guidance and cooperation rendered to me throughout the project report. It would not have been possible for me to complete this project without their meticulous guidance and suggestions. I give my thanks to P.K Swain for his valuable contribution, cooperation and guidance from time to time for completion of this project. Last but not the least I would like to thank my Parents, Friends, Team members in Vodafone who directly or indirectly helped me during the course of project without which project would have been a Herculean task.

CHAPTER-1

INTRODUCTION:

JOB SATISFACTION: Job satisfaction is one of the important factors which have drawn attention of managers in the organization as well as academicians. Various studies have been conducted to find out the factors which determine job satisfaction and the way it influences productivity in the organization. Though there is no conclusive evidence that job satisfaction affects productivity directly because productivity depends on so many variables, it is still a prime concern for managers. Job satisfaction is the mental feeling of favorableness which an individual has about his job. DuBrins has defined job satisfaction in terms of pleasure and contentment when he says that: Job satisfaction is the amount of pleasure or contentment associated with a job. If you like your job intensely, you will experience high job satisfaction. intensely, you will experience job dissatisfaction. If dislike your job

OBJECTIVES OF THE STUDY

The main aim of the study is to analyze and examine level of job satisfaction among the Vodafone employees and to know the problems faced by the employees of the various categories. The specific objectives are as follows: o To present a profile of Vodafone and organizational structure etc., o To observe the level of satisfaction among of employees relating to the nature of the job and other factors. o To identify the extent of job satisfaction in the Vodafone employees and its impact on the job performance of the employees. o To evaluate the working environment in Vodafone. o To suggest suitable measures to improve the overall satisfaction of the employees in the organization.

SCOPE OF THE STUDY


In the survey an attempt has been made to analyze the job satisfaction of employees of Vodafone, Bhubaneswar. The study tries to understand the level of satisfaction among the employees of Vodafone. It further explains the area on which employees are mostly dissatisfied. Job satisfaction of the employees has been analyzed on the basis of the following seventeen job related factors. Salary and monetary benefits Job security Promotion policy Working environment Employees participation in management Freedom of expressions Nature of job Interest taken by superiors Superiors and sub-ordinate relationship Medicare Loans Conveyance L.T.C.

RESEARCH METHODOLOGY
The research carried out was descriptive in nature. The study was survey based. The main objective is to identify the job satisfaction of employees. During the study, the data was collected from the different department of internal employees of Vodafone with similar and dissimilar work. The participants selected for the study will use a questionnaire and provide honest answer based on their best judgment, ability to answer the question, and the understanding of that question. The overall research adhered to a combined qualitative and quantitative methodology called mixed method research. The selected methodology is quantitative, and the data was analyzed by using a 5 point Likert scale that is quantified and measured in terms of the participants answer to the questions to the survey.

RESEARCH DESIGN
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A complete enumeration of the items in the population is known as census enquiry. It can be presumed that in such as enquiry when all items are covered, no elements of change are left and highest accuracy is obtained. However this type of inquiry involves a great deal of time, money and energy. In sample survey we select only few items from the total population. Results are sufficiency accurate and much lesser time; energy and money is spending in field studies. Hence, it was decided to opt for sample survey. A research design is the detailed blue print used to guide a research study towards its objectives. It helps to collect, measure and analysis of data. The present study seeks to find out the employee engagement in VSL. SAMPLE DESIGN Sampling plan Sampling plan consists of sampling unit, sampling size and sampling procedure therefore it is necessary to find out sampling plan if population is 20. Sample Plan Consists of: Sample Plan

Sampling Design Sample Size

: : :

Simple Random Design 20 Internal Employee of Vodafone ,Bhubaneswar

Sample Location Descriptive Research design.


Type of Research

The study undertaken is of Descriptive Research in nature. Nature of Research : The study is quantitative in nature. It is structured, standardized, question based interview. Sampling Plan Sampling is the processes of obtaining the information about the entire population by examine a part of it. The effectiveness of the research depends on the sample size selected for the survey purpose. The survey was conducted in Vodafone, Bhubaneswar. Sampling Units It means who is to be surveyed. Here target population is decided and it is who are interested to purchase-footwear. And sampling frame is developed so that everyone in the 8

target population has known chance of being selected. So the survey was conducted particularly in Vodafone Bhubaneswar. Sample Size The population consisted employees with the designation as from various field like sales, marketing ,finance ,customer service ,network ,commercial ,carrier business, transmission planning etc. Sample Element The sample element of research is internal employees of Vodafone, Bhubaneswar. Sample Extent The sample extent is limited to employees of Vodafone. Sample Duration The sample duration between 3rd June to 31st July 2013. Sampling Procedure The sampling procedure followed was systematic random sampling Research Instrument In this study the research instrument is questionnaire. It consists of a set of questions presented to respondents. The questionnaire is structured and combinations of various close and open ended questions. Close ended question already have the possible answers and the open ended question allow the respondents to answer in their own word.

METHODS OF DATA COLLECTION


Data collection There are two types of data collection Primary Data Collection: Questionnaire had been prepared to get the response of the people as per guided by the organizational guide. To provide the best end results without any kind of biasness, which can give a brief idea about sampling and would be beneficial for making inferences for tabulations and calculations with research instruments. I made a survey through questionnaire as prepared by me. Primary Source: The primary source of collecting data for research is: Questionnaire filed by the employee of Vodafone and telephonic interview. Primary Data Collection: 9

Research Technique: In this study the survey method is used as a research technique. This method helps to obtain right information from respondents. Secondary data collection In this study the secondary data is collected from the following sources: 1. Company Website. 2. Report of Company. 3. Discussion with marketing and sales staff. 4. Books on Marketing and Research Methodology. 5. Authorized Retailer, Magazine, Internet, Pamphlets, etc.

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TOOLS AND TECHNIQUES


The researchers have identified 11 questions that most effectively identify the strong

feeling of job satisfaction. Data is collected by the help of questionnaire. It was collected in all the hours of the day. And for the analysis the data percentage method and t-test has been used.

LIMITATION OF THE STUDY


As far as limitation of the project is concerned, the limitation are . Employee has less time to give answer. Study is area specific. Most of the participants didnt give any interest to fill up the last question (descriptive question). Secondary data has been collected from Internet which may not be sufficient.

EMPLOYEE Satisfaction survey towards the organization :


Research shows that satisfied, motivated employees will create higher customer satisfaction and in turn positively influence organizational performance. Noticing this trend, many organizations are investing in measuring and quantifying employee opinions and attitudes by 10

incorporating Employee Satisfaction Survey into their exciting HR and organizational processes. By establishing frequent and consistent employee feedback processes, Confirm it solutions enable enterprises to retain and develop their most vital asset: Employees. The following are just a few benefits of an employee satisfaction survey powered by Confirmit :

MORE ACCURATE PERSPECTIVE:


Organizations achieve a more accurate view of current policies and a more clear perspective of issues that ate of higher priority to employees than others, such as benefits versus career development, versus compensation.

INCREASED EMPLOYEE LOYALTY


By quantifying and analyzing employee attitudes and opinions, enterprises can identify problem areas and solutions to create a supportive work environment encouraging a motivated and loyal workforce.

TRAINING NEEDS ASSENSSMENT:


Employee satisfaction surveys aid in developing individual goal and career potential. With more insight into their opinions and attitudes, management can establish professional development initiatives.

IMPROVED CUSTOMER SERVICE:


Because motivated employees are critical to improved organizational initiatives, such as increasing customer satisfaction, enterprises that value and strive for greater employee satisfaction ultimately create higher customer satisfaction. Confirm it enables creation of automated online survey & reporting processes that are 100% tailored to their business and employees, eliminating the inconveniences of manual data entry and reducing the turnaround time from creation of the survey to its deployment and results.

ACCURATE & PERSONALIZED SURVEYS:


By fully integrating into current HR system and utilizing existing employee information. confirm it Alfords more relevant and personalized surveys. Companies are able to turn responses into actionable results to vacillate organization changes. Improve management and to increase employee loyalty.

FASTER TURN AROUND:


Confirm it real-time capability reduces the speed to create and deploys surveys. Collect date and prepare personalized individual reports, thus reducing response time and increasing overall satisfaction.

FOLLOW-UP & REPORTIG CAPABILITIES:


Using confirm it , companies can follow-up with employees who have not completed their survey, maximizing the response rate and value of employee satisfaction feedback. 11

Instate of creating hundreds of thousands of results reports manually , they can all be automated in confirm it report providing a single platform for report viewing and analyzing furthering consistency across global organizations , reducing lead time from months to days or hours.

FLEXIBILITY:
Global organizations can vitalize the full multi-lingual survey and reporting capabilities enabling a single platform throughout an enterprise. Confirm it is fully customizable around the organization in which it s being used and can gather process and act upon feedback from thousands to millions of customers. A comprehensive employees satisfaction process powered by confirm it can be key to a more a motivated and loyal workforce leading to increased customer satisfaction and overall profitability for an enterprise. Positively impact the companys bottom line. One of the key steps to understanding and improving employee loyalty is by acknowledging the importance of the following factors in building loyalty and satisfaction: Broadly - defined responsibilities rather than narrowly. Defined job functions. Effective and regular performance evaluations, both formally and informally. A corporate emphasis on employee learning, development and growth. Wide-ranging employee participation in the organization as a whole. Typically, a combination of factors influences employees decisions to stay at their current job. Contributing factors include satisfying work, a sense of job security, clear opportunities for advancement, a compelling corporate mission combined with the ability to contribute to the organizations success and a feeling that their skills are being effectively used and challenged. Specifically, employees who enjoy their work indentify themselves with their employer and perceive that the company is flexible regarding work and family issues also intend to stay with the organization. In particular, consider the following element of effective strategies designed to build loyalty and retain key employees: Include opportunities for personal growth and invest heavily in the professional development of the best people in the organization.

Provide employees with well defined career paths (include a succession plan). Mentors and tuition reimbursement for job-related education. Train employees. Even if it makes them more attractive to the competition. Without seeing an opportunity on the horizon, few high potential employees will stay with a company and allow themselves to grow stagnant . Acknowledge now work priorities by recognizing and responding to employees needs for greater balance in their lives, since employees will develop loyalty for organizations that respect them as individuals not just as workers.

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In short , then there are five actions organizations should take to reduce attrition and improve employee satisfaction: 1. Demonstrate to employees that the company cares about them , wants them to advance in their careers and will help them to satisfy their need for personal growth. 2. Walk the talk by not only communicating the corporate strategy but by also ensuring that it is applied consistently throughout the organization. Include making the rewards system consistent with strategic goals.

3. Watch for and eliminate all inconsistencies between promoting you belief in employees and managerial behavior or policies that undermines but commitment. 4. Fight attrition with smart training that is not only relevant but helps broaden employee experiences and provides development opportunities.

5. Weed out poor managers because many employees leave their jobs because they are unhappy with their bosses-remember the adage that people dont leave their jobs, they leave their managers.

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CHAPTER-2
LITERATURE REVIEW/THEORITICAL BACKGROUND
DETERMINANTS OF JOB SATISFACTION :

While analyzing the various determinants of job satisfaction, we have to keep in mind that: all individuals do not derive the same degree of satisfaction though they perform the same job in the same job environment and at the same time. Therefore, it appears that besides the nature of job and job environment, there are individual variables which affect job satisfaction thus all those factors which provide a fit among individual variables, nature of job, and the situational variables determine the degree of job satisfaction. Let us see what these factors are.

INDIVIDUAL FACTORS:

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Individuals have certain expectations from their jobs. If there expectations are met from the jobs, they feel satisfied. These expectations are based on an individuals level of education, age, and other factors.

1. Level of Education: Level of education of an individual is a factor which determines the degree of job satisfaction. For example several studies have found negative correlation between the level of education, particularly higher level of education, and job satisfaction. The possible reason for this phenomenon may be that highly educated persons have very high expectations from their jobs which remain unsatisfied. In their case, Peters principle which suggests that every individual tries to reach his level of incompetence, applies more quickly.

2. Age: individuals experience different degree of job satisfaction at different stages of their life. Job satisfaction is high at the initial stage, gets gradually reduced, starts rising up to certain stage, and finally dips to a low degree. The possible reasons for this phenomenon are like this. When an individual joins an organization. He may have some unrealistic

assumptions about what they are going to derive from their work. These assumptions make them more satisfied. However, when these assumptions fall short of reality, job satisfaction goes down. It starts rising again as the people start to asses the jobs in right perspective and correct their assumptions. At the last, particularly at the fag end of the career, job satisfaction goes down because of fear of retirement and future outcome.

3. Other Factors: besides the above two factors, there are other individual factors which affect job satisfaction. If an individual does not have favorable social and family life, he may not feel happy at the work place. Similarly other personal problems associated with him may affect his level of job satisfaction.

NATURE OF JOB:

Nature of job determines job satisfaction which is in the form of occupation level and job content.

1. Occupational level:

Higher level jobs provide more satisfaction as compared to lower

levels. This happens because high level jobs carry prestige and status in the society which 15

itself becomes source of satisfaction for the job holders. For example, professionals derive more satisfaction as compared to salaried people; factory workers are least satisfied.

2. Job content:

job content refers to the intrinsic value of the job which depends on the

requirement of skills for performing it, and the degree of responsibility and growth it offers. A higher content of these factors provides higher satisfaction. For example, a routine and repetitive job provides lesser satisfaction ; the degree of satisfaction progressively increases in job rotation, job enlargement, and job enrichment.

Situational variables: Situational variables related to a job satisfaction lie in organizational context-formal and informal. As we shall see in the next part of text, formal organization is created by the management and informal organization emerges out of the interaction of individuals in the organization. Some of the important factors which affect job satisfaction are given below.

1. Working conditions:

working conditions, particularly physical work environment, like

conditions of workplace and associated facilities for performing the job determine job satisfaction. These work in two ways. First, these provide means for job performance. Second, provision of these conditions affect the individuals perception about the organization. satisfaction. 2. Supervision: The type of supervision affects job satisfaction as in each type of If these factors are favorable, individuals experience higher level of job

supervision; the degree of importance attached to individuals varies. In employee-oriented supervision, there is more concern for people which is perceived favorably by them and provides them more satisfaction. In job-oriented supervision, there is more emphasis on the performance of the satisfaction. job and people become secondary. This situation decreases job

3. Equitable Rewards: The type of linkage that is provided between job performance and rewards determines the degree of job satisfaction. If the reward is perceived to be based on the job performance and equitable, it offers higher satisfaction. If the reward is perceived to be based on considerations other than the job performance, it affects job satisfaction adversely. 16

4. Opportunity for Promotion: It is true that individuals seek satisfaction in their jobs in the context of job nature and work environment but they also attach importance to the opportunities for promotion that these jobs offer. If the present job offers opportunity of promotion in future, it provides more satisfaction. If the opportunity for such promotion is lacking, it reduces satisfaction.

5. Work Group: Individuals work in group either created formally or they develop on their own to seek emotional satisfaction at the workplace. To the extent, such groups are cohesive; the degree of satisfaction is high. If the group satisfaction out of their interpersonal

interaction and workplace becomes satisfying leading to job satisfaction.

Effect of Job Satisfaction: Job satisfaction has a variety of effects. These effects may be seen in the context of an individuals physical and mental health, productivity, absenteeism, and turnover.

Physical and Mental Health: The degree of job satisfaction affects an individuals physical and mental health. Since job satisfaction is a type of mental feeling, its favorableness or unfavourableness affects the individual psychologically which ultimately affects his physical health. For example Lawler has pointed out that drug abuse, alcoholism, and mental and physical health result from psychologically harmful jobs. Further, since a job is and important part of life, job

satisfaction influences general life satisfaction. The result is that there is spillover effect which occurs in both directions between job and life satisfaction.

Productivity: There are two views about the relationship between job satisfaction and productivity: 1. A happy worker is a productive worker. 2. A happy worker is not necessarily a productive worker. The first view establishes a direct cause-effect relationship between job satisfaction and productivity; when job satisfaction increases, productivity increases; when job satisfaction decreases, productivity decreases. The basic logic behind this is that a happy worker will put more efforts for job performance. However, this may not be true in all cases. For example, a worker having low expectations from his job may feel satisfied but he may not put his efforts 17

more vigorously because of his low expectations from the job. Therefore, this view does not explain fully the complex relationship between job satisfaction and productivity. The another view: that is a satisfied worker is not necessarily a productive worker explains the relationship between job satisfaction and productivity. Various research studies also support this view. This relationship may be explained in terms of the operation and

organizational expectations from individuals for job performance. 1. Job performance leads to job satisfaction and not the other way round. The basic factor for this phenomenon is the rewards (a source of satisfaction) attached with performance. There are two types of rewards-intrinsic and extrinsic. The intrinsic reward stems from the job itself which may be in the form of growth potential, challenging job, etc. the satisfaction on such a type of reward may help to increase productivity. The extrinsic reward is subject to control by management such as salary, bonus, etc. any increase in these factors does not help to increase productivity though these factors increase job satisfaction. 2. A happy worker does not necessarily contribute to higher productivity because he has to operate under certain technological constraints and, therefore, he cannot go beyond certain output. Further, this constraint affects the managements expectations from the individual in the form of lower output. Thus, the work situation is pegged to minimally acceptable level of performance. However, it does not mean that the job satisfaction has no impact on productivity. A satisfied worker may not necessarily lead to increased productivity but a dissatisfied worker leads to lower productivity.

Absenteeism:

Absenteeism refers to the frequency of absence of a job holder from the

workplace either unexcused absence due to some avoidable reasons or long absence due to some unavoidable reasons. It is the former type of absence which is a matter of concern. This absence is due to lack satisfaction from the job which produces a lack of will to work and alienate a worker from work as far as possible. Thus, Job satisfaction is related to absenteeism.

Employee Turnover: Turnover of employees is the rate at which employees leave the organization within a given period of time. As discussed earlier in this chapter under defense mechanism, when an individual feels dissatisfaction in the organization, he tries to overcome this through the various ways of defense mechanism. If he is not able to do so, he opts to leave the organization. Thus, in general case, employee turnover is related to job satisfaction. 18

However, job satisfaction is not the only cause of employee turnover, the other cause being better opportunity elsewhere. For example, in the present context, the rate of turnover of computer software professionals is very high in India. However, these professionals leave their organizations not simply because they are not satisfied but because of the opportunities offered from other sources particularly from foreign companies located abroad.

Improving Job Satisfaction:

Job satisfaction plays significant role in the organization. Therefore, managers should take concrete steps to improve the level of job satisfaction. These steps may be in the form of job redesigning to make the job more interesting and challenging, improving quality of work life, linking rewards with performance, and improving overall organizational climate.

As part of a larger project whose goal was to create an employee-driven, survey-improvement process six factors that influenced job satisfaction. When these six factors were high, job satisfaction was high. When the six factors were low, job satisfaction was low. These factors are similar to what we have found in other organizations.

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Opportunity: Employees are more satisfied when they have challenging opportunities at work. This includes chances to participate in interesting projects, jobs with a satisfying degree of 20

challenge and opportunities for increased responsibility. Important: this is not simply "promotional opportunity." As organizations have become flatter, Promotions can be rare. People have found challenge through projects; team Leadership, special assignments-as well as promotions. Actions:

Promote from within when possible. Reward promising employees with roles on interesting projects. Divide jobs into levels of increasing leadership and responsibility.

It may be possible to create job titles that demonstrate increasing levels of expertise, which are not limited by availability of positions. They simply demonstrate achievement Stress. When negative stress is continuously high, job satisfaction is low. Jobs are more stressful if they interfere with employees' personal lives or are a continuing source of worry or Actions:

concern.

Promote a balance of work and personal lives. Make sure that senior managers model this behavior.

Distribute work evenly (fairly) within work teams. Review work procedures to remove unnecessary "red tape" or bureaucracy. Manage the number of interruptions employees have to endure while trying to do their jobs.

Some organizations utilize exercise or "fun" breaks at work.

Leadership. Employees are more satisfied when their managers are good leaders. This includes motivating employees to do a good job, striving for excellence or just taking action. Actions:

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Make sure your managers are well trained. Leadership combines attitudes and behavior. It can be learned.

People respond to managers that they can trust and who inspire them to achieve meaningful goals.

Work Standards.Employeesare more satisfied when their entire workgroup takes pride in the quality of its work. Actions:

Encourage communication between employees and customers. Quality gains importance when employees see its impact on customers.

Develop meaningful measures of quality. Celebrate achievements in quality.

Trap: be cautious of slick, "packaged" campaigns that are perceived as superficial and patronizing. Fair Rewards. Employees are more satisfied when they feel they are rewarded fairly for the work they do. Consider employee responsibilities, the effort they have put forth, the work they have done well and the demands of their jobs.

Actions:

Make sure rewards are for genuine contributions to the organization. Be consistent in your reward policies. If your wages are competitive, make sure employees know this. Rewards can include a variety of benefits and perks other than money.

As an added benefit, employees who are rewarded fairly, experience less stress. Adequate Authority.

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Employees are more satisfied when they have adequate freedom and authority to do their jobs.

Actions: When reasonable:


Let employees make decisions. Allow employees to have input on decisions that will affect them. Establish work goals but let employees determine how they will achieve those goals. Later reviews may identify innovative "best practices."

Ask, "If there were just one or two decisions that you could make, which ones would make the biggest difference in your job?"

Employees with higher job satisfaction:


Believe that the organization will be satisfying in the long run Care about the quality of their work Are more committed to the organization Have higher retention rates, and Are more productive.

Recognition. Individuals at all levels of the organization want to be recognized for their achievements on the job. Their successes don't have to be monumental before they deserve recognition, but your praise should be sincere. If you notice employees doing something well, take the time to acknowledge their good work immediately. Publicly thank them for handling a situation particularly well. Write them a kind note of praise. Or give them a bonus, if appropriate. You may even want to establish a formal recognition program, such as "employee of the month." Advancement. Reward loyalty and performance with advancement. If you do not have an open position to which to promote a valuable employee, consider giving him or her a new title that reflects the level of work, he or she has achieved. When feasible, support employees by allowing them to pursue further education, which will make them more valuable to your practice and more fulfilled professionally.

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Job satisfaction is good not only for employees but employers, too; it increases productivity and decreases staff turnover.

An organization's policies, if unclear or unfair, can stand in the way of employee satisfaction.

Employees need a reasonable amount of social interaction on the job. Employees also need some degree of personal space, which diffuses tension and improves working conditions.

To begin motivating employees, help them believe that their work is meaningful. To help employees achieve on the job, provide them with ongoing feedback and adequate challenge

When your employees do good work, recognize them for it immediately. To increase an employee's sense of responsibility, do not simply give them more work; give them freedom and authority as well.

You can help employees advance in their professional lives by promoting them, when appropriate, or encouraging continuing education.

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CHAPTER-3
TELECOM SECTOR IN INDIA
The Indian telecommunication industry, with about 600.69 million mobile phone connections as of February 2010, is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections of 563.73 million. The Indian telecom industry is one of the fastest growing in the world and is projected that India will have billion plus mobile users by 2015. Projection by several leading global consultancies is that Indias telecom network will overtake Chinas in the next 10 years. For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. The idea is to help modern telecommunication technologies to serve all segments of Indias culturally diverse socity, and to transform it into a country of technologic ally aware people. Growth This rapid growth has been possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sector. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provide easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Wire line Vs Wireless It has also undergone a substantial change in terms of mobile versus fixed phones and public versus private participation. The preference for use of wireless phones has also been predominant in the sector. Participation of the private entities in the telecom sector is rapidly increasing rate there by presenting the enormous growth opportunities. There is a clear distinction between the Global Satellite Mobile Communication (GSM) and Code Division Multiple Access (CDMA) technologies used and the graph below shows the divide between the two. Segment wise Status Wire line Services With increasing penetration of the wireless services, the wire line services in the country is becoming stagnant. On the other hand, Broadband demand has picked up and promises to stabilise fixed line growth. 25

GSM Sector

In terms of the Global System for Mobile Communication (GSM) subscriber base this now places India third after China and Russia. China had 401.7 million GSM subscribers. CDMA Services CDMA technology was introduced in India as a limited mobility solution. The introduction of CDMA services has created competition, lowered tariffs and offered many citizens access to communication services for the first time. Internet Services Internet services were launched in India on August 15, 1995. In November 1998 the government opened up the sector to private operators. A liberal licensing regime was put in place to increase Internet penetration across the country. The growth of IP telephony or grey market is also a serious concern. Government loses revenue, while unlicensed operation by certain operators violates the law and depletes licensed operators market share. New services like IP-TV and IP-Telephony are becoming popular with the demand likely to increase in coming years. The scope of services under existing ISP license History and Reforms in Indian Telecom Sector:Indias telecom sector has been doing exceptionally well in past decade. Its structural and institutional reforms have provided tremendous growth opportunity to this sector. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. The first reforms in Indian telecommunications sector began in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. Indian Telecom Policy:After 1991s liberalization in Governments policies, the telecom sector has allowed various private players to enter into the Indian market. Earlier, sector was operating under public 26

sector giants like Bharat Sanchar Nigam Limited (BSNL), Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) but after the National Telecom Policy (NTP) by Government in 1994 many private players entered in Indian telecommunication market. But this market is regulated by Telecommunication Regulatory Authority of India (TRAI). It acts as an independent regulator of the business of telecommunications in the country which was set up in 1997 by the government of India.

Indian telecommunications today benefits from among the most enlightened regulation in the region, and arguably in the world. The sector, sometimes considered the poster-boy for economic reforms, has been among the chief beneficiaries of the post-1991 liberalization. Unlike electricity, for example, where reforms have been stalled, telecommunications has generally been seen as removed from mass concerns, and thus less subject to electoral calculations. Market oriented reforms have also been facilitated by lobbying from Indias booming technology sector, whose continued success of course depends on the quality of communications infrastructure. Despite several hiccups along the way, the Telecom Regulatory Authority of India (TRAI), the independent regulator, has earned a reputation for transparency and competence. With the recent resolution of a major dispute between cellular and fixed operators, Indian telecommunications already among the most competitive markets in the world appears set to continue growing rapidly. While telecom liberalization is usually associated with the post-1991 era, the seeds of reform were actually planted in the 1980s. At that time, Rajiv Gandhi proclaimed his intention of leading India into the 21st century, and carved the Department of Telecommunications (DOT) out of the Department of Posts and Telegraph. For a time he also even considered corporatizing the DOT, before succumbing to 27

union pressure. In a compromise, Gandhi created two DOT-owned corporations: MahanagarTelephone Nigam Limited (MTNL), to serve Delhi and Bombay, and Videsh Sanchar Nigam Limited (VSNL), to operate international telecom services. He also introduced private capital into the manufacturing of telecommunications equipment, which had previously been a DOT monopoly. These and other reforms were limited by the unstable coalition politics of the late 1980s. It was not until the early 1990s, when the political situation stabilized, and with the general momentum for economic reforms, that telecommunications liberalization really took off. In 1994, the government released its National Telecommunications Policy (NTP-94), which allowed private fixed operators to take part in the Indian market for the first time (cellular operators had been allowed into the four largest metropolitan centers in 1992). Under the governments new policy, India was divided into 20 circles roughly corresponding to state boundaries, each of which would contain two fixed operators (including the incumbent), and two mobile operators. As groundbreaking as NTP-94 was, its implementation was unfortunately marred by regulatory uncertainty and over-bidding. A number of operators were unable to live up to their profligate bids and, confronted with far less lucrative networks than they had supposed, pulled out of the country. As a result, competition in Indias telecom sector did not really become a reality until 1999. At that time the governments New Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue sharing regime of approximately 15%. This figure has subsequently been lowered (to 10%-12%), and is expected to be reduced even further over the coming years. Still, India continues to derive substantial revenue from license fees ($800 million in 2001-2002), leading some critics to suggest that the government has abrogated its responsibilities as a regulator to those as a seller. Another, perhaps even more significant, problem with Indias initial attempts to introduce competition was the lack of regulatory clarity. Private operators complained that the licensor the DOT was also the incumbent operator. The many stringent conditions attached to licenses were thus seen by many as the DOTs attempt to limit competition. It was in response to such concerns that the government in 1997 set up the Telecom Regulatory Authority of India (TRAI), the nations first independent telecom regulator. Over the years, TRAI has earned a growing reputation for independence, transparency and an increasing level of competence. Early on, however, the regulator was beleaguered on all fronts. It had to contend with political interference, the incumbents many challenges to its authority, and accusations of ineptitude by private players. Throughout the late 1990s, TRAIs authority was steadily whittled away in a number of cases, when the courts repeatedly held that regulatory power lay with the central 28

government. It was not until 2000, with the passing of the TRAI Amendment Act, that the regulatory body really came into its own. Coming just a year after NTP-99, the act marks something of a watershed moment in the history of India telecom liberalization. Today, there are many private players like Vodafone, Airtel, Tata, Reliance, Idea etc. There are basically two areas in which these players operate: Fixed andCellular Services. In Fixed line, MTNL and BSNL have captured major part of the market. Whereas, Cellular Services, can be further divided into two parts: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA).

COMPANY PROFILE
Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of India's mobile customer base, with over 41.1million customers The Essar group is one of the Indias largest corporate houses with interest spanning themanu facturing & service sector like steel, oil, and gas, power telecom and BPO, shipping and logistics and engineering and constructions. The group has an asset base of over Rs. 200 billion (US$4.9 billion) and employs over 4000 people. Vodafone, the worlds leading international mobile communications company, has fully arrived in India on Sep 19, 2007 Mumbai. Vodafone Essar had announced on this day that the Vodafone brand will be launched in India from 21st September onwards. The popular and endearing brand, Hutch, will be transitioned to Vodafone across India. This marks significant chapter in the evolution of Vodafone as a dynamic and ever-growing brand. Vodafone, the worlds leading mobile telecommunication company, completed the acquisition of Hutchison Essar in May 2007 and the company was formally renamed Vodafone Essar in July 2007.The Vodafone mission is to be the communications leader in an increasingly connected world enriching customers lives, helping individuals, businesses and communities be more connected by delivering their total communication needs. Vodafones logo is a true representation of that belief - The start of a new conversation, a trigger, a catalyst, a mark of true pioneering. Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994when its predecessor Hutchison Telecom acquired the cellular 29

license for Mumbai. Vodafone Essar now has operations in 16 circles covering 86% of Indias mobile customer base, with over 34.1million customers. Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country' and the 'Most Creative and Most Effective Advertiser of the Year'. Vodafone is the world's leading international mobile communications company. It now has operations in 25 countries across 5 continents and 40 partner networks with over 220 million customers worldwide. Vodafone has partnered with the Essar Groups its principal joint venture partner for the Indian market. The Essar Group is a diversified business corporation with interests spanning the manufacturing and service sectors like Steel, Energy, Power, Communications, Shipping & Logistics and Construction. The Group has an asset base of over Rs.400 billion (US$ 10 billion) and employs over 20,000 people.

Hutch Becomes Vodafone In one of the biggest brand transition exercises in recent times, Hutch, Indias fourth-largest mobile service provider will be renamed Vodafone. Vodafone is spending somewhere in the region of Rs 250 crore on this high-profile transition.

30

Vodafone has acquired 67 per cent in Hutchison Essar from Hong Kong-based Hutchison Whampoa, and completed the acquisition of Hutchison Essar in May 2007. The brand change that will touch 3.5 crore customers and four lakh shops and employees will be executed through a media blitz and the pug, which had become famous with its network advertisement, will remain. ''This marks a significant chapter in the evolution of Vodafone as a dynamic and evergrowing brand. The brand change over the next few weeks will be unveiled nationally through a high profile campaign covering all important media,'' a news agency quoted the company statement as saying. Leading broadcaster Star India has entered into an exclusive deal with Vodafone Essar for the latter's re-branding campaign to Vodafone from Hutch.

Financial Results 31

From its 31 March 2006 year end onwards Vodafone will report its results in accordance with International Financial Reporting Standards (IFRS). It has issued results amended to IFRS standards for its 31 March 2004 and 31 March 2005 year ends for information purposes, and these are shown in the first table below. Vodafone has some large minority stakes, which are not included in its consolidated turnover. In order to provide additional information on the overall scale and growth trends of its business it publishes "proportionate turnover" figures and these are included in the tables below. For example, if a business in which it owns a 45% stake has turnover of 10 billion that equals 4.5 billion of proportionate turnover for Vodafone. Proportionate turnover is not an official accounting measure and Vodafones proportionate turnover should be compared with other companies' statutory turnover. Vodafone also produces proportionate customer number figures on a similar basis, eg. if an operator in which it has a 30% stake has 10 million customers that equals 3 million proportionate Vodafone customers. This is a common practice in the mobile telecommunications industry Losses for year to 31 March 2006 reflect write downs of assets, principally in relation to the Mannesmann acquisition. Proportionate turnover includes 7,100 million from discontinued operations.Growth of Hutchison Essar (1992-2005): In 1992 Hutchison Whampoa and its Indian business partner established a company that in 1994 was awarded a licence to provide mobile telecommunications services in Mumbai (formerly Bombay) and launched commercial service as Hutchison Max in November 1995. Analjit Singh of Max still holds 12% in company. By the time of Hutchison Telecom's Initial Public Offering in 2004, Hutchison Whampoa had acquired interests in six mobile telecommunications operators providing service in 13 of India's 23 licence areas and following the completion of the acquisition of BPL that number increased to 16. In 2006, it announced the acquisition of a company that held licence applications for the seven remaining licence areas. In a country growing as fast as India, a strategic and well managed business plan is critical to success. Initially, the company grew its business in the largest wireless markets in India - in cities like Mumbai, Delhi and Kolkata. On these densely populated urban areas it was able to establish a robust network, well known brand and large distribution network -all vital to long-term success in India. Then it also targeted business users and high-end post-paid customers which helped Hutchison Essar to consistently generate a higher Average Revenue Per User ("ARPU") than its competitors. By adopting this focused growth plan, it was able to establish leading positions in India's largest markets providing the resources to expand its footprint nationwide. 32

In February 2007, Hutchison Telecom announced that it had entered into a binding agreement with a subsidiary of Vodafone Group Plc to sell its 67% direct and indirect equity and loan interests in Hutchison Essar Limited for a total cash consideration (before costs, expenses and interests) of approximately US$11.1 billion or HK$87 billion. 1992: Hutchison Whampoa and Max Group established Hutchison Max 2000: Acquisition of Delhi operations Entered Calcutta and Gujarat markets through ESSAR acquisition 2001: Won auction for licences to operate GSM services in Karnataka, Andhra Pradesh and Chennai 2003: Acquired AirCelDigilink (ADIL - Essar Subsidiary) which operated in Rajastan, Uttar Pradesh East and Haryana telecom circles and renamed it under Hutch brand 2004: Launched in three additional telecom circles of India namely 'Punjab', 'Uttar Pradesh West' and 'West Bengal' 2005: Acquired BPL, another mobile service provider in India 2008: Vodafone acquired Dishnet Wireless, a service provider in Orissa and has successfully launched its services in the following circle. 2008: Vodafone launched the Apple iPhone 3G to be used on its 17 circle 2G network. Hutch was often praised for its award winning advertisements which all follow a clean, minimalist look. A recurrent theme is that its message Hello stands out visibly though it uses only white letters on red background. Another recent successful ad campaign in 2003 featured a pug named Cheeka following a boy around in unlikely places, with the tagline, Wherever you go, our network follows. The simple yet powerful advertisement campaigns won it many admirers. Mission : HAPPY TO HELP

33

To Be The Communications Leader In An Increasingly Connected World Enriching Customers Lives, Helping Individuals, Businesses and Communities Be More Connected by Delivering Their Total Communication Needs. Vodafones logo is a true representation of that belief -The start of a new conversation, a trigger, a catalyst, a mark of true pioneering. Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States thr ough the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. It has operations in 25 countries across 5 continents and 40 partner networks. The Group's mobile subsidiaries operate under the brand name 'Vodafone. During the last two financial years, the Group has also entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Network Agreements, the Group and its partner networks co-operate in the development and marketing of global services under dual brand logos. At 31 March 2008, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 260 million customers.

34

HISTORY

Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited .

Approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc. 35

Its merger with Air Touch Communications, Inc. (Air Touch), the company changed its name to Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc, on 28July 2000. Vodafone currently has equity interests in 25 countries and Partner Networks (networks in which it has no equity stake) in a further 39 countries. The name Vodafone comes from Voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones." At 31 January 2007 Vodafone had 200 million proportionate customers in 25 markets across 5 continents. ("Proportionate customers" means, for example, that if Vodafone has a 30% stake in a business with a million customers, that is counted as 300,000). On this measure it is the second largest mobile telecom group in the world behind China Mobile. The eight markets where it has more than ten million proportionate customers are the United Kingdom, Germany, India, Italy, Spain, Turkey, Egypt and the United States. In the U.S., these customers come via its minority stake in Verizon Wireless, and in the other seven markets Vodafone has majority-controlled subsidiaries. On 30 May 2006, the company announced a loss before tax of 14.9 billion for 2005, the biggest loss in British corporate history. The loss for the year from continuing operations was 17.2 billion and the bottom line loss for the financial year was 21.8 billion. The company was pushed into loss by impairment charges of 23.5 billion, which related to the acquisition of Mannesmann several years earlier, and losses of 4.6 billion in relation to its discontinued business in Japan. At an operating level it remained highly profitable, with an operating profit on continuing operations of 9.4 billion before impairment costs. Vodafones original logo was used until the introduction of the speech mark logo in 1998.

In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK cellular telephone network licenses. The network, known as Racal Vodafone was 80% owned by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5% respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal Electronics bought out the minority shareholders of Vodafone for GB110 million. In September 1988 the company was again renamed Racal Telecom and on 26 October 1988 36

Racal Electronics floated 20% of the company. The flotation valued Racal Telecom at GB1.7 billion. On 16 September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group. In July 1996 Vodafone acquired the two thirds of Talk land it did not already own for 30.6 million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for 77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's network. In a similar move the company acquired the 80% of Aztec Communications that it did not own, a service provider with 21 stores. In 1997 Vodafone introduced its Speech mark logo, as it is a quotation mark in a circle; the O's in the Vodafone logotype are opening and closing quotation marks, suggesting conversation. On 29 June 1999 Vodafone completed its purchase of Air Touch Communications, Inc. and changed its name to Vodafone air touch plc. Trading of the new company commenced on 30 June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobile funk. The acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile network. On 21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of Bell Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000.

Structure Marketing Department

The structure of marketing department of Vodafone Essar Ltd. of Jaipur is explained with the help of following diagram Marketing Head Product Marcum

37

Prepaid, Postpaid, Creative Outdoor Tie-ups VAS Roaming New Biz Acquisition Usage &Retention Acquisition Usage &Retention There are 2 departments under Marketing Head- Product and Marcum. Product department deals with designing new offerings and up-dation in existing schemes, as well as retention of customers whereas Marcum deals with Promotion through designing new posters and other events.

PRODUCT PROFILE Prepaid Service

Go mobile with a Vodafone Prepaid cell mobile phone and control how much you spend with the best Prepaid cellphone tariff plan. Buy a special Prepaid mobile handset for your Vodafone Prepaid cellphone connection with our Prepaid mobile handset offers. To keep talking without any talktime or validity hassles make use of our flexible recharging options for your Vodafone Prepaid SIM cards: Prepaid recharge cards, eTopUp and Direct Top-Up. Its easy to find a Prepaid recharge topup too: weve got Prepaid outlets everywhere, so that you can stay connected wherever you are.

Postpaid Service

38

Go Vodafone with a new Vodafone Postpaid connection and talk without worrying about your bill. Become a Vodafone Postpaid user with a Postpaid mobile handset for your SIM by making use of Vodafones mobile handset offers. Make the most out of every penny you spend by choosing the right Vodafone Postpaid talkplan. And if you want to know which plan suits your usage best, ask us well be happy to help. World calling card World Calling Card from Vodafone is a Prepaid long distance calling card that you can use with your Vodafone Prepaid and Postpaid mobile phones to make ISD & STD calls. Thats right you dont need individual ISD calling cards and STD calling cards anymore. With the help of this Prepaid World Calling Card, you can keep a tab on your long-distance call expenses. Plus no security deposit. Its easy to buy World Calling Cards in India. World Calling Cards are available at your nearest Vodafone Store, Vodafone Mini Store or at any shop that displays the World Calling Card sign. Vodafone Handy phone Introducing the landline thats loaded with all the features of a cell phone - including low call rates. And Vodafone Handyphonearent that expensive either. You can make one yours for as little as Rs 1999.

Data card service EGDA Data card Vodafone Mobile Data VPN Now access your corporate intranet, emails and more, directly through your Vodafone mobile phone with GPRS/ EDGE or on your laptop. From anywhere in the world .Without having to route information over the internet. Ensure a quicker response to customers and increased productivity. And a greater ROI from people, networks, laptops and mobile devices.

USB Stick U can make the most of my Internet connection with Vodafones sleek plug & play Mobile Connect USB stick. It even supports 3G speeds!

39

Mobile Connect

U can always connected with direct Internet access through my Vodafone mobile phone. No need for an ISP subscription or a modem! I just plug my mobile phone into my PC or laptop and start browsing anytime, anywhere.

Vodafone Mobile

3G Service

40

Key Milestone

2008 Muriel Anton became Vodafone Czech Republics General Manager, taking over from Grahame Maher. The revolutionary Vodafone Loaded Cards bring pre-paid customers the same prices andadvantages as for tariff customers. Vodafone offered the new iphone 3G without long-term contracts.

Vodafone bought the operator, Broad Net, and dramatically strengthened our position in the corporate customer arena. 2007 Vodafone agrees to acquire Tele2 Italia SPA and Tele2 Telecommunication Services SLU from Tele2 AB Group. (October) Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited. (May) Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market, (February) Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the mobile which can be accessed from both the PC and mobile handsets. (February) Vodafone reaches 200 million customers (January) 2006 41

Sale of 25% stake in Switzerland's Swisscom (December) Sale of 25% stake in Belgium's Proximus . (August) The number of Vodafone lives! Customers with 3G reached 10 million in March 2006. Acquired Telsim Mobil TelekomunikasyonHizmetleri (Turkey) in May 2006 . Launch of mobile TV capability and Vodafone Radio DJ, which offers a personalized, interactive radio service streamed to 3G phones and PCs. 3G broadband through HSDPA launched offering faster than 3G speeds. Japan business sold to Softbank. Make the most of now global marketing campaign launched. 2005 Completed the acquisition of MobiFonS.A. (Romania) and Oskar Mobile a.c. (Czech Republic) (May). Launch of Vodafone Simply, a new easy-to-use service for customers who want to use voice and text services with minimum complexity (May). Introduction of Vodafone Passport, a voice roaming price plan that provides customers with greater price clarity when using mobile voice services abroad (May). 2004 Launched our first 3G service in Europe with Vodafone Mobile Connect 3G/GPRS data card . 14 Partner Networks with new agreements in Cyprus, Hong Kong and Luxembourg. Vodafone live! With 3G launched in 13 markets (November). 2003 At the GSM Association Awards Ceremony in Cannes, France, we won the mobile industrys most prestigious awards in two categories, Best Consumer Wireless Application or Service Best Television or Broadcast Commercial for its global consumer service Vodafone live! Premium handsets for Vodafone live! The Sharp GX10, won the Best Wireless Handset Award for the Sharp Corporation. Vodafone live! Attracts 1 million customers in its first six months. Verizon Wireless and Vodafone co-operate on laptop e-mail, internet and corporate applications access for the US and Europe. ArunSarin succeeds Sir Christopher Gent as Chief Executive. 2002 Trial global mobile payment system in the UK ,Italy and Germany . The trial enables customers to purchase physical and digital goods using their mobile phone. 42

Launched the first commercial European GPRS roaming service . Customers are able to seamlessly access services such as corporate e-mail, intranet and personalized information on their mobile phones, laptops r PDAs over GPRS. The Vodafone Group Foundation is launched, with plans to contribute 20 million to community programs, guided by the Group Social Investment Policy. In October, announce the launch of Vodafone live!, a new consumer proposition, and Mobile Office, a new business proposition. In November, Vodafone Remote Access is launched as part of Mobile Office. The service gives business customers an easy way to connect to their corporate LAN to access e-mail, calendar and other business specific applications whilst onthe move. 2001 Acquired Ireland's leading mobile communications company ,Eircell. Vodafone and China Mobile (Hong Kong) ltd (CHMK) sign a 'strategic alliance agreement'. The Group completes the acquisition of a 25% stake in Swisscom Mobile. Introduced instant messaging to our networks, a faster and more efficient way to communicate using text messages via SMS or WAP . First global communications campaign launched in August . The campaign features TV, cinema, print, online and outdoor media, each version asking the question, 'How are you?'. First Vodafone Partner Agreement with TDC Mobil A/S, Denmark's leading mobile operator. he agreement is the first of its kind in the mobile industry and means Vodafone and TDC Mobil will cooperate in developing, marketing and advertising international roaming products and services to international travelers and corporate customers.

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CHAPTER-4
Data Analysis and Interpretation:
Data analysis is done by evaluating the questionnaire and the evaluation was done with the help of Microsoft Excel. The interpretation was done by calculating percentages and with the help of pie charts. As stated earlier, this study is based on a survey conducted in different departments of Vodafone Spacetel Limited. The interpretation was done individually for each question which is as follows.

1. Generally speaking. I am very satisfied with this job.

Yes 50

No 0 Table-1

Yes No

Satisfied

Interpretation: The graphical result show that out of 50 employee who were considered as the sample size, all 50 employees (100%) agreed to the point that yes they are satisfied with their job and no employees disagreed to the point .From this data it can be concluded that 100% of employees are in agreement.

2. My opinion of myself goes up when I do this job well. 44

Strongly agree

Agree

Neither

agree Disagree

Strongly disagree

nor disagree 14 6 0 Table-2 0

2
Strongly agree Neither agree nor disagree Strongly disagree 0% 30% 70% 0% Agree Disagree

Fig-2

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size,14 employees (70%) strongly agreed to the point that their opinion goes up when they do the job well. 6 employees (30%)agreed to thepoint that their opinion goes up when they do the job well. They were no employees who disagreed and strongly disagreed. From this data it can be concluded that 100% of employees are in agreement.

3.I am generally satisfied with the feeling of worthwhile accomplishment I get from doing this job.

Strongly agree

Agree

Neither

agree Disagree

Strongly disagree

nor disagree 20 0 0 Table-3 0

45

3
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% Agree Disagree

100%

Fig-3

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, all employees(100%) strongly agreed to the point that they aresatisfied with the feeling of
worthwhile accomplishment I get from doing this job. They were no employees who disagreed.

From this data it can be concluded that 100% of employees are in agreement

4. Most of the things I have to do on this job seem useless or trivial.

Strongly agree

Agree

Neither

agree Disagree

Strongly disagree

nor disagree 0 0 0 9

11

Table-4

46

0% 0% 0%

4
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

45% 55%

Fig-4

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 9 employees(45%) strongly disagreed to the point that Most of the things they have to do on this
job seem useless or trivial. 11 employees (55%) strongly disagreed to the point that Most of the things they have to do on this job seem useless or trivial. They were no employees who strongly

agreed. From this data it can be concluded that 100% of employees are in agreement.

5)I usually know whether or not my work is satisfactory on this job.

Strongly agree

Agree

Neither

agree Disagree

Strongly disagree

nor disagree 0 12 3 Table-5 5

47

5
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 25% 15% 60% Agree Disagree

Fig-5

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 12 employees (60%) agreed to the point that they usually know whether or not their work is
satisfactory on this job. 3 employees(15%) neither agreed nor disagreed to the point. 5

employees (25%) disagreed to the point. There were no employees who strongly disagreed. From this data it can be concluded that 75% of employees are in agreement 12% employees are in neither agreement nor disagreement.

6) I feel great sense of personal satisfaction when I do this job well. Strongly agree Agree Neither agree Disagree Strongly disagree 0 Table-6 0

nor disagree 17 3 0

48

6
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 0% 15% Agree Disagree

85%

Fig-6

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 17 employees (85%) strongly agreed to the point that they feel great sense of personal
satisfaction when they do this job well. 3 employees (15%)agreed to the point. There were no

employees who strongly disagreed. From this data it can be concluded that 100 % of employees are in agreement.

7) The work I do on this job is very meaningful to me. Strongly agree Agree Neither agree Disagree Strongly disagree 0 Table-7 0

nor disagree 15 5 0

49

7
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 0% 25% Agree Disagree

75%

Fig-7

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 15 employees (75%) strongly agreed to the point that The work they do on this job is very
meaningful to them. 5 employees (25%)agreed to the point. There were no employees who

strongly disagreed. From this data it can be concluded that 100 % of employees are in agreement.

8)I feel a very high degree of personal responsibility for the work I do on this job.

Strongly agree

Agree

Neither

agree Disagree

Strongly disagree

nor disagree 13 5 2 Table-8 0

50

8
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 10% 25% 65% Agree Disagree

Fig-8

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 13 employees(65%) strongly agreed to the point that they feel a very high degree of personal responsibility for the work they do on this job, 5 employees (25%)agreed to the point that that they feel a very high degree of personal responsibility for the work they do on this job, 2 employees(10%) neither agreed nor disagreed to the point that that they feel a very high degree of personal responsibility for the work they do on this job. There were no employees who strongly disagreed. From this data it can be concluded that 90 % of employees are in agreement.and 10% employees are in neither agreement nor disagreement.

9. I frequently think of quitting this job. Strongly agree Agree Neither agree Disagree Strongly disagree 14 Table-9 2

nor disagree 0 0 4

51

9
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 10% 20% Agree Disagree

70%

Fig-9

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 0 employees (0%) agreed to the point that
they frequently think of quitting this job. 4

employees (20%) neither agreed nor disagreed to the point that they frequently think of
quitting this job. 14 employees (70%) agreed to the point that they frequently think of quitting this job. 2 employees (10%) strongly disagreed to the point that they frequently think of quitting this job.it can be concluded that 80% of employees are in agreement and 10% employees are

in neither agreement nor disagreement.

10) I feel bad and unhappy when I discover that I have performed poorly on this job

Table-10 Strongly agree Agree Neither agree Disagree Strongly disagree 0 0

nor disagree 6 14 0

52

10
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 0% 30% 70% Agree Disagree

Fig-10 Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 6 employees (30%) agreed to the point that theyfeel bad and unhappy when they discover that
they have performed poorly on this job.14 employees (70%) neither agreed nor disagreed to the

point thattheyfeel bad and unhappy when they discover that they have performed poorly on this
job.. There were no employees who strongly disagreed. From this data it can be concluded

that 100 % of employees are in agreement.

11) I often have trouble figuring out whether I am doing well or poorly on this job. Strongly agree Agree Neither agree Disagree Strongly disagree 12 Table-7 3

nor disagree 0 0 5

53

11
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 15% 25% Agree Disagree

60%

Fig-11

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 5employees (25%) neither agreed nor disagreed to the point that they often have trouble figuring out whether they are doing well or poorly on this job. ,12 employees(60%) disagreed to the point that they often have trouble figuring out whether they are doing well or poorly on this job. and 3 employee (15%)Strongly disagreed to the point that they often have trouble figuring out whether they are doing well or poorly on this job From this data it can be concluded that 75 % of employees are in agreement. And 25% of employees are in neither agreement nor disagreement.

12) I feel I should personally take the credit or blame for the result of my work on this job. Strongly agree Agree Neither agree Disagree Strongly disagree 9 Table-7 0

nor disagree 0 0 11

54

12
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 0% 45% 55% Agree Disagree

Fig-12

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 11 employees (55%) neither agreed nor disagreed to the point that theyfeel they should
personally take the credit or blame for the result of their work on this job, 9 employees(45%)

disagreed to the point that theyfeel they should personally take the credit or blame for the result
of their work on this job,No one Strongly disagreed to the point that theyfeel they should personally take the credit or blame for the result of their work on this job,From this data it can be

concluded that45 % of employees are in disagreement. And 55% of employees are in neither agreement nor disagreement.

13) I am generally satisfied with the kind of work I do in this job. Strongly agree Agree Neither agree Disagree nor disagree 16 4 0 0

Strongly disagree 0

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Table-7

13
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 0% 20% Agree Disagree

80%

Fig-13

Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 16 employees (80%) strongly agreed to the point that they aregenerally satisfied with the kind of work they do in this job, 4 employees (20%) agreed to the point that that they are generally satisfied with the kind of work they do in this job. There were no employees who strongly disagreed. From this data it can be concluded that 100 % of employees are in agreement. 14) My own feelings generally are not affected much one way or the other by how well I do on this job. Strongly agree Agree Neither agree Disagree Strongly disagree 3 Table-7 5

nor disagree 0 6 6

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14
Strongly agree Neither agree nor disagree Strongly disagree 0% 25% 15% 30% 30% Agree Disagree

Fig-14 Interpretation: The graphical results show that out of 20 employees who were considered as the sample size, 6 employees (30%) agreed that their own feelings generally are not affected much one way or the
other by how well they do on this job. 6 employees (30%)neither agreed nor disagreed to the

point that their own feelings generally are not affected much one way or the other by how well they
do on this job. 3 employees (15%) disagreed to the point that that their own feelings generally are not affected much one way or the other by how well they do on this job. 5 employees (25%)

Strongly disagreed to the point that that their own feelings generally are not affected much one
way or the other by how well they do on this job. From this data it can be concluded that 30% of

employee are in agreement. 40 % of employees are in disagreement. And 30 % of employees are in neither agreement nor disagreement.

15) Whether or not this job gets done right is clearly my responsibility. Strongly agree Agree Neither agree Disagree Strongly disagree 0 Table-7 0

nor disagree 10 6 4

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15
Strongly agree Neither agree nor disagree Strongly disagree 0% 0% 20% 50% 30% Agree Disagree

Fig-15

Interpretation: The graphical results show that out of 50 employees who were considered as the sample size, 10 employees(50%) strongly agreed to the point thatWhether or not this job gets done right is
clearly their responsibility. 6 employees (30%)agreed to the point that Whether or not this job gets done right is clearly their responsibility. 4 employees (20%) neither agreed nor disagreed to

the point that Whether or not this job gets done right is clearly their responsibility. There were no employees whodisagreed.From this data it can be concluded that 80% of employees are in agreement and 20% employees are in neither agreement nor disagreement.

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CHAPTER-5
CONCLUSIONS AND SUGGESTIONS
CONCLUSIONS:
Almost all the employees are satisfied with the salaries paid to them. Employees are satisfied with the present working conditions and feel secure about their job. 70% of the employees feel that the management is sympathetic to some extent in their problems faced at workstation, Management shares a very good relation with the workers. Employees are satisfied with the facilities provided to them and are free to express their views freely to the management. Supervisors are ready to clear the doubts and help in improving their performance. 80% of the employees feel that the company policies really protect their interests. 70% of the employees are satisfied with the present management setup.

Employees are satisfied with the training provided to them in improving their performance. The employees get maximum satisfaction by doing their job independently. The employees are free to go to their superior in connection to their work.

Overall the employees of VSL are having a very high job satisfaction and hence they are working with great enthusiasm and zeal to achieve their organizations goal.

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SUGGESTIONS:
o 30% of the employees feel that the present management should be changed.

o Reward schemes should be introduced in this system to increase competitiveness among individuals and to motivates the employees.

o Benefits and remuneration paid should be higher to satisfy the needs and wants of the employees.

o More independence should be provided to the employees during their work. They should have greater role in taking decisions.

o Training is always needed by the employees whether it is a formal training or on job training.

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CONCLUSION
Employee satisfaction , remuneration , growth and development facilities being provided by the VSL can be truly measured by the level of satisfaction being felt by their employees. Survey analysis and data interpretation have proved to be a yardstick in the process of measurement of the degree of satisfaction. The entire project has showed that the employees of this organization are fully satisfied with the appraisal system. The employees of the VSL are fully satisfied by the facilities being extended to them However a greater degree of effort is needed on the part of the management to provide benefits to the employees such as entertainment and recreation facilities.. Moreover the employees are satisfied with the way the company policies are put into practice. Therefore to conclude it can be said that VSL needs to extend its schemes and benefits to a little extent so that it can ensure greater satisfaction & efficiency for its employees to reap greater rewards & profits.

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QUESTIONNAIRE

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BIBLIOGRAPHY
Dr. C.B. GUPTA, Human Resource management, published by sultan chand & sons, New Delhi,2002

Andrew Durbin, personnel and Human Resource Management, D. Van NO. Stand Co. New York, 1981. Mamoria C.B personal Management Himalaya publication Pvt. Ltd

Subba Rao P. Human Resource Management. www.Vodafone.com http: www.wikipedia.org

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