A project report on a study on employees job satisfaction @ enjayes spices and chemical oils...

A Study on Employees Job Satisfaction at Enjayes Spices & Chemical Oils Ltd

1.1 INTRODUCTION

The industrial development in any country depends among other things on a satisfied

labour force. It has often been said that a happy employees is generally, that employee

who is satisfied with his job. Job satisfaction is very important because most of the

people spend a major portion of life at their working place. Moreover, Job satisfaction

has its impact on the general life of the employees also, because a satisfied employee is

a contended and a happy human being. A highly satisfied worker has better physical

and mental wellbeing. Human resource is of paramount importance for the success of

any organization. It’s a source of strength. It is concerned with the human being.

Human resource is the total knowledge, abilities, skills, talents and aptitudes of an

organizations work force. The resourceful of various categories of people and other

people available to the organization can be treated as human resource. In the present

complex environment, no business or organization can exist and grow without

appropriate human resource .Human resource is a term used to describe the individuals

who comprise the workforce of an organization, although it is also applied in labour

economics to, for example, business sectors or even whole nations. Human resource is

also the name of the function within an organization charged with the overall

responsibility for implementing strategies and policies relating to the management of

individuals (i.e. the human resources).This function title are often abbreviated to the

initials ‘HR’.

Human resources are a relatively modern management term, coined in the 1960s. The

origins of the function arose in organizations that introduced ‘welfare management’

practices and also in those that adopted the principles of ‘scientific management’. From

these terms emerged a largely administrative management activity, coordinating a range

of worker related processes and becoming known, in time as the ‘personnel function’.

Human resources progressively became the more usual name for this function, in the

first instance in the United States as well as multinational corporations, reflecting the

adoption of a more quantitative as well as strategic approach to workforce management,

demanded by corporate management and the greater competitiveness for limited and

highly skilled workers.

V.N.S College of Arts and Science ; Konni


Human Resource Management (HRM) is the strategic and coherent approach to the

management of an organization’s most valued assets-the people working there who

individually and collectively contribute to the achievement of the objectives of the

business. The terms “human resource management” and “human resources” (HR) have

largely replaced the term “personnel management” as a description of the processes

involved in managing people in organizations. In simple words, HRM means

employing people, developing their capacities, utilizing, maintaining and

compensating their services in tune with the job and organizational requirement.

The Human Resources Management (HRM) function includes a variety of activities,

and key among them is deciding what staffing needs you have and whether to use

independent contractors or hire employees to fill these needs, recruiting and training

the best employees, ensuring that the human resource function is performed efficiently.

This research was conducted to study the employees job satisfaction and how it affect

on the work of employees. The research was conducted in, Enjayes Spices & Chemical

Oils Ltd, Vallicode Kottayam, Pathanamthitta.



1.2 OBJECTIVES OF THE STUDY

Primary Objective

To study the job satisfaction level of employees in Enjayes Spices & Chemical

Oils Ltd.

Secondary Objective

To study job satisfaction with respect to relationship between management and

employees.

To measure job satisfaction with respect to promotion opportunities.

To find out the satisfaction level of employees with respect to welfare measures,

participation in decision making and career advancement.

To find out the job satisfaction of the employees in relation to the working

environment.

To find out the satisfaction level of employees with respect to job security.

To know the employee satisfaction with respect to the present compensation

package provided by the company.



1.3 SCOPE OF THE STUDY

The scope of the study is to know about the organization, its structure, the function

performed by various departments and to know the overall performance of the

organization. The study will help to get a practical exposure and also help to identify

the factors that promote satisfaction among employees. This in turn would improve

customer service, effective time management in each organization. The project was

conducted in Enjayes Spices & Chemical Oils Ltd, Vallicode Kottayam,

Pathanamthitta.



1.4 RESEARCH METHODOLOGY OF THE STUDY

Research methodology means a scientific method of conducting research. It gives an

outlay of the study. Research methodology is way to systematically solve the research

problem .it may be understood as a science of studying how research is done

scientifically. It is the study of various steps that are generally adopted by a research in

studying his research problem along with the logic behind them. Thus, when we talk of

the research methods but also consider the logic behind them.

1.4.1 RESEARCH DESIGN

A Research design is purely and simply the framework for the study that guides the

collection and analysis of data. It is a blue print that is followed in completing a study.

There are 3 types of research design :-

1. Descriptive research design

2. Exploratory research design

3. Casual research design

In this project, Descriptive research design is adopted

The descriptive design study describes the characteristics of a particular problem or an

individual or a group. Descriptive study includes specific predictions concerned with

study, facts and characteristics concerning an individual, a group or situations. Most of

the social research is based on descriptive research studies, the questions related to

‘what’, ‘why’, ‘where’, and ‘who’ need to be answered.

1.4.2 SAMPLING TECHNIQUES AND SAMPLE SIZE

Sampling is the process of using a small number of items or parts of a larger population

to make conclusions about the whole population. If information is collected only from a

representative part of universe, we say that the data are collected by sampling. The

study of sample reveals the characteristics of universe. Different types of sampling are

Random Sampling and Non-random sampling.



Random Sampling: This type of sampling is based on chance selected

procedures. The basis of Random Sampling is that the procedure of randomization

should not be thought of as unplanned or scientific. The different types of Random

Sampling are Simple Random Sampling, Stratified Sampling, Systematic sampling and

Cluster sampling.

Non Random Sampling: This is a type of sampling in which units of the sample

are selected on the basis of personal judgment or convenience. In non random sampling

the probability of any member of the population sampling is quite arbitrary as

researchers rely heavily on personal judgment. The different types of non random

sampling are Judgment sampling, Convenience Sampling, Quota sampling and

snowball sampling.

Sample Size: The whole number of sample unit on which survey is conducted is known

as sample size in this survey, sample size is 100 employees

1.4.3 SOURCES OF DATA

The methodology used for the project work is the collection of the primary data and

secondary data.

Primary data

Data regarding the study of satisfaction among employees are procured directly from

the employees through a structural question redistributed to them. An informal

discussion was also done with the HR Manager to get information on satisfaction.

Secondary data

The secondary data for conduction the study were collected from various books,

records, journals, newspaper and the internet. Data regarding the study of satisfaction

among employee were collected from the office of Enjayes Spices And Chemical Oils

Ltd and various records and manuals of the company.

1.4.4 DATA ANALYSIS TOOLS AND TECHNIQUES



The various tools used for collecting the data are as follows:

Questionnaire

Questionnaires refer to forms filled in by respondents alone. Questionnaires were handed

to the respondents in field and ask them to fill it. This method can be adopted for the

entire population or sampled sectors.

Observation

Observation is either an activity of a living being, such as a human, consisting of

receiving knowledge of the outside world through the senses, or the recording of data

using scientific instruments. The term may also refer to any data collected during this

activity. An observation can also be the way you look at things or when you look at

something.

Interviews

In interviews information is obtained through inquiry and recorded by enumerators.

Structured interviews are performed by using survey forms. The interviewer in one-to-

one conversation collects detailed personal information from individuals using oral

questions.

1.4.5 STATISTICAL ANALYSIS

“Statistical Analysis” is a process of inspecting, cleaning, transforming, and

modeling data with the goal of highlighting useful information, suggesting conclusions,

and supporting decision.

The tool for analyzing the data is used for the study is:

1) Percentage method

2) Chi-square analysis



1. Percentage method

The percentage is used for making comparison between two or more series of data. It is

used to classify the opinion of the respondent for different factors. It is calculated as

Percentage:Number of observations

Totalnumber of observationsX 100

2. Chi-square analysis

Chi-square analysis in statistics is to test the goodness of fit to verify the distribution of

observed data with assumed theoretical distribution. Therefore it is a measure to study

the divergence of actual and expected frequencies.

The formula for computing chi-square is as follows.

The calculated value of chi-square is compared with the table of chi square for the given

degrees of freedom at the specified level of significance. If the calculated value is

greater than the tabulated value then the difference between the observed frequency and

the expected frequency are significant. The degrees of freedom is (n-2) where ‘n’ is

number of observed frequencies and in case of contingency table the degrees of

freedom is (C-1)(R-1) where C is number of columns and R is number of rows.


Chi-square = ∑ {(O-E) 2 / E}


1.5 DURATION OF THE STUDY

The project was a detailed study on the topic “Study On Employees Job Satisfaction”

was successfully completed within the time period of Two Weeks with the guidance and

support from the project guide.

1.6 LIMITATIONS OF THE STUDY

The findings are only based on the information given by the respondents.

The study has been based on data collected from various departments. Hence

there is a chance for miss assumption.

Some of the employees refused to answer the questionnaire as they feared that

the management might take action on them.

The survey was done during the working hours.

Illiteracy of the respondents, during the data collection using questionnaire.

Due to the shift arrangement it was difficult to collect data from most of the

employees.

It is very difficult to get to know about details of employees job satisfaction

from organization within the limited time and span of 14 days.



2.1 REVIEW OF LITERATURE

The purpose of literature review is to identify the problem statement, understand the

secondary data that has been gathered in the field of study and make new findings on

the problem statement.

Hoppock defined job satisfaction as any combination of psychological, physiological

and environmental circumstances that cause a person truthfully to say I am satisfied

with my job (Hoppock, 1935).According to this approach although job satisfaction is

under the influence of many external factors, it remains something internal that has to

do with the way how the employee feels. That is job satisfaction presents a set of factors

that cause a feeling of satisfaction.

Vroom in his definition on job satisfaction focuses on the role of the employee in the

workplace. Thus he defines job satisfaction as affective orientations on the part of

individuals toward work roles which they are presently occupying (Vroom, 1964).One

of the most often cited definitions on job satisfaction is the one given by Spector

according to whom job satisfaction has to do with the way how people feel about their

job and its various aspects. It has to do with the extent to which people like or dislike

their job. That’s why job satisfaction and job dissatisfaction can appear in any given

work situation.

Job satisfaction represents a combination of positive or negative feelings that workers

have towards their work. Meanwhile, when a worker employed in a business

organization, brings with it the needs, desires and experiences which determinates

expectations that he has dismissed. Job satisfaction represents the extent to which

expectations are and match the real awards. Job satisfaction is closely linked to that

individual's behavior in the work place (Davis et al., 1985).

Job satisfaction is a worker’s sense of achievement and success on the job. It is

generally perceived to be directly linked to productivity as well as to personal well-

being. Job satisfaction implies doing a job one enjoys, doing it well and being rewarded

for one’s efforts. Job satisfaction further implies enthusiasm and happiness with one’s

work. Job satisfaction is the key ingredient that leads to recognition, income,

promotion, and the achievement of other goals that lead to a feeling of fulfillment

(Kaliski, 2007). Job satisfaction can be defined also as the extent to which a worker is



content with the rewards he or she gets out of his or her job, particularly in terms of

intrinsic motivation (Statt, 2004).

The term job satisfactions refer to the attitude and feelings people have about their

work. Positive and favorable attitudes towards the job indicate job satisfaction.

Negative and unfavorable attitudes towards the job indicate job dissatisfaction

(Armstrong, 2006). Job satisfaction is the collection of feeling and beliefs that people

have about their current job. People’s levels of degrees of job satisfaction can range

from extreme satisfaction to extreme dissatisfaction. In addition to having attitudes

about their jobs as a whole. People also can have attitudes about various aspects of their

jobs such as the kind of work they do, their coworkers, supervisors or subordinates and

their pay (George et al., 2008).

Job satisfaction is a complex and multifaceted concept which can mean different things

to different people. Job satisfaction is usually linked with motivation, but the nature of

this relationship is not clear. Satisfaction is not the same as motivation. Job satisfaction

is more of an attitude, an internal state. It could, for example, be associated with a

personal feeling of achievement, either quantitative or qualitative (Mullins, 2005). We

consider that job satisfaction represents a feeling that appears as a result of the

perception that the job enables the material and psychological needs (Aziri, 2008).

The importance of job satisfaction specially emerges to surface if had in mind the many

negative consequences of job dissatisfaction such a lack of loyalty, increased

absenteeism, increase number of accidents etc. Spector (1997) lists three important

features of job satisfaction. First, organizations should be guided by human values.

Such organizations will be oriented towards treating workers fairly and with respect. In

such cases the assessment of job satisfaction may serve as a good indicator of employee

effectiveness. High levels of job satisfaction may be sign of a good emotional and

mental state of employees. Second, the behavior of workers depending on their level of

job satisfaction will affect the functioning and activities of the organization's business.

From this it can be concluded that job satisfaction will result in positive behavior and

vice versa, dissatisfaction from the work will result in negative behavior of employees.

Third, job satisfaction may serve as indicators of organizational activities. Through job

satisfaction evaluation different levels of satisfaction in different organizational units



can be defined, but in turn can serve as a good indication regarding in which

organizational unit changes that would boost performance should be made.

Christen, Iyer and Soberman (2006) provide a model of job satisfaction presented in

Figure 1 in which the following elements are included:

Job related factors

Role perception

Job performance

Firm performance.

Locke and Latham (1990) provide a somewhat different model of job satisfaction.

They proceed from the assumption that the objectives set at the highest level and high

expectations for success in work provides achievement and success in performing tasks.

Success is analyzed as a factor that creates job satisfaction.

FACTORS OF JOB SATISFACTION

Job satisfaction is under the influence of a series of factors such as: The nature of work,

Salary, Advancement opportunities, Management, Work groups and Work conditions.

When talking about factors of job satisfaction the fact that they can also cause job

dissatisfaction must be kept in mind. Therefore the issue weather job satisfaction and

job dissatisfaction are two opposite and excludable phenomena? There is no consensus

regarding this issue among authors.

Herzberg’s Two Factor Theory is probably the most often cited point of view. In fact

the main idea is that employees in their work environment are under the influence of

factors that cause job satisfaction and factors that cause job dissatisfaction. Therefore al

factors that have derived from a large empirical research and decided in factors that

cause job satisfaction (motivators) and factors that cause job dissatisfaction (hygiene

factors)

CONCEPTS OF JOB SATISFACTION



Lu, While, and Barriball (2005) mentioned the traditional model of job satisfaction

focuses on all the feelings about job of an individual. However, what makes a job

satisfying or dissatisfying does not depend only on the nature of the job, but also on the

expectations that individuals have of what their job should provide.

Maslow (1954 cited in Huber, 2006) arranged human needs along a five level

hierarchy from physiological needs, safety and security, belonging, esteem to self-

actualization. In Maslow’s pyramid, needs at the lower levels must be fulfilled before

those rise to a higher level. According to Maslow’s theory, some researchers have

approached on job satisfaction from the perspective of need fulfillment (Regis & Porto,

2006; Worf, 1970). Job satisfaction as a match between what individuals perceive they

need and what rewards they perceive they receive from their jobs (Huber, 2006).

However, overtime, Maslow’s theory has diminished in value. In the current trend, the

approach of job satisfaction focuses on cognitive process rather than on basic needs in

the studies (Huber, 2006; Spector, 1997).

Another approach as proposed by Herzberg (Herzberg et al., 1959; cited in Huber,

2006) is based on the Maslow’s theory. Herzberg and colleagues built Herzberg’s

motivation hygiene theory of job satisfaction. Theory proposed that there are two

different categories of needs, which are intrinsic (motivators) and extrinsic (hygiene)

factors. Theory postulates that job satisfaction and/or is dissatisfaction is the function of

two need systems. Intrinsic factors are related to the job itself. Intrinsic factors seem to

influence positively on job satisfaction. The motivators include advancement, growth

and development, responsibility for work, challenging, recognition, and advancement.

In other words, extrinsic factors are closely related to the environment and condition of

the work. The hygiene relate to job dissatisfaction including supervision, company

policy and administration, working condition and interpersonal relation.

Lephalala, Ehlers, & Oosthuizen, 2008; Shimizu et al., 2005). This theory has

dominated in the study of job satisfaction, and become a basic for development of job

satisfaction assessment (Lu et al., 2005).Some previous theories have proposed many

factors contributed to job satisfaction such as the Maslow’s hierarchy of needs and the

set of Herzberg’s motivation-hygiene theory. This study is going to measure job



satisfaction in two categories, including motivator and hygiene factors, which are

related to Herzberg’s theory.

MEASURING JOB SATISFACTION

Usually job satisfaction is measured by using general scientific research methods such

as the questionnaire. Some of the most commonly used techniques for measuring job

satisfaction include:

Minnesota satisfaction questionnaire and

Job description index

The Minnesota Satisfaction Questionnaire is a paper-pencil type of a questionnaire and

can be implemented both individually and in group, but it does not take sex differences

into consideration. This questionnaire has one short form and two long forms that date

from 1967 and 1977. In fact 20 work features in five levels are measured with this

questionnaire. Responding to this questionnaire usually takes between 15-20 minutes.

The 1967 version of the Minnesota Satisfaction Questionnaire uses the following

response categories:

Not satisfied

Somewhat satisfied

Satisfied

Very satisfied

Extremely satisfied.

The 1977 version of the Minnesota Satisfaction Questionnaire uses the following

response categories:

Very satisfied

Satisfied

Neither satisfied nor dissatisfied

Dissatisfied and

Very dissatisfied.

If compared it’s obvious that in a way the 1977 version of this questionnaire is more

balanced compared to the 1967 version.



This questionnaire the following aspects of job:

Co-workers

Achievement

Activity

Advancement

Authority

Company Policies

Compensation

Moral Values

Creativity

Independence

Security

Social Service

Social Status

Recognition

Responsibility

Supervision-Human Relations

Supervision-Technical

Variety

The Job Description Index is one of the most widely used techniques for measuring job

satisfaction. It is a simple and easily applicable method. The measurement of strength

and weakness within each factor are assign as in which field improvement and changes

are necessary.

This questionnaire allows acquisition of information on all major aspects of work and

takes sex differences into consideration. This questionnaire was first introduced in 1969

and it measures five major job satisfaction aspects with a total of over 70 potential job

descriptions.

The factors considered by the job description index are:

The nature of work



Compensation and benefits

Attitudes toward supervisors

Relations with co-workers and

Opportunities for promotion.

MEASUREMENTS OF JOB SATISFACTION

Measuring job satisfaction is difficult, for it is abstract personal cognition that only

exists in the mind of individual. However, most researchers select a more objective and

in-depth survey instrument (Spector, 1997). Spector suggested using an existing job

satisfaction scale for the following advantages:

It has been reported to exhibit acceptable levels of reliability

It has been used a sufficient number of times to provide norm

It has been used in research to provide good evidence for construct validity

Using known scales saves the considerable cost and time necessary to a develop

scale. The Job Satisfaction Survey (JSS) was developed in 1985s (Spector, 1985).

This scale assesses employee attitudes about the job and aspects of job from 9

separate facets of the job satisfaction:

Pay and pay raises

Promotional opportunities

Fringe benefits

Contingent reward

Supervision

Coworker

Nature of work

Communication within the organization

Operating procedures.

The scale was summated rating scale format which is the most popular for job

satisfaction scales. It consisted of 36 items and ranged on a 6-point Likert scale.

EFFECTS OF JOB SATISFACTION



Job satisfaction causes a series of influences on various aspects of organizational life.

Some of them such as the influence of job satisfaction on employee productivity,

loyalty and absenteeism are analyzed as part of this text.

The preponderance of research evidence indicates that there is no strong linkage

between satisfaction and productivity. For example a comprehensive meta-analysis of

the research literature finds only a.17 best estimate correlation between job satisfaction

and productivity. Satisfied workers will not necessarily be the highest producers. There

are many possible moderating variables, the most important of which seems to be

rewards. If people receive rewards they feel are equitable, they will be satisfies and this

is likely to result in greater performance effort. Also, recent research evidence indicates

that satisfaction may not necessarily lead to individual performance improvement but

does lead to departmental and organizational level Improvements. Finally there are still

considerable debate weather satisfaction leads to performance or performance leads to

satisfaction (Luthans, 1998).

Employee loyalty is one of the most significant factors that human resource managers in

particular must have in mind. Employee loyalty is usually measured with the Loyalty

Questionnaire and can cause serious negative consequences when not in a high level.

Usually three types of employee loyalty are considered: affective loyalty, normative

loyalty and continuity loyalty. Affective loyalty has do with the cases when an

employee feels an emotional connection to the company, normative loyalty is a sort of

loyalty that appears in cases when the employee feels like he owes something to the

company and continuity loyalty comes as a result of the fact that the employee does not

have an opportunity to find a job somewhere else.

Research conducted by Vanderberg and Lance (1992) during which they surveyed

100 professionals in the information services for five months showed a strong relations

between job satisfaction and employee loyalty. Their research proved that the higher the

degree of job satisfaction the higher is the level of employee loyalty.

Employee absenteeism causes serious additional costs for companies, therefore

managers are in permanent issue of ways how to decrease and reduce it to its minimum.

Probably, the best way to reduce employee absenteeism would be through a increase in

the level of employee satisfaction. Even though the effects are modest the fact that job



satisfaction contributes to decreasing the level of employee absenteeism remains. So

satisfaction is worth paying attention to, especially since it is potentially under your

control – unlike some of the other causes of absenteeism (e.g. illness, accidents). But as

we said circumstances can alter this equation. As a manager you could be implicitly

encouraging absenteeism by enforcing company policies. If people are paid for sick

days, and if they must be “used or lost” this is pretty Strong encouragement for

employees to be absent. In other words, you’ve helped create a culture of absenteeism

that can overcome the “satisfaction” effect. (Sweney and McFarlin, 2005)

When satisfaction is high, absenteeism tends to be low; when satisfaction is low,

absenteeism tends to be high. However as with the other relationships with satisfaction,

there are moderating variables such as the degree to which people feel their jobs are

important. Additionally, it is important to remember that while high job satisfaction will

not necessarily result in low absenteeism, low job satisfaction is likely to bring about

high absenteeism.

Hagedorn (2000) departs from Herzberg and colleagues’ (1993) work by bundling

motivators and hygiene’s into a single category (albeit with separate sub-categories) and

separating the influence of workplace relationships and culture into its own category

‘environment’. Hagedorn’s model is adapted slightly in this study by including

‘institutional resources’ as a sub-category within the motivators and hygiene’s.

Institutional resources include satisfaction with twelve types of institutional physical,

financial and human resources. The rationale is that institutional resources can also be

considered mediators for job satisfaction because a lack of resources hinders

performance, similar to policies and other hygiene factors.

The deprivation/domination paradigm postulates that the higher the deprivation of a

need, the higher its need strength. An early review concluded that the

deprivation/domination paradigm was only partially supported for self-actualization,

and not supported for safety, belongingness and esteem needs (Wahba & Bridwell,

1976). On the basis of this review, many researchers have assumed that the proposition

is not supported (Wicker, Brown, Wiehe, Hagen & Reed, 1993). This assumption

may be inaccurate however, as many of the studies included in the review have

methodological limitations. These limitations concern: a) the operationalisation of need

strength; and b) establishing causality.



In Alderfer’s (1969) study, subjects were asked to rate how much more of the

following factors they would like to have in their jobs; pay, fringe benefits, love, status,

and growth. Similarly, in Graham and Balloun’s (1973) study, subjects were asked

how much improvement they wanted in their physiological, security, social and self-

actualization needs. These measures of need strength were then correlated with

corresponding measures of satisfaction.

Hall and Nougaim (1968) conducted a longitudinal study on managers, interviewing

them annually for five years. The participants rated the importance of and satisfaction

with a number of needs including safety, affiliation, achievement and esteem, and self-

actualization. Inconsistent with Maslow’s (1954) theory, the correlations between the

satisfaction of needs and the importance of needs were positive.

Wicker et al’s (1993) findings are inconsistent with Maslow’s (1970) theory, they

suggest that the correlations may have been inflated by halo-effects or carryover rating

bias. They postulate that the ratings may be affected by a general motivation factor, and

by earlier ratings. To control for such effects, deviation scores were computed and

correlated. Deviation scores are calculated by subtracting the grand mean over all

scales for a need from the mean of that need on each particular scale. This removed a

need-means factor from the data, “reducing any biasing effect on correlations resulting

from mean differences among needs” (Wicker et al., 1993)

3.1 INDUSTRY PROFILE

INDUSTRY



Industry is concerned with the extraction of raw materials from the nature and various

other process of transforming these raw materials in to consumable goods. It deals with

the function of converting or transforming these materials extracted from nature and to

make them fit for human use or consumption. In brief, industry deals with the

production of goods of value.

SMALL SCALE INDUSTRY

ESCOL is operating as a small scale industry. It is significant segment of Indian

economy. The basic objectives underlying the development of small and medium scale

industries are the increase in the supply of manufactured goods, the promotion of capital

formation, the development of indigenous entrepreneurial skills and the creation of

employment opportunities. In addition they includes such socio economic goals or the

decentralization and dispersal of manufacturing activities from the metropolitan and

non-metropolitan and rural areas, reduction of regional economic imbalances within a

country and the entrepreneurial and a managerial activities and skills as well as of

technology throughout the country.

Small scale industries have an important role to play in the development of our country.

Every economy needs the existence, development and growth of small scale enterprises.

They play very important role and the main objectives of small scale industry are;

To generate large scale employment opportunities with relatively low capital

investments.

To find solution for the unemployment of our country.

To promote balanced regional development of the nation.

ADVANTAGES OF SMALL SCALE INDUSTRY

They are capital light.

They are labour intensive.

They are skill light.

They are quick yielding.

According to recent estimates, about 90% of the industrial units in USA and France

come under the small scale industries sector. The small scale industries in India give

employment to 107 lakh persons. The small scale industry is more flexible.



INDIAN SPICES INDUSTRY

Spices are largely grown in different parts of the world for culinary, medicinal use and

also for food flavoring, coloring, and preservation. Get complete Indian spices

information overview, insight into the Indian and global spices trade and also get general

information of spices on Indian spice market.

Indian Spices Market

India is famous for its spices that are widely used in industries like pharmaceutical,

neutraceuticals, perfumery, toiletry and cosmetics. Indian spices are one of the major

suppliers of pepper to a large number of countries.

Growth in Spices Market

The Indian spice market has shown remarkable growth in spice and culinary herbs

exports. Indian spices manufacturers are making substantial efforts to improve the

quality of spices backed up by technological advancement in order to tap the

international market. Advanced technologies such as carbon dioxide extraction, cry

grinding, encapsulation of spice oil is being undertaken to ensure high quality of spices

and their derivatives.

Market for Spice oils and Oleoresins

India is also leading in the field of spice derivatives, meeting almost 70% of the total

demand of spice oils and oleoresins. The country is providing value added products and

thus achieved repute in the international community. With a focus on strong R&D, the

Indian Manufacturers are developing new products, implementing organic method of

production for providing organic spices and herbs, which command a 10-30% premium.

SPICE EXPORT FIGURES

India is one of the major Asian production and trading centre of spices, its derivatives

and also culinary herbs. India’s spice exports account for about 39% of the total exports

in terms of volume and around 22% in terms of exports value. India meets almost 65%

of the global demand for derivatives like spice oils and oleoresins.

Table - 1



MAJOR SPICE MARKET EXPORTED

Chillies 33%

Seed spices 22%

Turmeric 11.4%

Spice Oils and Oleoresins 7.7%

Pepper 8.07 %

Cardamom 11.14%

Ginger 22.7%

Fennel 14.1%

Fenugreek 11.2%

Tamarind 0.09%

Nutmeg and Mace 1.1%

Source : www.wikipedia.com/-majorspicemarketexported

Major Markets for Indian Spices

India has traditionally been associated with providing spices such as cloves to the rest of

the world. As a result of appropriate climatic conditions, low labour rates, use of

advanced technology and provision of safe and high quality spices, India is now

emerging as one of the leading exporters of a variety of spices and culinary herbs to a

large number of countries.

COUNTRIES IMPORTING INDIAN SPICES

India is exporting superior quality spices to a large number of international destinations.

The volume and value of spice trade with these countries is also on a rise. Some of the

major importers are:



U.S.A

U.K

Germany

Japan

Srilanka

U.A.E

Malaysia

China

Nepal

Bangladesh

Singapore

Saudi Arabia

France

Netherlands

Canada

SPICE INDUSTRY OVERVIEW

India has traditionally been known for its spice and culinary herb production. It is one of

the largest spice producing and consuming country. Its strategic location, climatic

conditions, advanced production processes and availability of cheap labour makes it

advantageous for the producers to ensure large scale production of quality spices and

herbs.

India's Share in the Global Spice Market

The Indian spice industry is booming with a substantial increase in exports over the past

few years. India accounts for nearly 45% and 30% in terms of volume and value in the

world spice trade.

The booming global spice market also poses good opportunities for the Indian spice

industry to provide quality spices at competitive prices. India faces stiff competition

from China, Malaysia and Pakistan in terms of pricing of the products. Manufacturers

should therefore ensure consistency in supply, product quality, pricing and marketing

strategy to increase the share in exports.



Producers are incorporating latest methods and technologies to ensure higher quality of

spices and herbs. India is one of the prime exporters of pepper, chillies, turmeric, seed

spices and spice derivatives to the rest of the world. USA, EU, Japan and Srilanka

import these Indian spices in large volumes.

India's share in Global Spice Derivative Market

Spice derivatives can be categorized into spice oil, oleoresins and essential oils. The

demand for spice derivatives is also increasing due to the hygiene, standardization and

consistency factor. India contributes nearly 70% to the world spice derivative market. It

exports largely to the US, EU etc. Indian southern states including Kerala, Karnataka

and Tamil Nadu provide concentrated oils and oleoresins for use in perfumery,

pharmaceuticals, foods processing and industrial chemical industry.

Government Initiative

Indian Government is providing financial assistance to farmers, growers and spice

producers and has also taken certain steps to ensure the availability of better quality

spices, more hygienically processed spices in order to boost exports. Indian spice board

also provides financial and technical assistance to farmers.

India is known as 'the home of spices'. From the ancient times India has been a hub of

spice cultivation, processing and export. Spices are well-known as appetisers and are

considered essential in the culinary art all over the world.

Apart from adding colour, flavour and taste, consumption of spices provide infinite

health benefits. For instance, spices intensify salivary flow. They cleanse the oral cavity

from food adhesion and bacteria, they help to check infection and caries and protect the

mucous membrane. Spices act as stimulant to the digestive system and helps digestion in

many ways. Stroke frequency and blood pressure can be diminished or augmented by

means of spices. Some may even be a substitute for your costly beauty products and

even medicines.

Here are the top 10 kitchen spices that have healing effects:

1. Fenugreek (methi): It is mainly used as a green leafy vegetable and seeds are

used for seasoning and preparing masalas. It also has many medicinal uses.



2. Coriander (dhania) leaves/seeds: All parts of the coriander plant are edible, but

the fresh leaves and the dried seeds are commonly used in cooking. Seeds can be roasted

or heated on a dry pan briefly before grinding to enhance and alter the aroma.

3. Chillies (mirch): Your eyes may start watering just with the name of it, but you

would be surprised to know that these spicy ones have healing power too. They have

been used externally to relieve pain and internally to cure anything from yellow fever to

the common cold.

4. Turmeric (haldi): Although usually used in its dried, powdered form, turmeric is

also used fresh, much like ginger. Turmeric is sometimes also used as an agent to impart

a rich, custard-like yellow colour to the dishes.

5. Clove (laung): Cloves can be used in cooking either whole or in a ground form,

but as they are extremely strong, they are used sparingly. Cloves promote enzymatic

flow and boost digestive functioning..

6. Cinnamon (dalchini): An aromatic smelling bark, cinnamon is widely used in

most kitchens. It is principally employed in cookery as a seasoning and flavouring

material.

7. Black Pepper (kali mirch): Pepper is one of the oldest and most important of all

spices. It is usually dried (known as peppercorn when dried) and used as a spice and

seasoning. Black pepper is useful in relieving flatulence.

8. Cardamom (elaichi): Cardamom is the "queen of spices"; it is one of the most

valued spices in the world. Cardamom has a strong, unique taste, with an intensely

aromatic fragrance. Cardamom is used chiefly in medicines to relieve flatulence and for

strengthening digestion activities.

9. Cumin (jeera)/Carom (ajwain): Cumin and Carom seeds are both used for

cooking and also possess many medicinal properties. They are a good source of iron and

keeps immune system healthy.

10. Asafoetida (hing): Asafoetida is used as a digestive aid, in food as a seasoning.

Its odour, when uncooked, is so strong that it must be stored in airtight containers

otherwise the aroma will contaminate other spices stored nearby.



The uses and benefits of spices

Spices are used and imported from India since ages. Many of these spices like

cardamom, clove, nutmeg, ginger etc., are inseparable ingredients of the Indian 'Masala

Chai'. This shows that spices form the basis of not only food in India but also for making

a good cup of tea. Though these spices provide innumerable benefits they should be

used sparingly. The excessive use of spices in food can cause harm to the health. Try to

make specific use of these spices. This will help you to make optimal use of the

resources provided by nature. Strike the right balance and add some spice to your life.

Organic spices

Organic spices are those spices that are grown using organic farming method. Indian

organic spices are grown without or with only limited use of pesticides and other

synthetic fertilizers, growth regulators. A number of countries provide technological and

financial assistance to farmers and producers for using organic method of producing

spices including chilies, ginger, turmeric, cumin, fennel, fenugreek, coriander, and dill

etc.

Indian Organic Spices Market

The Indian organic spices market is comparatively small at present (According to

estimates, it is a little more than 1% of the total spice demand). Indian organic spices

market is growing, which can be attributed to the desire to consume natural, wholesome

products that is further driving the consumption of spices overall.

International Trade in Organic Spices

The international circuit is witnessing a growth in the trade of organic spices and herbs.

More and more countries are encouraging the farmers and other growers to produce

spices using organic methods of farming. North America and Europe are one of the

major organic spice markets. The organic spices and herbs production has served the

fresh market and according to certain survey conducted, organic spices command a 10-

30% premium in the international market.

Application of Organic Spices



Organic spices are used mainly for food flavoring and preservation. However, spices

have medicinal, aromatic properties that also make them useful in a number of industries

including:

Perfumes

Cosmetics

Medicine

There are various spice extraction methods being employed these days for extracting

essential oils from different spices and herbs. The quality of oil and spice extraction

depends on the kind of method used for extracting oil. Below are few of the major spice

extraction methods being used these days:

Steam Distillation : One of the most popular method for extracting oil from

spices, the process involves heating the water to produce steam, which is a

carrier of volatile chemicals present in the spice.

Hydrodistillation : This is one of the oldest methods of extraction used. The

spice is fully immersed in hot water. The result is a soup, which carries aromatic

molecules of the plant.

Solvent Extraction : Many herbs and spices cannot be extracted from

distillation method, so solvent extraction is the safest method for extracting high

quality oil.

Carbon Dioxide Extraction : This method is also being popularly used for oil

extraction from different spice. Carbon Dioxide in liquid form is used as a inert

and safe liquid solvent for extracting aromatic molecules.

SPICE PRODUCTION AREAS

The spice production areas or centers’, its derivatives and culinary herbs are

concentrated in the moderate and semi-tropical regions of the world. These laces are

suited for a particular spice or herb due to their climatic conditions and other factors

including low wage rates, sound infrastructure etc.

Global spice production areas/centers

Total global production of spices has rapidly increased since the 1960s, from 1.7-million

metric tons in 1965 to 6.6-million metric tons in 2005 (see Table 7). It shows that



production techniques and therefore yields have increased and land cultivated has risen

to meet growing global consumption of spices.

India leads the world in spice production, with some 3.1-million metric tons in 2004, or

just under half of world production. China is the second largest producer, with 692,000

metric tons in 2004, or 10.5% of total world production, followed by Indonesia’s

448,000 metric tons or 6.8%. However, one must keep in mind that more tons do not

necessarily represent greater export earnings; many spices like saffron, which is more

valuable per ounce than gold, have high value-to-weight ratios. South Asia (India,

Pakistan and Nepal) is the leading region, producing 55% of world production. South

East Asia (Indonesia, Vietnam and Thailand) follows with 13.2% and East Asia (China)

produces 10.5%. The EU and the middle East have been increasing their production of a

variety of spices through new production techniques, including greenhouses, drip

irrigation and farming technology improvements. Nonetheless, only some spices can be

grown profitably in these environments (even with the help of technology), while others

cannot be grown in developed countries at all.

Indian Spice Production Areas/Centre’s

The production of spices and herbs is widely distributed in a number of Indian states.

Southern states of Karnataka, Kerala, and Tamilnadu are one of the major areas

producing quite a few spices, states of Rajasthan and Uttar Pradesh are also apt for

growing spices like Garlic, Mustard, Fennel, Turmeric etc.

3.2 COMPANY PROFILE

Seven decades of tradition in the trading of spices and herbs enabled Enjayes to venture

into the high-tech area of Essential Oils & Spice Oleoresins processing in 1980.Enjayes

Spices & Chemical Oils Ltd is the brain child of an adventurous team of Enjayes men.

ENJAYES SPICES AND CHEMICAL OILS LTD, a 100% Export Oriented Unit,

Approved by Govt. of India is manufacturing from vide variety of spices herbs and

aromatics plants. The kind of success Enjayes Products had over the years in largely due

to its stress on stringent quality and strong commitment to customer’s satisfaction in all

the respects.



LOCATION

The company is located in Central Travancore the picturesque Spices Hill and it is the

ideal location for harvesting good quality raw material. (A mere 3-hour drive from

Cochin Airport or 2-hour drive from Trivandrum Airport).

The experience of the promoters in the field has contributed to the setting up of the

present state-of the art factory for manufacturing essential oils and spice oleoresins.

Spices of the apt quality are processed as per the buyer’s requirement. The factory’s

location in the spice – growing belt of points of the company are manned by skilled

hands. Located in the Spice belt of Kerala, Enjayes an abundant supply of garden-fresh

Spices and Herbs. Further, the five purchase points Enjayes has throughout the state, are

manned by trained and specialized personnel. Centralized scientific facilities for

warehousing, cleaning ,drying and sorting of raw spices are factors that make Enjayes

all the more efficient.

100% EXPORT ORIENTED UNIT

ESCOL (Enjayes Spices And Chemicals Oils LTD) comes under 100% export oriented

unit scheme. Under this scheme, it will have exemption from excise and custom duties.

Being 100% export oriented unit, it has the advantage of importing raw materials

without waiting for prior permission. Also excise duty on machineries imported,

petroleum products etc are exempted. The company gets time to time benefits of income

tax as per budget.

CERTIFICATE OF RECOGNITION

The company’s stress on maintaining quality and ensuring consumer satisfaction has

paid off quite well. Mr. N.S John, Managing Director received the National Award for

the best entrepreneur from the President of India in 1987.A series of other recognitions

followed suit

They include the following:

The Best Productivity Award

Udyog Patra Award



Bharatiya Udyog Jyothi Award

Vikas Ratna award

National Unity award

The Hind Gaur Award

Chart - 1

3.2.1 ORGANISATIONAL CHART OF ESCOL



FUNCTIONAL DEPARTMENTS


General Manager

Marketing

Mgnr

Sales

Mgnr

Asst

Mgnr

Staff

R & D

Product

Developme

nt Mgnr

Scientist

Scientist

Staff

Che

mist

Horticularilist

Chemical Enggr.

Purchase

Asst. Mgnr

Store

Supervis

or

Store

Staff

Store

Keeper

Prroduction

Cheif Controller

Supervisors

Operators

Helpers

Supervisors

Operators

helpers

Supervisors

Operators

helpers

Finance

Finance

Manager

Assistan

t Finance

ManagerSr. Accountan

t Officer

sAccounts

Officers

Accounts Assistants

H . R

Manager H.R

Public

Relations Officer

Assistant Manager (P&A)

Estate Supervis

or

Front Officer

Office Assistants

Other Admn.& Supporting Staff

Quality

Control

Analyst ChemistChe

mist For

General WorkStaff

Production Chemist

Che

mist For

Gemeral WorkStaff

Export

Supervisor

Asst Staff

Helper

Legal

Asst

Asst. Staff

Managing Director


Organization includes several complicated functional area for reducing the bad of

complication. The business house and industry divide the whole organization into several

departments and divisions. This is very useful to ensure smooth and efficient

management of all functional area. The executive director is essential for the smooth

running of the organization. The different departments are;

HUMAN RESOURCE DEPARTMENT

PRODUCTION DEPARTMENT

MARKETING DEPARTMENT

FINANCE DEPARTMENT

PURCHASE DEPARTMENT

QUALITY DEPARTMENT

RESEARCH DEPARTMENT

EXPORT DEPARTMENT

3.2.2 HUMAN RESOURCE DEPARTMENT



Chart - 2

The hierarchical structure of Human Resource Department is given below

Every organization is made up of people, acquiring their services, developing their

skills, motivating them to higher levels of performance, and ensuring that they continue

to maintain their commitment to the organization are essential to achieve organizational

objectives. Organizations that are able to acquire, develop, stimulate and keep

outstanding workers will be effective and efficient; ineffective or inefficient

organizations risk the hazards of stagnating or going out of business. Human resource

thus creates organizations and makes them survive and prosper. If human resources are

neglected or mismanaged, the organization is unlikely to do well. The focus of human

resource management is to develop the latent potential of a workforce so that it can

contribute to the achievement of organizational goals. In Enjayes spices and chemical

oils Ltd., HR department is under the directorship of HR manager and also excellent

assistant managers and section officers assist him for smooth running of department

function.


Manager H R

Public Relations Officer Assistant Manager (P & A)

Estate Supervisor

Front Officer

Office Assistants

Other Administration &

Supporting Staff


The objectives of the HR department as follows

Individual development.

Cordial relationship between employer and employees.

Effective molding of human resource as contracted with physical resource.

Proper fulfillment of the function of the department like recruitment, transfer.

Training, placements etc.

Proper orientation and introducing of new employers.

Providing better working condition and other facilities.

Good relation with trade unions.

Personal research function.

HR FUNCTION

1 Manpower planning

Project manpower requirements

Taking stock of existing manpower

Manpower development

2 Recruitment

Recruitment is a process of searching for prospective employees and stimulating and

encouraging them to apply for jobs in an organization. The quality and the number of

persons to be recruited is a very important deciding factor during recruitment .If an

organization fails to procure the services of persons with required qualifications, skill

and caliber continuously, a time may come ultimately when all the qualified persons

retire and the organization is certainly bound to suffer. Therefore, the importance of

recruitment and selection of the right type of persons at the right time is indispensible to

the organization.

In the company the recruitment of unskilled workers is done through in direct basis i.e.

after the manpower planning the company handed over the duty of recruitment to

external agencies. The vacancies of management staff filled through direct selection

procedures. The company gives advertisement in leading newspapers for selecting the

qualified personals.

3 Selection



Selection is the process of planning the right person in the position at right time. The

selection of managerial staff mainly done through written tests and interviews and the

selection of technical staff are made on the basis of their technical knowledge and

experience. In the selection procedure of Workers the company searches for their skills

and physical health.

4 Induction and placement

For technical staffs they will appoint person as apprentice through ITI Centre from one

year. At this time they will be having stipend. If the performance of them is satisfactory

to the concern’s requirements them they are absorbed. At this stage their salary will be

fixed.

5 Training

The company provides on the job training to the Employees. Under this system, the

training is given at the work place itself by his immediate supervisor. The principle

behind this training is learning by doing. The concern also conducts classes to impact

knowledge to the employees about new techniques adopted by the concern.

6 Wages and salary administration

This is fully controlled by H.R department. The H.R officers make the pay role and

forward it to the finance department about the salary and wages to be paid to the

employee. The HR department keeps track of the employee attendance. They will

calculate how much pay should be given to the employees to the number of days

worked; this includes deduction of money for the PF, ESI etc.

The salary includes basic wages, fixed daily allowance, variable DA Incentive for

attendance, incentives or extra wages. The working hours of office and laboratory are

from 9am to 5pm. The production is done in three shifts that is form 8am to 4pm, from

4pm to 12 midnight, from 12 midnight to 8am.

7 Promotion policy

It is the responsibility of the perusal department of the concern to develop an effective

promotional policy. It should be in writing and must be understood by to that there is no

change of suspicion on the part of any employee. The policy should consider merit,

seniority, potential and attendance of the employees. In this organization the promotion

policy is based on the merit and seniority.

8 Performance appraisal



The officers are appraised yearly and workers are appraised by every month. The

appraisal is done by each department through their head by a questionnaire.

9 Retirements

The company is not provides any voluntary retirement scheme (VRS). As the

governments rule the employee has retires in 58 year the retirement they will get gratuity

and provident fund.

INDUSTRIAL RELATION

Company can always keep good industrial relation in the organization. The company the

employees and employer are in good terms. So there is an atmosphere of peace and

justice.

1 Grievance procedure

It is the procedure for handling employee grievance. In the company the employee

grievance are handling through the following procedure.

The inured party hands over the written complaint to the section officer directly.

If the section officer is failed to solve the employ grievance he forward the complaint

to HR manager.

The HR manager feels any difficulty to solve the problem the top management

directly entered to the grievance settlement.

Discipline

The discipline actions are vented with the managing director. But the disciplinary action

and enquiries are conducted.

The HR department of the company is very strict on its disciplinary policies for e.g. In

the attendance if any in-disciplinary activities found, then the immediate superior will

give the showcase notice to concern employee. And if it is a minor case, the employee

asked to apologies. If it is a major mistake then he will be suspended under pending

enquiry and once the enquiry is completed, the HR manager will take action as per the

findings of the enquiry.

3.2.3 PRODUCTION DEPARTMENT



Chart - 3

The hierarchical structure of Production Department is given below :

Production is the process by which conversion of raw materials and other inputs in to

finished products. Production management deals with a recognized part of almost every

company. It is the primary function of management. Production system consist of inputs

at one end and outputs are connected by a series of operations processors, storage and

inspections. The department responsible for the manufacturing or creation of a product.

The department includes Stores Department, Quality Control Department, and

Maintenance Department.

Functions of Production Department


Production Manager

Supervisor

1

Supervisor Supervisor

Operators Operators

Helpers Helpers

Operators

Helpers


The unit cost of the product should be estimated carefully and effort should be

made stick to the cost standards.

Setting of proper manufacturing schedules to ensure timelines.

Optimum utilization of inputs of production like men, materials and machines.

The Production Department deals with the production, packing and

transportation of goods.

The company has to produce goods in accordance to the standards set by the

customers who have given the orders.

Basically the goods are classified into

Fast moving goods

Medium moving goods

Slow moving goods

Fast moving goods are those goods which are regularly produced even though no orders

have been received. They are produced anticipating regular markets. Pepper Oleoresin,

capsicum oleoresin, turmeric oleoresin etc are some of the examples of fast moving

goods. Medium moving goods are those goods which are produced in twice the

proportion in which it is ordered.

For example, if one tone of a medium moving good is ordered, then the company will

produce two tones of it. Examples of medium moving goods are nutmeg oleoresin,

ginger oleoresin etc.

Slow moving goods are those which are produced in a proportion same as that of the

order received. Clove oleoresin are some of the examples of slow moving

goods.Production capacity of the company is 3000 metric tons of raw materials per

annum. The shipment of goods is done on order basis. For transportation of the finished

goods large containers are hired on contract basis.

3.2.4 MARKETING DEPARTMENT



Chart – 4

The hierarchical structure of Marketing Department is given below :

Marketing is the performance of business activities that direct the flow of goods and

services from producer to customer or user. Marketing is the total system of interacting

business activities designed to plan, price, promote and distribute want satisfying

products and services to present and potential customers.

Marketing is the performance by which seller find buyers and by which goods and

services move from producers to consumers. It is so important to an industry that about

half the cost of goods and services results from the marketing process. ESCOL is the

market leader in the southern region of the country, competition is quite strong as there

are many players at present, in this industry.

The elements of marketing mix are:

Product

Price

Promotion

Place

3.2.5 FINANCE DEPARTMENT


Marketing Manager

Sales Manager

Asst. Manager

Staff


Chart - 5

The hierarchical structure of Finance Department is given below :

The Finance Department plays an important part in any company. It deals with the

financial matters of the company. The main functions of the Finance Department are

procurement of funds for the organization and management of the same. For the proper

functioning of a business, adequate finance is a must. Finance has to be raised to invest

in the business. A business with a shortage of finance will not move on smoothly. The

department prepares the final accounts for the company.

ESCOL started as a private company in 1980. It’s got converted into public company in

1995.Shares are issued through private placement method Mr. N.S John is the Chairman

and Managing Director of the Co. His family owns 70% of the shares. The remaining is

owned by other private parties. The total capital of the Co. is Rs. 7.50 crores.

Even though it is a public company, it is not a listed company and hence its shares are

not distributed widely. In order to meet any additional fund requirements, personal

arrangements are made.


Finance Manager

Asst. Manager

Sr. Accounts Officers

Accounts Officer

Accounts Assistants


The company provides credit facility to its customers. The company allows 40 to 60

days to credit period. To obtain correct payments, the company insures its receipts on

Export Credit Guarantee Corporation of India Ltd on the basis of shipment details.

The different modes of payment are

Advance payment

Letter of credit

Documents on purchase

Cash against documents

The company’s Finance Department tries its maximum to obtain maximum grants from

the Central Government, like Vishesh Krishi Upagi Yoagana (VKUY). Also they will

try on avail maximum incentives form the customs department and excise department on

the basis of being an exporting company. For example excise duty on machineries

imported, petroleum products etc are exempted. For imports of raw materials they don’t

have to pay customs duty. Also the Finance Department sees to it that the company is

getting time to time income tax benefits as per the budget.

3.2.6 PURCHASE DEPARTMENT

Chart - 6

The hierarchical structure of Purchase Department is given below :

The Purchase Department handles all the purchases for the company. About 90% of the

raw material is raw spice. It is very expensive. The analytical chemist will check the


Purchase Manager

Stores Supervisor

Stores Staff

Store Keeper


quality of raw materials imported by the company. The suppliers provide free

transportation of the commodities for the company. As a result the company doesn’t

incur any transportation charges.

The Purchase Department keeps accurate records of the inventory. The purchased raw

materials are stored in huge godowns. There is a store supervisor to see that inventory

details are properly recorded. Even though the company purchases the raw materials in

bulk, it cannot convert it into finished goods immediately as the company is practicing

batch production method. Hence it is very important that over stocking of raw materials

be avoided. It will also help the company from blocking its working capital in the raw

materials. Also the stores supervisors sees the under stocking of raw materials is also

avoided.

3.2.7 QUALITY CONTROL DEPARTMENT

Chart - 7

The hierarchical structure of Quality Control Department is given below :

ESCOL is having an efficient Quality Control Department. For ensuring quality

products to the customers, the company is vigilant from the purchasing stage itself. It is

the responsibility of the analytical chemists to check the quality of raw materials

purchased and of the production chemists to check the quality of the final products.

Enjayes is well equipped with the most modern equipments. It is having the

sophisticated instruments like


Analytical chemists Production chemists

Chemists for general workers Chemists for general workers

Quality Control Manager


Gas Chromatograph - identify solvent residue in finished product.

Spectrophotometer - detect color value and pungent principles of different

spices

Polarimeter - detect optical notation

Refractometer - detect refractive index

The importers will expect high quality oils and oleoresins when placing an order. The

company will have to abide this by providing the quality product. Also the company gas

to satisfy the international standards for exporting such goods. Catering to the quality

conscious customers around the globe, Enjayes feels that quality is the key element

behind its resounding success.

3.2.8 RESEARCH DEPARTMENT

Chart – 8

The hierarchical structure of Research Department is given below :

Research and development department is an important section of a company. It plays an

important role in pushing forward the company to the future. The Research and


Horticulturalist

Chemists

Chemical Engineers

Scientists

Product Development Manager

Scientist Staff


Development department is entailed with finding new products, developing new

products and improving the existing products. The company believes that in the

competitive world of business, it has to improve or update its product from time to time.

Otherwise it may lose its market share or even be pushed out from the market.

ESCOL is having a highly efficient Research and Development Department. It consists

of a team of experienced scientists, chemists, chemical engineers, horticulturists etc.

They work in close laison with the company’s production and marketing departments. A

full fledged Research and Development Department, with its team of Research

Scientists, Chemists and Chemical Engineers ensure uniform standards of quality for the

products.

3.2.9 EXPORT DEPARTMENT

Chart – 9

The hierarchical structure of Export Department is given below :

A company, like ESCOL which is 100% export oriented unit, has to fulfill a lot of

procedure.

The company should first register itself with Spices Board. The company must submit

export details, quarterly to the spices board. Moreover it should get clearance from the


Supervisor Legal Asst.

Assistance Staff Assistance Staff

Export Manager

Helpers


customs department. To export goods the company has to submit certain per shipment

documents to Customs Department and post shipment documents to the party as per

payment terms.

Export Documents

The export documents are mainly grouped into two as:

1. Pre-shipment documents

2. Post-shipment documents

The important pre-shipment documents are:

Export Invoice

Packing list

A.R.E.1 Form

G.R Form/SDF

Shipping bill

The pre-shipment documents submitted to the customs will be thoroughly checked by

them. They also examine the products to make sure that it is as per the pre-shipment

documents. If satisfied, they will declare it as cleared and will seal the container.

The important post-shipment documents are:

Bill of Lading/Airway bill

Generalized system of preference or GSP

Insurance (original)

Invoice (original)

Packing list

After getting the approval of these documents, the following documents should be

submitted to the bank for getting the foreign money.

Order

Bill of exchange

Invoice



Packing list

Bill of lading/Airway bill

Analytical data

Generalized system of preference or GSP

GR form

Special customers invoice(required for export to USA/Canada)

Insurance

3.3 PRODUCT PROFILE

Enjayes Spices And Chemical Oils Ltd is one of the leading procedures of oils and

oleoresins. The company is producing standard quality products. All the products of the

company are exported to foreign countries.



PRODUCT RANGE

1. Essential oils

2. Spice oils

3. Oleoresins

4. Natural food colors

5. Dehydrated products

PRODUCTION DETAILS

The production of oil, oleoresin, natural food colors and dehydrated products is a long

and very complicated process. It requires skilled workers. At ESCOL, the batch

production method is followed. Usually certain spices are extracted in double stage but

single process is also there. The process of extracting oil and oleoresins from raw spices

will generally be the same in all companies. But the proportion of solvents used for

extracting resin from raw spice will be different for different companies. The proportion

of solvents used by the companies is kept as a trade secret. Sometimes, rare solvents are

also used for boosting extractions.

ESCOL manufactures products such as:

1. ESSENTIAL OILS

Essential oil has traditionally been used for therapeutic value. These oils have the

properties of the spice or herb they are derived from. These aromatic and volatile oils are

extracted from the leaves, stems, and flowers of a plant. Essential cooking oil is are of

complex composition and contains aldehydes, alcohols, esters, phenol in varying

proportions. Since these specialty oils have a very strong aroma and are highly volatile,

they are used as a raw material in flavoring and perfumes.

These steam distilled spice derivatives are primarily extracted from spices and herbs, in

the raw form. Since these oils are highly concentrated, they need to be diluted before

usage.

ESSENTIAL OIL PRODUCTION METHOD

Steam Distilled

Solvent Extracted



Cold Pressed

Hydro Diffused

Carbon Dioxide Extraction

Use of essential oils

The essential oils are traded in high volume and are particularly consumed in the flavor,

personal care, industrial and pharmaceutical industries. These spice derivatives can have

various benefits including anti septic and anti microbial action, for a healing and

soothing effect. Some of the products in which these essentials used are:

Soaps

Cosmetics

Perfumery

Confectionary

Chewing Delicacies

Aerated Drinks

Syrups

2. SPICE OILS

Spice oil is a spice derivative that is extracted generally by steam distillation process.

The spice essential oil distilled off from the spices at the initial stage before subject to

solvent extraction. Spice oil are the volatile components present in spices and provide

the aroma and flavor of the spice they are made from.

Popular Spice Oil

Spice essential oil is traded in large volumes for use in a number of industries. Some of

the extensively traded oils are as follows:

Clove oil

Cinnamon oil

Pepper oil

Ginger oil

Cardamom oil

Nutmeg and mace oil

Mint oil



Use of Spice oil

Food processing

Beverages

Pharmaceuticals

Chemicals

Aromatherapy

Personal hygiene products: e.g. tooth paste, mouth washes and Aerosols

3. OLEORESINS

After the extraction of oil, the remaining de-oiled powder or flake is dried and is charged

in extraction batteries for solvent extraction. The de-oiled powder will be treated with

solvents like hexane, acetate, ethyl acetate, menthol etc. The mixture is called

MISCELLA. The solvent absorbs resin out of the de-oiled powder. After a fixed time,

the solvents are withdrawn which contain resin. This process is known as Washing. It is

carried out for at least five times, This process is stopped on by when the concentration

falls below 5%.After this process, the solvent and resin is separated in a separator. When

this resin is mixed with oil, it becomes oleoresin. Spice Oleoresins are essentially the

concentrated liquid from obtained from spices. This spice derivative has the same

character and property of the spice it is obtained from. Oleoresins are popularly used for

food flavoring in the food processing industry.

USE OF SPICE OLEORESIN

Spice oleoresins find wide application in a number of industries for its strong flavor and

aroma.

Meat Caning

Beverages

Pharmaceuticals

Perfumery

Confectionary

Tobacco

Sauces



ESCOL extracts oils and oleoresins from almost all the spices. Both these items are

exported to more than 20 countries. Oil is extracted form a lot of spices and herbs. They

are stated as follows:

Ajowan

Black pepper

Celery/ Terpene

Cardamom

Calamus

Carrot seeds

Curry leafs

Clove

Cumin

Celery seed

Cardamom seeds

Davana

Dill

Fenugreek

Green pepper

Ginger

Garlic

Lemon grass

Mace

Nutmeg

Parsley seed

Palmarosa

Turmeric

Oleoresin is extracted from the following spices

Anis

Black pepper

Celery

Capsicum

Coriander



Cumin

Curry leaf

Cinnamon

Dry clove bud

Fenugreek

Ginger

Mace

Nutmeg

Onion

Paprika

Turmeric

White pepper

The packing of the product is of food grade packing. Epoxy coated steel drums, high

density polyethylene drums and aluminium cans are used for packing the finished

products.Essential oil is the aroma part of the raw material that is spices while oleoresins

are the total principle of raw materials.

Essential oil is volatile oil. Oleoresins are mixture of the oils and resins. The mixing

proportion is in accordance to the demand of the customers. The solvents used by the

company for extracting resin are kept as a trade secret. The Dehydrated Product

produced by the company is Dehydrated Green Pepper.

4.1 PERCENTAGE ANALYSIS

4.1.1 EMPLOYEES RESPONSE ABOUT THE NATURE OF WORK

Table No. 4.1.1

Sl. No Work No. of

Respondents

Percentage

1 manageable 60 60

2 Non manageable 40 40



Tota

l

100 100

(Source: Primary data)

Figure No. 4.1.1

EMPLOYEES RESPONSE ABOUT THE NATURE OF WORK

MANAGEABLE NON MANAGEABLE0

10

20

30

40

50

60

70


INTERPRETATION

From the above table, it can be found that 60% of the selected respondents are come

under manageable, and 40% of the respondents are come under non manageable.

4.1.2 EMPLOYEES RESPONSE TOWARDS THE AVAILABILITY OF

MACHINES AND EQUIPMENTS FOR WORK

Table No. 4.1.2

Sl.No Ranking No .of Respondents Percentage

1 Highly satisfied 17 17

2 Satisfied 48 48

3 Dissatisfied 10 10

4 Highly dissatisfied 11 11



5 No opinion 14 14

Total 100 100


Figure No. 4.1.2

EMPLOYEES RESPONSE TOWARDS THE AVAILABILITY OF

MACHINES AND EQUIPMENTS FOR WORK

HIGHLY SATISFIED SATISFIED DISSATISFIED HIGHLY DISSATISFIED NO OPINION 0

10

20

30

40

50

60


INTERPRETATION

From the above table it is inferred that majority of the respondents (48%) are satisfied

with the availability of machines and equipments required for the work. 17% are highly

satisfied and 10% are dissatisfied with the statement. 11% of the respondents are highly

dissatisfied and 14% of respondents have no opinion about the availability of machines

and equipments required for work.

4.1.3 EMPLOYEES RESPONSES ABOUT THE SUPERIOR SUPPORT

Table No. 4.1.3

Sl.No Ranking No. of

Respondents

Percentage

1 Highly satisfied 5 5

2 Satisfied 37 37





5 No opinion 35 35

Total 100 100


Figure No. 4.1.3

EMPLOYEES RESPONSES ABOUT THE SUPERIOR SUPPORT

HIGHLY SATISFIED SATISFIED DISSATISFIED HIGHLY DISSATISFIED NO OPINION 0

5

10

15

20

25

30

35

40


INTERPRETATION

From the above table it is inferred that maximum no of respondents (37%) are satisfied

with their superiors support. About 5 % of the respondents are highly satisfied. 14 % of

the respondents show dissatisfaction and 9 % of the respondents are highly dissatisfied

with their superior. 35% of the respondents have no opinion about the statement.

4.1.4 EMPLOYEES OPINION ABOUT THE SATISFACTION LEVEL

WITH PRESENT JOB

Table No. 4.1.4


Respondents

Percentage

1 Highly Satisfied 40 40

2 Satisfied 20 20

3 Neutral 30 30





Total 100 100


Figure No. 4.1.4

EMPLOYEES OPINION ABOUT THE SATISFACTION LEVEL WITH

PRESENT JOB

. HIGHLY

SATIS

FIED

SATIS

FIED

NEUTR

AL

DISSATIS

FIED

HIGHLY DISS

ATISFIE

D0

10

20

30

40


INTERPRETATION

From the above table, it is clear that 40% of the selected respondents are Highly

Satisfied and 20% of the respondents are satisfied, and 30% of respondents remain

neutral opinion, and remaining 10% of the respondents are dissatisfied on their present

job.

4.1.5 EMPLOYEES OPINION ABOUT THE MANAGEMENT’S HELPFULNESS AND SYMPATHETIC TO EMPLOYEES

PROBLEMS IN WORKSTATION

Table No. 4.1.5


Respondents

Percentage

1 To Large Extent 70 70

2 To Some Extent 30 30



Total 100 100


Figure No. 4.1.5

EMPLOYEES OPINION ABOUT THE MANAGEMENT’S HELPFULNESS AND SYMPATHETIC TO EMPLOYEES PROBLEMS IN WORKSTATION


INTERPRETATION

70% of the employees feel that the management is sympathetic To Large Extent in their

problems faced at workstation and 30 % feels that they are Some Extent sympathetic

towards the workstation.

4.1.6 EMPLOYEES RESPONDS ABOUT THE COMPANY’S TRAINING IMPROVE PERFORMANCE, IF YES, THEIR LEVEL OF

SATISFACTION WITH THE TRAINING PROVIDED

Table No. 4.1.6


Respondents

Percentage

1 Satisfied 90 90

2 Not satisfied 10 10


TO LARGE EXTENT TO SOME EXTENT0

10

20

30

40

50

60

70

80


Total 100 100


Figure No. 4.1.6

EMPLOYEES RESPONDS ABOUT THE COMPANY’S TRAINING IMPROVE

PERFORMANCE, IF YES, THEIR LEVEL OF SATISFACTION WITH THE

TRAINING PROVIDED


INTERPRETATION

About 90% of the employees are satisfied with the training provided by the company to

improve their performance and the rest 10 % are not satisfied with the training provided

by the company.

4.1.7 EMPLOYEES OPINION ABOUT THE COMPANY’S CAREER ADVANCEMENT OPPORTUNITIES

Table No. 4.1.7


Respondents

Percentage

1 Excellent 7 7

2 Good 33 33


SATISFIED NOT SATISFIED0

10

20

30

40

50

60

70

80

90

100


3 Fair 20 20

4 Poor 34 34

5 Very poor 6 6

Total 100 100


Figure No. 4.1.7

EMPLOYEES OPINION ABOUT THE COMPANY’S CAREER ADVANCEMENT OPPORTUNITIES

EXCELLENT GOOD FAIR POOR VERY POOR 0

5

10

15

20

25

30

35

40


INTERPRETATION

From the above table it is inferred that maximum no of respondents (34%) are having

poor opinion about the company’s career advancement opportunities. About 7 % of the

respondents are having excellent opinion and 20% are having fair opinion about the

statement. 33% of the respondents show a good opinion and 6% are of having very poor

opinion about the company’s career advancement opportunities.

4.1.8 EMPLOYEES OPINION ABOUT THE JOB SECURITY

Table No. 4.1.8


Respondents

Percentage

1 Excellent 17 17

2 Good 36 36



3 Fair 15 15

4 Poor 20 20

5 Very poor 12 12

Total 100 100


Figure No. 4.1.8

EMPLOYEES OPINION ABOUT THE JOB SECURITY


5

10

15

20

25

30

35

40


INTERPRETATION


good opinion about the job security. About 17 % of the respondents are having

excellent opinion and 15% are having fair opinion about the statement. 20% of the

respondents show a poor opinion & 12% are of having very poor opinion about the job

security.

4.1.9 EMPLOYEES OPINION ABOUT THE PRESENT COMPENSATION PACKAGE

Table No. 4.1.9

Sl.No Ranking No. of Respondents

Percentage

1 Excellent 9 92 Good 32 323 Fair 41 41



4 Poor 10 105 Very poor 8 8

Total 100 100 (Source: Primary data)

Figure No. 4.1.9

EMPLOYEES OPINION ABOUT THE PRESENT COMPENSATION PACKAGE


5

10

15

20

25

30

35

40

45


INTERPRETATION


fair opinion about the present compensation package. About 32% of the respondents

are having good opinion and 9% are having excellent opinion about the statement. 10%

of the respondents show a poor opinion &8% are of having very poor opinion about the

company’s compensation package.

4.1.10 EMPLOYEES OPINION ABOUT THE BENEFITS PROVIDED BY THE

COMPANY

Table No. 4.1.10


Respondents

Percentage

1 Excellent 15 15



2 Good 39 39

3 Fair 28 28

4 Poor 10 10

5 Very poor 8 8

Total 100 100


Figure No. 4.1.10

EMPLOYEES OPINION ABOUT THE BENEFITS PROVIDED BY THE COMPANY


1015202530354045


INTERPRETATION


good opinion about the benefits provided by the company. About 28% of the

respondents are having fair opinion and 15% are having excellent opinion about the

statement. 10% of the respondents show a poor opinion &8% are of having very poor

opinion about the benefits provided by the company.

4.1.11 EMPLOYEES OPINION ABOUT THE WORKING ENVIRONMENT

Table No. 4.1.11


Respondents

Percentage

1 Excellent 22 22

2 Good 48 48



3 Fair 25 25

4 Poor 3 3

5 Very poor 2 2

Total 100 100


Figure No. 4.1.11

EMPLOYEES OPINION ABOUT THE WORKING ENVIRONMENT


10

20

30

40

50

60


INTERPRETATION


good opinion about the working environment. About 25% of the respondents are

having fair opinion and 22% are having excellent opinion about the statement. 3% of

the respondents show a poor opinion & 2% are of having very poor opinion about the

working environment.

4.1.12 EMPLOYEES OPINION ABOUT THE INTER-PERSONAL RELATIONSHIP WITH IN THE ORGANIZATION

Table No. 4.1.12


Respondents

Percentage

1 Excellent 21 21

2 Good 47 47



3 Fair 12 12

4 Poor 10 10

5 Very poor 10 10

Total 100 100


Figure No. 4.1.12

EMPLOYEES OPINION ABOUT THE INTER-PERSONAL RELATIONSHIP WITH IN THE ORGANIZATION


101520253035404550


INTERPRETATION


good opinion about the inter-personal relationship with in the organization. About 12%

of the respondents are having fair opinion and 21% are having excellent opinion about

the statement. 10% of the respondents show a poor opinion &10% are of having very

poor opinion about the inter-personal relationship with in the organization.

4.1.13 EMPLOYEES OPINION ABOUT THE WELFARE MEASURES

PROVIDED BY THE COMPANY

Table No. 4.1.13


Respondents

Percentage

1 Excellent 12 12



2 Good 35 35

3 Fair 39 39

4 Poor 10 10

5 Very poor 4 4

Total 100 100


Figure No. 4.1.13

EMPLOYEES OPINION ABOUT THE WELFARE MEASURES PROVIDED BY THE COMPANY


1015202530354045


INTERPRETATION


fair opinion about the welfare measures provided by the company. About 35% of the

respondents are having good opinion and 12% are having excellent opinion about the

statement. 10% of the respondents show a poor opinion & 4% are of having very poor

opinion about the welfare measures provided by the company

4.1.14 EMPLOYEES OPINION ABOUT EMPLOYEE MOTIVATION WITH IN THE ORGANISATION

Table No. 4.1.14

Sl.No Ranking

No. of

Respondents Percentage

1 Very effective 16 16

2 Effective 23 23

3 Average 44 44



4 Less effective 12 12

5 Very less effective 5 5

Total 100 100


Figure No. 4.1.14

EMPLOYEES OPINION ABOUT EMPLOYEE MOTIVATION WITH IN THE ORGANISATION

VERY EFFECTIVE EFFECTIVE AVERAGE LESS EFFECTIVE VERY LESS EFFECTIVE05

101520253035404550


INTERPRETATION


average opinion about the employee motivation towards the organization. About 23%

of the respondents are having an effective opinion and 16% are having very effective

opinion about the statement. 12% of the respondents show an effective opinion & 5%

are of having very less effective opinion about the employee motivation towards the

organization.

4.1.15 EMPLOYEES OPINION ABOUT THE PROMOTIONAL POLICY OF THE ORGANIZATION

Table No. 4.1.15


Respondents

Percentage

1 Excellent 6 6



2 Good 10 10

3 Fair 45 45

4 Poor 34 34

5 Very poor 5 5

Total 100 100


Figure No. 4.1.15

EMPLOYEES OPINION ABOUT THE PROMOTIONAL POLICY OF THE ORGANIZATION


101520253035404550


INTERPRETATION


fair opinion about the promotional policy of the organization. About 34% of the

respondents are having poor opinion and 10% are having good opinion about the

statement. 6% of the respondents show an excellent opinion & 5% are of having very

poor opinion about the promotional policy of the organization.

4.1.16 EMPLOYEES RESPONSE ABOUT THE COMPAMNY POLICIES

REALLY HELPFUL TOWARDS WORK

Table No. 4.1.16


Respondents

Percentage

1 To Some Extent 60 60



2 To Large Extent 40 40

Total 100 100


Figure No. 4.1.16

EMPLOYEES RESPONSE ABOUT THE COMPAMNY POLICIES REALLY

HELPFUL TOWARDS WORK

TO SOME EXTENT TO LARGE EXTENT0

10

20

30

40

50

60

70


INTERPRETATION

60% of the employees feel that the company policies really protect their interest towards

the work. 40% of them feel that their interests towards work are not protected.

4.1.17 EMPLOYEES OPINION ABOUT THE PARTICIPATION IN DECISION MAKING

Table No. 4.1.17


Respondents

Percentage

1 Excellent 13 13



2 Good 18 18

3 Fair 37 37

4 Poor 23 23

5 Very poor 9 9

Total 100 100


Figure No. 4.1.17

EMPLOYEES OPINION ABOUT THE PARTICIPATION IN DECISION MAKING


5

10

15

20

25

30

35

40


INTERPRETATION


fair opinion about employee participation in decision making. About 23% of the

respondents are having poor opinion and 18% are having good opinion about the

statement. 13% of the respondents show an excellent opinion & 9% are of having very

poor opinion about employee participation in decision making.

4.1.18 EMPLOYEES RESPONSE TOWARDS TREATMENT OF ACCIDENT AND INJURY IN THE COMPANY

Table No. 4.1.18

SI. No.

RankingNumber of

respondentsPercentage of responds

1 Highly Satisfied 25 25

2 Satisfied 70 70



3 Neutral 5 5

4 Dissatisfied 0 0


Total 100 100


Figure No. 4.1.18

EMPLOYEES RESPONSE TOWARDS TREATMENT OF ACCIDENT AND INJURY IN THE COMPANY

HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED0

10

20

30

40

50

60

70


INTERPRETATION

70% of the respondents are satisfied and 20% of the respondents are highly satisfied

and 5% of the respondents have neutral opinion.

4.1.19 EMPLOYEES OPINION ABOUT CO-ORDINATION BETWEEN DIFFERENT DEPARTMENTS

Table No. 4.1.19


Respondents

Percentage

1 Excellent 15 15



2 Good 31 31

3 Fair 45 45

4 Poor 5 5

5 Very poor 4 4

Total 100 100


Figure No. 4.1.19

EMPLOYEES OPINION ABOUT CO-ORDINATION BETWEEN DIFFERENT DEPARTMENTS


101520253035404550


INTERPRETATION


fair opinion about co-ordination between different departments. About 31% of the

respondents are having good opinion and 15% are having excellent opinion about the

statement. 5% of the respondents show a poor opinion & 4% are of having very poor

opinion about co-ordination between different departments.

4.1.20 EMPLOYEES OPINION ABOUT CHANCES TO DEVELOP MULTI SKILLS IN ORGANIZATION

Table No. 4.1.20

Sl.No Ranking No. of Respondents

Percentage

1 Excellent 6 62 Good 32 32



3 Fair 43 434 Poor 12 125 Very poor 7 7

Total 100 100 (Source: Primary data)

Figure No. 4.1.20

EMPLOYEES OPINION ABOUT CHANCES TO DEVELOP MULTI SKILLS

IN ORGANIZATION

EXCELLENT GOOD FAIR POOR VERYPOOR0

5

10

15

20

25

30

35

40

45


INTERPRETATION


fair opinion about chances to develop multi skills in organization. About 32% of the

respondents are having good opinion and 12% are having poor opinion about the

statement. 7% of the respondents show a very poor opinion & 6% are of having

excellent opinion about co-ordination between different departments.

4.2 CHI-SQUARE (c2) test

Chi-square test is to test the goodness of fit to verify the distribution of observed data

with assumed theoretical distribution. Therefore it is a measure to study the

divergence of actual and expected frequencies. The formula for computing chi-

square is as follows.



The calculated value of chi-square is compared with the table of chi-square for the

given degrees of freedom at the specified level of significance. If the calculated value

is greater than the tabulated value then the difference between the observed

frequency and the expected frequency are significant.

Degree of freedom = (R – 1) (C – 1)

Whereas,

O = Observed frequency

E = expected frequency

R = number of row

C = number of columns

4.2.1 CHI-SQUARE WITH OPERATIVE FUNCTIONS OF

ORGANIZATION

Table - 4.2.1

List of operative functions of the company and the respective level of Satisfaction

4.2.1 CHI-SQUARE WITH OPERATIVE FUNCTIONS OF ORGANIZATION

Table - 4.2.1

List of operative functions of the company and the respective level of Satisfaction


Chi-square = ∑ {(O-E) 2 / E}

Null Hypothesis (Ho) : There is no significant relationship between

operative functions of the organization and job

satisfaction

Alternate Hypothesis (H1) : There is significant relationship between

operative functions of the organization and job

satisfaction.


Opinion

Operative

functions

Exc

elle

nt

Goo

d

Fai

r

Poo

r

Ver

y p

oor

Tot

al

Career

advancement7 33 20 34 6

10

0

Welfare

measures12 35 39 10 4

10

0

Participation

in decision

making

13 18 37 23 910

0

Inter

personal

relationship

21 47 12 101

0

10

0

Promotion

policy6 10 45 34 5

10

0

Job security 17 36 15 201

2

10

0

Working

environment22 48 25 3 2

10

0

Compensatio

n package9 32 41 10 8

10

0

Total10

7259

23

4

14

4

5

6

80

0

Table 4.2.2 Calculation of Chi-Square Test



O E O-E (O-E)2 (O-E)2/E

7 13.375 -6.375 40.6406 3.0385

33 32.375 0.625 0.3906 0.0120

20 29.25 -9.25 85.5625 2.9252

34 18 16 96 5.3333

6 7 -1 1 0.1428

12 13.375 -1.75 3.0625 0.2289

35 32.375 2.625 6.8906 0.2128

39 29.25 9.75 95.0625 3.25

10 18 -8 64 3.5555

4 7 -3 9 1.2857

13 13.375 -0.375 0.1406 0.0105

18 32.375 -14.375 206.6406 6.3827

37 29.25 7.75 60.0625 2.0534

23 18 5 25 1.5555



9 7 2 4 0.5714

21 13.375 7.625 58.1406 4.3469

47 32.375 -28.375 805.1406 24.8692

12 29.25 -17.25 297.5625 10.1730

10 18 -8 64 3.5555

10 7 3 9 1.2857

6 13.375 -7.375 54.3906 4.0665

10 32.375 -22.375 500.6406 15.4638

45 29.25 15.75 248.0625 8.4807

34 18 16 256 14.2222

5 7 -2 4 0.5714

17 13.375 3.625 13.1406 0.9824

36 32.375 3.625 13.1406 0.4058

15 29.25 -14.25 203.0625 6.9423

20 18 2 4 0.2222



12 7 5 25 3.5714

22 13.375 8.625 74.3906 5.5619

48 32.375 15.625 244.1406 7.5410

25 29.25 -4.25 18.0625 0.6175

3 18 -15 225 12.5

2 7 -5 25 3.5714

9 13.375 -4.375 19.1406 1.4310

32 32.375 -0.375 0.1406 0.00434

41 29.25 11.75 138.0625 4.7200

10 18 -8 64 3.5555

8 7 1 1 0.1428

TOTAL 169.3626

χ2 =Σ (O-E) 2/E

E= Row Total * Column Total/Total Number

Degree of freedom = (r-1) (c-1) = (8-1) (5-1) = 28

Tabled value at 0.05 Level of significance = 41.337



Calculated value = 169.3626

DECISION

The calculated value 169.3626 is greater than the tabled value 41.337. So we will

Reject the Null Hypothesis H0 and Accept H1. That is, there is significant relation

between operative functions of the organization and job satisfaction. So the operative

functions of the organization are relevant for this study.

5.1 FINDINGS

Majority of the workers of Enjayes Spices & Chemical Oils Limited shows a

positive response on job satisfaction with related to various operative functions

of the organization.



Majority of the workers believes work easily be carried out.

Enjayes Spices & Chemical Oils Limited is successful in providing a very good

and standard machines and equipments for better working.

About 37% of respondents are satisfied with their superior’s support.

Most of the employees are highly satisfied with present job.

Majority of the workers remarks that management’s helpfulness and sympathetic

to employee’s problems in workstation is satisfactory.

Majority of the workers is beneficial towards the training.

About 34% of the respondents have poor opinion about the company’s career

advancement opportunities.

36% of the respondents have a good opinion about the job security.

The employees are also shows a fair responds towards the present compensation

package of the organization.

The employee benefits provided by Enjayes Spices & Chemical Oils Limited are

also very good.

Most of the workers believes that Enjayes Spices & Chemical Oils Limited

provides a good working environment.

Most of the employees have good opinion about the inter personal relationship

with in the organisation.

About 39% of the respondents have a fair opinion about the welfare measures

provided by the organization.

About 44% of respondents showed an average level of satisfaction on

employee motivation with the factory.

Most of the employees show a positive response towards the promotional policy

of the organization.

Most of the workers believe that the company policies are really helpful to them.

About 37% of respondents have a fair opinion about the employee participation

in decision making.

Majority of the workers have a satisfied response towards treatment of accident

and injury in the company.

Most of the respondents have the opinion that the co-ordination between different

departments is fair.



Most of the respondents show a positive sign that the organization provides

enough chances to develop multi skills in the organisation.

There is significant relation between operative functions of the organization and

job satisfaction.

5.2 SUGGESTIONS

The company has to improve the career advancement opportunities for its

employee’s. Enjayes Spices & Chemical Oils Limited should implement several

initiatives in order to develop their employees’ career. More significant of them

are career planning workshop, career counseling mentoring, personal plans and

career workbooks. Job related training should be given once in 6 months. This



will help the employees to enhance the present skills and perform their task more

effectively and efficiently.

The company should maintain the compensation package for the employees.

Compensation to workers will vary depending upon the nature of the job, risk

involved, nature of working condition, paying capacity of the employer etc.

Necessary arrangements should be made to increase and improve the co-

operation between the employees for effective and speedy achievement of the

organisation goals. The departmental heads should maintain the healthy

relationship between various departments; such relations can lead to the benefits

like industrial peace, higher productivity, industrial democracy, collective

bargaining and high morale etc.

The employee benefits provided by the company should be increased. Enjayes

Spices & Chemical Oils Limited must offer good wages and fringe benefits to

attract and retain talented employees with the organisation. To provide benefits

such as paid vacations, insurance, maternity leave, free travel facility, retirement

benefits etc.

The company should also focus in motivating the employees in their work, which

will increase the job satisfaction of the employees. Maximum employees are

looking for welfare facilities such as tea to be provided twice a day to keep them

fresh and active at work. Then employee in the service section doesn’t have a

lunch room. So the management must arrange for it so that they feel good and

enjoy themselves in the lunch hours.

The organisation shall make a fair participation of employee towards the decision

making process and the supervisor/manager should give regular feedback on

performance by holding informal meeting with each individual.

supervisor/manager should appreciate and encourage employee to work hard.



The company also makes necessary improvements in the promotion policy. The

desire for promotion is generally strong among higher level employees as it

involves change in job content, pay, responsibility, autonomy and status.

Direct feedback should be collected frequently or through monthly.

Financial reward should provide to the special task achievers or for successful

employees.

5.3 CONCLUSION

The study conducted at Enjayes Spices & Chemical Oils Limited helped to identify

employees’ opinion about job satisfaction and also helps to give suggestion for

improving the level of satisfaction. Only certain areas require improvement like pattern

of promotion, present compensation packages, benefits provided etc.



The co-operation from the side of workers and management and employees are

appeasable. The workers of Enjayes Spices & Chemical Oils Limited show a positive

response on job satisfaction with related to various operative functions of the

organization. If the organizations provide a good relation with the workers, then a

partial way of dissatisfaction can be avoided.

Thus, from the above study it is concluded that the employees at Enjayes Spices &

Chemical Oils Limited, were satisfied in almost all the aspects. Any organization

functions with good and better satisfaction among the employees will surely increase

the performance of the organization.

APPENDIX

QUESTIONNAIRE ON JOB SATISFACTION AT ENJAYES SPICES & CHEMICAL OILS LIMITED, PATHANAMTHITTA

The following information will be used only for the purpose of analysis and will not be shared with anyone

Personal details



Name : …………………………………………………………….

Age : …………………………………………………………….

Gender : …………………………………………………………….

Experience : …………………………………………………………….

Nature of employment : …………………………………………………………….

Educational qualification : …………………………………………………………….

Department : …………………………………………………………….

Please indicate your level of agreement with each of the following statement

1) Response about the nature of the work

manageable Non manageable

2) Response towards the availability of machines and equipments for work

Highly satisfied Satisfied Dissatisfied

Highly dissatisfied No opinion

3) Response about superior support

Highly satisfied Satisfied Dissatisfied

Highly dissatisfied No opinion

4) Opinion about the satisfaction level with present job

Highly satisfied Satisfied Neutral



Dissatisfied Highly dissatisfied

5) Opinion about the management’s helpfulness and sympathetic to employees problems in workstation

To large extent To Some Extent

6) Responds about the company’s training improve performance, if yes, their level of satisfaction with the training provided

Satisfied Not satisfied

7) Opinion about the company’s career advancement opportunities

Excellent Good Fair

Poor Very poor

8) Opinion about job security

Excellent Good Fair

Poor Very poor

9) Opinion about the present compensation package

Excellent Good Fair

Poor Very poor

10) Opinion about the benefit provided by the company

Excellent Good Fair

Poor Very poor

11) Opinion about the working environment

Excellent Good Fair



Poor Very poor

12) Opinion about the interpersonal relationship within the organisation

Excellent Good Fair

Poor Very poor

13) Opinion about the welfare measures provided by the company

Excellent Good Fair

Poor Very poor

14) Opinion about employee motivation within the organisation

Very effective Effective Average

Less effective Very less effective

15) Opinion about the promotional policy of the organisation

Excellent Good Fair

Poor Very poor

16) Opinion about the company policies really helpful towards work

To large extent To small extent

17) Opinion about the employee participation in decision making

Excellent Good Fair



Poor Very poor

18) Response towards treatment of accident and injury in the company

Highly satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

19) Opinion about co-ordination between different departments

Excellent Good Fair

Poor Very poor

20) Opinion about chances to develop multi skills in the organisation

Excellent Good Fair

Poor Very poor

BIBLIOGRAPHY

BOOKS

Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw

Hill Publication Company Ltd.115

Dr Rane D.B , Employee Satisfaction : An Essence Of organization, Volume 11

Issue 7,2011

Kothari C.R., Research Methodology, New Delhi; New Age International

Publication, second edition.



Pestonjee D.M, Motivation & Job Satisfaction, 1st Edition Mac Millan India

Limited.

Sherlekar S.A., “Marketing Management”, Himalaya publishing House, 2006.

Tripathi, Personnel Management & Industrial Relations.

WEBSITES

Retrieved from

http://www.enjayes.com/aboutus

http://www.enjayes.com/aboutus/history

http://www.indianspices.com/spice_india

http:// www.spicesofindia.com/indianspices

http://en.wikipedia.org/wiki/Job_satisfaction

http://en.wikipedia.org/wiki/india_spiceindustry


A project report on a study on employees job satisfaction @ enjayes spices and chemical oils...

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