AN ANALYSIS OF JOB SATISFACTION AND ITS IMPACT ON EMPLOYEES PERFORMANCE AT LIFE INSURANCE CORPORATION (LIC) OF INDIA

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1 Volume 3, Issue 11 (November, 2014) Online ISSN Published by: Abhinav Publication Abhinav International Monthly Refereed Journal of Research in AN ANALYSIS OF JOB SATISFACTION AND ITS IMPACT ON EMPLOYEES PERFORMANCE AT LIFE INSURANCE CORPORATION (LIC) OF INDIA Dr. Usha Tiwari Lecturer, APS University, Rewa (M.P.), India skandbt@gmail.com ABSTRACT Human resources not only contribute to the efficient running of an organization, but also offer significant potential to its future development. Success of an organization is mainly concerned with the management of human resources.. Hence an employer should satisfy the physical and psychological needs of his employees in order to motivate them strive for the achievement of the organization goals. Job satisfaction is of great importance for the individuals, the organizations that employ them and the society as a whole. In the present study an attempt has been made to an analysis of job satisfaction and its impact on employees performance at Life Insurance Corporation (LIC) of India in Rewa and Satna division of Madhya Pradesh. The study show the job satisfaction and its impact on employees performance at Life Insurance Corporation (LIC) of India appear good. The average mean score and percentage score has been computed at 3.7 (67.5%).The most important factors contributing employees job satisfaction are: comfort work place, relationship with superior, convened working hours, fairness, participation in decision, chances for future development and overall satisfaction with present job. Keywords: Job Satisfaction; Employees Performance; Life Insurance Corporation (LIC) of India INTRODUCTION Human resources not only contribute to the efficient running of an organization, but also offer significant potential to its future development. Success of an organization is mainly concerned with the management of human resources. A service sector, particularly insurance is highly staff intensive by its very nature. Hence an employer should satisfy the physical and psychological needs of his employees in order to motivate them strive for the achievement of the organization goals. The importance of job satisfaction is not only for its possible association with performance, absenteeism, turnover and accidents. There is a little dispute regarding its relation to the mental health of human beings. It is generally agreed that poor job satisfaction creates anxiety, headache, and depression from loss of appetite to psychosomatic states. On the whole it is true that a high level of job satisfaction produces distinctive records in the organization and the effects of job satisfaction are (1) willing co-operation among workers towards organisational objectives, (2) reduced labour turnover, waste and labour strike, (3) increased efficiency in attaining organisation goals, (4) inverse relationship between job satisfaction and grievances, (5) loyalty to the organization, (6) good discipline or the voluntary conformance to the rules, regulations and orders, (7) strong organized stamina or the ability of the organization to take it during time of difficulty, (8) high degree of employee interest in job and the organization, (9) reasonable display of employee initiative and pride in the organization. Available online on 15

2 Hence, job satisfaction is of great importance for the individuals, the organizations that employ them and the society as a whole. In the present study an attempt has been made to an analysis of job satisfaction and its impact on employees performance at Life Insurance Corporation (LIC) of India of Rewa and Satna division of Madhya Pradesh. REVIEW OF LITERATURE Sunder and Kumar (2012) studied the job satisfaction of employees LIC, Vellore division, Tamil Nadu, India has brought to light both positive aspects and dark spots. The investigation of impact of personal factors on job satisfaction of employees discloses the fact that the employees irrespective of gender experience job satisfaction; the level of satisfaction varies according to age; the education level of employees has a bearing on job satisfaction; the level of job satisfaction also varies according to the cadre, length of experience and salary. As for officer category, it is high level motivation factors like recognition for work, promotion policy; and work itself, achievement cause job satisfaction while hygiene factors cause less job satisfaction. But this is reverse in the case of clerical cadre. In other words, hygiene factors like job security, working condition, postretirement benefits, interpersonal relationship, suggestion system, grievance system cause more job satisfaction while there is a high level of dissatisfaction prevailing among them in the promotion policy, recognition for work, achievement, etc.. Therefore LIC Vellore division needs to conduct a periodical job satisfaction survey so that any unpleasant situation can be removed and job satisfaction secured successfully. Shrivastava and Purang (2009) made an empirical study on job satisfaction between private and public sector banks. They have concluded that while public sector bank employees are highly satisfied with job security, fringe benefits and the work environment, their counterparts in private sector banks are dissatisfied with the aforesaid variables. Kanungo (2014) : present review on literature is concerned with examining the strategic position of Life Insurance Companies in general; focus on Indian society in particular, in comparison with strategic position of life insurance Company, it mainly focused on modern life insurance Industries in Indian society. It emphasized on various strategic position of Life Insurance Companies like 4Ps, People, Product, Price & Promotion and how strategic position of Life Insurance Industry have affected on 3 Cs i;e Customer, Companies & Clients which are considered as the 3 major stake holders of Indian Life Insurance Industry, it highlights on its Social Implication in Indian Society. Fan and Cheng (2006) suggested that life insurance companies need to train their sales representatives to an adequate standard in competencies of problem solving, communication, information technology utilization, culture compatibility, emotional intelligence, collective competence and ethics. This piece of research work would definitely touch the different perspectives of life insurance Company's strategic position in India in relation with its valued stake holders interest in general and young policy holder's interest in particular. Choudhuri (2014) attempted to develop a conceptual model of information technology enabled convenient services for the life insurance sector especially for the Life Insurance Corporation of India. In this study, sincere observation was taken place about the mediating effect of the information technology on the perceived service quality and customer satisfaction link in life insurance services. Sandhu (2011) demonstrate that five-factor structure as proposed by Suresh chandar et al. (2001) has been refined to seven-factor construct (consisting of 34 items) representing Proficiency; Media and presentations; Physical and ethical excellence; Service delivery process and purpose; Security and dynamic operations; Credibility; and Functionality. Besides, the study also investigates the relationship between each of the generated service quality dimensions and customers overall evaluation of life insurance service quality. It reveals that among these seven factors, three viz., Proficiency; Physical and ethical excellence; and Functionality have significant impact on the overall service quality of Life Insurance Corporation of India. Managerial implications and directions for further research have also been discussed. VOL. 3, ISSUE 11 (November 2014) 16

3 Vij and Natrajan (2011 )attempt has been made to assess the effect of role of hierarchy and role stress on the job satisfaction of employees in the LIC of India, Chandigarh Division. All the variables were standardized by applying various tests like item to total correlation, reliability and validity. The statements which showed lower value of correlation were dropped and the remaining statements were used for further analysis. Reliability values were also higher, so the scales were considered suitable for analysis. To identify latent dimensions of all variables, factor analysis was applied. Seven factors of hierarchy and nine factors of role stress and six factors of job satisfaction were identified. When both variables were taken one by one, the effect of role of hierarchy on job satisfaction was found positively correlated. Role stress showed positive impact on job satisfaction which may be dueto the fact that people work hard when they have to work under pressure. Multiple regression analysis was applied to find the combined effect on the job satisfaction. Theemployees of both Class II and III were compared on all three variables; it was found that both the groups differed significantly. Class III employees scored significantly high onthe entire scale in comparison to the Class II employees which is signified by their mean values. OBJECTIVES 1. To assess the level of job satisfaction among the employees of LIC of India, Rewa and Satna division of Madhya Pradesh. 2. To find the various factors leading to employees job satisfaction in the LIC. 3. To evaluate the impact of employee job satisfaction on their performance. 4. To suggest measures for improvement of job satisfaction among the employees of LIC of India. HYPOTHESIS There is a significant impact of job satisfaction on employees performance. METHODOLOGY With a view to analyzing the job satisfaction and its impact on employees performance at Life Insurance Corporation (LIC) of India the questionnaires distributed among the various cadres of employees. To measure the job satisfaction and its impact on employees performance at Life Insurance Corporation (LIC) of India 22 items questionnaire was administrated to the selected respondents. The scoring was analyzed on five point scale and score was simplified in percentage as per the formula of Rao (1991) i.e. Percentage score=mean score - 1x 25 Five categories of gradation were very good, fairly good, good, average and poor. RESULT / FINDING Job Satisfaction and its impact on Employees Performance at Life Insurance Corporation (LIC) of India The table 1& 2 and fig.1&2 under reference show the item wise mean score and percentage score of 22 items obtained in study Job satisfaction and its impact on Employees performance at Life Insurance Corporation (LIC) of India. Some of trend notice is given below- The study of Job satisfaction and its impact on Employees performance at Life Insurance Corporation (LIC) of India appear good. The average mean score and percentage score of the overall of 22 items has been computed at 3.7(67. 5%). The most important factor contributing very good score are: (i) feel comfort in my work place (item- 2); (ii) relationship my superior is cordial. (item-4). Other important factor resulting good score are: (i) working hours are convened for me (item-1); (ii) my superior is not partial (item-5); (iii) my superior consider my ideas while taking decision (item-6); (iv) I feel that I am becoming more cynical person VOL. 3, ISSUE 11 (November 2014) 17

4 (item-9); (v) I feel as though my employer has broken promise about my future with the organization (item-13); (vi) overall I am satisfied with my present job.(item-20). The factor contributing good score are: (i) I feel I have too much work to do. (item- 3); (ii) My job is secure in the corporation (item-7); (iii) I am satisfied the chances for my promotion (item-8); (iv) I am satisfied with the allowances provided by the LIC (item-10); (v) I feel my boss motivate to me achieve the organizational goals (item-11); (vi) my superior motivate to me increase my efficiency at a time when I am not. (item-12); (vii) I am frequently stressed out at work (item-16); (vi) I am being used to my full capabilities (item-17); (vii) people here have concern from one another and tend to help. (item -19). The factor resulting average score are: (i) I feel my job little impact on the success of the corporation (item-14); (ii) I feel as though my boss and employer has let me down (item-15); (iii) I have received no better than fair evaluations recently (item-18); (iv) Corporation adopts proper appraisal system (item-21); (v) Role models setting a clear vision for the future in the corporation (Item-22) (Table 1). Table 1. Item wise mean score, percentage score and categories of Job Satisfaction and its impact on employees performance at Life Insurance Corporation of India Statement MS % CAG Working hours are convened for me FG I am happy and feel comfort in my work place VG I feel I have too much work to do G My relationship with my superior is cordial VG My superior is not partial FG My superiors consider my ideas while taking decision FG My job is secure in the corporation G I am satisfied the chances for my promotion G I feel that I am becoming more cynical person FG I am satisfied with the allowances provided by the company G I feel my boss motivate to me achieve the organizational goals G My superior motivate to me increase my efficiency at a time when I am not G I feel as though my employer has broken promise about my future with the organization FG I feel my job little impact on the success of the company AV I feel as though my boss and employer have let me down AV I am frequently stressed out at work G I am being used to my full capabilities G I have received better than fair evaluations recently AV People here have concern from one another and tend to help G Overall I am satisfied with my present job FG Corporation adopts proper appraisal system AV Role models, setting a clear vision for the future in the corporation AV Average Good VOL. 3, ISSUE 11 (November 2014) 18

5 Category Abhinav International Monthly Refereed Journal of Research In Table 2. Categories wise items of Job Satisfaction and its impact on employees performance at Life Insurance Corporation of India S.N. Statement Percentage (Range) Item No. Total No. of Item. 1. Very Good. 80 and above. 2, Fairly Good 70 and above. 1,5,6,9,13, Good 60 and above. 3,7,8,10,11,12,16,17, Average 50 and above. 14,15,18,21, Poor Less than 40. Nil Nil Fig.1. Item wise percentage score and categories of Job Satisfaction and its impact on employees performance at Life Insurance Corporation of India Very Good. Fairly Good Good Average Poor No. of Items Fig.2. Categories wise items of Job Satisfaction and its impact on Employees performance at Life Insurance Corporation of India CONCLUSION The study show the job satisfaction and its impact on employees performance at Life Insurance Corporation (LIC) of India appear good. The average mean score and percentage score has been computed at 3.7 (67.5%).The most important factors contributing employees job satisfaction are: comfort work place, relationship with superior, convened working hours, fairness, participation in decision, chances for future development and overall satisfaction with present job. VOL. 3, ISSUE 11 (November 2014) 19

6 SUGGESTIONS 1. Offering attractive and competitive pay to the potential workforce. 2. Offering excellent career opportunities within the organization. 3. Harmonious Industrial relationship between employer & employee. 4. Facilitate healthy work culture in order to prevent job satisfaction. 5. Proper implementation of stress coping measures within the organization like counseling, meditation. 6. Should give more attention to retain star performer employee, for consistent growth of the corporation. 7. LIC should opt for transparent performance appraisal system, where employees can be given detailed feedback on their performance. REFERENCE 1. Agnihotri Prachi (2011): The impact of privatization on the life insurance corporation of India. Altius Shodh Jour. of Management and Commerce. (ISSN) pp Bala Neetu (2011): Measuring life insurance service quality: An empirical assessment of servqal instrument. International Business Research. Vol. 4 (4) pp Choudhuri Partha Sarathi(2014): A Conceptual Model of Information Technology Enabled Convenient Services for the Life Insurance Sector. The International Journal Of Business & Management Vol 2 Issue 4pp Kalaimani G., : 7 P's of services marketing in insurance and banking service. Jour. Management. and Science (JMS). ISSN pp Kanungo Archana (2014): Rediscovering the Strategic Position of Life Insurance Companies in India: A review of Literature. International Journal of Recent Advances in Engineering & Technology (IJRAET) Volume-2, Issue -6,7 pp Kaur L. (2013): Consumer Behaviours regarding performance of LIC Housing finance Ltd. IOSR Jour. of Business and Management. Vol. 7 (2) pp Krishnamurti S.et. al., (2005): Insurance industry in India: Structure, performance and future challenges. Vikalpa Vol. 30 (2) pp Kumudha A. and Sentil Kumar (2013): An empirical study on performance appraisal practices of LIC of India; Spl. Reference to Banglore division. Anusandhan A Jour. of Science Engineering and Management. Vol. 2 (1) pp Kundu S.C. and Malhan D. (2009): HRM Practices in insurance companies. Managing Global Transitions. Vol. 7 (2) pp Pradeep Kumar (2014): Leadership styles in insurence sector : A critical appraisal of life insurance corporation of India. Asian Jour. of Management Research. Vol. 4 (3) pp Rai A.K. and Shrivastava M.C.: The antecedents of customer 10 yalty: An empirical investigation in life insurance. Jour. of Competitiveness. Vol. 5 (2) pp Sandhu H. S. (2011): Customers Perception towards Service Quality of Life Insurance Corporation of India: A Factor Analytic Approach. International Journal of Business and Social Science Vol. 2 No. 18; pp Shrivastava Arunima and Poojapurang(2009): Employee Perceptions of Job Satisfaction: Comparative Study on Indian Banks..Asian Academy of Management Journal, July 2009,Vol. 14, No. 2, VOL. 3, ISSUE 11 (November 2014) 20

7 14. Sundar K. and Kumar P.Ashok (2010): Demogrephic factors and job satisfaction of employees in life insurance corporation of India (LIC) Vellore division. Asian Pacific Jour. of Marketing and Management Review. Vol. 1 (3) pp Suresh chandar, G.S., Rajesndran, C., and Kamalanabhan, T.J. (2001): Customer perceptions of service quality: a critique, Total Quality Management, Vol. 12 No. 1, pp Swain I. and Sahoo P.K. (2012): Service satisfaction and relationship management in life insurance companies: An empirical view. Jour.of Business Management Commerce & Research. Vol. 1 (3) pp Vij Renu and Natrajan C. (2011): Analysis of role of hierarchy and role stress as predictors of job satisfaction: A study among life insurance employees. International conf. on Management, Economics and Social Science Bangkok. Dec. (2011) pp Yadav Babita Singh and Rokade Versa (2013): Managing attrition in life insurance sector : With special focus on employees of HDFC standard life insurance company. Indian Jour. of Applied Research. Vol. 3 (4) pp VOL. 3, ISSUE 11 (November 2014) 21