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INTRODUCTION 1.1 INTRODUCTION ABOUT THE STUDY Employee engagement has been defined as "an individual employee's cognitive, emotional and behavioural state directed toward desired organizational outcomes" Employees who are engaged exhibit attentiveness and mental absorption in their work and display a deep, emotional connection toward their workplace .Many organizations believe that employee engagement is a dominant source of competitive advantage and thus, have been drawn to its reported ability to solve challenging organizational problems such as increasing workplace performance and productivity amid widespread economic decline . Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work. According to Scarlett Surveys, "Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization that profoundly influences their willingness to learn and perform at 1

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Page 1: Chapter 1 Full

INTRODUCTION

1.1 INTRODUCTION ABOUT THE STUDY

Employee engagement has been defined as "an individual employee's cognitive,

emotional and behavioural state directed toward desired organizational

outcomes" Employees who are engaged exhibit attentiveness and mental

absorption in their work and display a deep, emotional connection toward their

workplace .Many organizations believe that employee engagement is a

dominant source of competitive advantage and thus, have been drawn to its

reported ability to solve challenging organizational problems such as increasing

workplace performance and productivity amid widespread economic decline .

Employee engagement is the extent to which employees feel passionate about

their jobs, are committed to the organization, and put discretionary effort into

their work.  According to Scarlett Surveys, "Employee Engagement is a

measurable degree of an employee's positive or negative emotional attachment

to their job, colleagues and organization that profoundly influences their

willingness to learn and perform at work". Thus engagement is distinctively

different from employee satisfaction, motivation and organisational culture. 

Employee engagement is typically measured using an employee engagement

survey. There are four factors that drive employee engagement. They are,

Engagement with the Organization measures how engaged employees are

with the organization as a whole, and by extension, how they feel about senior

management. i.e., doing meaningful work.

Engagement with "My colleagues” is a more specific measure of how

employees feel about their direct supervisors.

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Enagement with “Strategic Alignment” ensures that employee effort is

focused in the right direction. If that effort is not focused in the right direction,

it could be wasted. i.e., doing focused work.

Drivers of engagement

There are a range of factors, known as drivers that are thought to increase

overall engagement. By managing the drivers, an organization can effectively

manage engagement levels of its employees. Drivers such as communication,

performance clarity and feedback, organizational culture, rewards and

recognition, relationships with managers and peers, career development

opportunities and knowledge of the organization’s goals and vision are some of

the factors that facilitate employee engagement. Some points from the research

are presented below:

* Employee perceptions of job importance - "...an employee's attitude toward

the job's importance and the company had the greatest impact on loyalty

and customer service than all other employee factors combined."[

* Employee clarity of job expectations - "If expectations are not clear and

basic materials and equipment are not provided, negative emotions such as

boredom or resentment may result, and the employee may then become focused

on surviving more than thinking about how he can help the organization

succeed."

* Career advancement/improvement opportunities - "Plant supervisors and

managers indicated that many plant improvements were being made outside the

suggestion system, where employees initiated changes in order to reap the

bonuses generated by the subsequent cost savings."

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* Quality of working relationships with peers, superiors, and subordinates -

"...if employees' relationship with their managers is fractured, then no amount of

perks will persuade the employees to perform at top levels. Employee

engagement is a direct reflection of how employees feel about their relationship

with the boss."

* Perceptions of the ethos and values of the organization - "'Inspiration and

values' is the most important of the six drivers in our Engaged Performance

model. Inspirational leadership is the ultimate perk. In its absence, is unlikely

to engage employees.”

* Effective Internal Employee Communications - which convey a clear

description of "what's going on". "'If you accept that employees want to be

involved in what they are doing then this trend is clear (from small businesses to

large global organizations).

* Reward to engage - Look at employee benefits and acknowledge the role of

incentives. "An incentive to reward good work is a tried and test way of

boosting staff morale and enhancing engagement." There are a range of tactics

you can employ to ensure your incentive scheme hits the mark with your

workforce such as: Setting realistic targets, selecting the right rewards for your

incentive program, communicating the scheme effectively and frequently, have

lots of winners and reward all achievers, encouraging sustained effort, present

awards publicly and evaluate the incentive scheme regularly. It further tends to

improve the overall productivity.

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1.2. INDUSTRY PROFILE

INDIAN DAIRY INDUSTRY

India is 'The Oyster' of the global dairy industry. It offers opportunities galore to

entrepreneurs worldwide, who wish to capitalize on one of the world's largest

and fastest growing markets for milk and milk products.

The Indian dairy industry is rapidly growing, trying to keep pace with the

galloping progress around the world. India’s dairy sector is expected to triple its

production in the next 10 years in view of expanding potential for export to

Europe and the West. Moreover with WTO regulations expected to come into

force in coming years all the developed countries which are among big

exporters today would have to withdraw the support and subsidy to their

domestic milk products sector. Also India today is the lowest cost producer of

per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and

Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk

production and increasing production in the country multinational companies

are planning to expand their activities here. Some of these milk producers have

already obtained quality standard certificates from the authorities. This will help

them in marketing their products in foreign countries in processed form.

The dairy industry in India has been on a steady path of progression since

Indian independence. It has grown from producing 17 million tonnes of milk in

1951 to producing 121 million tonnes in 2011. Today, India is one of the largest

milk producing countries in the world. This solid progress is primarily

attributable to structural changes in the Indian dairy industry brought about by

the advent of dairy cooperatives.

The Indian dairy industry reported a market size of USD 48.5 billion in

FY2011. With a Compound Annual Growth Rate (CAGR) of 16 percent, it is

anticipated to reach USD 118 billion in 2017. On the back of a rise in

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disposable income, coupled with strong demand for dairy products, the Indian

dairy industry is all set to experience high growth rates in the next five years.

The consumption pattern of dairy products in India is quite unique as compared

to some of the western countries. Consumption is primarily skewed towards

traditional products; however, westernized products are gradually gaining

momentum in the urban areas. Interestingly, buffalo milk accounts for the

largest share of the total milk produced in the country. Since the pricing of milk

is based on the fat content, buffalo milk offers higher profit margins as

compared to cow milk as it contains higher fat.

Potential for further growth

Of the three A's of marketing - availability, acceptability and affordability,

Indian dairying is already endowed with the first two. People in India love to

drink milk. Hence no efforts are needed to make it acceptable. Its availability is

not a limitation either, because of the ample scope for increasing milk

production, given the prevailing low yields from dairy cattle. It leaves the third

vital marketing factor affordability. How to make milk affordable for the large

majority with limited purchasing power? That is essence of the challenge. One

practical way is to pack milk in small quantities of 250 ml or less in polythene

sachets. Already, the glass bottle for retailing milk has given way to single-use

sachets which are more economical. Another viable alternative is to sell small

quantities of milk powder in mini-sachets, adequate for two cups of tea or

coffee.

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Major Players

The packaged milk segment is dominated by the dairy cooperatives. Gujarat Co-

operative Milk Marketing Federation (GCMMF) is the largest player. All other

local dairy cooperatives have their local brands (For e.g. Gokul, Warana in

Maharashtra, Saras in Rajasthan, Verka in Punjab, Vijaya in Andhra Pradesh,

Aavin in Tamil Nadu, etc). Other private players include J K Dairy, Heritage

Foods, Indiana Dairy, Dairy Specialties, etc. Amrut Industries, once a leading

player in the sector has turned bankrupt and is facing liquidation.

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1.3. COMPANY PROFILE

The Dairy Development Department was established in Tamil Nadu in the year

1958 to oversee and regulate milk production and commercial distribution in the

state. The Dairy Development Department took over control of the milk

cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers

Federation Limited in the year 1981.

On February 1, 1981, the commercial activities of the cooperative were handed

over to Tamil Nadu Co-operative Milk Producers' Federation Limited which

sold milk and milk products under the trademark "aavin".

With many private companies entering the field of dairy, the Tamil Nadu

government is giving high priority to improve the performance of the

cooperatives. TamilNadu is one of the leading states in India in milk production

with about 14.5 million litres per day.

ACTIVITIES

Tamilnadu Co-Operative Milk Producers' Federation Limited was constituted

on 1st February 1981. Federation is Procuring, Processing and Marketing of

Milk and Milk Products. Federation has implemented the Dairy Development

activities under Operation Flood Programme with a financial and technical

assistance of National Dairy Development Board. Chennai Metro is having 4

Dairies. Milk Procurement, Processing and distribution are being attended by

the District Unions in the respective areas. Federation is carrying out

improvements of milch animals, Production of frozen semen for White cattle

and Black cattle by the Federation through Bull Mother Farms. Metro Dairies

are,

1. Central Dairy, Madhavaram Milk Colony, Chennai – 600 051 with a capacity

of 3.0 LLPD

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2. Ambattur Dairy, Chennai – 600 098 with a capacity of 4.0 LLPD

3. Sholinganallur Dairy, Chennai – 600 119 with a capacity of 4.0 LLPD

4. Products Dairy, Ambattur, Chennai – 600 098

All the 4 Dairies are carrying out Processing, Packing and Distribution of Milk

and Milk Products as per HACCP, MMPO and NDDB Norms. Ambattur Dairy

is Producing Sterilized Flavoured Milk in four different flavours. Products

Dairy, Ambattur is Preparing the following Milk Products, with a capacity of

12,000 Litres per day.

Milk Products

Aavin produces 4 varieties of milk.

1. Toned milk (3% Fat)

2. Doubled toned milk (1.5%)

3. Standardized Milk (4.5%)

4. Full Cream Milk (6%)

Federation supervises, co-ordinates and offers technical assistance to the District

Unions and Primary Co-operative Societies. It undertakes Planning,

Procurement, Erection and Expansion of Chilling Centers and Dairies to the

District Unions on Turn-key basis. Federation also implements clean Milk

Production, Development of Milch animals providing basic infrastructure

development activities for the Primary Co-operative Societies. Federation

markets Milk and Milk Products to the Co-operative Federations in India.

Federation has taken steps to promote exports of Skimmed Milk Powder and

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Ghee to Srilanka, Malaysia and Singapore

Central Dairy, Madhavaram Milk Colony, Chennai – 600 051

Central Dairy is situated in North Chennai and Commissioned during January

1963 (20.01.1963) at a total outlay of Rs.44/- Lakhs to Process and Sell Milk to

the city consumers. The foundation was laid on 15.10.1959 by Shri.S.K.Patil,

Minister for Food and Agriculture, Government of India. The Plant and

Machineries were gifted by the Government and the people of New Zealand

under Colombo plan. Central Dairy started the operations under the control of

Madras Milk Dairy Project which was converted as Dairy Development

Department under the control of Commissioner for Milk Production and Dairy

Development Department. Commissioner for Milk Production and Dairy

Development is also the Registrar of Milk Co-operatives. The Tamilnadu Dairy

Development Corporation was formed under Companies Act on 01.07.1972 and

taken over the Dairy Units, Transport and other commercial activities of Dairy

Development Department. Madurai Dairy was taken over by Tamilnadu Dairy

Development Corporation w.e.f. 01.07.1974. Tamilnadu Dairy Development

Corporation has given birth to TCMPF Ltd. (The Tamilnadu Co-Operative Milk

Producers' Federation Limited) Act on 01.01.1981 on the “Amul” Pattern of

National Dairy Development Board.

QUALITY POLICY

TCMPF is committed to supply milk, and milk products of quality at

competitive price.

Central Dairy ‘s present handling capacity is 3.0 Lakh Litres per day,

despatches 2.7 Lakh Litres per day in sachets, 0.2 Lakh Litres per day to Bulk

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Vending Units and 0.10 Lakh Litres per day Pasteurized Chilled water to

Products Dairy.

Dairy is equipped with latest Processing Plant, Homogenizer, CIP System and

Packing Machines. Dairy is having Solar panels to heat the feed water to the

Boilers. The Dairy caters the needs of North, Central and parts of South

Chennai. The distributions spread from Ponneri to Mylapore in Chennai City.

The Dairy is equipped with latest Effluent Treatment Plant to handle 3.0 Lakh

Litres per day. The Effluent Treatment Plant functions as per the norms of the

Tamilnadu Pollution Control Board and Treated Effluent Water is utilized for

Agriculture and Garden purpose within the Dairy and also to the Fodder Farm

of the Dairy Development Department

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1.4. NEED FOR THE STUDY

In this world of tough competition, organizations need to sustain high level of

performance at any cost. With the present situation, organizations are striving

hard to sustain themselves and to retain the efficient employees. The need for

studying the employee engagement is very much fel under the assumption that

the employee who is engaged to his or her work is very much committed and

loyal to the organization. If an employee is highly engaged in his or her work, it

may increase their performance and hence there will be an increase in the

productivity of the organization.

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1.5. SCOPE OF THE STUDY

The study intends to study the level of employee engagement in Aavin-Central

Dairy. The study concentrates on the opinion of the factors that determine the

engagement of the employee. This will also act as a path finder for further

development in Aavin-Central Dairy.

This study educated how effectively employee engagement process can be

followed and brings out the awareness on various methods to increase the

engagement level of the employee.

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1.6. OBJECTIVES OF THE STUDY

To study the demographic profile of the organization

To measure the level of employee engagement at Aavin-Central Dairy

To identify the factors that make an employee engaged to the

organization

To propose suggestions to improve engagement if required

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1.7. LIMITATION OF THE STUDY

Questionnaires were filled by the respondents, so the findings are based

on how they would have perceived the questions.

There may be errors due to bias of respondent, as they would not reveal

actual details.

Since the study is conducted in Central dairy branch of Aavin, the results

of the company cannot be generalized to other units of Aavin in

TamilNadu.

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2. REVIEW OF LITERATURE

2.1 LITERATURE REVIEW

Employee engagement, also called worker engagement, is a business

management concept. An "engaged employee" is one who is fully involved in,

and enthusiastic about their work, and thus will act in a way that furthers

their organization's interests.

According to Scarlett Surveys, "Employee Engagement is a measurable

degree of an employee's positive or negative emotional attachment to their job,

colleagues and organization that profoundly influences their willingness to learn

and perform at work". Thus engagement is distinctively different from

employee satisfaction, motivation and organisational culture. 

Kanungo(1982),maintained that job involvement is a cognitive or belief state of

psychological identification. Job involvement is thought to depend on both need

saliency and the potential of a job to satisfy these needs. Thus job involvement

results from cognitive judgment about the needs satisfying abilities of the

job.Engagement differs from job involvement as it is concerned more with how

the individual employees his/her self during the performance of his/her

job.Finally engagement may be thought of as an antecedent to job involvement

in that individuals who experience deep engagement in their roles should come

to identify with their jobs.

Employee engagement was described in the academic literature by Schmidt et

al. (1993). A modernised version of job satisfaction, Schmidt et al.'s influential

definition of engagement was "an employee's involvement with, commitment

to, and satisfaction with work. Employee engagement is a part of employee

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retention." This integrates the classic constructs of job satisfaction (Smith et al.,

1969), and organizational commitment (Meyer & Allen, 1991).

Harter and Schmidt's (2003) most recent meta-analysis can be useful for

understanding the impact of engagement. The opposite of employee

engagement is a zombie employee. A zombie employee is a disengaged

employee that will stumble around the office, lower morale and cost the

company money.

According to SHRM (Society of Human Resource Management) the cost of

replacing one $8 per hour employee can exceed $3,500, which gives companies

a strong financial incentive to maintain their existing staff members through

strong employee engagement practices.

Engaged employees care about the future of the company and are willing to

invest discretionary effort. Engaged employees feel a strong emotional bond to

the organisation that employs them (Robinson), which results in higher

retention levels and productivity levels and lower absenteeism. When reliably

measured, positive employee engagement can be causally related or correlated

to specific positive business outcomes by workgroup and job type.

Eileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17

apparel manufacturers, and 10 electronic instrument and imaging equipment

producers. Their purpose was to compare traditional production systems with

flexible high-performance production systems involving teams, training, and

incentive pay systems. In all three industries, the plants utilizing high-

involvement practices showed superior performance. In addition, workers in the

high-involvement plants showed more positive attitudes, including trust,

organizational commitment and intrinsic enjoyment of the work.[7] The concept

has gained popularity as various studies have demonstrated links

with productivity. It is often linked to the notion of employee voice

and empowerment.

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JOURNALS AND ARTICLES

Exploring employee engagement from the employee perspective:

implications for HRD, Kahn and Maslow,2011

The paper examined an employee's unique experience of being engaged in their

work Post analysis, three themes emerged: relationship development and

attachment to co-workers, workplace climate and opportunities for learning.

Findings highlighted the development of relationships in the workplace, the

importance of an employee's direct manager and their role in shaping

organizational culture and the critical role of learning in an engaged employee's

interpretation of their work. Three propositions for human resource

development (HRD) research and practice are presented: first, environment and

person interact to create engagement or disengagement; second, an employee's

manager plays a critical role in developing engagement; and third, personality

can effect engagement, however, everyone can engage. An integrated model is

proposed as a synthesis of findings providing HRD researchers and

practitioner's opportunity to re-examine current engagement efforts.

According to K.Mallikarjunan, along with common financial incentives like

increments, bonuses and other pre-requisites, a conductive atmosphere in the

workplace also raises the employee to the level of an “Engaged Employee”, as

he feels wanted and respected in the warmth of such a business ambience and

develops a sense of trust in the employee. Aristotle the Greek philosopher said

that,” pleasure in the job puts the perfection in the work, “Arguably, it may be

interpreted as the significant statement that spotlights, the value of a satisfied,

motivated and committed workforce. The survey conducted by Business Today

clearly identifies six typical drivers of employee engagement. They are people,

work, opportunities, quality of life, procedures, and compensation.

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According to Jacques Creeten of Federal Express, there are four human needs

of employees, life(survival),learning(personal development),love (relationship)

leaving a legacy (meaningful contribution).A survey carried out by “The

Business World(Dec 6 ,2004) shows that the employee gets motivated by a

great place, he friendly workplace, wherein he displays a performance that can

be attained only by an “Engaged Employee”. The survey, which ranked Federal

express –a logistics company as among the top 25 work places in India,

provides us some useful insights ,into the various processes companies use to

increase employee engagement .

According to Uday Kiran Madala, the output generated by spending extra time

on the job may be looking productive from employer’s point of view. But the

quality of output raises serious concern as the employee is bound to commit

more mistakes while working beyond the stay hours due to saturation of

energies and emotions. This further leads to the consumption of productive time

for rectification next day implying that the so-called ‘Stretch Beyond Stay

Hours’ in the name of timely delivery would give no extra mileage, argues

Uday Kiran. The employee engagement based on extra- ‘stay hours’ may not

yield dividends and has limited scope for application in intellectualism-related

occupations. Sometimes the output generated through ‘overtime’ may prove to

be an extra mileage to the organization but amounts to loss of personal time

supposed to be spent on the rest and relaxation leading to mental or physical

stress.

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3.1 RESEARCH METHODOLGY

RESEARCH DESIGN

For this study, descriptive research has been used, it involves surveys

and track finding. Major purpose of descriptive research is the description of the

state affairs, as it exists at present. It is concerned with research study with the

focus on the portrayal of the characteristics of a group or individual or a

situation.

RESEARCH INSTRUMENT

The main instrument of this research is questionnaire method. In this method

various types of questions have been framed to bring out the employees

response. They are

1. Open ended question

2. Close ended question

3. Five point rating scale

A structured questionnaire has been framed for conducting the survey. The

questions were presented with exactly the same wordings and in the same order

to all the respondents. A Sample questionnaire is attached in the annexure.

DATA COLLECTION

For conducting research both primary and secondary data were collected.The

primary data use for this project was collected through survey method,this was

chosen as it is easy to compile and analyse the information. The study was

conducted by direct survey method.

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Secondary data refers to information or facts already collected and available for

reference from sources such as library, websites. Secondary data about the

company profile and other details were collected from the company website and

through personal discussion with the company manager.

SAMPLING PROCEDURE

Convenience sampling is the sampling procedure used in the survey.

Convenience sampling is used for selection of homogenous sample for the

study. It refers to selecting a sample of study objects on convenience. The

researcher may make use of any convenience base to select the required number

of samples. The procedure is known as non-probability sampling technique.

SAMPLE SIZE

Due to time resources constraints the sample size of the research has been

restricted to 108 employees in consultation with the company/project guides.

TOOLS USED FOR ANALYSIS

The statistical tools which have been used to analyze the data are Percentage

analysis, Factor analysis, ANOVA.

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4.1 DATA ANALYSIS AND INTERPRETATION OF DEMOGRAPHIC VARIABLES

4.1.1 FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLE: AGE

Table showing distribution of sample respondents

Table N0.4.1.1 a

AGE GROUP Frequency Percent18-25 10 15.426-35 2 3.136-45 9 13.845+ 44 67.7Total 65 100.0

Source:Primary Data

Chart No: Table N0.4.1.1 b

INFERENCE:

Form the above table it is inferred that, the respondents consist of 67.7%

above the age of 45 years, 15.4% between the age group of 18-25 , 13.8%

between the age group 36-45 and 3.1% between the age group of 26-35 years.

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4.1.2 FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLE:GENDER

Table showing distribution of sample respondents

Table N0.4.1.2 a

Gender Frequency PercentMale 46 70.8Female 19 29.2Total 65 100.0

Source: Primary Data

Chart No: Table N0.4.1.2 b

INFERENCE:

Form the table it is inferred that70.8% of the employees working in the

organization are male and 29.2 % are female.

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4.1.3 FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLE:TENURE

Table showing distribution of sample respondents

Table N0.4.1.3 a

YEARS OF SERVICE Frequency Percentless than 2 years 10 15.42-6 yrs 5 7.76-10 3 4.6above 10 yrs 47 72.3Total 65 100.0

Source: Primary Data

Chart No: Table N0.4.1.3 b

INFERENCE: From the table, it is inferred that 72.3% of the employees have above 10

years of experience, 15.4% have less than 2 years of service, 7.7% have 2-6

years of tenure and, 4.6% of employees have 6-10 years of service in the

organization.

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4.1.4 FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLE: SECTION

Table showing distribution of sample respondents

Table N0.4.1.4 a

SECTION Frequency PercentProduction 35 53.8Engineering 9 13.8office 21 32.3Total 65 100.0

Source: Primary Data

Chart No: Table N0.4.1.4 b

INFERENCE:From the table, it is inferred that 53.8% of the employee belong to

production section,13.8 % belong to Engineering section and 32.3 % belong to

Office section.

4.2 FREQUENCY ANALYSIS OF RESPONSES:

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4.2.1 WHAT DO YOU ENJOY MOST ABOUT THIS COMPANY?

Table showing distribution of sample respondents

Table N0.4.2.1 a

DELIGHT FACTORS Frequency PercentPeople I work with 31 47.7Work Schedule 18 27.7environment 1 1.5fair wages 8 12.3job itself 5 7.7culture 2 3.1Total 65 100.0

Source:Primary Data

Chart No: Table N0.4.2.1 b

INFERENCE:From the above table, 47.7% of the employees are delighted with the

people with whom they work, 27% are delighted with their work schedule

framed by the organization and 12% like the wages and rest of the percentages

of employees are delighted with job, work environment and culture.

4.2.2 WHAT DO LEAST LIKE ABOUT THIS COMPANY?

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Table showing distribution of sample respondents

Table N0.4.2.2 a

Dislikes Frequency PercentRecognition 12 18.5opportunity to advance 13 20.0Management cooperation 11 16.9No Negative opinion 28 43.1canteen 1 1.5Total 65 100.0

Source:Primary Data

Chart No: Table N0.4.2.2 b

INFERENCE:From the above table it is inferred that 43.1% of employees have no

negative opinion about the company, where as 20% and 18.5 % of employees

least like about the recognition and opportunity to advance in the organization

and 16% of employees have less likeness towards management cooperation.

4.2. MANAGEMENT SUPPORT DECISION MADE ON THE PRODUCTION FLOOR

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Table showing distribution of sample respondents

Table N0.4.2.3 a

Management decision Frequency PercentManagement makes the decision 51 78.5

Floor Makes the Decision 8 12.3Do not know 6 9.2Total 65 100.0

Source:Primary Data

Chart No: Table N0.4.2.3 b

INFERENCE:From the above data it is inferred that, 78.5% of decision is made by the

management at the production floor where as only 12.2 % ,floor makes the

decision at the production floor.

4.3 FACTOR ANALYSIS

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There are various variables that determine employee engagement in an

organization. Analysis with these variables will make it complicated. Thus in

order to find the predominant factors that affect engagement ,factor analysis is

being used.KMO test is performed to find out the sampling adequacy to

determine if factor analysis can be proceeded with.

Table showing KMO and Bartlett's Test

Table No: 4.3.1Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .582

Bartlett's Test of Sphericity

Approx. Chi-Square 330.976df 78Sig. .000

INFERENCE:

Since KMO sampling adequacy is .586~.6 factor analysis can be carried out.

Table showing rotated component matrix

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Table No: 4.3.2

Rotated Component Matrixa

Variables Component

1 2 3

Mission known .876

Link mission with job .754

Opportunity to do best every day .711

Expectation .627

Best friend at work .610

Opportunities at work to learn and grow .441

Care .765

Encouragement .756

Recognition .748

Opinions seem to count. .632 .485

Talked about progress . .793

Commitment .718

Resources provided .591Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

The above table shows that data could be grouped into 3 factors in the order of

their influences.The factors are.

FACTOR 1: Engagement with Strategic alignment

At work, do I have the opportunity to do what I do best every day

Do I know what is expected of me at work

Do I know the mission/purpose of the company

Does the mission/purpose of the company make me feel my job is

important

FACTOR 1: Engagement with colleagues

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Is there someone at work who encourages my development

My supervisor, or someone at work, seem to care about me as a person

In the last seven days, I have received recognition or praise for doing

good work

At work, my opinions seem to count

FACTOR 1: Engagement with organization

In the last six months, someone at work has talked to me about my

progress

My associates (fellow employees) are committed to doing quality work

Do I have the materials and equipment I need to do my work right

INFERENCE:

Factor analysis when reveals that there are 3 factors, strategic alignment,

organization and colleagues that drives employee engagement in the

organization.

4.4 ONE WAY ANOVA (TEST FOR SIGNIFICANCE)

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4.3.1 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH

STRATEGIC ALIGNMENT AND AGE.

NULL HYPOTHESIS: There is no significance difference between the

Engagement with strategic alignment and age.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with strategic alignment and age.

Table showing Significance between the Engagement with strategic alignment

and age.

Table No: 4.4.1ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups .135 3 .045 .249 .861

Within Groups 10.995 61 .180Total 11.130 64

INFERENCE:

Since the significance level is greater than the 0.05, null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with strategic alignment and age.

4.3.2 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH STRATEGIC ALIGNMENT AND GENDER.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with strategic alignment and gender.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with strategic alignment and gender.

Table showing Significance between the Engagement with strategic alignment

and gender.

Table No: 4.4.2

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups .033 1 .033 .190 .664

Within Groups 11.096 63 .176

Total 11.130 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted.From the above table it is inferred that there exists no significant

difference between the engagement with strategic alignment and gender.

4.3.3 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH

STRATEGIC ALIGNMENT AND YEARS OF SERVICE.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with strategic alignment and years of service.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with strategic alignment and years of service.

Table showing Significance between the Engagement with strategic alignment

and years of service.

Table No: 4.4.3

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups .282 3 .094 .529 .664

Within Groups 10.848 61 .178

Total 11.130 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with strategic alignment and years of

service.

4.3.4 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH COLLEAGUES AND AGE.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with colleagues and age.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with colleagues and age.

Table showing significance between the Engagement with colleagues and age.

Table No: 4.4.4

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups 4.338 3 1.446 1.984 .126

Within Groups 44.465 61 .729

Total 48.804 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with colleagues and age.

4.3.5 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH COLLEAGUES AND GENDER.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with colleagues and gender.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with colleagues and gender.

Table showing significance between the Engagement with colleagues and

gender.

Table No: 4.4.5

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups 1.996 1 1.996 2.687 .106

Within Groups 46.808 63 .743

Total 48.804 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with colleagues and gender.

4.3.6 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH COLLEAGUES AND YEARS OF SERVICE.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with colleagues and years of service.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with colleagues and years of service.

Table showing significance between the Engagement with colleagues and years

of service.

Table No: 4.4.6

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups 3.576 3 1.192 1.608 .197

Within Groups 45.228 61 .741

Total 48.804 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with colleagues and years of service.

4.3.7 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH

ORGANIZATION AND AGE.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with organization and age.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with organization and age.

Table Showing Significance between the Engagement with organization and

age.

Table No: 4.4.7

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups 1.055 3 .352 .778 .511

Within Groups 27.587 61 .452

Total 28.643 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with organization and age.

4.3.8 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH ORGANIZATION AND GENDER.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with organization and gender.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with organization and gender.

Table shwoing Significance between the Engagement with organization and

gender.

Table No: 4.4.8

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups .464 1 .464 1.037 .312

Within Groups 28.179 63 .447

Total 28.643 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

accepted. From the above table it is inferred that there exists no significant

difference between the engagement with organization and gender.

4.3.9 SIGNIFICANCE BETWEEN THE ENGAGEMENT WITH ORGANIZATION AND YEARS OF SERVICE.

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NULL HYPOTHESIS: There is no significance difference between the

Engagement with organization and years of service.

ALTERNATE HYPOTHESIS: There is significant difference between the

Engagement with organization and years of service.

Table showing Significance between the Engagement with organization and

years of service.

Table No: 4.4.9

ANOVA

Sources Sum of Squares df

Mean Square F Sig.

Between Groups 4.228 3 1.409 3.521 .020

Within Groups 24.415 61 .400

Total 28.643 64

INFERENCE:

Since the significance level is greater than the 0.05 ,null hypothesis is

rejected. From the above table it is inferred that there exists a significant

difference between the engagement with organization and years of service.

5. FINDINGS AND SUGGESTIONS

5.1. FINDINGS

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The following details were found from the survey conducted in Aavin central

diary.

It is found that 67.7% of the employees are above the age of 45 years, 70.8%

of the employees working in the organization are men, and 72.3% have work

experience of about 10 years.

It is found that, 47.7% of the employees have good relationship with others

in the organization.

It is found that, 46.3 % of the employees have no negative opinion towards

the organization.

It is found that, 78.5% of management support decision made on the

production floor is by the management.

53.8% of the employees belong to the production section of the organization.

From the analysis it is found that there is a relationship between the

engagement with strategic alignment and age.ie. The engagement level with

the strategic alignment is similar with all age groups.

From the analysis it is found that there is a relation between the engagement

with strategic alignment and gender.

From the analysis it is found that there is a relation between the engagement

with strategic alignment and years of service.

From the analysis it is found that there is a relation between the engagement

with colleagues and age.

From the analysis it is found that there is a relation between the engagement

with colleagues and gender.

From the analysis it is found that there is a relation between the engagement

with colleagues and years of service.

From the analysis it is found that there is a relation between the engagement

with organization and age.

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From the analysis it is found that there is a relation between the engagement

with organization and gender.

From the analysis it is found that there the engagement with organization and

years of service differ. i.e. As the years increases the engagement with the

organization increases.

5.2 SUGGESTIONS

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Engagement is built on time, commitment and consistent monitoring. Educating

leaders, encouraging social interactions, and respecting work-life balance will

help in the transformation of employee engagement. Employee engagement

requires that all employees operate from their own strengths and passions .The

following are the suggestions for the Aavin-Central Dairy to help increase the

employee engagement within the organization.

Identify an opportunity to give recognition.

Recognition must be timely, frequent and specific.

The employees are contented with the people they work with, and the

engagement level can be increased by reducing job rotation.

The organization should improve the motivation activities such as

providing bonus, incentives, and providing opportunities to advance in

work.

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5.3 CONCLUSION

The present study was conducted at “Aavin – Central Dairy” in Chennai.

The aim was to find the level of employee engagement, identify the factors that

affect their engagement towards job and organization. This was done using a

detailed questionnaire. The study revealed that only a small percentage of the

employees are disengaged.

At the end of the study, it was found that though there are signs of

disengagement among the employees and factors affecting their engagement

towards job and organization, it can be controlled and reduced effectively.

This can be done by adopting coping strategies and measures to reduce

the disengagement level and increase the satisfaction level by incorporating the

suggestions given here at both individual & organization level.

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BIBLIGRAPHY

REFERENCE

1. C.R.Kothari(1990),”Research Methodology”, New Age International

Pvt.Ltd.

2. L.M.Prasad(2001), “Human resource Management”, Sultan Chand & Sons

Company,New Delhi.

3. William H. Macey ,Employee Engagement: Tools for Analysis, Practice, and Competitive Advantage

JOURNALS

1. Kahn and Maslow, Exploring employee engagement from the

employee perspective: implications for HRD, Journal of European

Industrial Training 35.4 (2011)

2. Helena Cooper Thomas , “How can leaders achieve high employee

engagement?”, Leadership & Organization Development Journal 32.4

(2011)

WEBSITES

1. www.google.com

2. www.wikipedia.org

3. www.hr.com

4. www.citehr.com

5. www.aavinmilk.com

6. http://articles.economictimes.indiatimes.com

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