JOB SATISFACTION LEVEL OF EMPLOYEES AT SUBWAY FRANCHISES IN LAHORE, Pakistan

July 10, 2016 | Author: FaHEEM DILAWAR | Category: Types, Research, Business & Economics
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JOB SATISFACTION LEVEL OF EMPLOYEES AT SUBWAY FRANCHISES IN LAHORE, Pakistan...

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BUSINESS RESEARCH METHODS

JOB SATISFACTION LEVEL OF EMPLOYEES AT SUBWAY FRANCHISES IN LAHORE

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CHAPTER 1 INTRODUCTIO N

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EXECUTIVE SUMMARY

The purpose of this project is to know about the effect of different factors on the job satisfaction level of employees. For this purpose we selected fast food restaurants in Lahore to obtain necessary data and its analysis. With the completion of this project we have learned that how job satisfaction level varies and its impacts on the organization. A job is a role, and work is the means to fulfill that role. One of the important factors behind every successful organization is its employees. Every organization understands the importance of experienced and good employees. Therefore, it is very important to retain such employees and ensure they are happy in their current jobs. The Job satisfaction of such employees plays very important role in achieving an Organizational effectiveness. Job satisfaction is considered to one’s feeling or state of mind regarding the nature of their work. It can only come if the role is clear, and the person is guided and developed to fulfill that role. It benefits the organization including reduction in complaints and criticism, absenteeism and turnover as well as it improve punctuality and worker confidence. Therefore, job satisfaction should be determined after a careful organization analysis, environment and culture of an organization. Job satisfaction levels in fast food restaurants are being judged at all the levels of the organization. The higher level of satisfaction in employees helps the company to achieve the goals effectively and efficiently.

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INTRODUCTION AND BACKGROUND OF THE TOPIC

The purpose of this study is to understand the job satisfaction level in fast food restaurants and the factors that affect the employee’s level of job satisfaction in fast food restaurants of Lahore. Food is essential for human beings. Fast food is food that can be prepared and served very quickly as well as sold ready to eat from the outlets. The fast food restaurants are the specific type of restaurant characterized both by its fast food cooking and by minimum table service. Today’s fast food restaurants are growing rapidly throughout the world to serve the consumers. In Pakistan, fast good industries are growing rapidly despite the immeasurable regulatory challenges. The fast food restaurants in Pakistan relying heavily on the changing target age group and related increase in employment of women. Some of the fast food industries in Pakistan are:       

McDonalds KFC Pizza Express Pizza Hut Subway AFC Yasir brost

Due to the growing competition these fast food restaurants have to focus on each and every process specially the satisfaction of their employees because job satisfaction is a concept which emphasizes that employees are the asset of the company and therefore their satisfaction is very important. The job satisfaction is: “A positive emotional state resulting from Evaluating one’s job experience So, by understanding the job satisfaction level of employees in fast food restaurants, we are able to understand the favorableness or un-favorableness of employees about his/her works in fast food restaurants.

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PROBLEM STATEMENT We want to know about the satisfaction level of the employees working at fast food restaurants specially Subway so that we can better asses their level of involvement in their jobs. The Problem statement is: “Job satisfaction level”



RESEARCH QUESTION: The research questions are: What are the factors that affect the job satisfaction level of employees at Subway franchises in Lahore?



RESEARCH OBJECTIVES AND RESEARCH VARIABLES: The following are the research objectives and its variables:

1.

We want to know about the demographics of the employees. Age, Gender, Income, Education, Family Size, Occupation, City, Years in Current Job

2.

We want to know about the general working conditions. Hours Worked, Flexibility in Scheduling, Location of Work, Sick Leave Offered, level of Autonomy

3.

We want to know about the compensation policies of an organization. Salary, Promotion Opportunities, Benefits, Rewards, Bonuses, Recognition for Work Accomplished, Overtime benefits, Medicinal Facilities, Leaves Policy

4.

We want to know about the work relationships of employees. Co-Workers, Supervisors, Subordinates, Recognition, Employees Value

5.

We want to know about the opportunities regarding personal proficiency. Opportunity to Utilize Skills, Opportunity to Utilize Talents, Opportunity to Learn New Skills, Additional Training and Education, Autonomy, Management Support

6.

We want to know about job activities of McDonald employees.

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Task Variations, Responsibility

Work

Independence,

Periodic

Changes

in

7.

We want to know about the recreational facilities for the employees. Outdoor Sports, Indoor Competitions, Trips

8.

We want to know about employee’s future expectation regarding their job. Rewards, Incentives, Promotion, Job Security, Personal Growth

9.

We want to know about the employee perception about his job. Job Prestige, Job Security, Resources sufficiency, job timings content

10.

Duties,

We want to know about the working environment. No. of Employees, Rules and Regulations, Space, Hygiene, Parking Space



RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. So, to identify and classify the factors which are of importance for the satisfaction and dissatisfaction of employees in fast food restaurants of Lahore, the following research methodology was employed in the study.



DATA AND DATA COLLECTION METHODS: We will collect both secondary data and primary data for our research information. 

Secondary Data:

We used secondary data to support our research and understand the major factors of the problem. We have collected it from different sources to study the other researcher’s point of views so that we have the clear understanding of the topic. 

Primary Data:

We also collected the primary data in an efficient manner. We surveyed the employees in fast food restaurants of Lahore to support our study in a manner that it provides practical and current findings for our research. There are two stages for primary data collection method. The first stage was a pilot research to examine reliability and validity instrument. The second stage was the actual research. The data for this research was obtained through self-administered questionnaire from the students of University of Management and Technology. The 15

BUSINESS RESEARCH METHODS

main concern for the researcher in this research is that the respondents must be employees in fast food restaurant of lahore. This method applied two-step process to obtain a good response rate. First, we brought questionnaires to all selected franchises. In each franchise, we will meet respondents (i.e., employees) and will inform them about the survey and try to give questionnaires to employees directly. The Second method is we contacted those respondents in 3 to 4 days in order to obtain questionnaires. The non-response or response errors from the respondents were considered in this data collection method. The questionnaires were assuring the errors from the respondents. In order to obtain good response rate, questionnaires were also provided from respondents. 

MEASUREMENT METHODS: The methods we use to measure the factors affecting the job satisfaction level are “Self Administered” questionnaire. The instrument for this research is taken from multiple items especially through internet and from previous job satisfaction studies. We use the five point Likert scale, dichotomous and unforced choice questions. We employed and modified the questionnaires based on the results of the pilot study so the reliability and validity of the survey questionnaire would increase and the questionnaire look more manageable. Also, our instrument is relatively short questionnaire so that it can be easily understandable to the respondents. Overall questions are fully structured.



SAMPLING PLAN: The sampling plan of our research is:



Population: The population of Subway restaurants in Lahore is approx. 1000 employees consisting of males and females.



Sampling Unit: The sampling unit in this report is any current employee of Subway franchises who is available for selection at some stage of sampling process



Sample Size: Sample size refers to the total number of respondents targeted for collecting the data for the researcher. The sampling size of our study is 40 respondents. The respondent should be the employee of Subway in Lahore.

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Sampling Methods: Since it is difficult to contact the entire population therefore sampling technique was adopted. The general goal of this sampling method is to obtain a sample that is representative of the target population. For our analysis, we engaged in “Non probability sampling method” under which we employed the technique of “Convenience Sampling”.



LIMITATIONS OF RESEARCH There are some of the limitations which affect the research. These limitations are:  Time and money was major limitation, which may affect the study.  Some of the respondents are reluctant to share information.  The study conducted is limited to an organization only.



SCOPE OF THE STUDY This study emphasis in the following scope:  This study is helpful to Subway for conducting further researches.  It is helpful to identify the employer’s level of satisfaction towards Subway  This study is helpful to the organization for identifying the area of dissatisfaction of job of the employees.  This study helps the manager to make managerial decisions for the company and for the welfare of employees.

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TIME SCHEDULE: In order to manage our business research management project on “the job satisfaction level of employees at Subway in Lahore”, we divided our project into activities that are further broken down into tasks (e-g task 1, task 2 etc) and these tasks are then assigned time durations. Similarly, we made up a Gantt chart to get a better idea of our time schedule so that we manage our activities in a better way. The following activities are represented by their respective task numbers. Task 1= Task 2 = Task 3= Task 4 = Task 5 = Task 6 = Task 7 = Task 8 =

Discussions (this involves the complete plan of how we will proceed in what direction and what job will be assigned to whom) Preparing questionnaires (in order to use it as our research instrument) Travelling to different branches of McDonalds (to take sample and discussion) Collecting responses (through the filling of questionnaires) Organizing the data collected Analyzing the responses Preparing the final report Submitting the project Tasks

Start date

task 1 task 2 task 3 task 4 task 5 task 6 task 7 task 8

12/20/2009 12/26/2009 12/27/2009 12/28/2009 12/29/2009 1/1/2010 1/2/2010 1/4/2010

Duration (days) 4 2 2 3 1 2 3 1

The Gantt chart is:



COST SCHEDULE: 18

End Time 12/24/2009 12/28/2009 12/29/2009 12/31/2009 12/30/2009 1/3/2010 1/5/2010 1/5/2010

BUSINESS RESEARCH METHODS

In order to see whether the project is cost effective or not, the following costs should be taken into consideration. Paper, print, binding and photocopy cost (for questionnaires) = 1000 Fuel cost (the transportation expense) = 700 Refreshment cost (e-g tea, coffee, snacks) = 1000 Cellular phone expenses (in order to have communication regarding project matters) = 500 Electricity Cost (like preparing report on computer and sending emails) = 500 Thus the total approximated cost is Rs 3700. Cost schedule: Paper, print and photocopy cost: Fuel cost : Refreshment cost: Cellular phone expenses: Electricity cost:

600 700 1000 500 500

Total Cost

3300

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CHAPTER 2 INTRODUCTIO N OF THE INDUSTRY

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INTRODUCTION OF THE INDUSTRY Fast food refers to a food which can be prepared and served quickly. It is one of the world’s largest growing food types. Fast food may include chips, pasties, sandwiches, burgers, kebabs, pizzas, chicken, soups, and salads. It also includes drinks, for instance, milkshakes, and soft drinks. In today’s world, fast food is become a fashion because people not only eat but also enjoy the environment over there. It now accounts for roughly half of all restaurant revenues in the developed countries. In 2006; the global fast food market grew by 4.8% and reached a value of 102.4 billion and a volume of 80.3 billion transactions. The fast food restaurants were first appeared in America in 1921 and started with the selling of hamburger within 5 scents. After that a lot of fast food restaurants were open to offer a wide variety of meals and in a short period of time for customers. Some of the fast food restaurants with their market share in the world are:

fastfoodrestuarants Pizzarestaurants

Burger restaurants

Sandwich restaurants

Other

10% 33% 26%

31%

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In Pakistan, most fast food franchises have been established in just the past 12 or 13 years and have proven to be very popular. McDonald is the first fast food restaurant in Pakistan. Some of the other major fast food restaurants in Pakistan are KFC Restaurant, Mac Donald, Pizza hut, Subway, One potato two potato, Hardees and domino’s pizza and many more. These fast food restaurants have a very significant effect on the Pakistani economy as shown: Name of Restaurant

2001 Food Sales($million)

Number of Outlets

Type of Food

Purchasing

KFC Pizza Hut

0.84 0.78

30 9

American American

Direct, Dealers Direct, Dealers

Bundu Khan McDonald’s

0.56 0.42

5 20

Pakistan American

Direct Direct, Dealers

These sales is increasing continuously as they are now making “value” meals for children that are increased in portion sizes.

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CHAPTER 3 INTRODUCTION OF THE ORGANIZATION UNDER STUDY

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INTRODUCTION OF THE ORGANIZATION UNDER STUDY

There are many organizations in fast food industry. The organization we chose to study among them is Subway. Subway started off back in 1965, by Fred DeLuca, in North America. [1]. It is owned and operated by Doctor's Associates, Inc. (DAI). It is a restaurant franchise that primarily sells submarine sandwiches and salads back in 1984, Subway took its enterprise outside the boundaries of North America, when it opened its very first franchise in Bahrain. Since then, Subway extended itself around the world. [2] At present, Subway has 32,271 franchises, spread across 91 countries, as of January 01, 2010. Subway, with its wide-spread network, is termed as, “largest singlebrand chain restaurant” worldwide [1]. Furthermore Subway has been ranked no.1 by Entrepreneur Magazine twice and is the second largest restaurant operator globally after Yum! Brands. [3] Currently, with its 28 franchises, Subway is operating across four cities of Pakistan, those are, “Karachi, Lahore, Islamabad, and Sialkot”. Some of the franchises are under construction and are not operating yet [4]. The detail of Subway franchises in Pakistan is demonstrated through following table: Cities

Operating franchises

Currently not opened

Karachi

10

1

Lahore

16

4

Islamabad

1

1

Sialkot

1

0

Jhelum

0

1

Multan

0

2

Gujranwala

0

1

Total

28

10

Subway has always been positioned as healthy food provider, targeting health conscious clique. But yet it is classified as “fast food restaurant”, so it has a direct competition with all fast food restaurants.

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CHAPTER 4 INTRODUCTION OF THE MAJOR COMPETITORS IN THE INDUSTRY

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INTRODUCTION OF THE MAJOR COMPETITORS The success of fast food industry in advanced countries has greatly influenced the food industry in the developing world and Pakistan is no exception. Though there are many foreign and local brands operating in the Pakistani market but the following few are the major players of the industry.      



Pizza hut KFC McDonald AFC Hardees Fri Chicks

McDonald: McDonald's Corporation is the world's largest chain of fast food restaurants. In USA, McDonald’s Corporation is the ninth most valuable brand in the world. In McDonald franchises, only 15% of the total is owned by the McDonald and the remaining 85% is operated by franchises. In Pakistan, it entered in September 1998 with its first restaurant in the city of Lahore. McDonald is currently operating in seven major cities with a network of 20 restaurants and has investment of over Rs. 30 billion in the country. All McDonald's restaurants in Pakistan offer a standard menu, which comprises of food items such as hamburgers, cheeseburgers, chicken sandwiches, French fries, salads, milk shakes, desserts and ice cream sundaes. And because of its fast food products, it is one of the major competitors of Subway.



KFC: KFC (Kentucky Fried Chicken) is a chain of fast food restaurants based in Louisville, Kentucky .KFC fast-food chains are currently under the restaurant division of PepsiCo Incorporated. It is located in 25 countries with more than 36,000 locations around the world and is one of the most renowned world gastronomic brand names KFC is the first fast food restaurant in Pakistan. It opened its first outlet on Gulshen-eIqbal Karachi in 1997. Presently KFC is branched out in nine major cities of Pakistan (Karachi, Hyderabad, Lahore Islamabad, Rawalpindi, Sialkot, Multan, Peshawar, Faisalabad, Gujranwala, Jehlum, Sukkur, Murree) with more than 60 outlets nationwide. Its Annual turn over in Pakistan is about 2.5 billion. At the beginning it targets upper class but now they are also providing meals for lower class. All KFC franchises 26

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provides the ultimate chicken meals for the Chicken Loving Nation and it has been constantly introducing new products and opening new restaurants for its customers.



AFC (Al-Najam Fried Chicken): AFC started in Pakistan when no middle class family could think of buying such big food chains. It opened its first market in Samanabad, Lahore. Now, AFC has more than twenty branches nationwide. Some of them include Mall Road, Railway Station, Allama Iqbal Town, Twonship, Mughalpura, Defence, Thokar Niaz Baig, G.T. Road and Wapda Town. With in local competitors, it is now considered as the fastest growing fast food chain in Pakistan and the best alternate to KFC. AFC always try to make the quality good for people who are unable to afford other fast foods.



HARDEES: Hardees are the fast food restaurants who were established in America in 1960. It is considered as forth largest fast food chain and is operating in 14 countries around the world included Pakistan. In Pakistan, The first branch of Hardees is located on M.M Alam road the major competitive edge of Hardees is its thick juicy patties of meat in burgers that are bigger than fast food burgers.



PIZZA HUT: Pizza Hut is a global fast food chain, a subsidiary of Yum! Brands, Inc. It is probably the world's largest restaurant company with approximately 34,000 restaurants, delivery-carry out units, and kiosk in over 100 countries. Yum! Brand introduced Pizza Hut delivery service in 1986. Their market share was 46.6% in 1996, when they launched their campaign “The Best Pizzas under One Roof” which battered slowly over the years due to tough market competitors. This first national pizza chain of America started its operations in Pakistan in 1993 with a single outlet at Boat Basin, Clifton, Karachi. Now it is operating in 10 cities of Pakistan at present i-e .Karachi, Hyderabad, Lahore, Islamabad, Rawalpindi, Murree, Sialkot, Peshawar, Faisalabad, Multan. It somewhat caters to the high income segment therefore developing a niche as an upscale fast food restaurant. In Pakistan the chain is considerably more expensive as compared to the local fast food outlets.

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FRI CHICKS: It is basically a foreign fast food restaurant and started in Kentish town, London. In Pakistan, they have been working here since 2003 and have many outlets in Lahore which includes Iqbal Town, Hohar Town, Sabzazar, Akbar chowk, Sadr and in Fortress. In Fri chick they have dine in, take away and home delivery services. They have several deals with the normal price rate. Chicken finger also known as chicken tenders or chicken strips, this is one of the most common forms of fried chicken, Chicken nuggets , Hot chicken - a pan-fried variant of fried chicken coated with lard and cayenne pepper paste, Popcorn chicken — occasionally known as chicken balls .

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CHAPTER 5 LITERATURE REVIEW OF RELEVENT ISSUE

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LITERATURE REVIEW

The study of job satisfaction is a relatively recent phenomenon. It represents the collection of person’s attitude towards or about the job. According to Goodman et al Job satisfaction is degree to which an individual feels positively or negatively about his or her job. [1] Locke (1976) defined job satisfaction as “A pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience.”[2] That is, it is the inconsistency between what an employee values and what the situation provides. Smith et al. (1969, p.6) suggested that “Job satisfaction are feelings or affective responses to facets of the situation.”[2]. Dawis and Lofquist (1984) defined job satisfaction as the result of the worker’s assessment of the degree to which the work environment fulfills the individual’s needs. [3] Equity Theory, Need-Fulfillment Theory, Social Comparison Theory, FacetSatisfaction Model, and Job Characteristics Model suggest that job satisfaction is influenced by the variety of factors. According to Maslow, job satisfaction can be achieved by fulfilling Physiological needs, Safety needs, Social needs, Esteem needs and Self-Actualization.[4] According to Philip Apple job satisfaction is achieved through attitude towards work group, company and supervisors, general workings conditions and monetary benefits[5]. It is also observed through Bernal et. al. (2005) research that the level of job satisfaction is determined by four factors: economic aspects, interpersonal relations, working conditions, and personal fulfillment [6]. The individual’s health, age, level of aspiration, social status and political and social activities can all contribute to job satisfaction. Research also indicates that a high level of job satisfaction does have a positive impact is reducing turnover, absenteeism, tardiness accidents, grievances and strikes. The industrial and business sectors of various countries specially developing countries including Pakistan are facing the problem of job dissatisfaction among the employees and high rate of turnover. According to Judge, Thoresen, Bono, & Patton one of the most researched areas in the field of Industrial / Organizational psychology is job satisfaction. Employers have a need to keep employee from leaving and going to work for other organizations. Recent research evidences generally rejects the more popular view that job satisfaction is influenced by salary rather the evidences suggest it is influenced by variety of factors such as kind of supervision, organization policies & administration, & quality of life etc

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CHAPTER 6

DATA ANALYSIS

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DATA ANALYSIS

INTRODUCTION: Data analysis is the process of inspecting data with the goal of highlighting useful information The data available in the self administered survey questionnaire regarding the job satisfaction level includes its level of satisfaction regarding its job, co-workers, and supervision, pay and promotional opportunities. The data includes some personal information as Age, Income, Education, Experience, Gender and Marital Status of the respondent. The data also includes the designation of the employee and the branch and department in which the employee is working. To analyze the data we apply different tools and SPSS on the variables.

AVERAGE SATISFACTION LEVEL: For analyzing the average satisfaction level we have sum up the satisfaction level regarding the job, co-workers, supervision, pay and promotional opportunities of individual respondents and than found the average satisfaction level. The graphical and tabular representation of “average satisfaction level” of subway employees is as follow:

Satisfaction N Mean Percentiles

Valid

28

Missing 0 19.0357 25

16

50 75

18.50 22

INTERPRETATION:

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From the table we can see that the mean is 19.0357 which means that the average satisfaction level of employees in Subway Franchises is 19.0357 The quartiles depicts that satisfaction level below “16” will be considered as lower satisfaction level with respect to subway employees. The satisfaction level above “22” will represent the higher satisfaction level. Similarly, the range between these two ends (16-22) is the average satisfaction level of subway employees. The graph also shows that in subway most of employee’s satisfaction level is 16 out of 25, as the length of the bar at 16 being the highest. Our analysis on graphical and tabular representation infers that the mean satisfaction level (of subway employees) lies between the lower and upper quartile which means that overall the employees have moderate level of satisfaction. HYPOTHESIS TESTING FOR MEAN: As our analysis shows that Subway employees average satisfaction level falls between 6-22 . So, to prove significance of our analysis we apply the hypothesis test. QUESTION TO BE ADDRESSED: Whether average satisfaction level falls between upper and lower quartile or not? STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho

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SOLUTION

One-Sample Test Test Value = 2 Recoded Satisfaction t df Sig. (2-tailed) Level -3.576 27 .001

INTERPRETATION: The level of significance or P value (.001) < alpha (0.05) so we reject null hypothesis, which shows that average satisfaction level of employees is not outside the range of 16 – 22 or we can say that we are 95 % sure that the average satisfaction level of Subway employees falls between 16 - 22 . So consequently, the hypothesis testing goes in the favor of our claim.

EMPLOYEE SATISFACTION LEVEL AND AGE: Age has been found to have a direct relationship with employee’s satisfaction level. In some groups job satisfaction is higher with increasing age, in other groups job satisfaction is lower and in other there is no difference at all. CALSSIFICATION OF AGE: The survey questionnaires filled by different respondents includes different age groups. For our data analysis, we have classified age into five ranges:     

Up to 20 years 21 – 25 years 26 – 30 years 31 – 35 years Above 35 years

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FREQUENCY OF AGE GROUPS: The frequency of these age groups is given as:

From the above chart, it is clear that in our survey questionnaire out of 28 approx. 3 respondents are up to 20 years, 13 respondent’s lies between 21 – 25 years, 11 respondent’s lies between 26 – 30 years and 1 respondents lies between 31 – 35 years. HYPOTHESIS TESTING WITH RESPECT TO AGE: Now, we analyze the age groups and satisfaction level of employees to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the age groups and average job satisfaction. STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2.

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Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Test Test Value = 2 Age of the Respondent upto 20 years Recoded Satisfaction Level 21-25 years Recoded Satisfaction Level 26-30 years Recoded Satisfaction Level

Sig. (2-tailed) .423 .082 .038

INTERPRETATION: For the age group up to 20 years the level of significance or P value (0.423) > alpha (0.05) so we do not reject null hypothesis, which means that the level is insignificant between the age group up to 20 years or the level of satisfaction may be above 22 or below 16 but it does not between 16-22. For the age group 21 - 25 years P value (0.082) > alpha (0.05) so we do not reject null hypothesis, which means that the level is insignificant between 21 – 25 years age group or the level of satisfaction may be above 22 or below 16 but it does not between 16-22. For the age group 26 - 30 years P value (0.038) < alpha (0.05) so we reject null hypothesis, which means that the level of satisfaction is significant and we are 95 % sure that the Subway employees (26 – 30 years) satisfaction level falls between16– 22 also this age group employees are more satisfied as its significance value is more closer to 1.

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EMPLOYEE SATISFACTION LEVEL AND INCOME: Most of the workers felt satisfied when their income is well. The relative importance of income would probably changing factor in job satisfaction or dissatisfaction. To measure the job satisfaction level of employees regarding their income we classify the income (Rupees) as:     

Below 10,000 11,000 – 15,000 16,000 – 20,000 21,000 – 25,000 Above 30,000

GRAPHICAL REPRESENTATION:

This chart determines the From the above chart it is shown that out of 28 approx. 17 respondents fall below Rs. 10,000, 5 respondents fall between Rs. 11,000 Rs. 15,000 and 3 respondents fall between Rs. 21,000 - Rs. 25,000

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HYPOTHESIS TESTING WITH RESPECT TO INCOME: Now, we analyze the income and satisfaction level of employees to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the income of the respondent and average job satisfaction STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Test Test Value = 2 Income of the Respondent

Sig. (2-tailed)

Below Rs. 10,000

Recoded Satisfaction Level

.041

Rs. 11,000 - Rs. 15,000

Recoded Satisfaction Level

.178

Rs. 16,000 - Rs. 20,000

Recoded Satisfaction Level

.184

Rs. 21,000 - Rs. 25,000

Recoded Satisfaction Level

.423

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INTERPRETATION: Since the P value (0.041) is less than α (0.05) therefore, we reject null hypothesis in case income level below Rs. 10,000 which means that the level of satisfaction is significant and we are 95 % sure that the Subway employees (Below 10,000 income) satisfaction level falls between16–22. For the income level between Rs. 11,000 - Rs. 15,000 , the P value(0.178)> alpha(0.05) so we do not reject null hypothesis , which means that the level of satisfaction is insignificant for the employees whose income is between income level of Rs 11,000 - Rs. 15,000 . Their level of satisfaction may be above 22 or below 16 but it will not between16-22. For the income level between Rs. 16,000 - Rs. 20,000, the P value(0.184)> alpha(0.05) so we do not reject null hypothesis , which means that the level of satisfaction is insignificant for the employees whose income is between income level of Rs 16,000 - Rs. 20,000. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22. For the income level between Rs. 21,000 - Rs. 25,000, the P value(0.432)> alpha(0.05) so we do not reject null hypothesis , which means that the level of satisfaction is highly insignificant for the employees whioes income is between income level of Rs 21,000 - Rs. 25,000. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22.

EMPLOYEE SATISFACTION LEVEL AND EDUCATION: Education and job satisfaction has a direct relationship. Most of the employees fell satisfied when their education and nature of job is well. For our analysis, to measure the job satisfaction level of employees regarding their education we classify the education as:     

Less then intermediate Intermediate Graduate Masters Others______________

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GRAPHICAL REPRESENTATION:

From the above chart it is shown that out of 27 approx. 10 respondents fall below intermediate level, 11 respondents’ falls in intermediate level, similarly 3 respondents fall in graduate level and 3 falls in Masters Level. HYPOTHESIS TESTING WITH RESPECT TO EDUCATION: Now, we analyze the education and satisfaction level of employees to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the education of the respondent and average job satisfaction STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION

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One-Sample Test Test Value = 2 Education of the Respondent Less then Intermediate Intermediate Graduate Masters

Recoded Satisfaction Level Recoded Satisfaction Level Recoded Satisfaction Level Recoded Satisfaction Level

Sig. (2-tailed) .168 .082 .184 .423

INTERPRETATION: For the employees whose education less than intermediate, the P value (0.168)> alpha (0.05) so we do not reject null hypothesis, which means that the level of satisfaction is insignificant for the employees whose education is less than intermediate. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22. For the employees whose education falls in intermediate level , the level of significance or P value (0.082)> alpha(0.05) so we do not reject null hypothesis , which means that the level of satisfaction is insignificant for the employees whose education falls in intermediate level. Their level of satisfaction may be above 22 or below 16 but it is not between 16-22. Similarly we can see that the employees whose education falls in graduate level, P value (0.184)> alpha (0.05) so we do not reject null hypothesis and lastly for the employees whose education falls in Master level, the level of significance or P value (0.432)> alpha (0.05) so we do not reject null hypothesis, which means that the level of satisfaction is insignificant for the employees whose education falls in Master level. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22.

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EMPLOYEES SATISFACTION LEVEL AND EXPERIENCE: Education also effects the job satisfaction. Researches shows that mostly employees show higher satisfaction at the middle of their job experience but to measure the job satisfaction level of employees regarding their experience we classify the experience level as:    

Less than 1 year 1-5 years 5-10 years Above 10 years

GRAPHICAL REPRESENTATION:

From the above chart it is shown that out of 28 approx. 8 respondents fall in the category of less than 1 year experience, 16 falls between 1-5 years experience and only 4 respondents’ falls between the categories of 5-10 year experience.

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HYPOTHESIS TESTING WITH RESPECT TO EXPERIENCE: Now, we analyze the experience and satisfaction level of employees to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the experience of the respondent and average job satisfaction STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Test Test Value = 2 Experience of the Respondent Less than 1 year 1 - 5 years 5 - 10 years

Recoded Satisfaction Level Recoded Satisfaction Level Recoded Satisfaction Level

INTERPRETATION: 44

Sig. (2-tailed) .351 .004 .391

BUSINESS RESEARCH METHODS

For the respondents whose experience is less than 1 year , the P value(0.351)> alpha(0.05) so we do not reject null hypothesis , which means that the level of satisfaction is insignificant for the employees whales experience is less than 1 year. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22. For the employees whose experience falls between 1-5 years, the level of significance or P value (0.004) < alpha (0.05) so we reject null hypothesis, which means that the level of satisfaction is significant for the employees experience falls between 1-5 years or we are 95% % sure that the Subway employees (between 1 – 5 years experience) job satisfaction level falls between16–22 The employees whose experience is between 5-10 years shows P –value (.0391)> alpha (0.05) so we do not reject null hypothesis , which means that the level of satisfaction is highly insignificant for the employees whose experience is between 5-10 years. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22.

EMPLOYEE SATISFACTION LEVEL AND GENDER: Males and females employees have different level of satisfaction regarding their jobs. To measure the job satisfaction level of employees we took 28 respondents. GRAPHICAL REPRESENTATION:

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BUSINESS RESEARCH METHODS

This chart shows in our survey questionnaire out of 28 approx. 3 respondents are female and 25 respondents are male. HYPOTHESIS TESTING WITH RESPECT TO GENDER: Now, we analyze the gender and satisfaction level of employees to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the gender and average job satisfaction STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Testa Test Value = 2 Gender of the Respondent Sig. (2-tailed) Male

Recoded Satisfaction Level

.001

INTERPRETATION: For males, the level of significance or P value (0.001) < alpha (0.05) so we reject Ho which shows that the level of satisfaction is significant or we can say that we are 95% sure that the male satisfaction level falls between 16 – 22.

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EMPLOYEE SATISFACTION LEVEL AND MARITAL STATUS: Marital status also has an important role in deciding the job satisfaction. To measure the job satisfaction level of employees according to their martial status in our survey questionnaire we took 28 respondents. GRAPHICAL REPRESENTATION:

This chart shows in our survey questionnaire out of 28 approx. there are 17 respondents whose marital status is single and there are 11 respondents whose marital status is married. There is no respondent with divorced marital status. HYPOTHESIS TESTING WITH RESPECT TO MARITAL STATUS: Now, we analyze the gender and satisfaction level of employees to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the gender and average job satisfaction STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. 47

BUSINESS RESEARCH METHODS

Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Test Test Value = 2 Marital Status of the Respondent Recoded Satisfaction Level Recoded Satisfaction Married Level Single

Sig. (2-tailed) .041 .016

INTERPRETATION: The data analysis shows, the respondents who are single their P value (0.041) < alpha (0.05) so we reject Ho which shows that the level of satisfaction is significant or we can say that we are 95% sure that the respondents whose marital status is single falls in the satisfaction level between 16 – 22. Similarly the respondent whose marital status is married shows that their P value (0.016) < alpha (0.05) and their level of satisfaction is also significant. Over all the results of married respondents are more significant then respondents whose marital status is single.

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EMPLOYEE SATISFACTION LEVEL AND DEPERTMENT: For our data analysis, we take different departments of subway to measure the job satisfaction level of employees we classify the departments into three different categories. As:  Operation  Management  Accounts

GRAPHICAL REPRESENTATION:

From the above chart it is shown that out of 28 approx. 6 respondents belongs to management department, 20 belongs to operation department and only 2 respondents belongs to accounts department.

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HYPOTHESIS TESTING WITH RESPECT TO DEPARTMENT: Now, we analyze the employees in different departments and their satisfaction level, to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the departments of subway in which the employees are working and job satisfaction level STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Test Test Value = 2 Department of Subway Management Operations Accounts

Recoded Satisfaction Level Recoded Satisfaction Level Recoded Satisfaction Level

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Sig. (2-tailed) .076 .021 .500

BUSINESS RESEARCH METHODS

EMPLOYEE SATISFACTION LEVEL AND BRANCHES: For our data analysis, we take different branches of subway to measure the job satisfaction level of employees we categorize the branches as        

Faisal Town Gulberg Garden town Main Boulevard Pico road DHA (H- Block) DHA (Y- Block) DHA (T- Block)

GRAPHICAL REPRESENTATION:

From the above chart it is shown that out of 28 approx. 5 respondents belongs to Faisal Town branch, 3 belongs to Gulberg, 3 belongs to garden town, 5 belongs to main boulevard, 5 belongs to Pico road, 5 belongs to DHA (H- Block), 1 belong to DHA (Y- Block) and 1 respondent belongs to DHA (T- Block)

HYPOTHESIS TESTING WITH RESPECT TO DEPARTMENT:

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Now, we analyze the employees in different branches and their satisfaction level, to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the branches of subway in which the employees are working and average job satisfaction STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION One-Sample Testa Test Value = 2 Branch of Subway Main boulevard Recoded Satisfaction Level Pico Road Recoded Satisfaction Level DHA (H-Block) Recoded Satisfaction Level

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Sig. (2-tailed) .070 .178 .070

BUSINESS RESEARCH METHODS

INTERPRETATION: In survey Questionnaire data, branch of Main Boulevard and DHA (H-Block) shows that the P-Value (0.70) < alpha (0.05) so we reject Ho which shows that in Main Boulevard and DHA(H-Block) Branch, the employees satisfaction level is significant or we can say that we are 95% sure that these respondents falls in the satisfaction level between 16 – 22. The branch of Pico Road shows that the P-Value (0.178) > alpha (0.05) so we do not reject null hypothesis , which shows that in Pico road Branch, the employees satisfaction level is insignificant and their level of satisfaction may be above 22 or below 16 but it does not between 16-22. The department of Accounts shows that the P-Value (0.500) > alpha (0.05) so we do not reject null hypothesis, which means that the level of satisfaction is highly insignificant for the employees who are in accounts department. Their level of satisfaction may be above 22 or below 16 but it does not between 16-22. EMPLOYEE SATISFACTION LEVEL AND DESIGNATION: The designation of employees matters a lot when measuring job satisfaction level. So for data analysis we notice different designation of subway employees to measure the job satisfaction level of them. We categorize the designations as     

Manager Sandwich artist Shift in charge Accountant Supervisor

GRAPHICAL REPRESENTATION:

From the above chart it is shown that out of 28 approx. 5 respondents are managers, 19 respondents are shift in charge, 1 respondent is shift in charge, 2 are accountant and only 1 respondent is supervisor. 53

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HYPOTHESIS TESTING WITH RESPECT TO DESIGNATIONS: Now, we analyze the employees in different designations and their satisfaction level, to see the level of significance between them. For this we apply the hypothesis testing. STATEMENT: To see the level of significance between the designations of employees in and job satisfaction level STEPS FOR HYPOTHESIS TESTING: To make our data presentable, we give the ranges to our satisfaction level data. The range between16 – 22 is recoded as 1 and all the other values are recoded as 2. Now, the Null hypothesis, alternative hypothesis and decision rule are given as follow: µ =2 µ≠2 P values < α, reject Ho. Otherwise, do not reject Ho SOLUTION

One-Sample Testa Test Value = 2 Designation in Subway Manager Sandwich Artist

Recoded Satisfaction Level Recoded Satisfaction Level

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Sig. (2-tailed) .070 .010

BUSINESS RESEARCH METHODS

INTERPRETATION: In survey Questionnaire data, manager designation shows that the P-Value (0.70) > alpha (0.05) so we do not reject null hypothesis , which shows that at managers designation, the employees satisfaction level is insignificant and their level of satisfaction may be above 22 or below 16 but it does not between 16-22. Similarly, sandwich artist designation shows that the P-Value (0.10) > alpha (0.05) so we do not reject null hypothesis , which shows that at sandwich artist designation, the employees satisfaction level is insignificant and their level of satisfaction may be above 22 or below 16 but it does not between 16-22.

CROSS TABULATION OF SATISFACTION LEVEL, BRANCH, DEPARTMENT AND DSSIGNATION: For data analysis, we use cross tabulation to measure the satisfaction level of employee in a specific branch, department and designation. Our analysis shows:  An employee working in the operations department of Subway has the satisfaction level of 12 and is in Main Boulevard branch.  Employee working in the branch of Main Boulevard in the department of Management and Accounts has the job satisfaction level of 15.  One of the employees working in the management department in Garden Town, 2 employees working in operations department of Main boulevard Subway branch and 2 employees at Faisal Town and 1 at Pico Road working in the department of operations has the satisfaction level of 16.  From the branch of Faisal Town and Gulberg 1 employee respond respectively to this questionnaire working in the operations department have job satisfaction level of 17.  1 employee at Faisal Town branch working in operations department and 1 from the Accounts department of Gulberg has level of satisfaction of 18.  1 employee of Pico branch working in the operation department has the satisfaction level of 19.  From Fiasal Town and Gulberg 1 employee responds working in operation department has Job satisfaction level of 20. 1 employee of Garden town and

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DHA (H-Block) respectively working in the accounts department also have the satisfaction level of 20.  1 respondent of DHA (H-Block) working in operation department has satisfaction level 21.  1 employee From DHA(Y-Block) and 1 from Pico Road respond working in operation department has Job satisfaction level of 22.  1 employee of Pico Road working in management department has the satisfaction level of 23 and 1 from DHA (H-Block) working in the department of operations has the job satisfaction level of 23.  An employee in operation department working in the DHA (T-Block) branch has satisfaction level of 24.  An employee of operation department working in Pico Branch has the level of satisfaction 25.1 employee from management department and 1 from the operation department also has the satisfaction level of 25.

FACTOR ANALYSIS: Factor analysis is used for the prioritizing the factors which leads toward the higher job Satisfaction level of the employees of Subway Component Matrix

All in all, I am satisfied with the work of my job. All in all, I am satisfied with my co-workers. All in all, I am satisfied with the supervision. All in all, I am satisfied with my pay (total wages and tips). All in all, I am satisfied with the promotional opportunities.

Component 1 .882 .935 .804 .851 .510

After running the factor analysis we come to know that the satisfaction level of the employees at Subway become high if the Management of Subway focuses on hiring friendly people and have friendly environment at subway. The table of component matrix shows that the value of the factor All in all I am satisfied with the co-workers is 0.935 which is higher among other values which represents that the employees job satisfaction will enhance with their co-workers.

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RELIABILITY AND VALIDITY: According to the sample size, there were 28 respondents who filled the questionnaire and in return we got the 100% response from them. The validity or strength of the data is 100% and there was no barred data measured during our analysis. If we measure the reliability of the data, we can see that alpha is 0.809 and shows approximately 81% of the reliability in its internal consistency.

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Reliability Statistics Cronbach's Alpha

N of Items

.809

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CHAPTER 7

FINDINGS

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FINDINGS

Through running SPSS and analyzing that result we find that: The number of respondents:

Statements

Strongly Disagree (N)

All in all, I am satisfied with the work of my job

Disagree (N)

Neither agree nor Disagree(N)

Agree (N)

Strongly agree (N)

Total (N)

1

2

18

7

28

1

18

9

28

2

1

17

18

28

9

2

9

5

28

8

4

12

4

28

All in all, I am satisfied with my coworker All in all, I am satisfied with the supervision All in all I am satisfied with my pay All in all I am satisfied with the promotional opportunities

3

 The average satisfaction level of Subway employees range 16-22.  The Subway employees (26 – 30 years) satisfaction level falls between16–22  The Subway employees (Below 10,000 income) satisfaction level falls between16–22  The level of satisfaction is significant for the employees experience falls between 1-5 years.  The male satisfaction level falls 16 – 22.  The respondent whose marital status is single or married falls in the satisfaction level 16 – 22. 59

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 The level of satisfaction of employees in operation and management department is significant which means that these respondents’ falls in the satisfaction level 16 – 22. From "most" to "least", we have found out the factors, which are meant to be the reason of satisfaction for employees at subway. Employee satisfaction graph with respect to variables

Satisfaction factor All in all, I am satisfied with the work of my job.

Component

1

1

0.9

.882

All in all, I am satisfied with my co-workers.

.935

All in all, I am satisfied with the supervision.

.804

jo b

c o w o rk e r s su p e r v isi o n

pa y

0.8 0.7 p r o m tio n a l a c tiv itie s

0.6 0.5 0.4 0.3 0.2

All in all, I am satisfied with my pay (total wages and tips).

.851

All in all, I am satisfied with the promotional opportunities.

.510

0.1 0 1

 The top reason for the satisfaction of employees at subway is their "satisfactory terms" with co-workers.  The second, third, and the fourth factor nourishing the satisfaction in employees at subway are; "job, pay, and supervision respectively".  The least supporting factor for satisfaction, as per employees feed back is, "the promotional opportunities.

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CHAPTER 8 RECOMMANDA TION

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RECOMMANDATION The recommendations are:  Growth and advancement is one of the major concerns of the employees. An employee at subway doesn’t seem to be much satisfied with promotional opportunities. The management should provide the employees with sufficient promotional opportunities. This will make them feel that they are being recognized by the company and this will be a motivating factor for them.  Some of the respondents are not satisfied with their supervision. Their seems to be a need of more friendly supervision at work which will enable employees to participate in the tasks with greater interest and thus the objectives of the organization will be met in a better way.  Another factor that needs to be worked on by the organization is the pay structure because employees don’t seem to be entirely satisfied with that even. So another structure could be devised that offer employees more than what they are currently receiving.  From among all other, though the employees seem to be having a good relationship with their fellow employees, but there is always room for a better environment and a better rapport among employees so this should not be ignored too. Good relationships create positive synergy and this affects the output too.

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CONCLUSION: It was a great learning experience, in terms of “research conduct and data analysis”. The over all picture of employee satisfaction (at subway) seemed to be satisfactory. Out of our observation, through this experience, we can consequently state that employees at subway were reluctant to give their feedback. All, except some of the areas, need improvement in order to enhance the satisfaction level of employees. First and foremost area of consideration is “promotional opportunities”. Some people also disagreed being satisfied with their salary package.

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Reference : 1. http://en.wikipedia.org/wiki/Subway_(restaurant)#cite_note-20 2. http://world.subway.com/Countries/frmMainPage.aspx?CC=AFG 3. http://www.subway.com/subwayroot/index.aspx 4. http://world.subway.com/Countries/frmLocatorResult.aspx? CC=PAK&LC=ENG&Mode 5. http://www.scribd.com/doc/22108379/A-Study-About-Gender-EducationLevel-Salary-And-Job-Satisfaction 6. http://www.scribd.com/doc/24839933/Literature-Review-Final 7. http://www.emeraldinsight.com/Insight/ViewContentServlet? Filename=Published/EmeraldFullTextArticle/Articles/0500190701.html 8. http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs 9. http://www.scribd.com/doc/13489923/Job-Satisfaction-Study-State-Bank-ofIndia-in-Coimbatore-City 10. http://www.emeraldinsight.com/Insight/ViewContentServlet;jsessionid=895A2 3580F6316DE28A8C114C969EA10? Filename=Published/EmeraldFullTextArticle/Pdf/0530200405.pdf

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