Finalidad y Metodología

Findings

1. The present study reviewed the performance of ITC on the basis of the perspectives provided in the Balanced Scorecard format. The study found that ITC is able to achieve its objectives of:

(a) To be one of India‘s most valuable and competitive corporation (b) To maintain its market position continuously over the years (c) To serve the Indian economy through value creation

(d) To create value for the stakeholders of the corporation through earnestly implementing its existing strategies

2. It was found that the Company‘s ROI and ROCE have been growing over the years.

3. The sales as well as the profitability ratios of the Company shows that the Company is very stable and has a very strong position in the industry and has a high growth potential to remain as the leader and as one of the most valuable corporations of the Indian economy for the years to come.

4. The tax paid by the Company to the exchequer is increasing year after year, thus contributing to the development of the Indian economy.

5. They are progressively reducing the contribution of their tobacco business in their total turnover by progressively diversifying their business, introducing many products in the FMCG sector and building many brands. ITC‘s entry into these new sectors has made those sectors of the economy very vibrant.

6. The Company is committed towards creating value for its stakeholders. The Company creates value for its shareholders as it declares maximum dividend. The dividend payout of the Company has been increasing over the years.

7. ITC is a high performance organization, which gives equal importance to both its customers and its shareholders. They have initiated several CSR activities. They believe that they have a commitment towards its customers, workers and general public. They have received a number of reward and recognitions for their CSR initiatives.

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8. The employee retention of the division was analysed and it was seen that the retention rate has been increasing over the years. The employees are satisfied with their working environment and this is the reason for the retention rate to be quite high.

9. Employee productivity of the division is also quite high. The productivity per employee has not shown much fluctuation over the years. The turnover as well as the number of employees in the division has been increasing.

10. The result of the employee satisfaction survey suggests that by and large the employees of ITC are satisfied. But the level of satisfaction is not that high but above average. The factor analysis established that the five factors that affect the satisfaction of the employees in ITC were identified to be: career growth, compensation and development, incentives, relationship and learning and development.

11. The study found that ITC Ernakulam division has a considerable percentage of young employees.

12. The majority of the employees working in the division have previous experience.

13. The majority of the employees working in the division are satisfied with their working environment and are also satisfied with the superior-subordinate relationship of the organization.

14. It was found that the Company gives importance to their learning and growth activities. The people in the division have the ability to learn very quickly and are very flexible. This has helped ITC in achieving success in their diversification efforts and that they could build a number of FMCG brands in a very short span of time.

15. Majority of the employees are satisfied with the training given in the organization.

But the number of employees who are not satisfied with the training in the organization is also high.

16. Majority of the employees are satisfied with the present performance appraisal system.

17. Even though majority of the employees are satisfied with the pay package, there are considerable number of employees who are not satisfied with their pay package. It is found that it is the younger generation who are not satisfied with their pay package.

They also have only a medium level of satisfaction regarding their working environment.

18. The majority of the employees are satisfied with the promotion activities and also feel that working in ITC has added value to their career.

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19. The analysis shows that the employees in the 25-35 age group are more satisfied with the working environment.

20. The employees in the 25-35 age group are also satisfied with the superior-subordinate relationship existing in the Company.

21. The employees are satisfied with the appraisal process and they feel that the Company is giving importance to their career growth and that the Company has added value to their career.

Suggestions

1. The Company has to give more emphasis on the training activities. There is a high chance for improving the training effectiveness in the Company. ITC should conduct a study on its training activities and put efforts to find out the factors which are responsible for reducing the training effectiveness.

2. The considerable number of employees are not fully satisfied with the present appraisal system. So the organization may study the effectiveness of the different aspects of performance appraisal to identify the areas of weakness and if necessary, redesign the system to make it more employee friendly. After all, the success of any employee oriented system depends on employee perception and their co-operation.

What is important is creating a perception among the employees that the system is useful and effective for their career advancement.

3. Many of the young employees who have prior experience are not happy with the pay package. It is a factor that the management should consider at the time of appointment of a new employee. It is not advisable to select youngsters with considerable prior experience at entry level salaries. They may accept the offer at the time of recruitment, but once they join the firm and find out that those people with lesser experience is drawing more than them, they will get dejected.

124 Conclusion

Creating value for the stakeholders and the Indian economy is the cornerstone of the Company. The Company has a strong position in the market and has a good brand name and a very good customer base. The people relate the Company to quality and reliability, which are the most essential components of a business‘s success. So it is clear that they will grow stronger and will remain the most valuable and competitive corporations in the years to come.

The Company has come forward to serve the Indian economy and environment. It has initiated a number of programmes that are advantageous to the Indian economy. It has also taken steps in preserving the essence of the Indian culture, which is really appreciable. The Company‘s most important and notable initiative is e-Choupal that provides a great deal of help to the rural society. Through all these initiatives, the Company is definitely serving the Indian economy and has added great value to itself. It is clear from the various awards and recognitions that the Company has received for these initiatives.

All these are made possible because of its employees and its efforts to retain the best possible talent within the Company. ITC‘s greatest strength is its people- diverse and motivated people with the expertise and insight to tackle the toughest client issues. ITC does not discriminate due to sex, age, creed, and colour. They promote drug free environment, encourage development with excellent training.

The Company has been supporting the best possible HR practices for this. It gives great importance to the career development of the employees. ITC believes the responsibility for career development rests both with the individual and the organisation. While the organisation provides opportunities for learning and growth, it is the individual's responsibility to ensure he enhances his competencies to shoulder higher responsibilities.

The different measures of the learning and growth aspect of the organization were studied and were found that these were quite satisfactory, even though, some changes have to be brought about.

The Company‘s Board and employees are inspired by their Vision of sustaining ITC‘s position as one of India‘s most admired and valuable companies through world-class performance, creating enduring value for all stakeholders, including the shareholders and the Indian society. It takes each step carefully to ensure that its strategic capability is upgraded so

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that it can face the challenges proposed by increasing and intense competition in the market.

Effective management of diversity enhances the Company‘s adaptive capability and provides the intrinsic ability to effectively manage business risk. The vision of enlarging the Company‘s contribution to the Indian economy is manifest in the creation of unique business models that foster international competitiveness of not only its businesses but also of the entire value chain of which it is a part.ITC is driven by its values and Vision and is committed towards building a much brighter future for its stakeholders, its customers and also the Indian economy.

126 APPENDIX

A STUDY ON

EMPLOYEE SATISFACTION