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Project Study 2012

EXECUTIVE SUMMARY

The title of the project is ‘A STUDY ON THE INFLUENCE OF JOB SATISFACTION ON ORGANIZATIONAL CITIZENSHIP BEHAVIOUR AT THE ARYA VAIDYA PHARMACY (COIMBATORE) LIMITED’.

Job satisfaction is critical to success in any organization. In order to achieve increased and sustainable business results, organizations need to execute strategy and engage employees.

Job satisfaction in organization is thought to encourage workforce skill and motivation leading to increase in organizational citizenship behavior. However, previous researches conducted suggest that most organizations are struggling to get it right.

The objective of this study is to throw light on the relationship between job satisfaction and Organizational citizenship behavior. The study emphasizes on the effect of job satisfaction on organizational citizenship behavior using data gathered from the organizations operating in India.

A sample of 100 employees is taken from The Arya Vaidya Pharmacy (Coimbatore) Limited, Ramanathapuram, Coimbatorefor the study.

Standardized questionnaires for both the variables were used to collect the data.

The results showed that there is significant impact of job satisfaction on organizational citizenship behavior as the tests revealed a positive relationship between the two variables.

School of Management and Business Studies 1

Project Study 2012

Chapter1Introduction


Project Study 2012OBJECTIVES OF THE STUDY

GENERAL OBJECTIVE • To study the relationship between job satisfaction and OCB among Employees of The Arya Vaidya Pharmacy (Coimbatore) Ltd.

SPECIFIC OBJECTIVES 1. To study the level of job satisfaction. 2. To study the level of OCB. 3. To study the influence of job satisfaction variables on OCB.

SIGNIFICANCE OF STUDY

Job satisfaction plays a pivotal role in the success of every organization. It is very important in today’s global context that organizations ensure the satisfaction of employees with their jobs so that they elicit OCB, which is the ideal form of behaviour that can be exhibited by an individual in an organization. Citizenship behaviours are important as they tabulate the social machinery of the organization. They provide the flexibility required to work through the unforeseen contingencies and enable healthy interdependence within an organization. This study may help organizations in the banking industry for formulating and altering the organizational strategy, which would ultimately help the employees to be better citizens of the organization.

LIMITATIONS

OCB levels of the employees as understood as self-perception, is a limitation, as the respondents have ego factors at play while responding to the questions. Most of the employees were approached during their working hours, and hence could not spend adequate time to think and analyse their attitudes thoroughly before filling up the questionnaire, which could affect the genuineness of the responses.


Project Study 2012

Chapter 2Industry profile

and Company profile


Project Study 2012

1. INDUSTRY PROFILE

THE INDUSTRY IN INDIA

About 20000 units are involved in this field amounting to about Rs.50 Billion in Market Size. In the Ayurveda sector, the main players include Dabur, Himalayas, Zandu, Baidyanath.

Almost 60% Indian Population depends on this system of health Care.

Indian Planning Commission estimates massive potential increases in this export volume, to Rs. 30 billion by 2005 and to Rs. 100 billion by 2010 (Planning Commission 2000).Germany, UK, France, Switzerland, Japan and USA are major importers of Indian medicinal plant products.

In India, there are about 250 000 registered medical practitioners of the Ayurvedic system as compared to about 700 000 of the modern medical system. Traditional medicines are governed by the Drugs and Cosmetics Act of 1940 and the Drugs and Cosmetics Rules of 1945. Solvent Extraction & Super critical Fluid Extraction are done to manufacture the Extracts. World Market for Traditional Health Care products based on Medicinal Plants is estimated to be around USD 80 Billion and expected to grow at the rate of 20% per year.

ANNUAL AYURVEDIC MEDICINE PRODUCTION IN INDIAAyurveda evolved around 600 B.C. in India and is a system of holistic medicine that is based on eliminating toxic imbalances from the body. Basically, it treats the whole well-being of the patient, not just the ailment, under the primary tenet that health is not merely the absence of disease but the overall state of physical, mental, social and spiritual well-being. The commercial production and sale of Ayurvedic products as a modern industry is around 100 years old, and India's annual production of Ayurvedic medicines is estimated to be approximately US$ 1 billion.

PRODUCTION OF AYURVEDIC PRODUCTS

World Health Organization statistics support the popularity of traditional medicine the world over and the significant percentage of the world's population that depends on such treatments for their primary health care.

Ayurveda is used to holistically treat the entire physical and psychological well-being of the patient. Products include those for skin, hair, anxiety and depression, male and female ailments, brain, liver and kidney functions (as well as treatments for other internal organs), digestion and metabolism, stress, sexual issues, immunity and as general cosmetics. Many plant parts go into the making of Ayurvedic products, including the stem, seeds, roots,


http://www.ehow.com/health/

Project Study 2012fruits, fruit rind, resin, bulbs and rhizomes. Vegetable, mineral and herbal products are also used, the most common of which are cardamom, cinnamon, sulfur and even gold.

MAJOR PLAYERS IN INDIA

Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighbourhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine.

The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries.

The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from oldest to newest:

Dabur India Ltd. Sri Baidyanath Ayurvedic Bhawan Ltd. Zandu Pharmaceutical Works The Himalaya Drug Company Charak Pharmaceuticals Vicco Laboratories The Emami Group Aimil Pharmaceuticals Ltd.

STATUS OF AYURVEDA IN INDIA

The Indian government and non-government organizations have been collecting statistics on the Ayurvedic system in India and these data about the manpower and institutional aspects of Ayurveda have emerged:

Number of registered medical practitioners: 366,812 Number of dispensaries: 22,100 Number of hospitals: 2,189


http://www.emamigroup.com/index.htm

http://www.viccolabs.com/index.htm

http://www.charak.com/index.asp

http://www.himalayahealthcare.com/index.htm

http://www.zanduayurveda.com/main.htm

http://www.baidyanath.com/

http://www.dabur.com/EN/Home/Home.asp

Project Study 2012 Number of hospital beds: 33,145 Number of teaching institutions (undergraduate): 187 Number of upgraded postgraduate departments: 51 Number of specialties in postgraduate medical training: 16 Number of pharmacies manufacturing Ayurvedic medicines: 8,400

MODERN MARKET DEVELOPMENTS

The SAARC (South Asia Association for Regional Cooperation) was formed in 1985; its member countries are India, Pakistan, Nepal, Bangladesh, Bhutan, Maldives, and Sri Lanka. These countries all have been influenced by Ayurvedic medicine. Trade in Ayurvedic medicines within the SAARC is mostly limited to raw materials that grow in one region (e.g., high mountains, northern climate) and are then exported to other regions (e.g., lowland southern areas). Because of the large number of very small factories that try to service the local communities, with products labeled with the local language, there is little opportunity for suppliers in one SAARC country to send finished products to another SAARC or even abroad.

Entrepreneurs in these countries (mainly in India) seeking to break into the market for natural products have determined, rightly, that the demand for traditional style Ayurvedic medicines both inside and outside the region is limited, despite growth trends as high as 20% annually encountered in the late 1990s. They have aimed to bolster interest by carrying out scientific research into promising herbs and formulas that are based on Ayurveda but not necessarily reflecting traditional practices. Of necessity, such research eventually focuses on finding of active ingredients, and this has led to the development of isolates from plants that are sold as "nutriceuticals" (substances not registered as drugs, but used like nutritional and dietary supplements, sold over the counter in various formulations with specific health benefits portrayed for them). For these, there is a growing worldwide demand. The main suppliers of nutriceuticals are Japan, China, and the U.S., but India stands to become a significant contributor.

India is one of the major exporters of crude drugs mainly to the six developed countries, viz. USA, Germany, France, Switzerland, UK and Japan.

Exports of Ayurvedic medicines have reached a value of 100 million dollars a year (about 10% the value of the entire Ayurvedic industry in India). About 60% of this is crude herbs (to be manufactured into products outside India), about 30% is finished product shipped abroad for direct sales to consumers, and the remaining 10% is partially prepared products to be finished in the foreign countries (see Appendix 1 for examples of Ayurvedic distribution from India with products available worldwide).

Imports of Chirata and other Himalayan medicinal plant crude drugs come from Nepal and Bhutan, Oleoresin gugul from Pakistan, Liquorice from Afghanistan, Banshalochan from


http://www.saarc-sec.org/

Project Study 2012Singapore. Clove (Syzygium aromaticum), Nutmeg mace (Myristica fragrence aril), Ginger (Zingiber officinale), Kapurkachri (Hedychium spicatum) and Patang (Caesalpinia sappan) are the other raw materials partially imported to fulfill the requirement.

In 1970, the Indian Medical Central Council Act was passed to standardize qualifications for Ayurveda and provide accredited institutions for its study and research. Today, more than a hundred colleges around the country offer degree programs in traditional Ayurvedic medicine.

The state-sponsored Central Council for Research in Ayurveda and Siddha (CCRAS) is the primary institution for traditional medicine in India and has conducted studies on ayurvedic elixirs, ingredients and results. Within India, such traditional, over-the-counter remedies remain the most popular, accounting for almost 70% of medicinal products sold in the country, with 30% being prescription drugs. The herbal and ayurvedic market in India is predicted to continue to grow at a rate of 12 to 15% per year.

THE FUTURE OF AYURVEDA

The future for Ayurvedic practice is bright, according to the American Academy of Ayurvedic Medicine, but needs the the proper support of public and private partnerships such as the Indian government, health ministry, elite Ayurvedic institutions and academic institutions in India and the U.S. AAAM states that "In order for Ayurveda to be recognized as a proper health care discipline, there is a need of well-trained practitioners and clinicians trained in the Indian sub-continent, Europe and the U.S. Ayurveda is supported by historical information and forms the basis of many Eastern and Western health care disciplines. In spite of Ayurveda being a prime healing science, it has suffered great deal of neglect and discrimination by various internal and external forces in India and abroad. It has not achieved its proper position and recognition as a health science due to a lack of proper infrastructure, clinical and academic support.


Project Study 2012

2. COMPANY PROFILE

THE ARYA VAIDYA PHARMACY (COIMBATORE) LIMITED

The Arya Vaidya Pharmacy, was established on 12th July 1943, and had its humble beginning in a small rented building on Trichy Road, Coimbatore. On 1st April 1948 The Arya Vaidya Pharmacy (Coimbatore) was registered as a Public Limited Company. Over the years, it has grown into a large enterprise in the field of Ayurveda offering services in the fields of Education, Research, Pharmacy and Clinical Practice. AVP manufactures around 400 therapeutic formulations in the two GMP certified production facilities. It is the first Ayurveda Company in South India to gain Government‚ GMP certification for production standards under the WHO guidelines for Ayurveda.

AVP has 50 branches, with the full-time consultancy service of ayurveda physicians, some also having therapeutic treatment facilities under trained Ayurveda therapists. AVP‚ Marketing & Services department takes care of the nationwide distribution of Ayurveda medicines through C&F agents and over 1000 agencies.

The AVP Group has been spearheading important research activities in the field of Ayurveda. The first ever WHO sponsored clinical trial to evaluate the efficacy of Ayurveda in management of Rheumatoid Arthritis was conducted at the Ayurvedic Trust Hospital in the 1970s in collaboration with the Indian Council of Medical Research (ICMR). More recently, the Ayurvedic Trust was involved in a National Institutes of Health (NIH), USA sponsored study to scientifically evaluate Ayurveda in collaboration with the University of Los Angeles, California and University of Washington, Seattle.

The Ayurvedic Trust, the charitable wing of the AVP Group has now received the Center of Excellence grant from the Department of AYUSH, Ministry of Health and Family Welfare, Govt. of India as a Clinical Research Hospital specializing in Rheumatology.

One of the main objectives of the AVP group of Institutions is to make genuine Ayurvedic Treatment available to more people around the world.

FOUNDER OF ARYAVAIDYA PHARMACY

Arya Vaidyan P.V.Rama Varier was born in 1908 as the only son of Vaidyavichakshanan Mankulangara Kunjan Varier, a reputed Sanskrit scholar, poet and physician and Smt. Putiya Variyath Kutty Varasiar. He joined the Ayurvedic College at Kottakkal after his high school studies and was the trusted disciple of Vaidyaratnam P. S. Varier. Under the able guidance of his preceptor he was trained not only in the treatment of illnesses but also in the preparation of medicines. He was given the independent charge of the Calicut Branch of


Project Study 2012Kottakkal Arya Vaidya Sala in 1930, which he continued till 1943. The thirteen years of his office under the able Guru found in him a trusted lieutenant, a well known Ayurvedic physician and a man reckoned with in various spheres of public activity. His deep knowledge, innate sincerity, humility and capacity for untiring hard work won for him the deep affection and trust of all those who came into contact with him. He resigned his job on 30th June 1943 and with his blessing of his Guru and good wishes of his colleagues set out on his new venture.

HISTORY

The Arya Vaidya Pharmacy (Coimbatore) Ltd. (AVP), was founded in 1943 by late Arya Vaidyan P. V. Rama Variar who was a humanitarian, philosopher and physician par excellence. The milestones of Arya Vaidya Pharmacy since its inception are given below.

1943- Establishment of AVP 1948- Formation of Arya Vaidya Pharmacy (Coimbatore) Limited as a public

limited company 1950- Establishment of Arya Vaidya Chikitsalayam, an Ayurveda Hospital at

Coimbatore 1976- The World Health Organization and ICMR sign an agreement with the Arya

Vaidya Chikitsalayam for clinical research on Ayurveda remedies for rheumatoid arthritis.

1978- Establishment of Arya Vaidyan Rama Varier Educational Foundation of Ayurveda (AVREFA) and commencement of Degree course in Ayurveda in a unique gurukula model.

1979- Establishment of International Institute of Ayurveda under AVR Educational Foundation of Ayurveda.

1980- Release of the first copy of Ancient Science of Life an internationally acclaimed journal on Ayurveda.

1982- Recognition of the research institution by the Dept. of Science & Technology and various universities as a research centre.

1983- Commencement of comprehensive Rural Health Programme sponsored by USAID through the Govt. of India in application of Ayurveda and Siddha in promoting healthcare through primary health centres.

1985- Introduction of Heal range of specialized OTC Products. 1989- Commissioning of AVP second manufacturing unit at Thennilapuram. 1995- Agreement with TBGRI, Thiruvanthapuram, to manufacture and market

Jeevani unique herbal immunoenhancing product. 50% of the Royalty & License fees goes to the Kani tribals of Kerala, towards intellectual property right over the medicine (first ever recognition of a community intellectual property)

1997- Granting of the Good Manufacturing Practice (GMP) certificate to the Thennilapuram unit from the Drug Controller, Government of India.

1999- Recognition of R&D of AVP by DSIR of Ministry of Science and Technology, Government of India.


Project Study 2012 2000- Setting up of AVP first Ayurveda Therapeutic Centre abroad in Kuala

Lumpur 003- Setting up of AVTAR, the research division of AVP. National Institutes of Health, USA awards PICRC Research Grant to Ayurvedic

Trust through the University of Washington, Seattle Granting of the Good Manufacturing Practice (GMP) certificate to the Kanjikode Unit.

2003- RUDRA Random Uninterrupted Documentation for Retrospective Analysis was initiated in the

Out Patient Department of Arya Vaidya Chikitsalayam and Research Institute 2005- Inauguration of exclusive AVP Clinic & Information Centre at Trichy Road,

Coimbatore. 2006- Setting up of exclusive Capsuling and Tableting Division and exclusive

Cosmetic Division in Coimbatore. 2008-Coconut development Board, Govt. of India, sectioned a Project to AVTAR

for research on value addition to Virgin Coconut Oil. New factory unit inaugurated at Kanjikode. 2010- Department of AYUSH, Ministry of Health and Family Welfare, Govt. of

India awarded center of excellence grant. New sophisticated OP Department was inaugurated at Ayurvedic trust campus by

Dr. S. K. Sharma, advisor, Department of AYUSH, Ministry of Health and Family Welfare, Govt. of India.

AVP GROUP OF INSTITUTIONS

AVP Group of Institutions is multifaceted organization focusing on Ayurvedic health care, research, education, manufacturing, treatment equipments, publications and marketing. The institution is also involved in voluntary activities impacting ayurveda around the globe.

The Major divisions of AVP Group of Institutions are ‘The Arya Vaidya Pharmacy (Cbe) Ltd’. famous as AVP, ‘The Ayurvedic Trust’ known as AVT and ‘Arya Vaidyan Rama varier Educational Foundation of Ayurveda’ known as AVREFA.

DIVISIONS

AVP AVP COSMETICS UNIT The ayurvedic trust (AVT) Manoharam group suraksha security Ksheera sagara diary AVREFA AVP Factories Arya Vaidya Chikitsalayam (AVC) AVREFA Ayurveda College AVP Foods AVT Institute for Advanced Research (AVTAR) International Institute of Ayurveda (IIA)AVP Training Academy


Project Study 2012 Arsha Yoga Vidya Peetam Trust Centre for Indian Medical Heritage (CIMH) AVP Treatment Equipments Enterprises Divyam Academy Saranya Multi-Specialty Ayurveda Hospital Ayushman ayurvedic trust and Tejus ayurvedic trust

VISION OF THE COMPANY

“To be a leader for providing authentic ayurveda products, knowledge and services to the global community”

MISSION OF THE COMPANY

“To work comprehensively for providing authentic ayurveda products, knowledge and services to the global community in an ethical and nature friendly way”

BUSINESS PRINCIPLES

Innovate continuously to excel in products and services Develop products required by the market Manufacture products of high quality Focus on the customer in all actions Respond promptly to customer needs Deliver supplies on time every time Treat each other with trust and respect to build a team Develop people by training and delegation Reduce cost constantly to remain competitive Earn enough profit to funds growth and diversification Offer goods and services at competitive prices Look upon dealer, suppliers and business associates as partners Maintain safe, clean and healthy environment

VALUES

Products and services of highest technology and quality Customer orientation Team work among the personnel Profits for growth

OBJECTIVES

Conduct business in a socially responsible manner To become a leading player in providing ayurvedic products and services in India To continuously grow in the business and become a significant palyer in the world

market To maximise return on investment


Project Study 2012 To achieve international levels of excellence in quality

OBJECTS OF THE COMPANY

To manufacture all kinds of ayurvedic medicines and to conduct nursing homes on the basis of ayurvedic systems of treatment with a view to place well know ayurvedic medicines for disease like Rheumatism, Paralysis, Neurolgia, Diabetics, Insanity, Blood Pressure etc and the service of the public

To develop nursing homes on an extensive scale and make them possible to take in a very large number of patients and treat them most efficiently

To employ ayurvedic physicians in large numbers with a view to bring within the reach of the poorest in the land the best that the science of ayurveda is capable of

To prepare preserved foods scientifically both for the use of children and adult, the healthy and invalids, and specially to prepare Banana Jams and jellies on an extensive Scale

QUALITY POLICY

“We are committed to provide authentic ayurveda products and services to the global community through

Adherence to quality,Validated processes andPerfection of personneland

Propagate the messages of this great science for the benefit of mankind”

AVP MANAGEMENT

Sri P.R. Krishnakumar, son of the illustrious Rama Variar, is the head of the AVP group of institutions. Having widely traveled in India and abroad and possessing a vision as broad as his father, he has dedicated his life to the promotion of Indian science, art and culture and in particular Ayurveda. Well versed in Ayurveda, Indian architecture, astrology, philosophy and other allied subjects, Sri Krishnakumar is on the advisory board of several government and nongovernmental organisations involved in the propagation of Ayurveda. He was instrumental in bringing Ayurveda to the attention of the World Health Organisation (WHO).

BOARD OF DIRECTORS

Sri.P.R.Krishnakumar - Managing Director Dr.K.G.Raveendran - Medical Director Sri.Rajagopal Rama Varier - Director Sri.P.V.Chandrasekhara Varier - Director Dr.G.S.Keshavamurthy - Director Sri.Poriniju.V.Veliyath – Director


Project Study 2012 Sri. E T Shreedharan-Director

ORGANISATIONAL CHART

Figure 2.1


GM MFG

GM R&D

Sec. fn

GM OPERN

AVP Training academy

Centres,installations, jv

GM MRKTNG

GM COMMERCIAL

GM NEW VENTURE

GM FIN

Chemist- formulatn

Puchse mngr

Accnts mngrStaff, income

Mngr mktng

Mi cro biologist, Clerk, Workmen

Mngr SalesRegn mngr

Sales prsns

Mngr mktng

A&B Admin

Accountingstaff

Clerks

Clerks, staffs

Staff

MDBOD

Project Study 2012Figure 2.2

FACTORY


Sen. Mngr HR

TechnicianClerk

ClerkSupervisor

Ofc Asst.(HO)

Staff

Mngr maintenace

Staff

Mngr RM

Supervisor

Mngr Store

Workers

Oifce asst.(factory)

Asst .Mngr(sal)

GM Mfg

Security chief

Staff

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3. DEPARTMENTS FINANCE DEPARTMENT

FUNCTIONS

Preparation of budget, appropriation of accounts, re-appropriations, surrender and savings.

Control of expenditure and ways & means position. Audit Treasury administration Administration of Taxes i.e. Sales Tax, Entertainment Tax, Luxury Tax and Entry

Tax etc. Service Conditions including Freedom Fighters Pensions. Resource mobilisation through loans, Institutional Finance, Small Savings, Credit

and Investment and public debt. Financial concurrence and advice. Compilation of Codes, Rules and procedures concerning financial transactions and

having bearing on State finance and their implementation. Safety and investment of funds from consolidated funds, contingency fund and public

account. Contract, recovery and refund of revenue etc.

SOURCE OF CAPITAL

The following are the sources used by AVP to raise their capital:

•BANK ADVANCES: Term Loans are taken to meet long term requirement say for purchasing machinery. Working Capital loam is taken to meet day to day expenses such as purchase of raw materials.

•SHARECAPITAL:

AVP raises capital through share capital also. The Company’s share capital is of two kinds namely:

a)Equity Share Capital.

b)Preference Share Capital.

•PUBLIC DEPOSITS:

Apart from the above sources, AVP raises their capital through public.

•RESERVE FUNDS:

A reserve fund is established for the purpose of covering expenses which will come up in the future.


Project Study 2012•GOVERNMENT AIDS:

Government provides funds for research and development purpose.

DIVIDEND – 6%

TURN OVER-70 cr

PRODUCTION DEPARTMENT

The Arya Vaidya Pharmacy has a state of the art GMP certified ayurveda medicines factory that manufactures about 450 classical Ayurvedic medicines. It is located at Kanjikode, very close to Palakkad in Kerala State very near to Western Ghats and it is in one of the biggest industrial area in Palghat District of Kerala State. Their s’ is the first Factory established in the Kanjikode Industrial Area. The advantage of the ayurveda factory is that plenty of fresh herbs are available from Western Ghats. Their Ayurveda Medicines factory is situated in the pollution free area and good quality water is also available. In Kanjikode factory they are manufacturing Traditional Kerala Type medicines in the traditional way of processing. Some of the traditional ayurveda products packing changed to modern pharmaceutical modes like Tablets, Capsules. We are manufacturing around 450 ayurveda products consisting of the following ranges.

1. Arishtas & Asavas - 41 Items (Naturally fermented Product.2. Kashayam - 58 Items (Concentrated form of the water extract of mixed herbs as per the formulation given in the Ayurvedic Texts).3. Lehyam - 33 Items (SemiSolid Preparation).4. Ghritham - 32 Items (Ghee Preparation).5. Bhasmam - 19 Items (Mineral Preparation).6. Choornam - 36 Items (Mixed Herbal Powder)7. Pills & Tablets - 35 Items.8. Kashayam Tablets - 16 Items.9. Soft gel Capsules - 5 Items.

10. Lepas - 4 Items.11. Medicated Oils - 150 Items.

For manufacturing the ayurveda medicines they have around 4500 sq.meter built up area in around 2.8 acres of land. For manufacturing we require large quantity of steam and for this there are 2 steam boilers producing 6 tonnes steam per hour and big extractors and jacketed vessels for processing. For removing steam from the process area provided big blowers with exhaust piping system. For powdering big pulveriser having a capacity of 250 Kg./hr. and for filling automatic filling machines. For effluent treatment we provide effluent treatment plant. They have give direct labour for 300 people and indirect labour for more than 200 people who are depending on the ayurveda factory. The factory has two units.


Project Study 2012Unit 1 – Production of Medicines

Unit 2- Filling and Packing

In their one factory unit they are manufacturing only proprietary medicines and Ayurvedic Transparent Soap. The range of Products is:

1. Syrup2. Hard gelatin Capsules3. Granules4. Hair Oil5. Cream & Ointments.6. Medicated Transparent Soap.

Now they have started constructing a new Factory very near to the present Factory which is as per W.H.O G.M.P specifications. The processing & Packing of all the products in the new factory is as per C.G.M.P specification only. For The new Factory built up area is around 10,000 sq. meters in 6.5 acres of land with modern facilities and providing HVAC System and clean room panels.

Meticulous care is taken at every stage of production to follow the traditional precepts and quality norms under the supervision of trained Ayurveda physicians. A separate procurement centre ensures collection, storage and supply of all ayurveda herbs numbering over 600 required for all factories AVP has a tableting and capsuling unit and cosmetics manufacturing facility producing cosmetic creams, lotions face packs etc at Coimbatore. AVP foods dedicated manufacturing unit to produce health food products herbal biscuits, herbal jams, ketch ups, pickles etc. All AVP products strictly conform to the original ayurveda texts and are manufactured as per the traditional ayurvedic tenets.

The manufacturing unit of AVP is recognised by the AYUSH department of Goverment of India. It has a drug licence from AYUSH. The factory of AVP got GMP () certification from WHO.

FUNCTIONS

Monitor production activities Quality Control Process modification studies for up gradation of process New product development Basic process validations

PRODUCT PROFILE

AVP produces two types of products

1. Classical Formulations2. Proprietary Ayurveda Medicines


Project Study 2012

WASTE MANAGEMENT

It has a very good waste management system. There are mainly four types of wastes are produced by the overall operations of AVP. They are

Vapour waste Solid waste Liquid waste E- waste

Each category waste is separated and treated separately.

TREATMENT OF WASTE

Solid waste

There are two types of solid wastes.1. Waste with oil content

It is used as boiler input. The ash produced from the boiler is used as fertiliser.

2. Waste without oil contentThese wastes are segregated into large and small components. The small components are used to make compost. Large components are treated using layering process. For this they add dried sea shell powder which is rich in calcium. They are arranged in a layered manner. The layers are mixed in every 15 days. After 90 days the mixture is powdered and it is marketed as bio fertiliser (Rs 3/kg).

Vapour waste

This is an in process waste and it is collected using funnels, as it is highly medicated the condensed vapour will add to some products as intermediate component. The balance vapour is collected using funnel and condenser tubes, it is used as fodder.

Liquid waste

The liquid waste is treated by using a three level effluent treatment plant. It is treated by adding some eco friendly materials. There are 3 tanks for each stage of treatment. After stage 3 processing the treated water is pumped into nearby paddy fields. This is an eco friendly process.

E- Waste

It is collected in the company itself; the company had made an agreement with one government agency to collect the e waste and to dispose it. They will collect these wastes from the organisation. This agency is recognised by the pollution control board. There is a


Project Study 2012closed room to store e waste. The agency allowed the storage of e waste only upto 3tones/day. The agencies are earth sense Pvt Ltd and e Pasissara Pvt Ltd, Banagalore

PURCHASE DEPARTMENT

OBJECTIVE OF DEPARTMENT

Procure right material on right quantities with reliable source or vendor in an economical way at right time.

DUTIES OF DEPARTMENT

Quality assurance of raw materials. Checking of purchased materials Finding and approving suppliers Receipt of quotation Ensuring delivery of goods Warning against delay in delivery Speculative buying

RECORDS MAINTAINED

Purchasing order book, entry book, payment pending file, quotation registration, bill file, issue file, returnable goods and party file.

CLASSIFICATION

1.Raw material purchase

Raw materials are collected both from suppliers and from local people. Raw materials are purchased from Kashmir, Himachal Pradesh, Mumbai, Delhi, Tamil Nadu and Kerala. Some high valued items like ‘Thanka Bhasmam’ are imported from abroad. Purchasing department purchase raw materials purchased by the consultation with the top management.

It needed around 500 types of raw materials, of these 150 are available locally. Raw materials for production are parts of plants which include leaves, stem, root, fruits, flowers etc. Raw materials from suppliers are collected from them after quality check. Local people are supplying locally available medicinal plants. These are from Western Ghats and collected by tribal people. They will get wages daily according to the quantity of materials collected by them. The collected raw materials are stocked in collection section, after a thorough quality check they are segregated and stored in the inventory. Some are available in all the seasons they are collected in periodical order placing process. The seasonally available materials are collected at their season and preserved for future use accordingly. It will make sure that the raw material is available throughout the year. Later the stocked raw materials are arranged based on the ingredients of medicines. It varies to medicine to medicine both in combination and quantity. It is decided by the chemist and Physicians.


Project Study 2012According to the production process the raw materials are washed and chopped. A well equipped Quality Control Lab ensures the quality of raw materials.

Raw materials are purchased monthly or in 15 days. The raw material inventory will have materials for the production process of 10 days when they reorder the materials .The normal time for raw material delivery is 7 days.

RAW MATERIAL SUPPLIERS

Darshan Drug house Mumbai Green Hit herbals Ltd, Bangalore AVS Corporation Thrissur. C I KUrian & Bros. Trissur Bharath Trading Company, Mumbai

2. Secondary purchase

It includes the purchase of items for filling and packing.

Eg. Bottles (both glass and plastic pets), cap, corriated boxes, pet jars, containers, gum etc.

Suppliers

Sunrise, Mumbai Techno pack, Coimbatore Duro pack, Thrissur Excel glasses ltd, Aleppy Kaivalya, Pondicherry

TYPES OF STORES (INVENTORY)

Receiving Store- it receives the raw materials from the suppliers. The QC Lab people will take sample for quality check from this store.

Approved raw material Store- The quality test passed raw materials are stored in this.

Special Store- It stores the seasonal raw materials for future uses. Ware house- it stores the segregated raw materials for each products according to

the composition of products. Scrap Yard- It stores rejected and unwanted items Semi finished Store- It stores the products for filling and packing. Finished goods Store- It stored the packed Goods which are ready to despatch.

It has around 200 employees.AVP uses both ABC analysis and JIT for inventory control and management.EOQ and EOL are based on the type of products.


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R&D and QUALITY CONTROLDEPARTMENT

AVTAR (AVT Institute for Advanced Research) is the research wing of Arya Vaidya Pharmacy, Coimbatore. AVTAR was formed in June 2003 with a view to organizing and streamlining the various research activities taken by the AVP Group in the last three to four decades. AVTAR is committed to the task of engaging in research initiatives that can impact not only the activities of the AVP Group, but the entire field of Ayurveda at the national and international levels. AVTAR seeks to join hands with individuals and institutions pursuing similar objectives to achieve the goals that it has set before itself.

AVTAR has initiated prioritized research programs in the areas of literary, field, experimental and clinical research. These programs are expected to generate technical outputs that will facilitate informed decision making in research, education, pharmacy and practice of Ayurveda.

The results of research activities will be shared through publications like protocols, guidelines, methods, course materials, curricula, products, innovations, techniques, patents, published manuscripts, reports, papers, articles, books, discussions, lectures, training, seminars, symposia, conferences, workshops, electronic text archives, picture and video galleries, multimedia CDs, software, websites and portals.

The activities of AVTAR aim to blend the three areas of research, teaching and practice harmoniously to create a new breed of Ayurvedic physicians who can meet the challenges of globalization.

AVTAR has also initiated specific programs like RUDRA (Random Uninterrupted Documentation for Retrospective Analysis), PADAM (Program for Archiving and Documenting Ayurvedic Medicine), SASTRA (School for Advanced Surgical Training and Research in Ayurveda), NETRA (Natural Eye Treatment and Research in Ayurveda).

QUALITY CONTROL

Companies build quality into every stage of the production process. Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimised and quality maximised. This is often referred to as total quality management and is part of the lean production methods used in modern industry. For businesses to be competitive, Production and Marketing need to work in an integrated way. Marketing is concerned with knowing and understanding the requirements of customers, so that Production can provide the market led products that are required. This also requires excellent communication systems to be in place.

OBJECTIVES


http://www.avpayurveda.com/about-us/Ayurveda.html


http://www.avpayurveda.com/ayurvedahealthservices/Physicians.html



Project Study 2012 Quality checking of raw materials Quality assurance of finished goods

Methods used

For raw materials

Micro scopial and macro scopial analysis Chemical analysis

For finished goods

PH test Specific gravity percentage Checking alcohol content Moisture content

Avp has a well equipped quality control lab. The quality control measures are taking from the purchase of raw materials to finished goods. AVP has a General Manager for quality control. It is coming under R&D department. AVP ensures quality of products from collection of raw materials till packing. Before placing order for raw materials a sample analysis will be done by the botanists and scientists of the R&D department. After getting sanction from this department the purchase manager can place an order. The raw materials collected locally and collected from suppliers will undergo a second level quality check before it was added to stock. The collected raw materials are sampled and checked by the R &D department. There are trained physicians to head production process of each product. The Quality Control Group of R& D department includes botanist, microbiologist to check water purity of materials, Chemist to formulate and check the contents and PH of the materials. Quality of the intermediate products and final products are checked using sample testing. There is a batch control card to record the test result of each batch of products. Thus there is a quality check in every step of production.

SALES AND MARKETING DEPARTMENT

AVP markets its products all over the world. It also markets selected ayurvedic products of other companies. It markets around 450 products all over the world. The GOOD WILL of the company is the main source of attraction by the customers.

It has around 36 branches which are directly maintained by AVP and nearly 1000 agencies to market the products. Each agency is maintained by an ayurvedic physician. AVP also have a number of distributors. Sales volume calculated quarterly, half yearly and yearly. The products are exported to different parts of the world like Malaysia, Saudi, US, London, Germany, Singapore etc. AVP follows direct selling methods.


Project Study 2012There is no advertisement for AVP products. It never depends on any media for its sales promotion. But the good will of the company increases the sales volume in every period. AVP products are ayurvedic medicines as per rules set by drugs control board medicines cannot be advertised, it should be prescribed by the physician. In this case demand is always greater than that of supply. Because of the non availability of raw materials AVP produces only up to 62 % of its total capacity. All the raw materials are natural resources.

SUPPLY CHAIN MANAGEMENT

For marketing and sales promotion AVP has a number of agencies and branches in India and abroad. There is an efficient supply chain management system is working in AVP.

SUPPLY CHAINS

Finished goods Inventory- Contractors- Managers from AVP Invoice

Sales persons of AVP collect invoices and distribute goods through agencies, branches and distributors

SALES PROMOTION

AVP has a number of sales persons for sales promotion and product distribution. These sales persons collect new invoices for products. They will get benefits for each extra unit they sold beyond the target. There is a short term incentive scheme to encourage buying of products in agencies. But the agencies have an anxiety to sell.

MARKET PUBLIC RELATIONS

Stimulation of demand through press release giving a favourable report to a product higher degree of credibility effectively news boosts enterprise image.

REASONS FOR DIRECT SELLING METHODS

Manufacturer wants to demonstrate goods Wholesalers and agents not actively selling Manufacturers unable to convince wholesalers or retailers to stock products High profit margin added to goods by wholesalers and retailers Middle men unable to transport the products in a healthy way

METHODS OF MARKETING

Agencies( Around 1000- Under Ayurvedic physicians) Branches (4 In Number, Run directly by AVP)

USP

GMP Certification Quality


Project Study 2012 Accuracy of quantity( additional quantity in each pack of liquid products to

compensate loss through evaporation) R&D certified by Govt.

DISTRIBUTION CHANNELS

Finished goods inventory>Branches Finished goods inventory> Dealers> Agencies

PRICING

Classical Productso Price based on the market

Proprietary productso Done by costing departmento Price= cost+20%(12% for advancement of doctors, 8% for company)

SALES PROMOTION ACTIVITIES

Good will based sales promotion plays a supreme role in AVP

Circulars to doctors AYUR SANDESH-Publications to doctors SASTHRA- Clinical finding Publication Free samples for doctors

MARKET SHARE

In India- 6% In Kerala- 23%

SYSTEMS & IT DEPARTMENT

As the use of electronic communication has become more common for businesses of all sizes, so has the need for the creation and staffing of IT departments in any company that employs telephony and Internet devices to conduct business. Here is some basic information on the IT department, and how it may function as both a creative and a practical part of any business operation. AVP uses management information system in the operations of every department. It helps AVP to have better coordination between different functional areas. AVP uses ERP 9.0 of axis software. It manages different MIS’. AVP has a fully automated office. It uses Tally 9.0 for accounting purpose. It has a fully computerized office. All the departments are connected through LAN.


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4 HR DEPARTMENT FUNCTIONS AND POLICIES

The Human Resource Department deals with management of people within the organisation. There are a number of responsibilities that come with this title. First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. Besides, the Human Resource Department also clarifies and sets day to day goals for the organisation. It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company. Human Resource Management has come to be recognized as an inherent part of management, which is concerned with the human resources of an organization. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programs relating to human resources to optimize their contribution towards the realization of organizational objectives.

In other words, HRM is concerned with getting better results with the collaboration of people. It is an integral but distinctive part of management, concerned with people at work and their relationships within the enterprise. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization

OBJECTIVES

To help the organization reach its goals. To ensure effective utilization and maximum development of human resources. To ensure respect for human beings. To identify and satisfy the needs of individuals. To ensure reconciliation of individual goals with those of the organization. To achieve and maintain high morale among employees. To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employee's job satisfaction and self-actualization. To develop and maintain a quality of work life. To be ethically and socially responsive to the needs of society. To develop overall personality of each employee in its multidimensional aspect. To enhance employee's capabilities to perform the present job. To equip the employees with precision and clarity in trans¬action of business. To inculcate the sense of team spirit, team work and inter-team collaboration.

FUNCTIONS


Project Study 2012In order to achieve the above objectives, Human Resource Management undertakes the following activities:1. Human resource or manpower planning.2. Recruitment, selection and placement of personnel.3. Training and development of employees.4. Appraisal of performance of employees.5. Taking corrective steps such as transfer from one job to another.6. Remuneration of employees.7. Social security and welfare of employees.8. Setting general and specific management policy for organizational relationship.9. Collective bargaining, contract negotiation and grievance handling.10. Staffing the organization.11. Aiding in the self-development of employees at all levels.12. Developing and maintaining motivation for workers by providing incentives.13. Reviewing and auditing manpower management in the organization14. Potential Appraisal., Feedback Counselling.15. Role Analysis for job occupants.16. Job Rotation.17. Quality Circle, Organization development and Quality of Working Life.

MAJOR INFLUENCING FACTORS

HRM will be influenced by following factors, which will work as various issues affecting its strategy:• Size of the workforce.• Rising employees' expectations• Drastic changes in the technology as well as Life-style changes.• Composition of workforce. New skills required.• Environmental challenges.• Lean and mean organizations.• Impact of new economic policy, Political ideology of the Government.• Downsizing and rightsizing of the organizations.• Culture prevailing in the organization etc.

HEALTH SAFETY AND ENVIRONMENT ( HSE) POLICY OF AVP

“We are committed to ensure the safety of our every employee, by keeping the work environment and area of work to be free from probable hazards and accidents

We also monitor-

a) Control of pollution and its effective discharge to prevent environmental pollution.b) Effective utilisation of resources like energy and raw materials


Project Study 2012We shall keep all concerned informed about our EHS Policy and seek their co-operation for implementation. "

TRAINING POLICY OF AVP

AVP considers human resources as the most valuable asset and shall endeavour to improve their knowledge and skill to bring out the talent potentialities in them by continuous training programmes so as to make them most effective and efficient in their personal and organisational life.

AVP provides as a part of training, training on behavioural and technical topics relevant to the area of activities to workmen and staff members with a view to achieve distinctive, continuous and lasting improvements in their performance and quality of life.

Induction Training in AVP

In AVP employee training is arranged in every month. They are using both internal and external trainers. This is to train employees for high productivity and safety of them.

RECRUITMENT AND SELECTION PRACTICES OF AVP

Sources of recruitment

AVP uses both internal and external sources for recruitment. For internal recruitment they have a replacement chart, which includes the strengths, weaknesses and performance record of the employee. External recruitment will be in two types

1) Through notice board advertisement2) Through newspaper and internet advertisement

Selection processThe selection committee includes minimum 4 members and Senior HR manager as selection committee chairman (convenor). The team includes experts, members from management and head of concerned area.

EMPLOYEE WELFARE MEASURES

It is divided into two they are1) Statuatory welfare measures Drinking Water: At all the working places safe hygienic drinking water should be

provided.

Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.

First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.


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Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.

Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees in subsidised price.

Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and some are to be maintained in a hygienic condition.

Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.

Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.

Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

Women grievance redressel forum as per Act of 2006

2) Non statutory welfare measures

Welfare fund

It is maintained by Welfare fund board. This board includes members from both employer side and employee side. It provides loans for employees as education loan to children of employees, gold loan, housing loan, marriage loan etc

It only has a nominal interest of 6%.Sometimes it will be interest free. Employees should contribute their 2 day salary to this fund every month.

Insurance Benefits

Employees are insured against accidents as per government norms

ESI benefits are provided for employees. For this employees should pay 1.75% of their month on or before 21 of that month another 4.75% will be contributed by the company itself.

Other ESI benefits


Project Study 2012 Leave benefit –Employee can avail leave with 60% salary if he/ she is having an

attendance of minimum 82 days. Accident benefit- Employee will get salaried leave in case of accidents. Sickness leaves for 90 days/year Funeral benefit for employee if he/she passed away in service period-Rs 5000/- Maternity leave for lady staff for 84 days .It is also a salaried leave For post retirement ESI benefits the employee should pay Rs 120/- each month Free consultation to employees in ESI hospitals within the state Smart Card will be issued to every employee this year, for availing ESI Hospital

benefits within the country

Educational Facilities

Education facilities are provided for employees. Fee for the course will be paid by the company on a contract that the employee should work for the company for 3 years.

Retirement Benefits and Other Welfare Measures to Build Employee Commitment

Provident FundThere is an EPF scheme for all employees of the company. The total amount of PF contribution is about 24% of salary.12% will be contributed by the

Pension Gratuity Medical Benefit

Employee can avail free consultation and medicines (up to the cost of 12% their salary) from the company itself.

Reimbursement facility to hospital bills up to 12% of salary Company will provide seasonal goods to employees on credit

Eg. Essentials to children of employees like Books, Umbrella, and Uniforms in the month of May

PERFORMANCE APPRAISAL

Performance appraisal is not applicable to workers of AVP, it is only applicable to the employees from supervisor category onwards. There is a Key Performance Area (KPA) is decided for each employee. The result will be measured half yearly or yearly and the eligible ones will have appraisal. Benchmarking is used for the performance appraisal of managerial staff.

A promotion pattern is applicable to the workers. After 20 years of continuous working the worker will become a senior worker. After 35 years working the worker will be in a Special Grade Senior Worker.

Other important things related to HR


Project Study 2012 AVP is providing yoga training to its all employees from 7.30- 8 am every morning

to improve the employees Retirement age of employees is 58 There are 3 shifts for working. One day shift and 2 night shifts. Day shift is from 8

AM to 4PM.Other shifts From 12 AM to 8 AMFrom 4 PM to 12AM

Total number of employees about 800, of that 240 are workers. Male to female ratio is 70:30 Career planning is applicable only to the employees on and above supervisor cadre. Basic education needed for workers is capacity to read and understand instructions. Biometric attendance marking system is established in the office as well as in the

factory.

INCENTIVES TO EMPLOYEES

There is a work load settlement .According to this, total work is divided into different functional areas and a minimum productivity level is fixed for each. There is an increment for every additional unit produced. The committee which decided the work load settlement includes employee representatives, Government nominees and management members.

Time based wage system is applied for production process and piece based wage system for packing and filling processes.

EMPLOYEE PARTICIPATION

Employees have a vital role in decision making in AVP. In work load settlement, there are 12 members; of these 8 are from employee trade unions and other 4 are from management. This committee will fix the wage, working time, number of employees for each production section and minimum standard productivity of one area for 8 hrs of work. Once it fixed it will be in effect for next 5 years. The current settlement will expire on September 2012.

There is a suggestion scheme for employees through which employee can make suggestions to management. There is a suggestion team for canteen also.

GRIEVANCE REDRESSAL

For the redress of employee grievance there is a forum in AVP. According to the Act of 2006 there is a women grievance redressal forum also established. This forum will take care of the grievance of women employees. Collection of employee grievance is in the form of oral or written complaints. The redressal forum will take care of these grievances. Managerial staffs are the members of the forum.

INDUSTRIAL RELATIONS AND TRADE UNIONS

There are 4 trade unions are working in AVP. They are


Project Study 2012 INTUC CITU AITUC BMS

AVP had won several awards for its good industrial relations from both the governments of Tamil Nadu and Kerala. AVP involves its employees for decision making process.

EMPLOYEE TURNOVER

In AVP, employee turnover in lower level and top level is nearly zero. But in middle level it is there because of personal reasons of the employee. The highest turnover rate is in R&D department. It is about 20%.

COUNSELLING AND DISCIPLINARY ACTION

AVP has a very effective counselling section. There are separate counsellors for men and women. These counsellors are highly qualified. AVP prefers people with MSc counselling or Psychotherapy for the post of counsellors.

In the case of any offense from any employee is noticed, there are different levels of disciplinary action.

Level1: Counselling

Level2: Show cause notice

Level3: Explanation seeking notice

Level4: If the same crime is repeated the employee will get a charge sheet from the management.

Level5: Domestic enquiry

Level6: In this level degree of punishment is proportional to the crime; it varies from crime to crime. It includes suspension, increment cut, dismissal from the service and transfer from section to section.

OTHER FACTS

Free Yoga training for employees Around 750 employees in the organization 3 shifts for working-1 day shift and 2 night shifts Male:Female= 75:25 (Employee ratio) Using Biometric Attendance Marking system- It uses finger print detection and

iris detection for attendance marking Free uniforms and caps for employees Security operations is outsourced to Suraksha Securities


Project Study 2012SAFTEY DEPARTMENT

Safety department is to ensure safety of employee and factory .It will take care of the safety. It is engaged with daily routine check up for the plant before the commencement of each shift.

5. SWOT ANALYSIS

STRENGTHS

GMP Certification from WHO Government approved R&D Department Seven decades of existence Strong export market approved by Government Government approved training for ayurvedic physicians- they are eligible to work

globally. AVP is one of the main manpower suppliers in ayurveda for global market. Mass production company Quality products

WEAKNESSES

Input raw material depends on nature Lack of knowledgeable and skilled people All available books and documentation are in Sanskrit, it cannot be interpreted

correctly No proper documented methods available Lack of clinical trial records

OPPORTUNITIES

World wide acceptance of ayurvedic products Herbal products having no side effects Overseas business opportunity in medicines and treatment Government creates opportunity in ayurvedic tourism

THREATS

Extinction of raw materials (natural resources) High cost of production Lack of international grants like Allopathic Not organized as other method of medicines ( single physicians are practicing on

individual basis) Export to all countries is not possible. In the case of U.S it is exported as herbal food

supplement. It cannot be exported as medicine


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Chapter 3Review of literature


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JOB SATISFACTION

Job satisfaction is the complex of various attitudes possessed by an individual. It emerges from so many interrelated factors. Even though, for analysis these factors can never be isolated completely from one another, they can, by the use of statistical technique, be separated to give an indication of their relative importance to job satisfaction. The term job satisfaction refers to the attitudes and feelings people have about their work. Positive and favourable attitudes towards the job indicate job satisfaction, and negative and unfavourable attitudes towards the job indicate job dissatisfaction. Job Satisfaction is defined as a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience (Locke, 1976). Job satisfaction is the result of employee’s perception of how well their job provides those things which are considered important and is concerned with such specific factors as wages, supervision, and conditions of work, promotion opportunities, recognition, and fair treatment by employer and similar items (Sinha, 1972). Job satisfaction of employees contributes significantly towards the functioning of any organization. Likert (1961) emphasized its importance when he stated that “in evaluating the efficiency of an organization, job satisfaction must be considered.” Job satisfaction or dissatisfaction is found to be related to and affecting job behaviours such as turnover, absenteeism, accidents, performance, slowdowns, strikes, lockouts etc. The traditional model of job satisfaction is that it consists of the total body of feelings that an individual has about its job. This involves weighing up the sum total of the influences on the job; the nature of the work itself, the pay, promotion aspects, the nature of supervision, and so on. Where the total sum of influences gives rise to feelings of satisfaction the individual is job satisfied. According to Fred Luthans, there are three important dimensions to job satisfaction. First, job satisfaction is an emotional response to a job situation; and it can be inferred, though not seen. Second, job satisfaction is often determined by how well outcomes meet or exceed expectations. Third, job satisfaction represents several attitudes. Paul Spector (1985) has suggested there are nine job facets that represent the most important characteristics of a job: 1. Pay 2. Promotion 3. Supervision 4. Fringe Benefits 5. Operating Conditions 6. Contingent Rewards 7. Coworkers 8. Nature of work 9. Communication


Project Study 2012INFLUENCES OF JOB SATISFACTION There are a number of factors that influence job satisfaction. These antecedents can be broadly classified into two major categories. First the job environment itself and factors associated with the job itself are important influences on job satisfaction. This includes how people are treated, the nature of job tasks, relations with other people in the workplace, and rewards. Secondly, there are individual factors that eh person brings to the job. This includes both personality and prior experiences. Both categpries often work together to influence job satisfaction. The fit between the individual and the job has been shown to be an important influence on employee satisfaction (Kristof, 1996). DIFFERENT APPROACHES TO JOB SATISFACTION

It has been long believed that simple, routine jobs are inherently boring and dissatisfying (Hulin & Blood, 1968). Many have advocated job redesign as a means of enhancing job satisfaction by making jobs more interesting (Herzberg, Mausner & Snyderman, 1959). This is done by changing the characteristics of a person’s job and tasks. Job characteristics refer to the content and nature of job tasks themselves. There are only a few characteristics studied as contributors to job satisfaction (Wall & Martin, 1987). HACKMAN & OLDHAM’S JOB CHARACTERISTICS THEORY The basis of Hackman and Oldham’s (1980) job characteristics theory is that people can be motivated by the intrinsic satisfaction they find in doing job tasks. They suggest that one’s satisfaction with one’s work is determined by one’s critical psychological states, which are caused by five core job characteristics dimensions. These are skill variety, task identity, task significance, task autonomy and feedback. Vroom (1964) concluded that employee satisfaction is directly related to the extent to which their jobs provide them with such rewarding outcomes as pay, variety in stimulation, consideration from their supervisor, a high probability of promotion, close interaction with the co-workers, an opportunity to influence decisions which have future effects on them and control over their pace of work. HERZBERG’S TWO FACTOR THEORY

Herzberg classified the various factors contributing to satisfaction and dissatisfaction as motivators and hygiene factors. Satisfaction stemmed from factors associated with the work itself or outcomes directly delivered from work such as promotion opportunities, opportunities for personal growth, recognition responsibility and achievement. Herzberg called these “motivators” as they were associated with higher levels of satisfaction. Dissatisfaction was found associated with conditions surrounding the job: quality of supervision, pays, company policies, physical working conditions, relations with others, and job security. Herzberg termed these “hygiene factors” or “maintenance factors” as these seemed to prevent negative reactions.

LOCKE’S VALUE THEORY

Locke claimed that job satisfaction occurs when the job outcomes that an individual receives matches those outcomes which are desired. Locke’s theory focuses on any outcome


Project Study 2012that people value. In essence, Locke’s theory is based on the discrepancy that exists between what people have and what they want with respect to various aspects of their job. The smaller the discrepancy, the more they are satisfied with their jobs. Recent studies have found good support for Locke’s value theory of job satisfaction.

MOORHEAD & GRIFFIN’S CAUSES & CONSEQUENCES THEORY

Moorhead and Griffin argue that the primary cause of job satisfaction or dissatisfaction can be grouped into three categories. Organizational factors – pay, promotion, opportunities, work itself, policies and procedures, working conditions; Group factors – co-workers and supervisor; and Personal factors – needs, aspirations and instrumental benefits.

Figure3.1


ORGANIZATIONFACTORS

Pay, Promotion ,Policies & Procedures, Opportunities, Work itself

GROUP FACTORS

Coworkers

Supervisor

PERSONAL FACTORS

Needs, Aspirations

Instrumental benefits

JOB SATISFACTION

LOW TURNOVER

LOW ABSENTEEISM

HIGH TURNOVER

HIGH ABSENTEEISM

JOB SATISFACTION

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Moorehead and Griffin considered instrumental benefits to be the extent to which the job enables the employees to achieve other ends. The two primary consequences of job satisfaction relate to absenteeism and turnover.

SITUATIONAL OCCURENCES THEORY OF JOB SATISFACTION

The situational occurrence theory holds that job satisfaction is determined by two factors. The situational characteristics are relatively stable aspects of a work environment, tied to specific management policies and tend to change slowly.

The two factors also differ in terms of the money and time required to change them. The situational characteristics consist of relatively finite set of job facets, and these are fairly universal across organizations.Situational Characteristics:

Figure 3.2

Situational Characteristics: • Evaluated prior to accepting the job • Stable / permanent • Difficult /expensive to change • Universal / finite number • Easy to categorize • Monitored upon hiring / emotional responses if changed

Situational Occurrences: • Evaluated after the job begins • Transitory / variable change quickly


SITUATIONAL CHARACTERISTICS

EMPLOYEE REACTIONS

OVERALL SATISFACTION

SITUATIONAL OCCURRENCES

Project Study 2012• Easy and inexpensive to change • Situational / finite number • Difficult to categorize • Not monitored immediately after being hired / no emotional response/effects accumulate over time. GUIDELINES TO PROMOTE SATISFACTION 1. Pay people fairly 2. Improve quality of supervision 3. Decentralize the control of organizational power 4. Match people to jobs that are congruent with their ideas.

In general, there is good news for managers interested in promoting satisfaction, and avoiding dissatisfaction among employees. Although it might not always be easy to make special effort to promote job satisfaction, especially amidst the hectic pace of everyday work, our awareness about the benefits of keeping employees satisfied with their jobs suggests that the efforts may be extremely worthwhile.

ORGANIZATIONAL CITIZENSHIP BEHAVIOUR

Many practising managers and organization leaders believe that investment in subordinate morale will pay off in better employee work performance (Gannon and Noon, 1971; Kossen, 1996). Organizational researchers, however, have less confidence regarding this relationship. Over 40 years ago, Brayfield and Crockett (1955) suggested that job satisfaction and individual productivity, as a measure of work performance, bore no appreciable relationship to each other. Ten years later, Vroom (1964) in his review of the post-1955 studies identified a median positive correlation of 0.14 between measures of job satisfaction and those of work performance. Subsequently, five major journals dating from 1963-1984 were reviewed by Podsakoff and Williams (1986) in order to compare study findings concerning the relationship between measures of work performance and those of individuals’ job satisfaction. They concluded that the correlation between satisfaction and performance was not practically significant. A meta-analysis of the satisfaction-performance relationship similarly produced a relatively low typical positive correlation of 0.17 (Iaffaldano and Muchinsky, 1985).

Put to one side technical questions about the measurement of job satisfaction or of performance (which in particular studies may be problematic), the question remains as to why a discrepancy exists between what the practising managers believe and the researchers’ actual findings. One simple answer suggested by Organ (1988) is that the managers and the researchers are simply focusing on different types of job performance. Organ further explained this discrepancy thus: “When practising managers endorse the proposition that satisfaction causes performance, they are thinking that satisfied people are more willing to do little ‘extras’ either spontaneously or when requested, and in general are easier to work with in a day-to-day relationship” (p. 50). When researchers measure performance, the


Project Study 2012focus typically is on traditional measures of work such as level of production, material output or achievement on a challenging task (see Organ, 1988).

In 1977, Organ for the first time introduced the term “organizational citizenship behaviour” (OCB), which he suggested was a component of job performance. As typically defined, organizational citizenship behaviours are behaviours of a discretionary nature that are not part of employees’ formal role requirements, but nevertheless contribute to the effective functioning of an organization (Organ, 1988). Since then, organizational citizenship behaviour has attracted a number of researchers’ attention, and the areas studied have been its definition (Smith, C.A. et al., 1983), classification (Morrison, 1994), construct validity (Becker and Vance, 1993; George and Brief, 1992), and determinants (Deluga, 1995; Moorman, 1993; Organ and Konovsky, 1989). Recently, much attention has been paid to the structural stability of various correlational patterns observed among sets of variables that included organizational citizenship behaviour. For example, Van Yperen et al. (1999) found that perceived supervisor support mediated the relationship between participatory decision making and OCB. In a similar vein, Wagner and Rush (2000) used hierarchical multiple regression to establish the moderating effect of employee age on OCB.

According to Organ (1988), organizational citizenship behaviour is defined as “individual behaviour that is discretionary, not directly or explicitly recognized by the formal reward system, and in the aggregate promotes the effective functioning of the organization” (p. 4). From this definition it is clear that OCB is distinct from related constructs (such as “organizational commitment”) developed by organizational psychologists. While OCB may be empirically related to organizational commitment (see, for example, Cohen and Vigoda, 2000), it is important to emphasize that OCB refers to a particular class of employee behaviours, while constructs such as “organizational commitment” are essentially attitude-based in that (as originally operationalized in the organizational commitment questionnaire of Mowday et al., 1979), commitment is typically measured by seeking employees’ responses to such scale item statements as “I find that my values and the organization’s are very similar”. The unique contribution of Organ was to identify a class of employee behaviours (organizational citizenship behaviours), whose relationship with job satisfaction, among other variables, might be usefully examined in the search for a practically significant workplace-based behavioural correlate of employee job attitudes.

Organizational citizenship behaviour is held to be vital to the survival of an organization. According to theorists such as Organ, organizational citizenship behaviour can maximize the efficiency and promote the effective functioning of an organization. Prominent current organizational researchers such as Brief have supported Organ’s position about the importance for effectiveness of those behaviours he labels organizational citizenship behaviour (see George and Brief, 1992, p. 313). Although the current authors know of no studies which have specifically investigated the nature and extent of the relationship between OCB and organizational effectiveness per se, it is widely accepted among contemporary organizational psychology researchers that organizational citizenship


Project Study 2012behaviours have “an accumulative positive effect on organizational functioning” (Wagner and Rush, 2000, p. 379).

Previous empirical studies (Bateman and Organ, 1983; Graham, 1986; Kemery et al., 1996; Moorman, 1993; Motowidlo, 1984; Motowidlo et al., 1986; Organ and Konovsky, 1989; Puffer, 1987; Scholl et al., 1987; Smith C.A. et al., 1983; Wagner and Rush, 2000) and the conceptual rationale proposed by Organ (1988, 1990) provided support for a hypothesized positive relationship between job satisfaction and organizational citizenship behaviour. The current research was designed to measure various aspects of organizational citizenship behaviour and examine how organizational citizenship behaviour relates to employee job satisfaction and behaviour. Consistent with the recommendation of Schnake (1991) that further organizational citizenship behaviour research may be required for each occupation and organization type, it was the researchers’ aim to assess the job satisfaction – organizational citizenship behaviour relationship in human-service professionals employed by an organization providing care for children with disabilities. The purpose of this study was to examine details of that organizational citizenship behaviour – job satisfaction relationship.

Organizational Citizenship Behavior (OCB), or "extra-role behavior," has received a great deal of attention from organizational behavior researchers in the last two decades. It was in the early 1980s that several empirical studies first addressed the notion of OCB. Whereas Organ defines OCB as "individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and in the aggregate promotes the efficient and effective functioning of the organization". Schnake defines it as "functional, extra-role, pro-social behavior, directed at individuals, groups, and/or an organization." OCB thus includes discretionary "pro-social" ethical behavior, such as helping newcomers to the organization, assisting co-workers on the job, not taking unnecessary breaks, and volunteering to do things not "required" by a job description.

Katz observes that an organization in which members confine themselves to formal, in-role behavior will simply break down, while Smith et al. assert the importance of OCB in "lubricating" the social machinery of an organization. Organ has also pointed out the significance of OCB for organizational efficiency, effectiveness, innovation, and adaptability within diverse organizations.

Unfortunately, because investigations into this topic are still at an early stage, relatively little is yet known about the antecedents of, or key influences on, OCB. Job satisfaction and affective commitment have sometimes been considered antecedents to pro-social, extra-role behavior in organizations, but this is not always the case. Organ & Rayan found, in their meta-analytic review of 55 studies, that satisfaction, fairness and organizational commitment were the only correlates of OCB in a considerable number of cases.


Project Study 2012The relationship between satisfaction, commitment, and OCB at the individual level, however, may create underlying positive attitudes about the job and the organization that encourage people to pursue or manifest extra-role behavior. Although it has been found in several studies that job satisfaction and organizational commitment are related to OCB, job satisfaction and organizational commitment have been found to be strongly related in other studies, and some scholars indicate that they should be examined together to discover their influence on OCB. Moreover, empirical research also supports the relationship between perceptions of fairness and OCB.

Some researchers have argued that it would be beneficial to include "perceptions of fairness" when studying the impact of job satisfaction on OCB in order to describe the connection between these variables (fairness perceptions, job satisfaction, and organizational commitment). As previous researchers have tied these variables together, I have chosen to term them "antecedent variables" for the purpose of this study in which I intend to examine the relative contributions of perceptions of fairness, job satisfaction, and organizational commitment in predicting OCB.

DETERMINANTS OF OCB

JOB SATISFACTION

The relationship between job satisfaction and OCB can be depicted in several ways. Organ & Konovsky suggest that job satisfaction is the strongest measure that correlates to OCB. It has been found in 15 independent studies that a significant relationship exists between job satisfaction and OCB. In their study of a sample of university employees, Bateman & Organ also detected a substantive relationship between job satisfaction and OCB 25 Smith et al. found that job satisfaction is correlated 0.31 with altruism, but not directly correlated to generalized compliance in either large or small organizations. Schnake, Cochran, & Dumler conducted a study of a small manufacturing firm, which found that job satisfaction explained the variance in only two of the five OCB dimensions. On the other hand, Hodson argues that pride in task completion is more related to OCB than job satisfaction. In addition, job involvement, followed by affective commitment, organizational trust, and perceived needs were more correlated with OCB than job satisfaction.

In contrast to previous studies, Schappe argues that job satisfaction is not related to OCB; and Farh et al. maintain that their findings do not show that satisfaction accounts for unique variance either in altruism or the compliance dimensions of OCB. Even so, some researchers are skeptical of the relationship between these two variables and consider such a relationship spurious. Instead, they believe that any divergences may be due to the nature of job satisfaction measures, which include perceptions of fairness. Thus, Organ claims that when job satisfaction and perceptions of fairness are measured together, the latter explains an increase in variance in OCB. Scholl, Cooper, & McKenna found that pay equity


Project Study 2012correlated 0.41 with OCB, while the correlation of pay satisfaction was 0.19. Research therefore suggests that fairness is a predictor of OCB, while job satisfaction is not.

Moorman found that job satisfaction is not related to OCB, while procedural justice measures relate to four out of five OCB dimensions. In a further study, Moorman also found that when the relationship between justice and OCB is controlled, job satisfaction no longer relates to OCB. Furthermore, when perceptions of overall fairness are controlled, job satisfaction relates to only two out of five OCB dimensions.

In their meta-analysis study, Organ & Rayan, contrary to previous studies, did not find that fairness was a better "predictor" of altruism than job satisfaction. Moreover, in a sample of 145 government employees in the Southeastern United States, both organizational commitment and job satisfaction were significantly correlated with OCB, while the fairness of supervisors was not.

Thus, we can conclude that the relationship between job satisfaction and OCB depends on the nature of the job satisfaction measure. The literature in this area suggests that cognitive or affective satisfaction measures differ in their relative effect on OCB. Williams & Anderson argue that the cognitive satisfaction measure was related to two types of OCB, while the affective satisfaction measure was not related to OCB. Moorman goes even further and claims that cognitive satisfaction explains more variance in four of five dimensions than affective satisfaction in organizational settings. Organ & Konovsky also found that cognitive satisfaction predicts two forms of OCBs, while affective satisfaction is not significant. Others are not so quick to dismiss the influence of affective measures upon behavior, however, claiming that cognitive measures of job satisfaction explain more variance in OCB than affective measures of job satisfaction without dismissing the latter completely.

PERCEPTIONS OF FAIRNESS

Organ & Konovsky claim that when subordinates are treated fairly throughout an organization, they are more likely to feel the need for a reciprocal social exchange relationship with the organization, provided they are confident that such "fair treatment" will continue. Most are unconcerned about the lack of reward for extra-role behavior. Yet, if subordinates are treated unfairly, their perception of their relationship with the company is more likely to be one of economic exchange, in which case they will simply execute actions that guarantee compensation for themselves. Feelings of fair treatment will increase the chances that OCB will occur. Empirical research supports the relationship between overall fairness and OCB. On the other hand, Tansky postulates that overall fairness is only related to altruism.

This study focuses on two forms of perception of fairness. First, procedural justice is defined as the fairness of the procedures themselves. Distributive justice is defined as the


Project Study 2012fairness of the outcomes received from organizational procedures. Both procedural and distributive justice affects citizenship behavior within organizations. For example, distributive justice based on an "equity norm" reinforces a person's "belief that he or she is being treated fairly." Procedural justice promotes a subordinate's faith in his or her supervisor and organization, and drives him or her to exhibit citizenship behavior that is often outstanding.

Empirical research supports the profound relationship between procedural justice and OCB. In contrast to prior studies, Schappe believes that procedural justice is not a predictor of OCB. Farh et al., George, Konovsky & Pugh, Moorman, and Niehoff & Moorman found that distributive justice shows a stronger relationship to OCB than procedural justice, whereas other researchers found no relationship between distributive justice and OCB.

Employees who go the extra mile by performing spontaneous behaviours that go beyond their role prescriptions are especially valued by the management. This phenomenon is critical for organisational effectiveness because managers cannot foresee all contingencies or fully anticipate the activities that they may desire or need employees to perform (Katz & Kahn 1978, Organ 1988). Work behaviour that goes beyond the reach of organisational measures of job performance holds promise for long term organisational success (Van Dyne, Graham & Dienesch 1994) because these types of action are purported to improve organisational efficiency, effectiveness and adaptability (Organ 1988). Doing jobs beyond what is required without expecting to be rewarded is what is referred to in this study as Organisational Citizenship Behaviour (OCB).

Scholars and practitioners have shown an increasing interest in the concept of OCB (Change & Chelladurai, 2003). OCB has been said to enhance organisational performance because these activities lubricate the social machinery of the organisation, reduce friction, and increase efficiency (Bateman & Organ 1983, Smith, Organ & Near 1983). Enhancing an organisation’s competitive ability is increasingly critical and behaviours, which may improve individual and organisational efficiency, become more valuable.

The taxonomy of OCB includes altruism, conscientiousness, sportsmanship, courtesy and civic virtue. Altruism refers to behaviours that are voluntary. For example, being cooperative, helpful and other instances of extra-role behaviour, which helps a specific individual with a given work related problem (Podsakoff, MacKenzie, Moorman & Fetter 1990). The construct of conscientiousness refers to the extent of behaviours to which someone is punctual, high in attendance and goes beyond normal requirements or expectations (Podsakoff, et al. 1990). In addition, courtesy refers to behaviours that are directed to the prevention of future problems, which is different from altruism because altruism is helping someone who has a problem, while courtesy is helping to prevent problems, performing thoughtful or considerate gestures towards others (Podsakoff, et al. 1990). Moreover, sportsmanship describes those individuals who tolerate the annoyances that are inevitable in the workplace a set of behaviours that demonstrate tolerance of less


Project Study 2012than ideal conditions at work without complaining (Podsakoff, et al. 1990). Finally, civic virtue consists of those behaviours that are concerned with the political life of the organisation (e.g., attend meetings, engage in policy debates, and express one’s opinions in implementing a new policy).

Chapter 4Research Methodology


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TITLE

A Study on Job Satisfaction and Organizational Citizenship Behaviour among Employees of The Arya Vaidya Pharmacy (Coimbatore) Ltd.STATEMENT OF PROBLEM

Many of the critical issues facing business require changes in attitudes and behaviour exhibited by human factor in the industry. Human attitude is emphasized in all organizations as the challenges of global competition highlight the importance of flexibility, productivity and responsiveness to changing external conditions. The behaviour exhibited by individuals will determine whether an organization will thrive or not. Research has gone into assessing the nature of such behaviour that is to be exhibited by individuals. Past researches on OCB have gone into only limited attention to organizational outcomes and specific organizational practices that may elicit citizenship behaviour. Job satisfaction of the employees will elicit high OCB levels. When an employee is satisfied with the job, it may lead to good employee-employer relationship, which will indeed elicit citizenship behaviours in individuals.

HYPOTHESIS H1: There exists a significant and positive relationship between job satisfaction and OCB among employees of The Arya Vaidya Pharmacy (Coimbatore) Ltd.

H0: There exists no relationship between job satisfaction and OCB among employees of The Arya Vaidya Pharmacy (Coimbatore) Ltd.

DEFINITIONS


Project Study 2012JOB SATISFACTION• TheoreticalJob Satisfaction is defined as a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience (Locke, 1976). It is the integration of effects produced by the individual’s perception of fulfillment of his needs in relation to his work and the situations surrounding it.• OperationalIt can be defined as the amount of overall positive effects or feelings that individuals have towards their jobs. (Hugh J. Arnold and Daniel C. Fieldman)ORGANIZATIONAL CITIZENSHIP BEHAVIOUR• TheoreticalThose behaviours, which are not formally prescribed yet, are desired by an organization (Organ, 1998).• OperationalOCB includes traditionally in-role performance, organizationally functional extra role behaviours, and political behaviours like altruism, courtesy, civic virtue, sportsmanship and conscientiousness with regard to the employees, which promote the effective functioning of an organization.Altruism: Discretionary behaviours on the art of the employees that have the effect of helping aspecific other with an organizationally relevant problem.Conscientiousness: Discretionary behaviour on the part of the employee that go well beyond the minimum role requirements of the organization in the areas of attendance, obeying rules and regulations, taking breaks, and so forth.Sportsmanship: Willingness of the employee to tolerate less than ideal circumstances without complaining – “to avoid complaining, petty grievances, railing against real or imagined sights, and making federal cases out of small potatoes.” (Organ, 1988, p.11)Courtesy: Discretionary behaviour on the part of an individual aimed at preventing work related problems with others from occurring.Civic Virtue: Behaviour on the part of an individual that indicates that he/she responsibly participates in, or is involved in, or is concerned about the life of the company. (Podsakoff et al., 1990, p.115)SAMPLING TECHNIQUESampling is the method of selecting a portion of the population with a view to draw conclusions about the universe. The researcher made use of the sampling method in order to save time, expense and effort. The sampling technique used is simple random sampling. A sample, comprising of 100 employees was purposefully selected by the researcher for generating the required data for the study.

TOOLS OF DATA COLLECTIONThe researcher collected data using questionnaires. After self introduction, the purpose of the study was explained to eliminate their suspicion. To measure job satisfaction, a


Project Study 2012reliableand valid questionnaire developed by Paul Spector (1985), was used. The Job Satisfaction Survey (JSS) contains 36 items and uses a summated rating scale format to assess nine facets of job satisfaction, as well as overall satisfaction. The scale ranged from 1 to 6, 1 being “Strongly Disagree” and 6 being“Strongly Agree”. Organizational Citizenship Behaviour was measured using the OCB Scale, developed by Podsakoff, MacKenzie, Moorman and Fetter (1990). The 24 item scale measured 5 aspects of Organizational Citizenship Behaviour described by Organ (1988), namely, altruism, conscientiousness, courtesy,sportsmanship, and civic virtue, using a 7 point scale ranging from “Strongly Disagree” to “Strongly Agree” with a midpoint labelled “Neither agree nor disagree”. RESEARCH DESIGNThere have been previous researches, which have been conducted supporting the same topic. In this study, the variable Organizational Citizenship Behaviour is dependent on Job Satisfaction, which is the independent variable for the study. This study uses the survey design and makes use of the explanatory type of study.PILOT STUDYBefore collecting the data for the study, the researcher held discussions with the HR managers in order to gauge relevant information regarding the scope of the research, the feasibility, population and the tools of data collection. The researcher was also ensured the cooperation of the employees.EDITINGBefore accepting the completed questionnaire, they were carefully scrutinized to ensure that no incorrect entry was made and also to ensure that no questions had been left unanswered.CODING & TABULATIONAll the questions were coded and the responses were entered into a master-chart to facilitate easy tabulation and analysis. Scores were assigned according to the scales, and the negatively worded items were reverse coded, as specified by the questionnaire developers.


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Chapter 5


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Data analysis and Interpretation

This chapter includes the analysis and interpretation of the data collected by the researcher in order to test the hypothesis formulated and for the realization of the various details. The data collected using questionnaire was coded, tabulated and subjected to analysis using the Statistical Package for Social Sciences (SPSS Version 20.0). The study was conducted with the general objective to study any relation between job satisfaction and OCB among the employees of The Arya Vaidya Pharmacy (Coimbatore) Ltd.

GENERAL OBJECTIVE

• To study the relationship between job satisfaction and OCB among employees in The Arya Vaidya Pharmacy (Coimbatore).

CORRELATION ANALYSIS

The Pearson correlation coefficient is a measure of linear association between two variables. The significance level (or p-value) is the probability of obtaining results as extreme as the one observed.

The sign of the correlation coefficient indicates the direction of the relationship (positive or negative). The absolute value of the correlation coefficient indicates the strength, with larger absolute values indicating stronger relationships. The significance level (or p-value) is the probability of obtaining results as extreme as the one observed. If the significance


Project Study 2012level is very small (less than 0.05) then the correlation is significant and the two variables are linearly related.If the significance level is relatively large, (for example, 0.50), then the correlation is not significant, and the two variables are not linearly related.

Table 5.1 Correlations

Total Satisfaction Total OCB

Total Satisfaction Pearson Correlation Sig. (1- tailed) N

1 0 100

.408 ** .000 100

Total OCB Pearson Correlation Sig. (1- tailed) N

.408 ** .000 100

1 0 100

.**Correlation is significant at the 0.01 level (1-tailed).

TABLE5. 1: Correlation Analysis

The figure illustrates the simple bivariate correlations between the job satisfaction and OCB. The correlation analysis shows that the variable job satisfaction has significant and positive association (r = 0.408). The result of the correlation analysis provides full support to the hypothesis H1, at a 0.00 level of significance. The significance value i.e. 0.000 indicates a low significance level in the correlation between the variables, which means the variable job satisfaction, is positively correlated to OCB.

REGRESSION ANALYSIS

Regression analysis was undertaken hierarchically to test for significant interaction effects over and above the simple effects of the independent variable. R, the multiple correlation coefficient, is the correlation between the variables. The values of R for models produced by the regression procedure, range from 0 to 1. Larger values of R indicate stronger relationships. R squared is the proportion of variation in the dependent variable explained by the regression model. The values of R squared range from 0 to 1. Small values indicate that the model does not fit the data well. The sample R squared tends to optimistically estimate how well the models fit the population. Adjusted R squared attempts to correct R squared to more closely reflect the goodness of fit of the model in the population.

Table 5.2

Model Summary


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Model R R square Adjusted R square

Std. error of the estimate

1 .408 * .167 .158 15.627

*. Estimate Predictors: (Constant), total satisfaction

TABLE 2: Regression Analysis

The R square value of 0.167 exhibited in the table shows that the only 16.7% of the variation in the dependent variable i.e. OCB is explained by the variation in the independent variable, i.e., job satisfaction.

SPECIFIC OBJECTIVE 1: To study the level of job satisfaction.

To measure job satisfaction in order to fulfill the above specific objective, the researcher analyzed the data using statistical tools through which the mean value of the variable was found. The mean score of the respondents was 158.47.

Table 5.3

Statistics

Total Satisfaction

N Valid

Missing

Mean

Median

Mode

Sum

100

0

158.47

160.00

172

15847

TABLE 5.3: Showing the mean, median, mode and sum of job satisfaction of employees


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SPECIFIC OBJECTIVE 2: To study the level of OCB.

To measure OCB in order to fulfill the above specific objective, the researcher analyzed the data using statistical tools through which the mean value of the variable was found. The mean score of the respondents was 137.94.

Table 5.4 Statistics

Total OCB

N Valid

Missing

Mean

Median

Mode

Sum

100

0

137.94

140.00

126

13794

TABLE 5.4: Showing the mean, median, mode and sum of OCB of employees

SPECIFIC OBJECTIVE 3: To study the influence of job satisfaction variables on OCB.

Table 5.5

REGRESSION ANALYSISModel R R square Adjusted R

squareStd. error of the estimate

1 .408 * .369 .306 14.187

*. Predictors: (Constant), sum of communication, sum of operating conditions, sum of pay, sum of coworkers, sum of supervision, sum of nature of work, sum of contingent rewards, sum of promotion, sum of fringe benefits.

TABLE5. 5: Regression Analysis


Project Study 2012The R square value of 0.369 exhibited in the table shows that the only 36.9% of the variation in the dependent variable i.e. OCB, is explained by the variation in the independent variable’s sub-dimensions, i.e. the sub-variables of job satisfaction.


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Chapter 6Findings, suggestions & limitations

FINDINGS

In this chapter the researcher is interpreting the findings of the study. The formal objective of the study was to find out the relationship between job satisfaction and organizational citizenship behaviour among employees in the banking industry; and the specific objectives was to measure the levels of job satisfaction and OCB.• In order to test whether there is any relationship between job satisfaction and organizational citizenship behaviour, bivariate correlation was conducted which yield a value of 0.408 at significance level of 0.000. This shows that there is a positive relationship between job satisfaction and organizational citizenship behaviour.• The first specific objective was to measure the level of job satisfaction, for this Job Satisfaction Survey developed by Paul Spector was administered. The mean score of the respondents was 158.47.


Project Study 2012• The second specific objective was to measure the level of OCB, for this Podsakoff’s OCB Scale was administered. The mean score of the respondents was 137.94.• The third specific objective of determining the effect of the sub-dimensions of job satisfaction on OCB was carried out using multiple regression analysis and it was found that the nature of the work and the nature of coworkers contributed significantly to the OCB of bank employees.

SUGGESTIONS

Job satisfaction among the employees can be further increased by providing them better benefits and incentives. This will raise their level of motivation and will encourage them to exhibit more organizational citizenship behavior.

There is a group of employees who are actually not satisfied with the HR policies of the organization. This is probably because they have no awareness about the policies of the organization for their welfare which reduces their morale and motivation which affect their job satisfaction and organizational citizenship behavior negatively. By bringing awareness among the employees regarding the policies we could solve this issue.

Employees should also be encouraged to work in team to increase level of understanding between the employees which will have a positive influence on the organizational citizenship behavior.

CONCLUSION

The researcher of this study has put in genuine effort to conduct the study. The employees tend to exhibit more citizenship behaviour in their organizations when their job satisfaction level is high. They engage in extra role behaviours once they like their job and enjoy the work environment in general. This helps not only in maintaining their performance as well as the performance of others, but also contributes towards organizational effectiveness. Job satisfaction is the result of various attributes possessed by an individual.

The study analyses the influence of the organizations like public and private sector banks and the job attitudes like job satisfaction and OCB of employees in their field of work. Banking is the mirror reflection of an economy. The performance of an economy to a great extent is dependent on the performance of banks. So basically any organization that deals with monetary transaction needs more satisfaction and OCB. This study was carried out in the banking industry where the level of OCB is high because of the job satisfaction of the employees in general due to their extra role behaviour. The research concluded with the fact that higher the satisfaction higher the OCB.


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Bibiliography1. Alotaibi, Adam G. (2001). Antecedents of Organizational Citizenship Behavior: A Study of Public Personnel in Kuwait, Public Personnel Management. Retrieved on November 29th, 2007 fromhttp://www.entrepreneur.com/tradejournals/article/79524628_1.html2. Murphy, Athanasou & King (2002). Job satisfaction and organizational citizenship behavior: A study of Australian human-service professionals, Journal of Managerial Psychology, 17, pp. 287-297.


Project Study 20123. Spector, Paul E. (1997). Job Satisfaction: Application, Assessment, Cause, and Consequences. Sage Publications, Thousand Oaks, CA.4. Podsakoff, Organ & MacKenzie (2006). Organizational Citizenship Behaviour: Its Nature, Antecedents and Consequences. Sage Publications, Thousand Oaks, CA, p. 550-555.5. Smith, A., Organ, D. W. & Near, J. P. (1983). Organizational Citizenship Behavior: Its Nature and Antecedents, Journal of Applied Psychology, 68 (4), 653-663.6. Schnake, M. (1991). Organizational Citizenship: A Review Proposed Model and Research Agenda, Human Relations, 44, 735-759.7. Organ, D. W. (1990). The Motivational Basis of Organizational Citizenship Behavior, Research in Organizational Behavior, 12, 43-72.8. Schappe, S. P. (1998). The Influence of Job Satisfactions, Organizational Commitment, and Fairness Perceptions on Organizational Citizenship Behavior, Journal of Psychology, 132 (3), 277-290.9. Williams, L. J. & Anderson, S. E. (1991). Job Satisfaction and Organizational Commitment as Predictors of Organizational Citizenship and in-role Behaviors, Journal of Management, 17, 601-617.10. Farh, J., Organ, D., & Podsakoff, P. (1990). Accounting for Organizational Citizenship Behavior: Leader Fairness and Task Scope Versus Satisfactions, Journal of Management, 16, 705-721.11. Moorman, R. H. (1993). The Influence of Cognitive and Affective Based Job Satisfaction on the Relationship between Satisfaction and Organizational Citizenship Behavior, Human Relations, 46, 759-776.12. Bateman, T.S., Organ, D.W. (1983), "Job satisfaction and the good soldier: the relationship between affect and employee ‘citizenship", Academy of Management Journal, Vol. 26 pp.587-95.

13. Graham, J.W. (1986), "Organizational citizenship informed by political theory", Chicago, IL., paper presented at the annual meeting of the Academy of Management.14. Katz, D. (1964), "The motivational basis of organizational behaviour", Behavioral Sciences, Vol. 9 pp.131-46.15. Organ, D. (1990), "The motivational basis of organizational citizenship behavior", Research in Organizational Behavior, Vol. 12 pp.43-72.16. Podsakoff, P.M., Williams, L.J. (1986), "The relationship between job performance and job satisfaction", in Locke, E.A. (Eds),Generalizing from the Laboratory to Field Settings, Lexington Books, Lexington, pp.207-53.17. Podsakoff, P.M., Mackenzie, S.B., Moorman, R.H., Fetter, R. (1990), "Transformational leader behaviors and their effects on followers’ organizational citizenship behaviors", Leadership Quarterly, Vol. 1 No.2, pp.107-42.

18. www.avpayurveda.com

19.Memorandum and Articles of Association of AVP and Other documents from various departments


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Appendix

Appendix 1.


Study on Level of Organisational Citizenship Behaviour among employees of AVP

Sir/ Madam, This survey is conducting as part of my project study for MBA course. Kindly spend a short duration of your valuable time for me to fill this questionnaire

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PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT COMES CLOSEST TO REFLECTING YOUR OPINION ABOUT IT.Please give answer to all questions

1.Disagree very much 2.Disagree moderately 3.Disagree slightly 4.Neutral 5.Agree slightly 6.Agree moderately 7.Agree very much

1 Helps others who have been absent. 1 2 3 4 5 6 7

2 Helps others who have heavy workloads. 1 2 3 4 5 6 7

3 Helps orient new people even though it is not required 1 2 3 4 5 6 7

4 Willingly help others who have work related problems. 1 2 3 4 5 6 7

5 Is always ready to lend a helping hand to those around

him/her.

1 2 3 4 5 6 7

6 Attendance at work is above the norm. 1 2 3 4 5 6 7

7 Do not take extra breaks. 1 2 3 4 5 6 7

8 Obeys company rules and rules even when no one is

watching.

1 2 3 4 5 6 7

9 Is one of my most conscientious employees 1 2 3 4 5 6 7

10 Believes in an honest day’s work for an honest day’s

pay.

1 2 3 4 5 6 7

11 Consumes a lot of time complaining about trivial

matters.

1 2 3 4 5 6 7

12 Always focuses on what’s wrong, rather than the positive

side.

1 2 3 4 5 6 7

13 Tends to make “mountains out of molehills”. 1 2 3 4 5 6 7

14 Always finds fault with what the organization is doing. 1 2 3 4 5 6 7

15 Is the classic “squeaky wheel” that always needs

greasing.

1 2 3 4 5 6 7

16 Takes steps to try to prevent problems with other

workers

1 2 3 4 5 6 7

17 Is mindful of how his/her behaviour affects other

people’s jobs

1 2 3 4 5 6 7

18 Does not abuse the rights of others 1 2 3 4 5 6 7

19 Tries to avoid creating problems for co-workers 1 2 3 4 5 6 7

20 Considers the impact of his/her actions on co-workers. 1 2 3 4 5 6 7


Project Study 201221 Attends meetings that are not mandatory, but are

considered important

1 2 3 4 5 6 7

22 Attends functions that are not required, but help the

company image

1 2 3 4 5 6 7

23 Keeps abreast of changes in the organization 1 2 3 4 5 6 7

24 Reads and keeps up with organization announcements,

memos

1 2 3 4 5 6 7

Appendix 2Study on Level of Job Satisfaction among employees of AVP


Project Study 2012Sir/ Madam, This survey is conducting as part of my project study for MBA course. Kindly spend a short duration of your valuable time for me to fill this questionnaire.

1.Disagree very much 2.Disagree moderately 3.Disagree slightly 4.Agree slightly 5.Agree moderately 6.Agree very much

1 I feel I am being paid a fair amount for the work I do. 1 2 3 4 5 6

2 There is really too little chance for promotion on my job. 1 2 3 4 5 6

3 My supervisor is quite competent in doing his/her job. 1 2 3 4 5 6

4 I am not satisfied with the benefits I receive. 1 2 3 4 5 6

5 When I do a good job, I receive the recognition for it that I should receive.

1 2 3 4 5 6

6 Many of our rules and procedures make doing a good job difficult.

1 2 3 4 5 6

7 I like the people I work with. 1 2 3 4 5 6

8 I sometimes feel my job is meaningless. 1 2 3 4 5 6

9 Communications seem good within this organization. 1 2 3 4 5 6

10 Raises are too few and far between. 1 2 3 4 5 6

11 Those who do well on the job stand a fair chance of being promoted.

1 2 3 4 5 6

12 My supervisor is unfair to me. 1 2 3 4 5 6

13 The benefits we receive are as good as most other organizations offer.

1 2 3 4 5 6

14 I do not feel that the work I do is appreciated. 1 2 3 4 5 6

15 My efforts to do a good job are seldom blocked by red tape. 1 2 3 4 5 6

16 I find I have to work harder at my job because of the incompetence of people I work with.

1 2 3 4 5 6

17 I like doing the things I do at work. 1 2 3 4 5 6

18 The goals of this organization are not clear to me. 1 2 3 4 5 6

19 I feel unappreciated by the organization when I think about what they pay me.

1 2 3 4 5 6

20 People get ahead as fast here as they do in other places 1 2 3 4 5 6

21 My supervisor shows too little interest in the feelings of subordinates.

1 2 3 4 5 6


PLEASE CIRCLE THE ONE NUMBER FOR EACH QUESTION THAT COMES CLOSEST TO REFLECTING YOUR OPINION ABOUT IT. Please give answer to all questions

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22 The benefit package we have is equitable. 1 2 3 4 5 6

23 There are few rewards for those who work here 1 2 3 4 5 6

24 I have too much to do at work. 1 2 3 4 5 6

25 I enjoy my co-workers. 1 2 3 4 5 6

26 I often feel that I do not know what is going on with the organization

1 2 3 4 5 6

27 I feel a sense of pride in doing my job 1 2 3 4 5 6

28 I feel satisfied with my chances for salary increases. 1 2 3 4 5 6

29 There are benefits we do not have which we should have. 1 2 3 4 5 6

30 I like my supervisor 1 2 3 4 5 6

31 I have too much paperwork 1 2 3 4 5 6

32 I don't feel my efforts are rewarded the way they should be. 1 2 3 4 5 6

33 I am satisfied with my chances for promotion 1 2 3 4 5 6

34 There is too much bickering and fighting at work 1 2 3 4 5 6

35 My job is enjoyable 1 2 3 4 5 6

36 Work assignments are not fully explained 1 2 3 4 5 6


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