INTRODUCTION

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1. INTRODUCTION

1.1. ABOUT THE TOPIC

Chennai tech-startup scene is greatly burgeoning that its culture has inspired more and
more young people to pursue independent entrepreneurship rather than desperately
hunt jobs in a traditional way. Startups are not the smaller version of large companies,
they are in fact looking for a repeatable and scalable business model with lean
methods in hope to seed growth in the market or they even create a new blue ocean
for themselves. The reason is largely because the values they offer to the potential
customers are invariably something that challenges the conventional products as well
as what have already been in existence. Thus, how to attract specialists and experts to
work for the startup, what kind of culture the organization should apply to encourage
creativity and in which way to maintain their belief for the product’s future so that
they have motivation to go to work every day are essential questions to elaborate on.
In the long run, employees’ job satisfaction is the key to this concern. A company or
any organization is a group of human beings, so people is the most valuable asset in a
company, as many of us know.

Thus this topic would provide idea about the way startups function, particularly in
people issues and also to know what employees expect from their start-up. There are
scenarios where employees from big prominent corporate like Google, Infosys quit
their job in order to work in small start-up. There is something these start-up provides
that the big corporate fail to do. This topic also helps to identify those factors and help
us to determine whether the employees are satisfied working in start – up and whether
their expectations are fulfilled. It also helps to identify the benefits the start-ups offer
their employee and practices that are followed in providing employee satisfaction.

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1.2. RESEARCH OBJECTIVE

1.2.1. Primary Objective

To study about the expectation, benefits of employees working in a start-up

and their overall satisfaction in Job responsibility, co-worker relationship and
Recognition.

1.2.2. Secondary Objectives

 To study in detail about Chennai based tech- start-up

 To identify employee benefits the start-up offers
 To study about career promotion prospective in a start-up
 To know the importance of the start-up employees job responsibility
 To identify the means of communication widely used in Chennai based
tech start-ups

1.3. NEED FOR STUDY

 This study helps the start-ups to identify the areas improvement

required in order to provide a complete satisfaction to their employees
 The Study points out the importance of human resource management
for growth of their start-up.
 Helps startups keep their employees satisfied during times of changes
and challenges when their organizations are more grown
 The study provides an insight to the employees on what extent they are
satisfied in their organisation.

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1.4. SCOPE OF STUDY

 Study on job satisfaction of employees is an interesting and significant

area for conducting research
 The study made on employee satisfaction will help to reveal the factors
of feeling of employee
 This report is useful to the management of the start-ups to know the
satisfaction level of the employees and they can take measures to
increase productivity.
 This study is not alone important for the HR Department of the
organisation but also to various other departments like sales, business
analysts etc to identify their own employee’s level of satisfaction in job
responsibility and to act according to it resulting in overall growth of
the organisation.

1.5. LIMITATIONS OF STUDY

 The study is conducted only in two Chennai based tech –startups

 Due to limitation of the time the research could not be made more
detailed
 Some of the replies of the respondents may be biased
 Respondents had marked the answers in questionnaires which may be
socially incorrect irrespective of their actual feelings

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 INDUSTRY AND
COMPANY PROFILE

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2.1. INDUSTRY PROFILE

2.1.1. INFORMATION TECHNOLOGY

The Information Technology (IT) has been one of the key driving forces fuelling
India’s economic growth. Availability of skilled talent has been a major reason behind
India’s emergence as global outsourcing hub. India has been competitive location
globally and that is what has led to the growth of the industry.

Industry Performance

 The contribution of IT sector has risen to 7.5% in FY 2012 from 1.2%

in FY 1998.
 IT Hardware market presently has a Market size of USD 13.0 billion
during FY 2012
 Software Services segment in India presently has an estimated Market
size of USD 17.0 billion during FY 2012.
 NASSCOM expects the country's Information Technology (IT)
services sector to grow at a rate of 13-14% in the current financial year
and expected to touch $225 billion mark (Rs 13.22 lakh crore) by
2020. The sector had been growing at a Compound Annual Growth
Rate of 12-13%.
 At present, BFSI, Hi-tech, Telecom and Manufacturing contribute to
around 80% of the IT services business in India, while Utilities,
Transport, Healthcare and Media & Entertainment have opened new
avenues for the industry.
 The increase in IT investments by Indian small and medium enterprises
indicates constant progress in business maturity levels. Investments
from the mid-market segment are expected to grow at a significant rate
of 17.2%. Government initiatives and public private partnerships are

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 bridging Infrastructure and Research & Development (R&D) gaps that
inhibited SME growth.
 An interesting phenomenon of change has been witnessed in the Indian
IT industry. 43 new tier II/III cities are emerging as IT delivery
location. This could reduce pressure on leading locations.

IT Product Development
India is the global destination for technology product development. However India’s
$108-billion IT sector is struggling to keep pace with challenging business
environment. IT vendors all over are chasing for new business opportunities in IT
domain. As a result India’s investment in S-M-A-C has gone up drastically. Customer
investment in S-M-A-C is done through integration of
1. Social
2. Mobility
3. Analytics
4. Cloud
Market research firm IDC had estimated last year that that 90% of all growth from
2013 to 2020 will come through what it calls the 'third platform' and others refer to as
SMAC. The Indian software industry’s exports may grow by about 13% in fiscal year
2014 to $87 billion (around Rs.5.4 trillion today), driven by its ability to offer
solutions that integrate new business models such as analytics and cloud-based
services, which are part of SMAC.
IT Captive Services
India has a dominant share in the Global Sourcing industry and IT Captives have a
more important role to play in off shoring. Indian captives are world renowned for
adding value to multinational businesses. IT captives are generally defined as a fully
owned facility of a global company for
1. IT support
2. Software development
3. Back office processing
4. Call center operations
5. Business process outsourcing
Over the years, operational environment for Indian captives has become tough with
growth challenges and talent shortages. As captives expand their service offerings,
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they are increasingly being vowed as a service partner who is integral to core business
functions.
IT Captives in India can be mainly classified into following categories
1. Financial Services
2. Manufacturing
3. HealthCare Outsourcing
4. Retail, FMCG and apparels.
IT Telecomm (Application Software and Hardware) Services
IT Telecomm Services comprise of all technology methods to gain control over
Voice, Wireless and Network equipments.
IT telecomm services in India include
1. Lifecycle management services, telecomm assessment, transition planning,
design, data transformation management.
2. Integrated solutions for Voice and Wireless services.
3. Global delivery procedures.
4. Dispute resolutions and redressed services.
5. Continuous evaluation of equipment and contracts, ordering procedures.

2.1.2. START-UP

Before the recent hysteria of Startups, India was mostly popular as an IT

outsourcing destination that provided cheap and easy labour to the global
companies for carrying on various back-end jobs. Technology startups in India
date back almost three decades. On compilation of the Industry’s major landmark,
Microsoft Accelerator in India came up with four distinct phases of growth and
maturity that have traversed so far: software services and global delivery model,
the dotcom era, the rise of product startups and growth of startup ecosystem.
Some of the milestones include US-based Texas Instruments’ decision to start an
R&D center in Bangalore in 1985 which further served to be an incubator for
many of the current entrepreneurs and the launch of the infamous accounting
software Tally in 1986. Aiming to foster entrepreneurship and promoting

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innovation by providing an ecosystem that is conducive for growth of Start-ups,
with an object to facilitate India become a nation of job creators instead of being a
nation of job seekers; the Indian Prime Minister launched the initiative formally
on January 16, 2016 from Vigyan Bhawan, New Delhi.

A startup company (startup or start-up) is an entrepreneurial venture which is

typically a newly emerged, rapidly-growing business that aims to meet a market
need by developing or offering an innovative and extraordinary product, process
or service. A startup is usually a company such as a small business, a partnership
or an organization deliberately designed to rapidly develop a commercially viable
business model. More often than not, startup companies deploy technologies,
such as Internet, e-commerce, computers, telecommunications, or robotics to
make a niche for them in the market. These companies are generally involved in
the design and implementation of the innovative and out of the box processes of
the development, validation and research for target markets. While start-ups do
not only operate in technology realms, the term became internationally
widespread during the dot-com bubble in the late 1990s, when a great number of
Internet-based companies mushroomed.

Start-up in India at Glance:

India is amongst the top five countries in the world in terms of startups.US ranks
number one on the list with 83,000+ startups. There are approximately 10000
startups in India.
In the Technology based startups, maximum concentration is in E-Commerce
sector (33%) followed by B2B sector (24%), Consumer Internet (12%) and other
sectors comprise 13%. On the other hand, in the Non Technology based startups,
the maximum concentration is in the Engineering sector (17%) followed by Agri
Products sector (13%) and other sectors comprise 32%.

Current state of start-up in India

 India is the third largest Startup hub.
 Average age of startup founders is 28 years.
 9% of the total startup founders are women

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  Total tech startups are expected to increase from 4300 in 2015 to
11500 in 2020.
 Average number of new technology startups has moved from 480
in 2010 to 800 in 2015. Expected to increase to 2000 in 2020.
 Majority of startups and investors are from metro cities.
 Approximately, 50% growth in share of female entrepreneurs in
the last 12 months. 8) The number of Private Equity and Venture
Capital firms has doubled in the last 12 months.

Stages of Start-up Life Cycle

PRE STARTUP Discovery- Identify a potential scalable product/service idea for a big
enough target market. Validation- The service or product discovered hits the market,
looking for the first clients ready to pay for it.

STARTUP Efficiency -The entrepreneur begins to define his/her business model and
looks for ways to increase customer base constantly. Scale- Pushing the growth of the
business aggressively while increasing its capacity to grow in every possible
sustainable manner.

GROWTH Maintenance- Maximizing benefits and facing problems derived from the
global dimension in terms of competition that the business has achieved Sale or
Renewal - The decision to sell the startup to a giant or acquire huge resources that the
brand will need to continue growing as a venture.

Fig1: Early Company Life Cycle

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2.2. COMPANY PROFILE

The Study produces in-depth analysis into practical examples of two Chennai based tech
startups spreading in two different fields. Employee survey about their expectation and job
satisfaction was conducted to uncover the employees’ opinions on an individual basis.
Hereby are the start-up company profiles in brief:

1) Contus is a SMAC driven Digital Transformation Company that helps

businesses upscale by leveraging technologies with a wide range of IT product
and services. Located in Guindy Chennai operating for 7+ years with 100+
developers. It is one of the top 10 IT product development start-up in Chennai.

2) Another start-up company taken for the research was started in 2012. It is a
provider of Digital Banking Experience solutions that help Banks craft Omni
channel digital experiences that enrich customer life journeys. In the rapidly
evolving digital world, the company enables banks to nurture and grow close
ties with customers through a seamless omnichannel experience. It is located
in T-nagar Chennai.

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LITERATURE REVIEW

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3. LITERATURE REVIEW

3.1. HUMAN RESOURCE MANAGEMENT

3.1.1. DEFINITION

Behind production of every product or service there is a human mind, effort and man hours
(working hours). No product or service can be produced without help of human being.
Human being is the fundamental resource for making or construction of anything. Today
many experts claim that machines and technology are replacing human resource and
minimising their role or effort. However, indeed, machines and technology are built by the
humans; they need to be operated or at least monitored by humans. Maybe because of this
reason, companies have continuously been searching for talented, skilled and qualified
professionals for further development of machines and technology, which again have to be
controlled or Monitored by humans to bring out products/services.

According to Decenzo and Robbins “HRM is concerned with the people dimension” in
management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to higher levels of performance and ensuring that
they continue to maintain their commitment to the organization is essential to achieve
organisational objectives. This is true, regardless of the type of organization – government,
business, education, health or social action”.

Edwin Flippo defines- HRM as “planning, organizing, directing, controlling of procurement,

development, compensation, integration, maintenance and separation of human resources to
the end that individual, organizational and social objectives are achieved.”

The National Institute of Personal Management (NIPM) of India has defined human
resources – personal management as “that part of management which is concerned with
people at work and with their relationship within an enterprise. Its aim is to bring together
and develop into an effective organization of the men and women who make up enterprise
and having regard for the well – being of the individuals and of working groups, to enable
them to make their best contribution to its success”.

Human resource management is concerned with the development of both individuals and the
organization in which they operate. HRM, then, is engaged not only in securing and
developing the talents of individual workers, but also in implementing programs that enhance
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communication and cooperation between those individual workers in order to nurture
organizational development.
3.1.2. HRM TODAY, CHANGES AND CHALLENGES

As stated in Inc. (n.d.), the world is constantly changing with novel business trends which
definitely place great influence on how HRM works. The exponential growth of technology
has been the most impressive which takes communication and information exchange to a new
level. The technological boom provides breathtaking conditions to improve the interaction
among workers in the company, especially when technology is more affordable to people,
information exchange becomes more instant, which drives better cooperation not only with
employees in one place but also convenience in connecting those who are staying remotely.
Furthermore, in accordance with Dias (2011), technology helps make HR function more
smoothly with management system regarding storing recruitment information, employee
data, compensation and training. Due to great reduction of distance burden through
technology usage, businesses and other organizations can operate with people from all around
the world. This stimulates globalization, however, simultaneously, once involving various
cultural background, there are huge challenges of misunderstanding and cultural sensitivity.
HR managers should be able to ensure that technology should become a more comfortable
means of communication rather than productivity downsizing scheme owing to
incomprehensibility. Additionally, online social networking has become another challenge
for employee management. “Cyber loafing” is a term depicting the decreased productivity as
a consequence of the employees utilizing computers and other electronic devices for personal
reasons (Dias 2011).
The problem has been more popular since the development of social network sites such as
Facebook, Twitter and YouTube. Because the Internet and technology play larger role in
business activities, it is inevitable that these have initiated further stress for employees with
“increased job demands, constant change, constant e-mailing and texting, and the physical
aspects of sitting in front of a computer can be not only stressful but also physically harmful
to employees” (Dias 2011). In other words, while technology has its vast benefits, we cannot
deny its flip side which is gradually debilitating employees’ productivity and health or even
their own lives. The economy health is unpredictable and businesses are adversely affected
during turbulent economic times. Apparently, high unemployment and layoffs are managerial
HR issues (Dias 2011). Making decisions on cutting down the number of workforce is
stressful for HR managers. They have to be considerate enough to keep the right ones to stay.

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However, firing people who are sincerely loyal and contributively to the company’s success
is hard because despite their valuable characteristics, it is uncertain for them to find another
job which secures their financial freedom and above all, makes them satisfied and fulfilled.
Similarly, in an affluent economy, demand is escalated, making massive hiring the solution.
Massive hiring creates job opportunities for a number of people but having the barriers
lowered also press the quality down, which is also the fruit of overwhelming training
procedures. Nevertheless, ironically, there are some industries suffering from workforce
shortages, requiring HR managers to flexibly elevate current employees’ abilities to react to
changes by training programs about updating new knowledge and new technology usage to
them. The training should be properly designed to nurture the employees’ adoption of new
skills because it also depends on individual capability to be susceptible to change (Bradley
n.d.)
The future becomes more unstable with dramatic transformation potentially happening in any
area. The most evident example is great leaps in technology which renews itself in the matter
of seconds. Changes culminate employees’ anxiety or even more seriously, resistance
(Bradley n.d.). The most common example is how cutting-edge technology with better
quality and affordability is threatening the workers being replaced by machines in certain
jobs. Therefore, equipping human resource with open minds to changes is indispensable for
maintaining the organization’s sustainability. Of course changes can aggravate them with
ease, especially with the aforementioned case, the companies should create adequate
strategies to conquer their resistance by for instance, providing them with opportunities to
learn new skills and be aware of making themselves valuable in other roles or even better,
they may find themselves truly suitable to something else. Ultimately, successful
management towards changes is when changes are regarded as opportunities rather than such
roadblocks from the perspectives of the management team and the employees. Obviously,
flexibility should come from both sides for the best results.

3.1.3. HRM RELATIONSHIP WITH EMPLOYEE SATISFACTION

As HRM characteristics are discussed above, it is clearly seen that HRM has a great impact
on the organizations’ performance based on the core emphasis on people issues.
Organizations stay alive through activities energized by human beings and driving
employees’ commitment to contributing their utmost values to the places they work for is a
ubiquitous aim of every organization. In order for the employees to passionately develop their

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bond with the companies, their job satisfaction is undeniably a major decisive element. In
addition, the world is moving forward with increasing awareness about enhancing welfare
equality for everyone. Thus, issues related to the improvement of people’s quality of enjoying
their work and life have been taken into more consideration.
HRM and employee job satisfaction, as a result, are vastly studied all around the world.
According to Alina Ileana Petrescu (Lancashire Business School, University of Central
Lancashire, Preston, UK) “After controlling for personal, job and firm characteristics, it is
found that several HRM practices raise workers' overall job satisfaction and their satisfaction
with pay. However, these effects are only significant for non‐union members. Satisfaction
with pay is higher where performance‐related pay and seniority‐based reward systems are in
place. A pay structure that is perceived to be unequal is associated with a substantial
reduction in both non‐union members' overall job satisfaction and their satisfaction with pay.
Although HRM practices can rise workers' job satisfaction, if workplace pay inequality
widens as a consequence then non‐union members may experience reduced job satisfaction.”

Ting (1997) once cited that HR practices and job satisfaction are inextricably correlated.
Sharing the same standpoint, Appelbaum et al. (2000) held a strong tenet about the logics
among HR practices, job satisfaction and afterwards, blossoming organizational performance.
Besides, there is a variety of research wanting to discover the brotherhood relationship
between HR practices and job satisfaction in real-life organizations. The good news is most
of them strongly proving the positive correlation between these two variables.
For example, Edgar and Geare (2005) did an examination on the effect of HRM on several
employees’ attitudes such as job satisfaction, organizational commitment and organization
fairness in New Zealand. The result found was that HRM activities made considerable
influence on those three of employees’ attitudes. Aswathappa (2008) remarked that good HR
planning would culminate in job satisfaction enhancement and that organizations should take
HR plans more seriously to further motivate their employees.

3.2. EMPLOYEE JOB SATISFACTION

Job satisfaction or employee satisfaction is defined as the extent to which an employee feels
self-motivated, content & satisfied with his/her job. Job satisfaction happens when an
employee feels he or she is having job stability, career growth and a comfortable work life

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balance. This implies that the employee is having satisfaction at job as the work meets the
expectations of the individual.

A satisfied employee is always important for an organization as he/she aims to deliver the
best of their capability. Every employee wants a strong career growth and work life
balance at workplace. If an employee feels happy with their company & work, they look to
give back to the company with all their efforts. Importance of job satisfaction can be seen
from two perspectives i.e. from employee and employer perspective:

For Employees: Job satisfaction from an employee perspective is to earn a good gross salary,
have job stability, have a steady career growth, get rewards & recognition and constantly
have new opportunities.

For Employers: For an employer, job satisfaction for an employee is an important aspect to
get the best out of them. A satisfied employee always contributes more to the company, helps
control attrition & helps the company grow. Employers need to ensure a good job
description to attract employees and constantly give opportunities to individuals to learn and
grow.

The positive effects of job satisfaction include:

1. More efficiency of employees of workplace if they are satisfied with their job.

2. Higher employee loyalty leading to more commitment.

3. Job satisfaction of employees eventually results in higher profits for companies.

4. High employee retention is possible if employees are happy.

The definition of job satisfaction by Hulin and Judge (2003) is a more recent one. They state
that job satisfaction involves multidimensional psychological responses to an individual’s
job. These personal responses are then categorized into affective (emotional), cognitive
(evaluative) and behavioural components. Job satisfaction scales differ in the scope to which
affective and cognitive responses are gauged. Affective job satisfaction is subjective in the
way it indicates the emotional feeling individuals have about their job. Affective job
satisfaction, therefore, portrays one’s level of gratification that their employment chiefly
generates. On the other hand, cognitive or evaluative job satisfaction is in fact a more
objective and logical appraisal of a job’s multiple aspects. Cognitive job satisfaction is
comprised of only one part of the job such as reward policy or annual leave or can be
multidimensional if two or more aspects of the jobs are assessed in parallel with each other.

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Moreover, cognitive job satisfaction does not evaluate the scale of indulgence or delight from
certain job facets, but concentrate on the extent to which the job executer judge these facets
to determine the comparison with the objectives they set or with other jobs. There is the
likelihood that cognitive job satisfaction breeds affective job satisfaction, these two elements
are discrete with divergent antecedents as well as consequences.

Job satisfaction can be taken into consideration as one of the most important factors deciding
the effectiveness of the organizations. Lately there has been major shift in managerial
paradigm which declares that the employees should be treated and deemed as human beings
who have their own wants, needs and personal aspirations. Quickly enough, employees’ job
satisfaction has grown into a fundamental indicator to evaluate the way the company function
because it has been generally known that happy workers are productive ones.

3.3. EMPLOYEE SATISFACTION MEASUREMENTS

3.3.1. IMPORTANCE OF EMPLOYEE SATISFACTION MEASUREMENT

As stated by Judge and Klinger (2009), scores collected from valid measurement of job
satisfaction are the most crucial information for the organizations. The scores not only
provide proof for the present situation of the management effectiveness but also give the
organizations predictions about a wide range of job behaviours. However, number of
organizations is openly doubtful about whether to take employees’ job satisfaction into
consideration. There was one study revealing how managers appreciate job satisfaction and
gathering the comments below
 “Job satisfaction is virtually never discussed in the senior staff meetings I attend
within our business unit.”
 “Job satisfaction is not measured. Because this is Wall Street, money talks. If people
weren't happy, they could have moved their whole team elsewhere.”
 “Job satisfaction is not measured or considered at all.”
 “There is some questioning of whether job satisfaction is desirable anyway.”
Organizations should be strongly recommended to consider more emphasis on job
satisfaction because as a matter of fact, job satisfaction has inextricable relationship with
many outcomes that are indispensable for individuals and organizations to know about.

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3.4. START-UPS
3.4.1. DEFINITION

A start-up company (start-up or start-up) is an entrepreneurial venture which is typically a

newly emerged, fast-growing business that aims to meet a marketplace need by developing a
viable business model around an innovative product, service, process or a platform. A start-
up is usually a company designed to effectively develop and validate a scalable business
model.

Start-ups have high rates of failure, but the minority of successes include companies that have
become large and influential.

Start-up companies can come in all forms and sizes. Some of the critical tasks are to build a
co-founder team to secure key skills, know-how, financial resources, and other elements to
conduct research on the target market. Typically, a start-up will begin by building a
first minimum viable product (MVP), a prototype, to validate, assess and develop the new
ideas or business concepts. In addition, start-ups founders do research to deepen their
understanding of the ideas, technologies or business concepts and their commercial
potential. A Shareholders' agreement (SHA) is often agreed early on to confirm the
commitment, ownership and contributions of the founders and investors and to deal with
the intellectual properties and assets that may be generated by the start-up. Business
models for start-ups are generally found via a "bottom-up" or "top-down" approach. A
company may cease to be a start-up as it passes various milestones, such as becoming
publicly traded on the stock market in an Initial Public Offering (IPO), or ceasing to exist as
an independent entity via a merger or acquisition. Companies may also fail and cease to
operate altogether, an outcome that is very likely for start-ups, given that they are developing
disruptive innovations which may not function as expected and for which there may not be
market demand, even when the product or service is finally developed. Given that start-ups
operate in high-risk sectors, it can also be hard to attract investors to support the
product/service development or attract buyers.

Start-ups have several options for funding. Venture capital firms and angel investors may
help start-up companies begin operations, exchanging seed money for an equity stake in the
firm. Venture capitalists and angel investors provide financing to a range of start-ups (a
portfolio), with the expectation that a very small number of the start-ups will become viable
and make money. In practice though, many start-ups are initially funded by the founders

19
themselves using "bootstrapping", in which loans or monetary gifts from friends and family
are combined with savings and credit card debt to finance the venture. Factoring is another
option, though it is not unique to start-ups. Other funding opportunities include various forms
of crowd funding, for example equity crowd funding, in which the start-up seeks funding
from a large number of individuals, typically by pitching their idea on the Internet.

3.4.2. EMPLOYEE SATISFACTION IN START-UP

According to Dennis Hung (2015) there are a lot of people who will tell that if you are doing
something that you love, it shouldn’t matter about the money. And while that might only be
true to a certain extent after all, everybody needs at least enough money to survive anyone
who has experienced the world of work would almost certainly agree with that statement. As
a result, many start-up owners are left scratching their heads in confusion when they
experience a high rate of employee turnover, and find themselves unable to fix it by throwing
money at people. Money helps a great deal when it comes down to feeling good about a
current position, but when it is the difference between love and hate, it is rare that any
amount of money (within reason) will make up for the worst job in the world. As a result,
smart businesses and entrepreneurs looking to recruit will realize the importance of creating a
good work environment. The best recruits have their pick of the best companies, and when it
comes down to it, they will make their decisions based on which company will be the best fit
for them personally. This means if the pay is competitive, entering an exciting working
community can become the most important factor for the best and brightest talent.

Nine out of ten people have admitted to valuing job satisfaction highly when it comes to
looking for a career.

1) Retain Your Best Assets

More important than attracting new hires however, is keeping the old ones. Employee
retention can be one of the most important facets of a successful small business, and while
regular raises can be part of what creates a content employee, if you can offer competitive
salaries, and keep an enjoyable and creative workplace, most people will stick to a company
that they love rather than take their talents elsewhere.

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Organisation spend a ton of time focusing on customer retention and have created a whole
entire industry full of CRM (Customer Relationship Management) software, but while
there are employee retention-focused platforms and services, most companies are investing in
one service and not the other. CRM’s are much more popular. And when the cost of losing an
employee within the first year can be 3x the salary it’s not a bad idea to focus on your
employees as much as your sales.

2) Care about more than the Bottom Line

To encourage job satisfaction the first step is to actually care about your employees. While
good results are very important, if you let your company become the sort of place that does
anything to achieve the bottom line, despite what happens to everyone else on the way, you
will find that your business will struggle a lot more than it needs to. After all, it is the
employees who make the company. Regular employee rewards are another good way to
increase job satisfaction. They do not have to be expensive or elaborate, but just simple
rewards every now and then can be enough to show your employees that you not only care
about them, but that you value the hard work that they put in, and all of the things that they
do for the company. When it all comes down to it, if someone is going to do something just
for the money, they are not going to get very far at all, and they are not the kind of person
that you want working for your company. You will soon find that the best employees will be
the ones who truly care about the work that they do, and the people they work with. Reward
them by treating them with the same amount of respect, and you will find that your company
is not only a happier place, but a more productive one.

Another research states that what successful startups share in common is that they have
taken good advantage of bolstering their employees’ intrinsic motivation. As a matter of fact,
there is repetitive controversy about the relationship between intrinsic and extrinsic
motivation. Throughout the last two decades, the psychologists have given evidence for the
“over-justification” effect, which professes higher external rewards would dent the
performance by demolishing an individual’s intrinsic interest. There are two large-scale Meta
analyses reported that, once tasks are innately meaningful, especially in innovative and
creative tasks, external rewards tend to shrink the employees’ engagement. The fact is valid
for both adults and children when people are rewarded only for their performance. Another
point is that, when working in a start-up, especially in the newborn one, because of extreme
uncertainty, there would be sacrifice from the employees in one way or another, but most
21
prominently, their salary is unsecured in the infant stage. It is usually believed that salary
would affect job satisfaction and ultimately, money is an important factor.
Startups have their own different methods of establishing a unique working environment. As
mentioned above, mainly due to the fact that they are working under extreme uncertainty, the
employees are incentivized and motivated in antithetical ways to the established companies.
Being organizations in early stage, their employees are regarded as the most valuable asset
attributed to the success of their value delivering. In other words, human resource, if properly
chosen, utilized and developed, is the fuel fostering not only startups but also incumbents
forward because ultimately, organizations are made of human beings. As a result, employees’
job satisfaction is an indispensable criterion deciding an organization’s destiny.

3.4.3. TECH START-UPS

A tech start-up is a company whose purpose is to bring technology products or services to

market. These companies deliver new technology products or services or deliver existing
technology products or services in new ways.
However success rate of tech start-up is comparatively low. According to an article “several
tech startups continue to dot the start-up ecosystem, the segment has been scrutinized with a
magnifying glass. Given the high failure rates, one can gauge that most ideas – no matter how
good – aren’t successfully executed. With the information technology and communications
industry recording the most failures, this opens up the debate as to why these enterprises fail
to take flight.
When a start-up fails, it’s almost always the culmination of a variety of factors coming
together. Given the diversity and wide variety of the start-up sector, no two failures are
exactly alike or due to the same reasons. However, there are a few common mistakes that can
be extremely costly, particularly for tech startups.”

Released on the sidelines of the annual flagship NASSCOM Product Conclave 2017
(NPC 2017), the report laid bare the ongoing trends in the Indian start-up ecosystem. While
Bangalore, Delhi/NCR and Mumbai retained their top positions as the key start-up hubs in
India, 20% of the startups emerged from tier II/III cities.

22
With 40% of startups in the B2B segment, B2B’s share in the overall tech start-up funding is
over 30% the report noted. Fin-tech start-up base is estimated to be 360 in 2017 indicating at
31% year on year growth with over $200 million funding received in the first half of 2017,
recording a growth of 135% since the comparable period in 2016.

According to NASSCOM the Indian Technology start-up landscape has evolved to become
the 4th largest in the world. Since 2010 there has been a significant rise in the growth of
technology startups and in e2014 India was home to 3,000 technology start-ups. The report –
first in the start-up series, conducts an in-depth analysis of the various aspects of the
ecosystem. It identifies the current scale and size, factors impacting growth, and steps
required to make the start-up environment more conducive.

3.4.4. CHENNAI BASED TECHNOLOGY START-UP

Chennai has always been known for its automobile and IT industry. The cultural capital of
the south sees a presence of a major part of India's automobile industry. In terms of IT export,
Chennai is ranked second in India. It is often seen as the secondary financial hub following
Mumbai. One of the fastest growing cities in the world, Chennai is home to more than 20
Indian companies that have a net worth of more than USD 1 billion.

In terms of legacy startups, Chennai has given us Bharatmatrimony. Founded in 1997

by Murugavel Janakiraman, who later met his wife through his own matrimony site, the
company has 130 offices in India, with offices in Dubai, Sri Lanka, United States and
Malaysia to cater to its customers beyond India. Bharatmatrimony is one of India’s largest
and most trusted matrimony brands.

Arvind Parthiban, whose website analytics company Zarget was acquired by Freshworks in
August, compared the Chennai start-up story to the evolution of Silicon Valley as a global
tech and start-up hub because of early success stories.

23
3.4.5. EMPLOYEE BENEFITS WORKING IN START-UPS

Venture Village conducted a survey and resulted top 4 benefits or advantages in working in
start-up
They are
1) Work Environment
2) Recognition
3) More Responsibility
4) Learning and Career growth
Another research says that the advantages in choosing start-up over corporate are

 It's a unique experience - It's not always gaming rooms and skateboarding in the
hallways, but startups know how to pull off a favourable work environment.
Creativity and innovation grow the business, so a stimulating workspace is crucial.
 You learn A LOT - Startups place loads of responsibility on their employees. They'll
hire you because of your skills, but founders expected much more. You help with
everything at a start-up. Often, it's work outside your job description, so opportunities
for learning and growth abound. Founders and employees work together; there's no
middle management, so you learn from the best.
 Employees work without supervision. They make smart decisions and take
responsibility for the consequences. The chance to steer progress motivates them to
perform well.
 You can innovate - Startups need to grow fast. If they can't keep up in the fast lane,
they'll crash out. Employees have the license to show off their brilliance. They deliver
results with fresh designs and new concepts that capture consumer interest.

 There’s pressure to break new ground, but a dynamic energy drives progress at
startups. Pride in growing the company and sharing in its ups and downs creates a
tight-knit team.
 The perks - Money isn't one, but plenty of other perks keep employees happy:
 flexible working hours
 working from home
 shorter work weeks

24
  a casual atmosphere
 gym and other health facilities
 employee discounts and free services
 Free food (and sometimes drinks!)

The long-term benefits include sharing in the spoils if the company thrives. That could mean
a senior position and/or employee stock options. Bill Harris, the former CEO of
PayPal, says that businesses know they have the power to attract the best talent through
employee equity.

Job satisfaction - Employees share in the birth, growth, and success of the company. That's
why it’s an attractive career path for this generation. They want to belong to something
special. When the company does well, they can be proud of their contributions.

The expectations of the employee choosing start-up are also the above discussed points. The
Following research will help us to determine the employee job satisfaction in the above
mentioned factors such as responsibility, recognition, work environment and career growth.

25
 RESEARCH
METHODOLOGY

26
4. RESEARCH METHODOLOGY

4.1. TYPE OF RESEARCH

This Study uses a Descriptive type of research. Descriptive research can be explained as a
statement of affairs as they are at present with the researcher having no control over variable.
Descriptive research is “aimed at casting light on current issues or problems through a
process of data collection that enables them to describe the situation more completely than
was possible without employing this method.”
In its essence, descriptive studies are used to describe various aspects of the phenomenon. In
its popular format, descriptive research is used to describe characteristics and/or behaviour of
sample population. Three main purposes of descriptive studies can be explained as
describing, explaining and validating research findings. Descriptive studies are closely
associated with observational studies, but they are not limited with observation data
collection method. In this Study survey and data collection method is used for the
descriptive research.

4.2. RESEARCH APPROACH

Research approach is a plan and procedure that consists of the steps of broad assumptions to
detailed method of data collection, analysis and interpretation. It is therefore, based on the
nature of the research problem being addressed. It can be a qualitative approach or
Quantitative approach or mixed method approach. For this study Quantitative approach is
used for data collection and analysis.

Quantitative approach

Quantitative analysis involves using scientific or mathematical data to understand a problem,

such as analyzing surveys to predict consumer demand. This is in contrast with a qualitative
approach, which uses a more social methodology, like interviewing people. The quantitative
approach focuses on the results from a large number of people, instead of focusing on

27
individuals. Often a combination of the two approaches is used to solve a problem, taking
advantage of each approach's strengths.

4.3. SOURCE OF DATA

4.3.1. PRIMARY DATA

The Primary data was collected from the employee through online questionnaire

4.3.2. SECONDARY DATA

Apart from primary data collected, the data collected through text books, Journals, articles,
internet websites are used for this study.

4.4. SAMPLING PLAN

4.4.1. POPULATION

A research population is also known as a well-defined collection of individuals or objects

known to have similar characteristics. All individuals or objects within a
certain population usually have a common, binding characteristic or trait. So employees
working in Chennai based tech-startup is the suitable population for the study

There are total of 150+ employees together from the two tech-startup companies taken for the
study.

4.4.2. SAMPLE SIZE

The sample size refers to the number of sampling units selected from the population for
exploration.

So a sample of 60 respondents is taken for the study, 48 respondents from start-up 1 and 12
respondents from start-up 2.

28
4.4.3. SAMPLING PROCEDURE

The research was made by the survey in accordance with the convenience of the employees.
Hence convenience sampling technique is used. Convenience sampling is a non-
probability sampling technique where subjects are selected because of their convenient
accessibility and proximity to the researcher.

4.5. MODE OF DATA COLLECTION

Within the context of survey operations, mode refers to an employed method or approach
used for the collection of data. For example, surveys may be conducted face to face, by
telephone, mail, or Internet, or through other types of approaches (such as interactive voice
response, disk-by-mail, etc.) or combinations of modes. Modes can differ along a number of
dimensions, including whether an interviewer is present, how the questions are presented and
the responses recorded, the infrastructure required, field time, and costs.

The survey questionnaire was circulated to the employees through mail, and survey link was
forwarded with the help of few employees in the organisation.

4.6. DATA COLLECTION INSTRUMENT

The instrument used for the data collection is a questionnaire consisting of

Close ended questions

Likert scale -Respondents are asked whether they agree or disagree with a statement.
Each option is given a score, which can be used to analyze results.

Dichotomous - Respondents must choose between two alternatives.

Demographic / firmographic questions

29
 Multiple Choice Questions - Respondent to choose between two or more answer
options.

4.7. STATISTICAL TOOLS

The data is analysed by using the following statistical tools

 Percentage Analysis

 Weighted Average Mean Score

 Chi Square Test

Percentage Analysis

A percentage frequency distribution is a display of data that specifies the percentage of

observations that exist for each data point or grouping of data points. It is a particularly
useful method of expressing the relative frequency of survey responses and other data.

The Percentage Formula is given as,

Percentage=Value / TotalValue×100

Weighted Average Mean Score

Weighted average is referred to as weighted arithmetic mean or weighted arithmetic average

and is defined for a set of values and non-negative associated weights as the sum of all values
times their associated weights divided by the sum of the weights. A weighted average tends
towards a given sample mean in proportion to the sample's size relative to the size of other
samples being compared.

Weighted average method is a method of computing a kind of arithmetic mean of a set of

numbers in which some elements of the set carry weight than others. An average in which
each quantity to be averaged is assigned a weight. Weighted average is an average computed
by giving different weights to some of the individual values.

30
Formula

If x1,x2,.... xn are the n items and w1,w2,....wn are the corresponding weights allotted to each
item, then the mean is given by,

Where w is the weight of the item.

Chi – Square Test:

The Chi-Square test of independence is used to determine if there is a significant

relationship between two nominal (categorical) variables. The frequency of each category for
one nominal variable is compared across the categories of the second nominal variable. The
data can be displayed in a contingency table where each row represents a category for one
variable and each column represents a category for the other variable. For example, say a
researcher wants to examine the relationship between gender (male vs. female) and
satisfaction (high vs. low). The chi-square test of independence can be used to examine this
relationship. The null hypothesis for this test is that there is no relationship between gender
and satisfaction. The alternative hypothesis is that there is a relationship between gender and
satisfaction (e.g. there are more high-empathy females than high-empathy males).

Formula

We have to calculate the expected value of the two nominal variables. We can calculate the
expected value of the two nominal variables by using this formula:

31
Where

= expected value

= Sum of the ith column

= Sum of the kth column

N = total number

After calculating the expected value, we will apply the following formula to calculate the
value of the Chi-Square test of Independence:

x2 = Chi-Square test of Independence

Oi,j = Observed value of two nominal variables
Ei,j = Expected value of two nominal variables
Degree of freedom is calculated by using the following formula:
DF = (r-1)(c-1)
Where
DF = Degree of freedom
r = number of rows
c = number of columns

32
DATA ANALYSIS AND
INTEPRETATION

33
5. DATA ANALYSIS AND INTERPRETATION
1. GENDER

1.1.Table showing the Number of Male and Female Respondents

Gender No of Respondents

Male 39

Female 21

Total 60

Table 1: Male and Female Respondents

1.2.Chart showing the Percentage of Male and Female Respondents

35%

Male
Female
65%

Chart 1: Percentage of male and female respondents

Interpretation:
The above chart shows that among 60 respondents, female respondent frequency is 21
and male respondent frequency is 31. Again 35% of the respondents are female and
65%% of the respondents are male.

34
2. AGE GROUP

2.1.Table showing the number of Respondents by classification of age group

Age Group No. of Respondents

Below 20 2
20-30 32
30-40 21
Above 40 4
Total 60

Table 2: No of Respondents by classification of age group

2.2. Chart showing percentage of Respondents by classification of age group

7% 3%

Below 20
20-30
36%
30-40
54% Above 40

Chart 2: Percentage of Respondents by classification of age group

Interpretation:
The above table and chart shows that among 60 respondents, the frequency of
respondents below age of 20 is 2, 20 to 30 is 32 and 30 to 40 is 21 and above 40 is 4,with
percentage of 3%, 54%, 36% and 7% respectively.

35
3. REASON THE EMPLOYEE WORK IN START-UP

3.1. Table showing No. Of respondents and percentage distribution in reasons they
choose to work in a start –up.

Table 3: Reasons employees choose to work in a startup

3.2. Chart showing percentage of employees and the extent they agree on the factors they
choose to work in start-up.

a) For sharing vision of the company

60%

35%

0% 0% 5.00%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Agree(5)
Disagree(3)

Chart 3: For sharing vision of the company

36
b) For taking up more responsibility

65.00%

20.00%
15%
0% 0%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Agree(5)
Disagree(3)

Chart 4: For taking up more responsibility

c) Because previous work experience(s) is/are similar

44%
40%

15%
3% 2%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Agree(5)
Disagree(3)

Chart 5: Because previous work experience(s) is/are similar

37
d) For experience and Career Growth

38.30%

20.00%
16.70% 16.70%

8.30%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Agree(5)
Disagree(3)

Chart 6: For experience and Career Growth

e) For making a living

37%

22% 22%

12%
8%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Agree(5)
Disagree(3)

Chart 7: For making a living

38
f) In expectation of more recognition

43.30%

28.30%

17%
10%
1.70%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Agree(5)
Disagree(3)

Chart 8: In expectation of more recognition

g) For better work environment

50.00%

28%

10% 12%
0%

Strongly Disagree(2) Neither Agree Agree(4) Strongly

Disagree (1) nor Disagree(3) Agree(5)

Chart 9: For better work environment

39
 3.3.Table showing the weighted average mean of the factors for choosing the start-up.

WEIGHTED AVERAGE MEAN:

The weight of the likert scale on level of agreement is

Strongly Disagree – 1
Disagree – 2
Neither Agree nor Disagree – 3
Agree – 4
Strongly Agree – 5

The weighted average mean for each of the factors is calculated.

Strongly Neither Weighted

Strongly
Factors/Reasons Disagree Disagree(2) Agree nor Agree(4) Average
Agree(5)
(1) Disagree(3) Mean

For sharing
vision of the 0 0 21 36 3 3.7
company
For taking up
more 0 0 12 39 9 4
responsibility
Because my
previous work
2 9 28 20 1 3.15
experience(s)
is/are similar
For experience
and career 5 10 12 23 10 3.4
growth
For making a
5 13 12 22 7 3.16
living
In expectation of
more 1 6 17 26 10 3.63
recognition
For better work
0 6 17 30 7 3.63
environment

Table 4: Weighted average mean of the factors to choose start-up

40
 3.4. Chart showing the weighted average mean of the factors for choosing the start-up.

For better work environment 3.63

In expectation of more recognition 3.63

For making a living 3.16

For experience and career growth 3.4

Because my previous work experience(s) is/are

3.15
similar

For taking up more responsibility 4

For sharing vision of the company 3.7

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Chart 10: Weighted average mean of the factors to choose start-up

Interpretation:

The above table data and chart shows the weighted average means for range (1-5) for the
factors the employees choose to work in start-up. For taking more responsibility has highest
mean score of (4 out of 5) followed by sharing vision of company (3.7/5), for better work
environment (3.63/5), Expectation of more recognition (3.63/5), For experience and Career
Growth(3.4/5), for making a living (3.16/5),similar precious work experience (3.15/4).

41
4. EMPLOYEE SATISFACTION IN THEIR CO-WORKER RELATIONSHIP /
WORK ENVIRONMENT IN START-UP

4.1. Table showing weighted average mean of employee satisfaction in co-worker

relationship / work environment in start-up

The weight of the likert scale on level of agreement is

Strongly Disagree – 1
Disagree – 2
Neither Agree nor Disagree – 3
Agree – 4
Strongly Agree – 5

Strongly Neither Weighted

Strongly
Factors/Reason Disagree Disagree(2) Agree nor Agree(4) Average
Agree(5)
(1) Disagree(3) Mean

I am satisfied with the

relationship I have with my 0 0 10 41 9 4
colleagues

I am well informed of what

0 1 24 30 5 3.65
is going on.

I am able to reach my
managers/supervisors
when I have 0 1 14 33 12 4
questions/decisions to be
made/ideas/need support

Table 5: Weighted average mean of employee satisfaction in co-worker relationship /

work environment in start-up

42
4.2 Table showing weighted average mean of employee satisfaction in work place
communication with co-workers.

I am able to reach my managers/supervisors when

I have questions/decisions to be made/ideas/need
support

I am well informed of what is going on.

I am satisfied with the relationship I have with my

colleagues

3.4 3.5 3.6 3.7 3.8 3.9 4 4.1

Chart 11: Weighted average mean of employee satisfaction in co-worker relationship

/ work environment in start-up

Interpretation:
The above table data and chart shows the weighted average means for range (1-5) for the
employee satisfaction in co-worker relationship / work environment in start-up. The
Satisfaction in relationship with co-workers and the managers have highest means scores (4
out of 5) followed by their satisfaction in knowing what going around in organisation
(3.65/5).

43
5. MEANS OF COMMUNICATION IN START-UP
5.1.Table showing weighted average mean of means of communication used in start-up

Strongly Neither Weighted

Disagree Strongly
Disagree Agree nor Agree(4) Average
(2) Agree(5)
(1) Disagree(3) Mean

Face-to-face 0 1 8 35 16 4.1

Phone 1 3 16 36 4 3.65

Text Message 3 12 21 21 3 3.15

Special Managerial
15 23 14 7 1 2.3
tools
Message through social
15 18 16 10 1 2.4
media

Table 6: Means of Communication in Start-up

5.2 Chart showing weighted average mean of means of communication used in start-up

4.1
3.65
3.15

2.3 2.4

Face-to-face Phone Text Special Message

Message Managerial through
tools social media

Chart 12: Means of communication in Chennai Based Tech start-up

Interpretation:
The above table data and chart shows the mean score of face to face communication is
(4.1/5), through phone is (3.65/5), through text message is (3.15/5), through special
managerial tools (2.3/5) and through social media is (2.4/5).

44
6. FLEXIBILITY IN WORKING HOURS

6.1.Table showing the response to flexibility in working hours in a start-up

No. of
Flexibility Respondents

Very flexible 22

Flexible up to a fixed period of time 32

Not flexible 6

Table 7: Flexibility in working hours in a start-up

6.2.Chart showing the response to flexibility in working hours in a start-up

10%
Very flexible
37%
Flexible up to a fixed
period of time
Not flexible
53%

Chart 13: Flexibility in working hours in a start-up

Interpretation:

The above table and chart shows that 37% feels the working hours are very flexible, 53%
employees feels it is flexible up to a fixed period of time and 10% feels the working hours
are not flexible.

45
7. EMPLOYEE REWARD FREQUENCY IN TECH START-UP
7.1. Table showing the Employee reward frequency in Chennai based tech start-up

No. of
Frequency
Respondents
Never 7
Rarely 35
Often 11
Always 6

Table 8: Employee reward frequency

7.2. Chart showing the Employee reward frequency in Chennai based tech start-up

10% 12%

Never
19%
Rarely

Often

Always
59%

Chart 14: Employee reward frequency

Interpretation:

The above table and chart shows that 12% says there are no rewards given ever, 59% says
rewards are given rarely, 19% says they are given often and 10% says there is reward
always.

46
8. TYPES OF REWARDS START-UP GIVE.

8.1. Table showing types of rewards Chennai based tech start-up give their employees

No. Of
Reward
Response
Bonus 17
Public recognition 42
Promotion 13
Holiday Package 8
Others 3

Table 9: Types of Rewards

8.2. Chart showing types of rewards Chennai based tech start-up give their employees in
percentage.

50.60%

20.5%
15.66%
9.63% 3.61%

Bonus Public Promotion Holiday Others

recognition Package

Chart 15: Types of Rewards

Interpretation:

The above table and chart shows that 20.5% says bonus is given as rewards, 50.6% says
public recognition, 15.66% says promotion, 9.63% Holiday Package and 3% other types of
rewards are given.

47
9. TYPES OF BENEFITS START-UP PROVIDE

9.1. Table showing types of benefits Chennai based tech start-up provide

No. Of
Benefits responses
Nothing 37
Free food/drinks during work
hours 19
Leisure/Sports Facilities 0
Health Advisor 8
Others 1

Table 10: Types of employee benefits

9.2. Chart showing types of benefits Chennai based tech start-up provide

2%
Nothing
0% 12%
Free food/drinks
during work hours
Leisure/Sports
Facilities
29% 57%
Health Advisor

Others

Chart 16: Types of Employee Benefits

Interpretation:

The above table and chart shows that 57% no benefits are given, 29% Free drinks/food
during free hours are given, 12% of health advisor benefit is available and no leisure time
during working hours is given and 2% other benefits are given.

48
10. CHANCES OF PROMOTION IN TECH START-UP

10.1. Table showing chances of promotion which employee feels in tech-startup

No of
Chances of Promotion
Responses

Totally Hopeless 9

Little chance 23
Likely to be promoted
23
further
Always have the
5
opportunity

Table 11: Chances of Promotion

10.2. Chart showing chances of promotion which employee feels in tech-startup

38.30% 38.30%

15%
8.30%

Totally Little chance Likely to be Always have

Hopeless promoted the opportunity
further

Chart 17: Chances of Promotion

Interpretation:

According to the above table and chart shows 15% no hope for promotion, 38.3% the
employee feels there is little chance to get promoted, 38.3% feels they are likely to be
promoted further and 8.3% says there is always opportunity for promotion.

49
11. EMPLOYEE SATISFACTION IN JOB RESPONSIBILITY

11.1. Table showing weighted average mean on employee satisfaction in job

responsibility

WEIGHTED AVERAGE MEAN:

The weight of the likert scale on level of agreement is

Strongly Disagree – 1
Disagree – 2
Neither Agree nor Disagree – 3
Agree – 4
Strongly Agree – 5

Neither
Agree
Strongly Strongly Weighted
Disagree nor Agree
Disagree Agree Average
(2) Disagre (4)
(1) (5) Mean
e
(3)
I am in a job that best
matches my skills and
interests 0 3 9 41 7 3.86
I have the opportunity to
do what I do best every
day 0 1 23 31 5 3.66
At work, my opinions
seem to count 0 1 24 32 3 3.61
The company encourages
me to offer innovative
ideas to improve our
performance 0 1 18 39 2 3.7
My Task contribute to
overall output of the
organisation 0 1 21 34 4 3.68
I have authority to take
action within my area of
responsibility 0 0 14 45 1 3.78

Table 12: Employee Job Responsibility Satisfaction Level

50
 11.2. Chart showing weighted average mean on employee satisfaction in job
responsibility

I have authority to take action within my area

3.78
of responsibility

My Task contribute to overall output of the

3.68
organisation

The company encourages me to offer

3.7
innovative ideas to improve our performance

At work, my opinions seem to count 3.61

I have the opportunity to do what I do best

3.66
every day

I am in a job that best matches my skills and

3.86
interests

Chart 18: Employee Job Responsibility Satisfaction Level

Interpretation:

The above chart and table shows the weighted average mean score of employee satisfaction
in their job responsibility by analysing various factors .The mean score of the factors ability
to decide in area of responsibility is (3.78/5), Contribution to organisation output (3.68/5),
Encouragement in area of responsibility is (3.7/5), Opinions taken into count is (3.61/5), Job
Responsibility utilizing the employee best is (3.66/5), Responsibility matching skill and
interest is (3.86/5).

51
12. CHI-SQUARE TEST FOR INDEPENDENCE

12.1. Chi-Square test for Gender of the respondents and Employee satisfaction
in their Job Responsibility

The overall Job responsibility of each respondent is calculated and chi – square test is
applied
1- Highly Dissatisfied
2 - Dissatisfied
3 – Neither Dissatisfied nor Satisfied
4 – Satisfied
5 – Highly Satisfied

Null Hypothesis (H0): Job Responsibility Satisfaction is independent on the Gender

of the Employee
Alternate Hypothesis (H1): Job Responsibility Satisfaction is dependent on the
Gender of the Employee

Overall Responsibility Satisfaction Total

Dissatisfied Neutral Satisfied

(2) (3) (4)

Gender Female Count 0 6 15 21

Expected Count .4 6.3 14.4 21.0

Residual -.4 -.3 .7
Male Count 1 12 26 39
Expected Count .7 11.7 26.7 39.0
Residual .4 .3 -.7
Total Count 1 18 41 60

Expected Count 1.0 18.0 41.0 60.0

Table 13: Data Count for Chi-Square test between Gender and Satisfaction in Job
Responsibility

52
Chi – Square Test:

Value df Asymptotic Significance

(2-sided)

Pearson Chi-Square .606a 2 .739

Likelihood Ratio .929 2 .629
N of Valid Cases 60

Table 14: Chi-Square Test between Gender and Satisfaction in Job Responsibility

Interpretation:

Since P value (0.739) is greater than the chosen significance level (0.05), Null Hypothesis is
accepted and Alternate Hypothesis is rejected, which implies that the Job responsibility
satisfaction is independent of the gender of the employee

12.2. Chi-Square test for Gender of the respondents and Employee satisfaction
in co-worker relationship / work environment

The overall Job responsibility of each respondent is calculated and chi – square test is
applied
1- Highly Dissatisfied
2 - Dissatisfied
3 – Neutral
4 – Satisfied
5 – Highly Satisfied

Null Hypothesis (H0): Co-worker relationship / work environment satisfaction is

independent on the Gender of the Employee
Alternate Hypothesis (H1): Co-worker relationship / work environment Satisfaction
is dependent on the Gender of the Employee

53
 Overall Co-worker relationship Total
Satisfaction

Neutral Satisfied Highly

(3) (4) Satisfied
(5)
Gender Female Count 13 7 1 21

Expected Count 8.0 11.9 1.0 21.0

Residual 5.0 -4.9 .0
Male Count 10 27 2 39
Expected Count 15.0 22.1 2.0 39.0
Residual -5.0 4.9 .0
Total Count 23 34 3 60

Expected Count 23.0 34.0 3.0 60.0

Table 15: Data Count for Chi-Square test between Gender and Satisfaction in
Co-worker relationship

Chi – Square Test:

Value df Asymptotic
Significance
(2-sided)

Pearson Chi-Square 9.765a 6 .135

Likelihood Ratio 12.814 6 .046
N of Valid Cases 60

Table16: Chi-Square test between Gender and Satisfaction in Co-worker relationship

Interpretation:

Since P value (0.135) is greater than the chosen significance level (0.05), Null Hypothesis is
accepted and Alternate Hypothesis is rejected, which implies the Satisfaction in Co-
worker relationship / Work Environment is independent of the gender of the employee

54
 12.3. Chi-Square test for Age of the respondents and Employee satisfaction in
their Job Responsibility

The overall Job responsibility of each respondent is calculated and chi – square test is
applied
1 - Highly Dissatisfied
2 - Dissatisfied
3 – Neutral
4 – Satisfied
5 – Highly Satisfied

Null Hypothesis (H0): Job Responsibility Satisfaction is independent on the Age

of the Employee
Alternate Hypothesis (H1): Job Responsibility Satisfaction is dependent on the Age
of the Employee

Overall Responsibility Satisfaction Total

Dissatisfied Neutral Satisfied

(2) (3) (4)
Age 20-30 Count 1 12 20 33
Group Expected Count .6 9.9 22.6 33.0
Residual .4 2.1 -2.6
30-40 Count 0 4 17 21
Expected Count .4 6.3 14.4 21.0
Residual -.4 -2.3 2.7
40 Count 0 1 3 4
above Expected Count .1 1.2 2.7 4.0
Residual -.1 -.2 .3
Below Count 0 1 1 2
20 Expected Count .0 .6 1.4 2.0
Residual .0 .4 -.4
Total Count 1 18 41 60
Expected Count 1.0 18.0 41.0 60.0

Table 17: Data Count for Chi-Square test between Age and Satisfaction in Job
Responsibility

55
Chi – Square Test

Asymptotic
Significance
Value df (2-sided)
Pearson Chi-Square 3.305a 6 .770

Likelihood Ratio 3.731 6 .713

N of Valid Cases 60

Table 18: Chi-Square Test between Age and Satisfaction in Job Responsibility

Interpretation:

Since P value (0.770) is greater than the chosen significance level (0.05), Null Hypothesis is
accepted and Alternate Hypothesis is rejected, which implies the Job responsibility
satisfaction is independent of the Age of the employee

12.4. Chi-Square test for Age of the respondents and Employee satisfaction in
co-worker relationship / work environment

The overall Job responsibility of each respondent is calculated and chi – square test is
applied
1- Highly Dissatisfied
2 - Dissatisfied
3 – Neutral
4 – Satisfied
5 – Highly Satisfied

Null Hypothesis (H0): Co-worker relationship / work environment satisfaction is

independent on the Age of the Employee
Alternate Hypothesis (H1): Co-worker relationship / work environment Satisfaction
is dependent on the Ager of the Employee

56
 Overall Co-worker relationship Total
Satisfaction
Neutral Satisfied Highly
(3) (4) Satisfied
(5)
Age 20-30 Count 12 17 4 33
Group Expected Count 12.1 18.2 2.8 33.0
Residual -.1 -1.2 1.3
30-40 Count 7 13 1 21
Expected Count 7.7 11.5 1.8 21.0
Residual -.7 1.5 -.8
40 Count 2 2 0 4
above Expected Count 1.5 2.2 .3 4.0
Residual .5 -.2 -.3
Below Count 1 1 0 2
20 Expected Count .7 1.1 .2 2.0
Residual .3 -.1 -.2
Total Count 22 33 5 60
Expected Count 22.0 33.0 5.0 60.0

Table 19: Data Count for Chi-Square test between Age and Satisfaction in Co-
Worker relationship
Chi Square Test:

Value df Asymptotic Significance

(2-sided)
Pearson Chi-Square 2.027a 6 .917

Likelihood Ratio 2.483 6 .870

N of Valid Cases 60

Table 20: Chi-Square test between Age and Satisfaction in Co-Worker relationship

Interpretation:

Since P value (0.917) is greater than the chosen significance level (0.05), Null Hypothesis is
accepted and Alternate Hypothesis is rejected, which implies that the Satisfaction in
Co-worker relationship / Work Environment are independent of the Age of the employee.

57
FINDINGS

58
6. FINDINGS

 Among the 60 respondents 39 are male and 21 are female with the percentage of 65%
and 35% respectively.

 On seeing the response based on the age groups 54% are from 20-30 years of age
36% are from age group 30-40 years. These facts reflect the reality that startups
disruptive working styles attract young and middle-aged people.

 Responses on reason to work in the start – up shows the following

 More than 60% of the responses agree sharing the vision of the company is
one the factor and only 35% have no opinion. This shows that the employee
working in start-up wants to grow along with the organisation
 More than 80% agree expectation of job responsibility is one of the main
reasons to work in start-up, and the rest 20% have neutral opinion. This shows
that employee expects their job responsibility should be highly satisfactory.
 Only 42% of the respondents agree job position being similar to previous job
is one of the reasons.
 55% of the respondents agree career growth as a factor and rest 45% has
neutral opinion / do not agree.
 Only 42% of the employees agree making a loving is the factor to work in a
start-up. This is because most people who work in start-up have more
expectation other than salary or compensation alone
 61% of the respondents agree on recognition has a factor. This shows they
expect ore recognition from the start-up as they contribute to overall growth of
the organisation.
 62% feels start-up has better working environment, Co-worker relationship
compared to big corporate.

59
 The weighted average means for range (1-5) for the factors the employees choose to
work in start-up shows that For taking more responsibility has highest mean score of
(4 out of 5) followed by sharing vision of company (3.7/5), for better work
environment (3.63/5), Expectation of more recognition (3.63/5), For experience and
Career Growth(3.4/5), for making a living (3.16/5),similar precious work experience
(3.15/4). That responsibility and satisfaction in job responsibility is what employees
working is start-up expects the most. Also sharing the vision of the company, better
working environment and recognitions are other main reasons

 The weighted average means for range (1-5) for the employee satisfaction in co-
worker relationship / work environment in start-up shows that The Satisfaction in
relationship with co-workers and the managers have highest means scores (4 out of 5)
followed by their satisfaction in knowing what going around in organisation (3.65/5).
Overall the employee satisfaction in the relationship with co-workers and superiors
are high as they expected from a start-up. Flat-hierarchy is followed in most of the
start-up and this is one the main reason for the above results

 The mean score of face to face communication is (4.1/5), through phone is (3.65/5),
through text message is (3.15/5), through special managerial tools (2.3/5) and through
social media is (2.4/5).This shows the no special tools are used for employee
engagement or internal purpose of communication and most communication happens
face to face

 37% of the respondents feel that the working hours are very flexible, 53% employees
feels it is flexible up to a fixed period of time and 10% feels the working hours are
not flexible. So, overall start-ups provide flexible working time for their employee but
up to a certain limit.

60
 For identifying the employee satisfaction in the recognition they get from their start-
up the organisation reward frequency for each task employees complete is analysed.
From the analysis it is found that 12% there are no rewards given ever, 59% says
rewards are given rarely, 19% says they are given often and 10% there is reward
always. Thus reward frequency in start-up is low.

 On analysing the types of rewards the start-up provide for great performance 20.5%
says bonus is given as rewards, 50.6% says public recognition, 15.66% says
promotion, 9.63% says Holiday Package and 3% other types of rewards are given
like price money and some said nothing. This shows that public recognition is most
commonly used reward type than any materialized reward.

 57% says no benefits are given during working hours, 29% says Free drinks/food
during free hours are given, 12% of health advisor benefit is available and no leisure
time during working hours is given and 2% other benefits are given like work from
home. The start-ups should really concentrate on providing benefits during working
hours which helps in employee satisfaction.

 On analysing chances of promotion in start-up it is found that 15% has no hope for
promotion, 38.3% the employee feels there is little chance to get promoted, 38.3%
feels they are likely to be promoted further and 8.3% says there is always opportunity
for promotion. This shows the majority are not sure there is career promotion for them
for sure, few expects positive outcome and 15% are totally hopeless in getting a
promotion they may be due to both internal and external factors.

61
 The weighted average mean score of employee satisfaction in their job responsibility
in the employees ability to decide in area of responsibility is (3.78/5), Contribution to
the organisation output (3.68/5), Encouragement in area of responsibility is (3.7/5),
Opinions taken into count is (3.61/5), Job Responsibility utilizing the employee best is
(3.66/5), Responsibility matching skill and interest is (3.86/5). Thus is overall
satisfaction in their job responsibility is ok. The employees are moderately satisfied
with their job responsibility.

 From the analysis it is seen that the employee individual task play major contribution
to the overall output of the organisation. 63.4% percentage of the employees agrees
on this. This amount of satisfaction in this particular factor can only be seen in a start-
up.

 A chi-square test is conducted to find if there is any association with demographic

factors like age, gender and employee satisfaction level in job responsibility and co-
worker relationship/work environment. The results are

o Age and Satisfaction in job responsibility has no association.

o Gender and Satisfaction in job responsibility has no association.
o Age and Satisfaction co-worker relationship/work environment has no
association.
o Gender and Satisfaction co-worker relationship/work environment has no
association.

 Thus the employee satisfaction in co-worker relationship is very high, in job

responsibility is high and in recognition it is average.

62
SUGGESTIONS

63
7. SUGGESTIONS:

 The Study shoes that the start-ups are doing good job in providing employee
satisfaction in job responsibility and communication aspect. More employee
engagement programs like platform to spotlight employee talents, management
games, workshops should be conducted to furthermore increase the co-worker
relationship.

 Employers need to provide small benefits during work hours like snacks, small leisure
activities like pool table which don’t require major finance. It is essential for
employee to have other activities to do apart from their actual job.

 Special employee engagement tools / software’s accessible to the entire employee can
be implemented to engage them. It gives employees a voice, increase employee
engagement, improves on boarding, and increase productivity by faster means of
communication.

 The start-ups can give timely recognition and in various means to encourage the
employee to work with full satisfaction because employees consider recognition is
one the main factor to choose to work in start-up.

Suggestion for further studies

 Employee’s Job engagement should be an ideally deeper topic for future research,
especially in the context of startups in which employees’ devotion is highly desired. It
plays a considerable role in bridging job satisfaction with the wanted results of having

64
 a committed and devoted team. Job satisfaction and job engagement can be
interchangeably mentioned as being equivalent initially but they are different a, one
presenting without the other cannot completely deliver the best value to the
organizations.

 Startups’s organizational structure in developing employees’ job satisfaction.

Startup is in the stage of high growth, having its size extended and wants to guarantee
their employees’ job satisfaction as well as work efficiency. Thereby, the topic of job
satisfaction would be more in-depth and profound if in the future, the relationship
between itself and organizational design when the startup reaches its growth phase is
researched.

65
CONCLUSION

66
8. CONCLUSION

Startups are organizations keen on diving into the unknowns, researching and developing
their products to make their business scalable and repeatable. Since human resources are the
factor directly contributes to make values in an organization, this group need to be well taken
care of. Startups are well known for its fast-paced and unexpected working environment and
their worlds of unknowns have no limits. Therefore, the startup employees are working
towards unprecedented standards, using their experiences and exploring new things at the
same time. The study shows that the employee most common expectation in working in a
start-up is that they acquire a suitable job responsibility, better working environment,
recognition, and career growth. The organisation seems to offer satisfaction in the first two
category but employee lacks satisfaction in recognition and career growth. Employees are
clueless on their career promotion prospective. Attaining them is a challenge for the start-ups.
Challenges are inevitable with a lot of events out of expectations, either good or bad; keeping
their employees happy and committed to their organizational goals is the key to maintaining
and fueling the business engine to function.

67
BIBLIOGRAPHY

68
REFERENCES

Aswath Damodaran, Valuing Young, Start-up and Growth Companies: Estimation Issues and
Valuation Challenges, SSRN Electronic Journal 06/2009; DOI: 10.2139/ssrn.141868

Denisi, A. S., and Griffin, R. W. (2009). Human Resource Management, 2nd Ed, Houghton
Mifflin Co., USA.

Graham, Paul (September 2012). Startup Equals Growth, in Graham's Essays on

entrepreneurship

Herzberg, F., Mausner. B, & Snyderman, B.B. (1959). The motivation to work. New York:
Wiley, pp. 157.

M., Balasundaram, N. & Akhter, S. (2010). ‘Impact of Human Resources Practices on Job
Satisfaction: Evidence from Manufacturing Firms in Bangladesh’.

Maylett, T. (n.d.). Why Employees Satisfaction Does Not Always Result in Employee
Engagement.

Tait, M. Padgett, M.Y., & Baldwin, T.T. (1989). ‘Job and life satisfaction: A revaluation of
the strength of the relationship and gender effects as a function of the data of the study’.
Journal of Applied Psychology, 74: 502 – 507.

Tanner, R. (n.d.). Motivation – Applying Maslow’s Hierarchy of Needs Theory.

69
WEBSITES

https://www.fastcompany.com/1824235/8-reasons-choose-startup-over-corporate-job

https://www.monster.com/career-advice/article/pros-and-cons-of-working-for-a-startup-company

https://www.linkedin.com/pulse/why-young-workers-avoiding-big-companies-nishant-bhajaria/

https://yourstory.com/2015/07/startups-younger-bosses/

https://inc42.com/resources/startup-vs-mnc/

https://www.inc.com/encyclopedia/human-resource-management.html

https://mashable.com/2015/10/30/benefits-startup-employees/#10TVuvAPDiq3

70
ANNEXURE

71
QUESTIONNAIRE

BACKGROUND INFORMATION
1. Your age :
2. Your gender :
3. Your current Organisation name :
4. Your current position :
5. Please define your job basis

□ Part-Time

□ Full-Time

□ I can work freely anytime I want

6. Your working location

□ At the workplace

□ Online

□ Remotely
7. The reasons you work for your start-up?
To what extent do you agree/disagree with
each of the following statements?

A. For sharing vision of the company

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

B. For taking up more responsibility

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

C. Because my previous work experience(s) is/are similar

72
 □ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

D. For experience and career growth

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

E. For making a living

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

F. In expectation of more recognition

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

G. For better work environment

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

H. Others (optional) :

COMMUNICATION, CO-WORKER BONDING AND WORK ENVIRONMENT

8. To what extent do you agree/disagree with each of the following statements?
A. I’m satisfied with the relationship with my Colleagues.
□ □ □ □ □
73
 Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

B. I’m well informed of what is going on.

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

C. I’m able to reach my managers/supervisors when I have questions/decisions to be

made/ideas/need support.

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

10. How do you communicate with each other to complete a task?

To what extent do you agree/disagree with each of the following statements?

A. Face-To-Face
□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

B. Phone
□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

C. Text messages
□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

D. Special Managerial tools

74
 □ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

E. Message through social media

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

F. Others (optional) :

9. How flexible is your working hours?

□ Very flexible

□ Flexible up to a fixed period of time

□ Not flexible

10. Is work from home available?

□ Yes

□ No

11. If yes, how do you manage to interact with the other people in your team?

□ Phone

□ Mail

□ Text Message

□ Message through Social Media

75
 □ Special Managerial Tools

RECOGNITION AND CAREER GROWTH

12. Do you receive rewards after completing an important task?
□ Never

□ Rarely

□ Often

□ Always

13. Can you tell what kind of reward you receive after completing an important task?
(You can tick more than 1 answer)
□ Bonus

□ Promotion

□ Public Recognition

□ Holiday package

□ Other(s):

14. What benefits does your start-up give you?

(You can tick more than 1 answer)
□ Nothing

□ Free food/drinks during working hours

□ Leisure/sports facilities (ping pong, gym)

□ Health advisor

□ Other(s):

76
15. How is your prospective of career promotion?
□ Totally hopeless

□ Little chance

□ Likely to be promoted further

□ Always have the opportunity

RESPONSIBILITY

16. To what extent do you agree/disagree with each of the following statements?
A. I’m in a job that best matches my skills and interests
□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

B. I have the opportunity to do what I do best every day

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

C. At work, my opinions seem to count

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

D. The company encourages me to offer innovative ideas to improve our performance

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

77
E. My Task contribute to overall output of the organisation
□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

F. I have authority to take action within my area of responsibility

□ □ □ □ □
Strongly Disagree Neither Disagree Agree Strongly
Disagree
Nor Agree Agree

Thank You for Your Contribution!

Have A Nice Day!!!

78