This document provides a summary of the history of chocolate in 3 paragraphs. It discusses how cocoa originated in Central and South America with the Mayans and Aztecs using it to make a bitter drink. It was introduced to Europe in the 16th century by the Spanish. Chocolate evolved over time as sugar and other flavors were added. The document outlines the growth of the chocolate industry over centuries as it spread throughout Europe and was eventually industrialized and mass produced. It concludes by briefly discussing the development of the Indian chocolate industry since 1947 which is now dominated by Cadbury.

1. A PROJECT REPORT
ON
ORGANISATIONAL BEHAVIOR
AND
RESEARCH METHODOLOGY
SUBMITTED TO: - SUBMITTED BY:-
Itm university MOHINIKAUSHIK
Sob ANUPRIYA
Shivani
MOHIT SRIVASTAVA
MANISH SHARMA
MASSI ULLAH Khan

2. CONTENTS
S.NO NAME
Chapter 1 Introduction
a) History
b) Development
c) Current Trends
d) Manufacturing Industry in MP and Gwalior
(any region)
Chapter 2 Topic Introduction
Introduction about variables used
Chapter3 Research Methodology
a) Objective of Study
b) Research Design
c) Scope of Study
d) Hypothesis
e) Data Collection
f) Review of Literature
g) Limitations of Study
h) Significance of Study
Data Interpretation and Analysis
Chapter4
a) data analysis
b) Data Interpretation
c) Observation Findings
d) Hypo-testing
Chapter5 findings, Suggestion and Conclusion
Bibliography Annexure
Chapter6
Chapter7 References

3. CHAPTER 1:- INTRODUTION
History of Chocolate
The oldest records related to chocolates date back to somewhere around 1500-2000 BC. The
high rainfall, soaring temperatures and great humidity of Central American rain forests created
the perfect climate for the cultivation of the Cacao Tree. During that time, the Mayan civilization
used to flourish in that region. Mayan people worshipped Cacao Tree, believing it to be of divine
origin. They also used to roasted and pounded seeds of the tree, with maize and Capsicum (Chili)
peppers, to brew a spicy, bitter sweet drink. The drink was consumed either in ceremonies or in
the homes of the wealthy and religious elite.
It is said that the word „Cacao‟ was corrupted by the early European explorers and turned into
'Cocoa'. Even the Aztecs, of Central Mexico, are believed to have acquired the beans through
trade and/or the spoils of war. In fact, Cacao beans were considered to be so prized by Aztecs
that they started using it as a type of currency. They also made a drink, similar to the one made
by Mayans, and called it „Xocolatl‟, the name which was later corrupted to 'Chocolate', by
Spanish conquistadors. The further corruption of the word, which finally gave it its present form
‟Chocolate‟, was done by the English.
The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed 'chocolate‟ a much-prized spicy drink made from roasted
cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionery treat,
chocolate has been a much sought after food.
Because cocoa beans were valuable, they were given as gifts on occasions such as a child
coming of age and at religious ceremonies. Merchants often traded cocoa beans for other
commodities such as cloth, jade and ceremonial feathers.
Chocolate is created from the cocoa bean. A cacao tree with fruits pods in various stages of
ripening. Chocolate comprises a number of raw and processed foods produced from the
seed of the tropical cacao tree. The seeds of the cacao tree have an intense bitter taste and must
be fermented to develop the favors. Chocolate contain alkaloids such as the bromine and
phenethylamine, which have physiological effects on the body.

4. Modern Chocolate
The chocolate of today, in the sold form, took its roots in England. It was around mid-1600,
when English bakers started adding cocoa powder to cakes. Seeking to make chocolate drink
smoother and more palatable, Johannes Van Houston, a Dutch chemist, invented a technique of
extracting the bitter tasting fat (cocoa butter) from the roasted ground beans, in 1828. With this,
he paved the way for the chocolate in its present form.
It was in 1847 that solid chocolate, as we know of today, was made by Fry & Sons of Bristol
(England), by mixing sugar with cocoa powder and cocoa butter. The first milk chocolate was
made in 1875, by Daniel Peters, a Swiss manufacturer, by mixing cocoa powder and cocoa butter
with sugar and dried milk powder. The rest, as they say, is history! Today, chocolate is made
across the globe and liked by almost every person in this world.
Chocolate History Timeline
For over 3000 years, chocolate, like gold, has had universal appeal
2000 BC, Amazon: Cocoa, from which chocolate is created, is said to have originated in
the Amazon at least 4,000 years ago
Sixth Century AD: Chocolate, derived from the seed of the cocoa tree, was used by the Maya
Culture, as early as the Sixth Century AD. Maya called the cocoa tree cacahuaquchtl… "tree,"
and the word chocolate comes from the Maya word xocoatl which means bitter water.
300 AD, Maya Culture: To the Mayas, cocoa pods symbolized life and fertility... nothing
could be more important! Stones from their palaces and temples revealed many carved
pictures of cocoa pods.
600 AD, Maya Culture: Moving from Central America to the northern portions of South
America, the Mayan territory stretched from the Yucatán Peninsula to the Pacific Coast of
Guatemala. In the Yucatán, the Mayas cultivated the earliest know cocoa plantations. The
cocoa pod was often represented in religious rituals, and the texts their literature refer to
cocoa as the god’s food
Chocolate has impacted the ways in which some humans worshiped, and expressed
their values.

5. 1200, Aztec Culture: The Aztecs attributed the creation of the cocoa plant to their god
Quetzalcoatl who, descended from heaven on a beam of a morning star carrying a cocoa
tree stolen from paradise. In both the Mayan and Aztec cultures cocoa was the basis for a
thick, cold, unsweetened drink calledxocoatl… believed to be a health elixir. Since sugar
was unknown to the Aztecs, different spices were used to add flavor, even hot chili peppers
and corn meal were used.
Aztecs believed that wisdom and power came from eating the fruit of the cocoa tree, and
also that it had nourishing, fortifying, and even aphrodisiac qualities. The Aztec emperor,
Montezuma, drank thick chocolate dyed red. The drink was so prestigious that it was served
in golden goblets that were thrown away after only one use. He liked it so much that he was
purported to drink 50 goblets every day.
The cocoa beans were used for currency… records show that 400 cocoa beans equaled
one Zontli, while 8000 beans equaled one Xiquipilli. When the Aztecs conquered tribes,
they demanded their payment in cocoa! By subjugating the Chimimeken and the Mayas, the
Aztecs strengthened their supremacy in Mexico. Records dating from 1200 show details of
cocoa deliveries, imposed on all conquered tribes.
1492, Columbus Returns in Triumph From America: King Ferdinand and Queen Isabella
were presented with many strange and wonderful things… the few dark brown beans that
looked like almonds didn’t get a lot of attention.
1502, Columbus landed in Nicaragua: On his fourth voyage to America, Columbus landed
in what is now called Nicaragua. He was the first European to discover cocoa beans being
used as currency, and to make a drink, as in the Aztec culture. Columbus, who was still
searching for the route to India, still did not see the potential cocoa market that had fallen
into his lap.
1513, A Slave is Bought for Beans: Hernando de Oviedo y Valdez, who went to America
in 1513 as a member of Pedrarias Avila's expedition, reports that he bought a slave for 100
cocoa beans. According to Hernando de Oviedo y Valdez 10 cocoa beans bought the
services of a prostitute, and 4 cocoa beans got you a rabbit for dinner.
At this time, the name of the drink changed to Chocolatl from the Mayan word xocoatl
[chocolate] and the Aztec word for water, or warm liquid.
1519, Hernando Cortez Begin a Plantation: Hernando Cortez, who conquered part of
Mexico in 1519, had a vision of converting these beans to golden doubloons. While he was
fascinated with Aztec's bitter, spicy beverage [he didn’t like the cocoa drink], he was much
intrigued by the beans’ value as currency. Later, Cortez established a cocoa plantation in
the name of Spain… henceforth, "money" will be cultivated! It was the birth of what was to
be a very profitable business.

6. Chocolate affected many cultures
and traditions, and even…International economics!
1528, Chocolate Arrives in Spain: Cortès presented the Spainish King, Charles V with
cocoa beans from the New World and the necessary tools for its preparation. And no doubt
Cortès taught him how to make Chocolatl.
Cortez Inspires a Major Breakthough: Cortez postulated that if this bitter beverage were
blended with sugar, it could become quite a delicacy. The Spaniards mixed the beans with
sugar, vanilla, nutmeg, cloves, allspice, and cinnamon. The results were tantalizing,
coveted, fashionable, and reserved or the Spanish nobility which created a demand for the
fruits of his Spanish plantations. Chocolate was a secret that Spain managed to keep from
the rest of the world for almost 100 years!
It is no secret that Chocolate has enjoyed a reputation as an aphrodisiac ever since
Conquistadores first became aware of the "pagan" ways of the Aztecs [who regarded
chocolate as a medicine, but probably not as an aphrodisiac.]
1544, Dominican Friars Get into the Swing: Dominican friars bring a delegation of
Mayans to meet Philip. Spanish monks, who had been consigned to process the cocoa
beans, finally let the secret out. It did not take long before chocolate was acclaimed
throughout Europe as a delicious, health-giving food.
The beans were still used as currency. Two hundred beans bought a turkey cock. One
hundred beans was the daily wage of porter, and would buy a hen turkey or a rabbit (the
price has really escalated in 30 years! Three beans could be traded for a turkey egg, a new
avocado, or a fish wrapped in maize husks. One bean bought a ripe avocado, tomato, or a
tamale.
1569, The Roman Church Takes a Serious Look at Chocolate: Pope Pius V, who did not
like chocolate, declared that drinking chocolate on Friday did not break The Fast.
1579, English Buccaneers Burn Currency: After taking a Spanish ship loaded with cocoa
beans, English Buccaneers set it on fire thinking the beans were sheep dung.
1585, Chocolate Goes to Market: The first shipment of beans intended for the market
makes it to Spain.
1587, Another Ship Goes Down: When the British captured a Spanish vessel loaded with
cocoa beans, the cargo was destroyed as useless.
1609, Chocolate is Lauded in Literature: The first book devoted entirely to chocolate,
"Libro en el cual se trata del chocolate," came from Mexico.

7. 1615, Chocolate Comes With the Dowery: Ann of Austria, daughter of Philip II from
Spain, introduced the beverage to her new husband, Louis the XIII, and his French court,
too.
1625, Cocoa Beans are Currency in Spain too: 200 small cocoa beans were valued at 1
Spanish real, or 4 cents.
1643, The French Court Embraces Chocolate: When the Spanish Princess Maria
Theresa was betrothed to Louis XIV of France, she gave her fiancé an engagement gift of
chocolate, packaged in an elegantly ornate chest.
Chocolate was extremely popular with Louis XIV and the members of his Court at
Versailles. Louis XIV, The Sun King, reigned for over 74 years [1643 to 1715] and is
considered to be one of the greatest absolute monarchs. His foresight lead him to appoint
Sieur David illou to manufacture and sell chocolate, which not only created a new income
stream, but also it is said to have inspired erotic pleasures. It was well known that in Louis’
72nd year he was making love to his wife twice a day… Chocolate?
Chocolate Mania in Paris: The chocolate craze which now included candy took hold in
Paris and then conquered the rest of France.
Chocolate’s reputation as an aphrodisiac flourished in the French courts. Art and literature
was thick with erotic imagery inspired by chocolate. And the Marquis de Sade, became
proficient in using chocolate to disguise poisons! Casanova was reputed for using chocolate
with champagne to seduce the ladies.
1657, Even London Succumbs: London's first chocolate shop is opened by a Frenchman.
London Chocolate Houses became the trendy meeting places where the elite London
society savored their new luxury. The first chocolate house opened in London advertising
"this excellent West India drink."
1662, Rome Takes Another Look: As chocolate became exceptionally fashionable, The
Church of Rome took a second look at this bewitching beverage. The judgment: "Liquid non
frantic jejunum," reiterated that a chocolate drink did not break the fast. But eating chocolate
confections didn’t pass muster, until Easter. Is this where the Easter Bunny makes an
entrance?
1671, All Troubles Have a Silver Lining: Sometimes people just don’t see it…this time
creativity prevailed! As the story goes, a bowlful of almonds is dropped, and the angry chef
tries to "box the ears" of his kitchen boy… but instead he spills a pan full of hot, burnt sugar
over the almonds. Meanwhile the renowned gourmet, Duke of Plesslis-Praslin, is waiting for
his dessert!

8. 1674, A Trendy Coffee House Takes Chocolate To New Horizons: An Avant Guard,
London Coffee House called At the Coffee Mill and Tobacco Roll,goes down in the annals
of history for serving chocolate in cakes, and also in rolls… in the Spanish style.
1677, Brazil Gets into The Market: By Royal Decree, November 1, 1677, Brazil [later to
achieve an important position in the world market] establishes its first cocoa plantations in
the State of Paris.
1697, The mayor of Zurich, visits Brussels: Heinrich Escher, mayor of Zurich, drinks
chocolate in Brussels and introduces the awe-inspiring concoction to his friends at home…
nothing he has ever tasted is even slightly like this brew!
1704, The Germans Impose a Tax on Chocolate: Chocolate makes its appearance in Ger
many, and Frederick I of Prussia reacts by imposing a tax. Anyone wishing to pay homage
to its pleasures has to pay two thalers for a permit.
1822, The Cocoa Tree becomes an Ornamental Plant: off the west coast of Africa on the
Principe Island in the Gulf of Guinea, Ferreira Gomes [from Portugal] introduces the cocoa
tree as an ornamental plant.
1913, A new Star is Born: Jules Sechaud of Montreux of Switzerland introduced the
process for filling chocolates.
Chocolate making is an important part of European Cultures…
the Swiss, Belgians, French, Italians and Germans
And now, American Chocolatiers are also making their mark
1923, The CMA was Established: The Chocolate Manufacturers Association of the United
States of America (CMA) was organized in.
1925, Cocoa is Big Business: The New York Cocoa Exchange, located at the World
Trade Center, was begun so that buyers and sellers could get together for transactions.
1938, World War II: The U.S. government recognized chocolate's role in the Allied Armed
Forces. It allocated valuable shipping space for the importation of cocoa beans which would
give many weary soldiers the strength to carry. Today, the U.S. Army D-rations include
three 4-ounce chocolate bars. Chocolate has even been taken into space as part of the diet
of U.S. astronauts.
Industrialization brought Chocolate
to the masses, yet Chocolate is still
considered to be an exceptional indulgence

9. INDIAN CHOCOLATE INDUSTRY
The size of the market for chocolates in India was estimated at 30,000
Size of the industry
tons in 2008.
Geographical distribution Mumbai, Delhi, Kolkata, Bangalore
Cadbury has over 70 %share in this market, and recorded a turnover
Output per annum
of over US$ 37m in 2008.
The Indian candy market is currently valued at around $664 million,
Market Capitalization with about 70% share ($ 461 million) in sugar confectionery and the
remaining 30% ($ 203 million) in chocolate confectionery.
History
The Indian Chocolate Industry has come a long way since long years. Ever since 1947 the
Cadbury is in India, Cadbury chocolates have ruled the hearts of Indians with their fabulous
taste. Indian Chocolate Industry‟s Cadbury Company today employs nearly 2000 people across
India. The company is one of the oldest and strongest players in the Indian confectionary
industry with an estimated 68% value share and 62% volume share of the total chocolate
market. It has exhibited continuously strong revenue growth of 34% and net profit growth of
24% throughout the 1990?s. The brand of Cadbury is known for its exceptional capabilities in
product innovation, distribution and marketing. With brands like Dairy Milk, Gems, 5 Star,
Bourn vita, Perk, Celebrations, Bytes, Chock, Delight and Temptations, there is a Cadbury
offering to suit all occasions and moods.
Today, the company reaches millions of loyal customers through a distribution network of 5.5
lakhs outlets across the country and this number is increasing everyday. In 1946 the Cadbury?s
manufacturing operations started in Mumbai, which was subsequently transferred to Thane. In
1964, Induri Farm at Talegaon, near Pune was set up with a view to promote modern methods as
well as improve milk yield. In 1981-82, a new chocolate manufacturing unit was set up in the
same location in Talegaon. The company, way back in 1964, pioneered cocoa farming in India to
reduce dependence on imported cocoa beans. The parent company provided cocoa seeds and
clonal materials free of cost for the first 8 years of operations. Cocoa farming is done in
Karnataka, Kerala and Tamil Nadu. In 1977, the company also took steps to promote higher
production of milk by setting up a subsidiary Induri Farms Ltd., near Pune.
In 1989, the company set up a new plant at Malanpur, MP, to derive benefits available to the
backward area. In 1995, Cadbury expanded Malanpur plant in a major way. The Malanpur plant
has modernized facilities for Gems, Eclairs, and Perk etc. Cadbury operates as the third party

10. operations at Phalton, Warana and Nashik in Maharashtra. These factories churn out close to
8,000 tonnes of chocolate annually.
In response to rising demand in the chocolate industry and reduce dependency on imports, Indian
cocoa producers have planned to increase domestic cocoa production by 60% in the next four
years. The Indian market is thought to be worth some 15bn rupee (?0.25bn) and has been hailed
as offering great potential for Western chocolate manufacturers as the market is still in its early
stages.
Chocolate consumption is gaining popularity in India due to increasing prosperity coupled with a
shift in food habits, pushing up the country's cocoa imports. Firms across the country have
announced plans to step-up domestic production from 10,000 tonnes to 16,000 tonnes, according
to Reuters. To secure good quality raw material in the long term, private players like Cadbury
India are encouraging cocoa cultivation, the news agency said. Cocoa requirement is growing
around 15% annually and will reach about 30,000 tonnes in the next 5 years.
Brief Introduction
Indian Chocolate Industry as today is dominated by two companies, both multinationals. The
market leader is Cadbury with a lion's share of 70%. The company's brands like Five Star,
Gems, Eclairs, Perk, Dairy Milk are leaders in their segments. Untill early 90's, Cadbury had a
market share of over 80 %, but its party was spoiled when Nestle appeared on the scene. The
other one has introduced its international brands in the country (Kit Kat, Lions), and now
commands approximately 15% market share. The two companies operating in the segment are
Gujarat Co-operative Milk Marketing Federation (GCMMF) and Central Arecanut and Cocoa
Manufactures and Processors Co-operation (CAMPCO). Competition in the segment will soonly
get keener as overseas chocolate giants Hershey's and Mars consolidate to grab a bite of the
Indian chocolate pie.
Market capitalization
The Indian candy market is currently valued at around $664 million, with about 70% share ($
461 million) in sugar confectionery and the remaining 30% ($ 203 million) in chocolate
confectionery. Indian Chocolate Industry is estimated at US$ 400 million and growing at 18%
per annum. Cadbury has over 70 % share in this market, and recorded a turnover of over US$
37m in 2008.

11. Size of the industry
The size of the market for chocolates in India was estimated at 30,000 tonnes in 2008. Bars of
moulded chocolates like amul, milk chocolate, dairy milk, truffle, nestle premium, and nestle
milky bar comprise the largest segment, accounting for 37% of the total market in terms of
volume. The chocolate market in India has a production volume of 30,800 tonnes. The chocolate
segment is characterized by high volumes, huge expenses on advertising, low margins, and price
sensitivity.The count segment is the next biggest segment, accounting for 30% of the total
chocolate market. The count segment has been growing at a faster pace during the last three
years driven by growth in perk and kitkat volumes. Wafer chocolates such as kit kat and perk
also belong to this segment. Panned chocolates accounts for 10% of the total market. The
chocolate market today is primarily dominated by Cadbury and Nestle, together accounting for
90% of the market.
Major Players
Cadbury‟s India Limited
Nestle India
Gujarat Co-operative Milk Marketing Federation
Cocoa Manufactures and Processors Co-operative (CAMPCO)
Bars Count Lines Wafer Panned Premium
Cadbury‟s Dairy Milk & Variants
5-Star, Milk
Amul Milk Chocolate
Treat Perk Gems,
Tiffin‟s Temptation & Celebrations
Nestle Milky Bar & Bar One.
Latest developments
Chocolate-lovers may soon find their chocolate dearer if the problems plaguing the
industry continue. Raw material costs have risen by more than 20 % in the last few years.
Although retail prices have not increased, a rise in input costs will force the
manufacturers to consider a price hike.The Bigger players in the country such as
Cadbury, which leads the Rs 2,500 crore chocolate markets in India with a share of 72%,
will find it easier to absorb the surge in input costs as it has products at various price
points in the market, said industry experts. Cadbury may also opt for a price hike, albeit
marginal, if the current trend continues. Indian Chocolate Industry?s Margin range
between 10 and 20%, depending on the price point at which the product is placed. The
input costs in India are under check owing to the 24% decline in the prices of sugar.
The World?s Leading manufacturer of high quality cocoa and chocolate products Barry
Callebaut, has announced the opening of its first, state-of the art, Chocolate Academy in
Mumbai, India in July 2007.
According to the analysis of the international market intelligence provider Euromonitor,
the relatively small Indian chocolate market with volumes of about 55,000 metric tonnes

12. of chocolate and compound per year is expected to grow on average per year by around
17.8% between 2008 and 2012.
Ferrero the Italian confectionery giant of $8 billion has planned up for a new production facility
in Maharashtra with an investment of over $125 million to whip up some of its popular brands
that include Rocher and Kinder.
CADBURY

13. Cadbury, the global leader in the chocolate confectionery market, began in 1824 when a
young Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea,
drinking chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty,
John hoped his products might serve as an alternative. He also sold hops and mustard. Like many
Quakers John had high quality standards for all of his products.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon John‟s
brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The Cadbury
brothers opened an office in London and received a Royal Warrant (one of many) as
manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers
dissolved their partnership because of John‟s failing health and the death of his wife. They left
the business to John's sons George and Richard. John devoted the rest of his life to social work
and died in 1889.
George and Richard continued to expand the
product line, and by 1864, they were pulling a
profit. Cadbury‟s Cocoa Essence, which was
advertised as "absolutely pure and therefore
best," was an all-natural product made with
pure cocoa butter and no starchy ingredients.
Cocoa Essence was the beginning of chocolate
as we know it today. The brothers soon moved
their manufacturing operations to a larger
facility four miles south of Birmingham. The
factory and area became known as Bournville.
Packing room at Cadbury's Bournville factory..
Interesting Facts about Cadbury
Cadbury was the first company to include pictures instead of printed text on chocolate boxes.
 GeorgeCadbury didn‟t want to take mothers away from their children, so he developed a
company rule that women had to leave work when they got married. Each married woman was
given a bible and a carnation as wedding gifts.
 In1886 Cadbury became one of the first firms to have dining rooms with kitchens and food
for sale.
 Aminiature metal animal (elephant, penguin, owl, fox, duck, squirrel, rabbit or turtle) was
given away with specially designed cocoa tins in 1934. In the same year, Cadbury's tokens,
which came with packs of cocoa, could be redeemed for lamps, kettles and saucepans.
 Somany children joined Cadbury‟s Coco cub Club that it had 300,000 members in 1936.
 Cadbury‟sWorld Visitor Center opened in 1990, welcoming 400,000 visitors in its first year.
 Cadburylaunched a Get Active program in 2003, helping 10,000 teachers get in shape.
Cadbury Design Process
The Brief:

14. This is the first stage of the Cadbury Design process when the 'customer',for example the
Brand Manager, discussed the requirements for a new brand design with the designer. It
might be a new presentation for an existing Cadbury brand, an entirely new design concept
for a new product or point of sale material to support a brand promotion.
Design:
The designer will then produce either some black and white 'scamps' of rough ideas to
discuss with the customer. Alternatively the ideas may be presented in colour as a 'marker
visual' with numerous alternatives being devised in order to achieve the best 'finished design'
. Designs could also be produced on computer using an Apple Macintosh which gives the
designer a great deal of flexibility to make subtle changes without having to prepare a new
marker visual.
Mock-Ups:
Once a visual has been produced it may be necessary to produce 'mock-ups' which are
visuals made up to look like the real thing. They are usually very highly finished and may be
superior in quality than the actual final printed design. Mock -ups would be needed if a new
product concept or packaging was going be assessed by a consumer market research group
prior to launch or a pack was needed for photography for inclusion in a seasonal catalogue.
Cadbury Design Process cont.
Art work:
Production of 'artwork' which is the final design, featuring all the necessary
text and other information required by the printer, is the next stage
in the process. Artwork is produced mainly on computer and often
involves the scanning of very highly finished illustrations prepared by
hand by skilled artists. Once complete, the printer is given the information
on a computer disk together with a colour laser for reference along
with the photographic transparencies.
Print:
The printer will produce 'proofs' of the item to be printed so that the
Cadbury design team can check it in great detail to correct any errors or
omissions ensuring that the colour matches the specification. Once a
proof has been approved the material will be printed, which in one print
of, for example, the packaging for a Crunchie bar, can amount to over
several million impressions.
Photography:
For part of the specific design process, photography may be required and
this may involve a studio shot or shooting 'on location'.
Cadbury Corporate Design

15. Design is a visual means of communicating a company's corporate identity to a wide range of
target audiences. A clear, well planned corporate identity helps to position the company and
set it apart for the competition. To be successful, a corporate identity programme must reflect
accurately the whole personality of a company and its brands. Reality must always match the
expectations created by the visual elements.The well established Cadbury corporate design
today with the script logo and corporate colours so prominent on livery, signs, stationery,
printed material and the brands themselves is a visual statement of the Company's authority
within the confectionery market. Both the design and execution emphasise the high quality
standards extending through every aspect of the Company operation.
The Earliest Steps Towards a Cadbury Corporate Identity
From 1906, Cadbury had painted livery on its delivery vans. But the first move towards a
consistent identity was the registration of the 'Cadbury Tree symbol' in 1911. Resembling a
stylised cocoa tree interwoven with the Cadbury name, this device was used on various items
such as presentation boxes, catalogues, tableware and promotional items. It was also
imprinted onto the aluminium foil used to wrap the moulded chocolate blocks. The Cadbury
Tree symbol was used consistently from 1911 until 1939 and again immediately after the
war. Many of the older Bournville workers and pensioners have vivid recollections of this
symbol.The Cadbury Tree symbol has been perpetuated in the design of the distinctive logo
for Cadbury World, the visitors centre at the UK factory,which offers visitors a unique
chocolate experience.
Cadbury Corporate Design Today
Three long established elements - the unique script logo coupled with the glass and a half
symbol and the
purple and gold house colours are the key components of the corporate design, the visual
expression of
Cadbury Limited today. Benefits of the consistent corporate identity can be summed up as:
• Memorability and distinctiveness
• Assurance of quality
• An established and consistent house logo - a unifying element that helps significantly to
persuade customers to sample a new line.
The complete Cadbury logo is used on company signs, livery, letterheads and brochure.
Brand Promotion cont.
Eating chocolate first appeared on the Cadbury listings in the 1840s

16. and from the outset, the packs were decorative. Chocolate for eating
was a novelty and the packs were designed to tempt the customers to
taste this new product. Two of the earliest pictorial labels were based
on engravings of Victoria and Albert and of the Birmingham Town Hall
which was opened in 1834. Both labels had the Cadbury Brothers
designation and therefore date from after 1847.
Tremendous strides in the eating chocolate market were made possible from
the mid 1860s, following the introduction of the cocoa press by Richard and
George Cadbury. Many new kinds of chocolate were produced, not only more
refined forms of plain chocolate in blocks but the first chocolate assortments,
fruit fondants covered with chocolate
At first the chocolate assortment boxes featured small pictures suitable for
children to cut out and paste in their scrapbooks. The pictures, ready printed
in sheets, were sold by European printers. These soon gained popularity with
the Victorians particularly, as gifts, opening up new design possibilities for
the company.
Richard Cadbury introduced ambitious and attractive designs from his own paintings
for gift boxes. He used his children as models and sometimes depicted flowers or scenes
from holiday journeys. Chocolate boxes were designed with their after use very much
in mind, becoming increasingly elaborate. Designs ranged from the pastoral to the romantic
and from the floral to opulent silk-lined caskets and rich velvet jewel boxes.The Victorians
delighted in these elaborate chocolate boxes and their popularity continued, although their
appearance was transformed to meet changes in taste, until their disappearance during the
second world war and the period of austerity which followed.When chocolate boxes returned
in the early 1950s their design style was functional and more suitable to mass production.
Although there is still a demand for the special boxes for gift occasions, the extravagant
designs of the earlier days have totally disappeared.
At the turn of the century, Cadbury commissioned a local artist, Cecil
Aldin, to produce a series of posters and press advertisements which are
amongst the finest examples of early advertising. Classics within the
advertising field, these posters were used on sites throughout the country
and the artwork formed the basis of early magazine campaigns. The
earliest ones promoted the virtues of Cadbury cocoa, with illustrations
related to topical events, many quite humorous.
The Gorrell Commission Better Standards of Design
Cadbury's design awareness was well illustrated by the company's response to the Gorrell
Commission

17. which was set up the Government in 1931 to promote better standards of design throughout
British industry
to help combat competition from foreign imports.
The famous artists series of chocolate boxes was introduced in 1932
with illustrations by artists of the calibre of Dame Laura Knight,
Arthur Rackham and Mark Gertler. Unfortunately these did not
prove to be overwhelmingly popular with the British public!
Design of Key Brands
Unlike many companies whose product branding is paramount and there is no mention of the
company name apart from the discreet name with the address, Cadbury policy has always
been to use the 'Cadbury' brand prominently on all its products. Cadbury chocolate is the
unifying element across the product range and as such the Cadbury brand represents Cadbury
chocolate in all its different forms.In the 1950s, at the time when the Cadbury script logo was
first used on the chocolate bar packs, the Cadbury name was featured prominently across the
range. This policy enabled the lesser known brands to gain through clear association with
Cadbury and its top brand Cadbury Dairy Milk.In the 1960s, more money was available for
product promotion; television advertising was a well established element in the marketing
mix and the strength of the brand was the key. The Cadbury name was still featured but less
prominently.From the late 1980s "Cadburyness" became an important property for all brands
and the Cadbury name returned to prominence.Today, the Cadbury brand is the world‟s
leading international brand in chocolate and is a crucial element in the pack design for all
product packaging.
Key Brands
Every Cadbury brand, for example, Cadbury Dairy Milk, Milk Tray, and Cadbury Roses has
its own individual design style and colour which relates to market position and customer
perception. Changes in the design of all Cadbury brands are made from time to time to keep
the presentation up-to-date without sacrificing continuity.
Cadbury Dairy Milk
Cadbury Dairy Milk is Australia's number one seller in the moulded chocolate market.
Launched in 1905, it is a milk chocolate favourite throughout the world. In product
display, pack colour is noticed first, then shape and finally the detail. The Cadbury
regal purple used for Cadbury Dairy Milk packaging is now synonymous with Cadbury
chocolate.
When first launched Cadbury Dairy Milk had a parcel wrap with a pale mauve colour
and red script. The purple and gold colours were established in 1920. Cadbury Dairy
Milk packaging design has evolved over the years with subtle changes to the clearly
defined purple and gold livery of this market leader.
The Cadbury script logo was introduced into the design in 1952 and the final element, the
famous glass
and a half symbol, so successfully used in advertising, was incorporated in the 1970s.
Cadbury Milk Tray
Milk Tray has maintained its popularity in a changing world since the milk chocolate
assortment made with the famous Cadbury Dairy Milk chocolate was first introduced in

18. Australia in the early 1930‟s.The name 'Tray' is derived from the way in which the original
assortment was delivered to the shops.Originally, Milk Tray was packed in five and a half
pound boxes, arranged on trays from which it was sold loose to customers.The half pound
deep-lidded box with the traditional purple background and gold script was introduced in
the late 1930‟s. Its purple and gold pack was stylish but without frills, positioning Milk Tray
as the assortment for everyday not just special occasions.Milk Tray has been available in
pack sizes of 125g,250g, 500g and 750g in a single designed pack from 1930 to 1998. In
1998 Milk Tray pack design extended to 6 new designs, including the heart, stars, zodiac,
bow and teddy bear graphics over all pack sizes. These graphics emphasise how appropriate
Milk Tray is as a gift at various occasions and reflects changes in consumer preference.
Cadbury Roses
Designed to compete in the 'twist-wrap' chocolate market, Cadbury Roses is the current
number one boxed chocolate brand in Australia.Examination of the Cadbury Roses pack over
the years shows that the main changes have been in the rose itself, the introduction of the
Cadbury script logo and in the descriptive label device. Today the key design features are
undoubtedly the eye catching blue packs and tins and the distinctive red and yellow roses.
Barlines
This range of chocolate bars, includes a wide variety of brands which compete in different
sectors of the snack market. Barlines are very much an impulse purchase so the packaging
much be eye-catching to grab the consumers' attention. The design of the packaging relates
to their individual core values, market positioning, specific consumer appeal and brand
personality.
Flake
Flake is by far the most unique and luxurious milk chocolate bar in the market place. Its
trendy and chicappearance appeals to a young female market.
Timeout
TimeOut was launched into the Australian market in March 1995 and was the only
successful entrant in the Top 5, amidst 10 year old established brands.Amidst the hectic
lifestyle of the 90‟s, TimeOut is the perfect mental pause to see people through the day.
Cherry Ripe
Cherry Ripe is a unique blend of cherries and old gold chocolate.
The „irresistible‟ and „playful‟ appeal of Cherry Ripe places the brand in its own category, no
other chocolate bar is similar both in taste and in character.
Picnic
Picnic is the fun and rugged product amongst the Cadbury bar portfolio, both in appearance
and taste. The ingredients (peanuts, wafer, caramel, rice crisps and chocolate) make Picnic a

19. texturally interesting eat.Picnic is widely recognised by its Red and Yellow packaging and all
round has an easy going and down to earth nature, which appeals to a male audience.
Crunchie
Crunchie has been a strong performer in the Cadbury stable of brands in Australia over the
last 20 years.Crunchie can be characterised by its upbeat and gregarious nature. It is a truly
amazing product with the honeycomb centre, which melts in your mouth and provides a great
uplifting feeling.
The Gift Market
The traditional gift seasons are Christmas and Easter, with sales of boxed chocolates,
selection packs,novelties and eggs, but there is a whole sequence of celebrations such as
mothers' day, Valentine's day or other potential gift giving occasions.In this area Cadbury
products must not only stand out from the chocolate market competition they must
also compete with the rest of the increasingly innovative gift market.
Christmas
Christmas is an important chocolate buying time particularly in relation to boxed
chocolates. Thirty percent of all boxed chocolates bought at Christmas time.
Pack designs for boxed chocolates and the ever expanding range of Christmas novelties
must be eye-catching, innovative with different ideas linking with the brand design and
target.
Easter
In this the second largest chocolate giving season, Easter eggs make up 10% of all chocolate
sales. Within the Cadbury range there is something for every member of the family.
Design and presentation of Easter gifts is almost as important as the chocolate product itself.
The psychology of matching the presentation of Easter eggs to particular consumer targets is
a major consideration and the Cadbury design teams are experts in this field.
History Of Nestle Company
It was in the 1860s that Henri Nestlé, a pharmacist, developed a food specifically for babies who
could not breast feed. He first used this successfully on a premature infant who couldn't tolerate

20. his mother's breast milk. This product saved the child's life and people soon began to see the
value of it. Soon, Farine Lactée Henri Nestlé was being sold all over Europe.
In 1905 Nestlé merged with a condensed milk company. By the early 1900s they had factories in
the United States, Britain, Germany and Spain. With the outbreak of World War I, there was a
great demand for these products. By the end of the war Nestlé's production more than doubled.
Unfortunately, after the war, contracts dried up and the buying public went back to getting fresh
milk. In response to this, Nestlé streamlined their operation and reduced their debt. By the 1920s
the company had expanded its operation with chocolate being its number two selling product.
Then World War II broke out and Nestlé immediately felt the effects. Their profits dropped from
$20 million a year before 1938 to under $6 million a year by 1939. In spite of this, Nestlé began
setting up factories in developing countries expecting a turn around by the war's end. Ironically,
the war was responsible for Nestlé introducing one of its most popular products, Nescafé instant
coffee, which was the number one drink of the United States military.
The end of World War II, just as Nestlé predicted, was the beginning of a great phase of growth
for the company. Nestlé acquired many other companies during this time. In 1947 they merged
with Maggi, Crosse & Blackwell in 1960, Libbys in 1971 and Stouffers in 1973.
By the mid 1970s, Nestlé's growth in the developing world offset their slowdown in the more
developed countries like the United States. By the mid 1980s they had acquired several
additional companies, the biggest of which was the American company, Carnation.
After the mid 1990s, because of the breakdown of trade barriers, Nestlé enjoyed what was
probably their biggest growth in history. Their acquisitions included the giant company Ralston
Purina, which mainly sells pet food.
In spite of Nestlé's diversification, they are and will always be mostly known for their ever
popular chocolate bars and drinks such as Nestlé's Crunch Bar, which is now also made into an
ice cream bar, Nestlé's Quick, which is a chocolate flavored powder to put in milk, Nestlé's
Carnation, another popular chocolate drink, the Kit Kat Bar, Smarties, Nestlé's Maxibon, Nestlé's
Extreme and a host of other products, a list that would take days to go through.
In closing, it should be pointed out that a lot of Nestlé's success was a stroke of good luck. It
seems that a man named Daniel Peter figured out exactly how to combine milk and cocoa

21. powder. The result was milk chocolate. Well, Peter just happened to be a good friend of Henri
Nestlé. Peter started the company, but ultimately Nestlé took it over as was destined to happen.
Introduction
Most of us love chocolate in one form or another and every week a typical UK citizen spends
around £1.80 on it. Amazingly, UK consumers have a choice of over 5,000 chocolate lines
available from 150,000 outlets. Because it is so widely and readily available, we tend to take
chocolate for granted, and few of us probably ever consider what is involved in producing it.
This case study looks at the massive, complex worldwide operations that ensures that chocolate
products are on the shelves of retail outlets 365 days a year. We tend to treat this achievement as
routine. In reality,it represents a triumph for careful planning and meticulous organisation.
We don‟t know who first discovered that cocoa beans could be turned into a drink, but we do
know that by 600AD the Mayan people living in what is now Mexico were growing cocoa in the
jungles of Yucatan.
In the 16th century the Spaniards invaded South America, quickly learned the secrets of making
chocolate as a drink and started shipping back cargoes of cocoa beans. By the 18th century,
chocolate-based drinks were popular in British high society. In the mid-19th century an English
cocoa manufacturer,Joseph Storrs Fry, tried mixing cocoa butter with sugar and cocoa paste and
invented the world‟s first solid blocks of chocolate.The UK has long been a major manufacturer
(and consumer) of chocolate products. All over the world you will find prominent brands
first developed in the UK e.g. Smarties, Dairy Milk, Aero and of course Kit Kat (the UK‟s
Number 1 selling confectionery brand since 1985).Three producers dominate the chocolate
market. Cadbury with around 28% while Mars and Nestlé each have around 24%. Sales of milk
chocolate (96%) predominate, with plain and white chocolate accounting for about 2% each.
Boxed chocolates such as Quality Street make up 15% of the confectionery market. Blocks and
bars like Kit Kat and Yorkie account for 65% and bitesize chocolates e.g. Smarties and
Rolo make up 10%. Easter eggs are another big seller, accounting for 5% of the market.
The UK‟s chocolate industry is over 150 years old. Chocolate manufacture provides steady
employment and job security for tens of thousands of employees in manufacturing locations like
York and Birmingham. The industry also generates jobs in marketing,administration, transport
and storage. Chocolate sales are an important source of income for many retailers.
Resources needed for production
All goods and services depend on resources for their production,these are known as factors of
production. One key factor is enterprise:the risk-bearing associated with any business. In the
past, many firms owed their existence to perhaps just one person, who set it up.Nowadays, with
the growth of companies, business risk tends to be born by shareholders, whilst managers
exercise day to day control.Manufacturing, marketing and distributing a product for worldwide
consumption involves a huge amount of careful planning
A) DEVELOPMENT:-

22. Capabilities: - For us, capabilities are the skills, knowledge, behaviours and
experience a person needs to do his or her job. At Cadbury, we have developed a
comprehensive approach to developing our people and ensuring we have the right people
and skills to meet our current and future business needs. We identify and describe in
detail the capabilities we need in our jobs, and we assess our people's current skills and
provide opportunities for development. We offer on-the-job assignments, executive
education and coaching.
We actively nurture existing talent and increase our pool of managers with global
capabilities by providing opportunities to gain international experience and development.
Our aim is to improve individual skills and transfer learning and knowledge as well as
enhance teamwork and build networks across the company.
Learning and development:-
At Cadbury, learning and development is about providing opportunities for our people to
enhance their capabilities and to realise their full potential.
We view learning and development as a shared responsibility between the Company and
our individual employees, with the Company providing the resources and individuals
providing the essential motivation and commitment. We design learning and
development activities to help in this. These focus on increasing the knowledge,
experience, skills and behaviours of individuals and teams.
Part of our line managers' responsibility is to identify the training needs of his or her
direct reports, match those needs to training and development opportunities and ensure
that learning is transferred back into the workplace.
B) CURRENT TRENDS:-
Differentiated marketing
We would go for different offers for each age group. As we will split our segment into
three different groups. That is from age 5 – 10, 11 – 20, and 21 – 60.We will offer a milk
chocolate coated with nuts for children‟s and it would be packed in an attractive
wrapper for children‟s with characters such as Spiderman, batman, Barbie and
etc.We will offer another products like brown chocolate coated with nuts that
has a low c a l o r i e a n d i s f o r c h o c o l a t e l o v e r s a n d m a t u r e a g e p e o p l e
a s t h e y a r e m o r e d i e t conscious will be offered white chocolate coated with nuts.
MARKET DEMOGRAPHICS
Market demographics help the company to divide the market into groups based on
variables such as age, gender, family size, income, education and occupation. And
indifferent geographic units such as nations, regions and countries we will discuss in
detail each of them.

23. C) MANUFACTURING INDUSTRY IN M.P AND GWALIOR:-
MALANPUR

24. MALANPUR FACTORY PRODUCTS RANGE
These are as following:-
1) Intermediate
2) Liquid milk chocolate
3) Panned chocolate
4) Gems
5) 5-star
6) Perk
7) Ultra perk
8) Eclairs
MALANPUR VALUES
There are elements in which Malanpur has to be the best. This does not mean that itignores
the other areas, which are central operating values, in which Malanpur has toexcel. They are:-
1) Quality
2) Hygiene
3) Productivity
4) Material efficiency
CHAPTER 2:- TOPIC INTRODUCTION

25. A) Impact of Autonomy and perceived organizational
support on Job satisfaction:-
1) AUTONOMY:-
- Freedom to do the work as one sees fit; discretion in scheduling,
decision-making, and means for accomplishing a job.
- The degree to which the job gives the worker freedom and
independence in scheduling work and determining how the work will be
carried out.
o Facets of Autonomy
Studies have recognized three types of job autonomy that can
positively influence job satisfaction -- work method, work
scheduling and work criteria.
Work method autonomy refers to the degree of freedom that
workers have in going about their work, such as the kind of
spreadsheet software an employee prefers to use.
Work scheduling autonomy refers to the level of control
employees have in scheduling, sequencing or timing their
work activities, such as a choice of working from home versus
workplace attendance.
Work criteria autonomy indicates the degree to which
workers can chose to modify the standards used for
evaluating performance. For instance, employees can chose
whether "deadlines" or "accuracy" better explain their work
performances.
2)Perceived organizational support:-

26. Research on perceived organizational support began with the observation that if managers are
concerned with their employees’ commitment to the organization, employees are focused on the
organization’s commitment to them. For employees, the organization serves as an important
source of socioemotional resources, such as respect and caring, and tangible benefits, such as
wages and medical benefits. Being regarded highly by the organization helps to meet
employees’ needs for approval, esteem, and affiliation. Positive valuation by the organization
also provides an indication that increased effort will be noted and rewarded. Employees
therefore take an active interest in the regard with which they are held by their employer.
Organizational support theory (OST: Eisenberger, Huntington, Hutchinson, & Sowa, 1986;
Rhoades & Eisenberger, 2002; Shore & Shore, 1995) holds that in order to meet socioemotional
needs and to assess the benefits of increased work effort, employees form a general perception
concerning the extent to which the organization values their contributions and cares about their
well-being. Such perceived organizational support (POS) would increase employees’ felt
obligation to help the organization reach its objectives, their affective commitment to the
organization, and their expectation that improved performance would be rewarded. Behavioral
outcomes of POS would include increases in inrole and extra-role performance and decreases in
stess and withdrawal behaviors such as absenteeism and turnover.
Although there were relatively few studies of POS until the mid 1990’s, research on the topic has
burgeoned in the last few years. Rhoades and Eisenberger’s (2002) meta-analysis covered
some 70 POS studies carried out through 1999, and over 250 studies have been performed
since. The meta-analysis found clear and consistent relationships of POS with its predicted
antecedents and consequences.
Processes Underlying Perceived Organizational Support
The meta-analysis of research on POS, carried out by Rhoades and Eisenberger (2002) indicated
that three general categories of favorable treatment received by employees (fairness of treatment,
supervisors support, and rewards and job conditions) are positively related to POS, which, in turn, is
associated with outcomes favored by employees (e.g., increased job satisfaction, positive mood, and
reduced stress) and the organization (e.g., increased affective commitment and performance and
reduced turnover). OST specifies mechanisms responsible for these associations, allowing stringent
tests of the theory.
Attribution Processes Contributing to Perceived Organizational Support
POS is assumed to be a global belief that employees form concerning their valuation by the
organization. Based on the experience of personally relevant organizational policies and procedures,
the receipt of resources, and interactions with agents of the organization, an employee would distill
the organization’s general orientation toward her.
According to OST, the development of POS is encouraged by employees’ tendency to assign the
organization humanlike characteristics (Eisenberger et al., 1986). Levinson (1965) suggested that
employees tend to attribute the actions of organizational representatives to the intent of the
organization rather than solely to the personal motives of its representatives. This personification of
the organization, suggested Levinson, is abetted by the organization’s legal, moral, and financial
responsibility for the actions of its agents; by rules, norms, and policies that provide continuity and
prescribe role behaviors; and by the power the organization exerts over individual employees. Thus,

27. to some degree, employees think of their relationship with the organization in terms similar to a
relationship between themselves and a more powerful individual.
OST maintains that employees use attributional processes similar to those used in interpersonal
relationships to infer their valuation by the organization. Gouldner (1960) reasoned that favorable
treatment would convey positive regard to the extent that the individual receiving the treatment
considered the act to be discretionary. From this perspective, an employee would infer higher regard
from favorable treatment if the treatment appeared discretionary rather than the result of such
external constraints as government regulations, union contracts, or competitive wages paid by
alternative employers (Eisenberger et al., 1986; Shore & Shore, 1995). Accordingly, the positive
relationship between POS and favorable job conditions was found to be six times greater when the
presence of those conditions were attributed to the organization’s discretion rather than to external
constraints (Eisenberger, Cummings, Armeli, &, Lynch, 1997).
Thus, the organization’s discretion is important for determining the extent to which different
treatments most impact POS. For example, union workers might receive excellent wages and
benefits. However, if these benefits resulted from difficult contested negotiations, employees would
consider the benefits to have been provided involuntarily, and the benefits would have little influence
on POS. This suggests that organizations should not automatically conclude that well-treated
employees will have high POS. Favorable treatments that organizations provide to employees must
be perceived as voluntary if they are to influence feelings of support. To the extent that the
organization effectively conveys favorable treatment as discretionary, POS will be enhanced.
Correspondingly, unfavorable treatment that is perceived to be beyond the organization’s control will
have a less negative effect on POS. For example, management could attribute a lower annual pay
raises to low profits associated with weak economic conditions. By shifting the responsibility for the
cutbacks from the organization itself to external circumstances over which the organization had little
control, the deleterious effect of the cutbacks on POS would be reduced.
The importance of the discretion attribution for employees’ attitudes toward the organization has
practical implications. In extensive consulting with a large retail sales organization, we found that
most salespeople reported a high level of stress at work. When we investigated more closely, we
found these employees generally attributed their stress to the nature of sales jobs, leading them to
believe that there was little that the organization could do to alleviate the stress. Because stress was
an aspect of the job that employees believed the organization could not control, the sales
employees’ POS was not adversely affected by this unfavorable job condition. According to the sales
employees, improvements in other features of the job that the organization could control, such as
more weekend days off and higher pay, were more important to them. Thus, some unpleasant
aspects of one’s job are taken for granted by employees and not blamed on the organization.
Employees are practical; they are generally concerned with improving working conditions and
benefits that management can readily change.
Reciprocation of Perceived Organizational Support
Researchers reporting positive relationships of POS with affective commitment and performance
have often assumed employees' felt obligation to be an underlying process. However, only recently
has felt obligation been directly assessed as a mediator of POS-outcome relationships. Consistent
with organizational support theory, Wiesenberger et al. (2001) reported that felt obligation mediated
the relationships of POS with affective commitment, in-role performance, and extra-role

28. performance.
To the extent that the POS-felt obligation association is due to the norm of reciprocity, the strength of
this association should be influenced by employees' acceptance of the reciprocity norm as a basis
for employee-employer relationships. Employee exchange ideology refers to employees' belief that it
is appropriate and useful to base their concern with the organization's welfare and their work effort
on how favorably they have been treated by the organization (Eisenberger et al., 1986). Employees
with a high exchange ideology showed stronger relationships of POS with felt obligation to the
organization (Eisenberger et al., 2001), job attendance (Eisenberger et al., 1990), and extra-role
performance (Ladd, 1997; Witt, 1991). Mediation of POS-outcome relationships by felt obligation,
together with the moderation of these associations by employee exchange ideology, indicates that
reciprocity is a basic mechanism contributing to POS's associations with various behavioral
outcomes.
Fulfillment of Socioemotional Needs
Similar to the needs-fulfilling role served by perceived support from friends and relatives in everyday
life (Cobb, 1976; Cohen & Wills, 1985), organizational support theory supposes that POS meets
needs for emotional support, affiliation, esteem, and approval. According to Gouldner (1960), the
obligation to reciprocate favorable treatment increases with the benefit's value, including the
benefit's relevance to the recipient's specific needs. Therefore, the obligation to repay POS with
enhanced performance should be greater among employees with high socioemotional needs.
Accordingly, police patrol officers having higher needs for approval, esteem, emotional support, or
affiliation showed a stronger relationship of POS with DUI arrests and issuance of speeding tickets
(Armeli et al., 1998).
Additional evidence of POS's socioemotional function comes from findings that POS was negatively
associated with strains experienced in the workplace (Cropanzano et al., 1997; Robblee, 1998;
Venkatachalam, 1995), that POS lessened the relationship between nurses' degree of contact with
AIDS patients and negative mood (George et al. 1993), and that perceived support within the
organization, as opposed to support from family and friends, reduced the negative relationship
between British pub employees' receipt of threats and violence and these employees' experienced
well-being (Leather et al., 1998). Thus, POS may be especially helpful in reducing the traumatic
consequences of stressors at work.
Contribution of POS to Performance-reward Expectancies
According to organizational support theory, the relationship between performance-reward
expectancies and POS should be reciprocal (Eisenberger et al., 1986; Shore & Shore, 1995).
Favorable opportunities for rewards would convey the organization's positive valuation of employees'
contributions and thus contribute to POS (cf. Gaertner and Nollen, 1989). POS, In turn, would
increase employees' expectancies that high performance will be rewarded. Consistent with these
views, the meta-analysis by Rhoades and Eisenberger (2002) found that opportunities for greater
recognition, pay, and promotion were positively associated with POS. Additional research is needed
concerning the mediating role of reward expectancies in the relationship between POS and
performance.
3)Job satisfaction –

29. A key factor for employee productivity and business growth -- is a frequently studied subject
across the disciplines of psychology, sociology, economics and management sciences. A Euro
found study, "Measuring Job Satisfaction in Surveys," found that the degree of perceived
workforce autonomy is often the most important and positive predictor of job satisfaction.
Autonomy can conceptually enhance four different aspects of job satisfaction -- commitment,
involvement, performance and motivation in the workplace.
The definition of job satisfaction has visibly evolved through the decades, but most
versions share the belief that job satisfaction is a work-related positive affective reaction. There
seems to be less consistency when talking about the causes of job satisfaction. Wexley and
Yukl (1984) stated that job satisfaction is influenced by many factors, including personal traits
and characteristics of the job. To better understand these employee and job characteristics and
their relationship to job satisfaction, various theories have emerged and provided the vital
framework for future job satisfaction studies. Early traditional theories suggested that a single
bipolar continuum, with satisfaction on one end and dissatisfaction on the other, could be used to
conceptualize job satisfaction. Later revisions of the theory included a two-continuum model that
placed job satisfaction on the first scale, and job dissatisfaction on the second (Brown, 1998).
These later theories focused more on the presence or absence of certain intrinsic and extrinsic job
factors that could determine one‟s satisfaction level. Intrinsic factors are based on personal
perceptions and internal feelings, and include factors such as recognition, advancement, and
responsibility. These factors have been strongly linked to job satisfaction according to
O‟Driscoll and Randall (1999). Extrinsic factors are external job related variables that would
include salary, supervision, and working conditions. These extrinsic factors have also been
found to have a significant influence on job satisfaction levels according to Martin and Schinke
(1998).
Theories of Job Satisfaction
There are numerous theories attempting to explain job satisfaction, but three conceptual
frameworks seem to be more prominent in the literature. The first is content theory, which
suggests that job satisfaction occurs when one‟s need for growth and self-actualization are met
by the individual‟s job. The second conceptual framework is often referred to as process theory,
which attempts to explain job satisfaction by looking at how well the job meets one‟s
expectations and values. The third conceptual group includes situational theories, which
proposes that job satisfaction is a product of how well an individual‟s personal characteristics
interact or mesh with the organizational characteristics. Each of the three theoretical frameworks
has been explored and reviewed by countless scholars and researchers, and the purpose of this
chapter is not to provide an exhaustive review of job satisfaction theories. Instead, a highlight of
the main theories and theorists from each framework will be offered, to provide clarity, relevance
and direction to this study of job satisfaction.

30. Content Theories
When discussing human needs, growth, and self-actualization, one cannot look far before
Finding Abraham Maslow and his “hierarchy of needs”. Maslow‟s (1954) traditionalist views of
Job satisfaction was based on his five-tier model of human needs. At the lowest tier, basic life
Sustaining needs such as water, food, and shelter were identified. The next level consisted of
Physical and financial security, while the third tier included needs of social acceptance,
Belonging and love. The fourth tier incorporated self-esteem needs and recognition by one‟s
Peers, and at the top of the pyramid was reserved for self-actualization needs such as personal
Autonomy and self-direction. According to Maslow, the needs of an individual exist in a logical
Order and that the basic lower level needs must be satisfied before those at higher levels. Then,
Once the basic needs are fulfilled, they no longer serve as motivators for the individual. The
More a job allows for growth and acquisition of higher level needs, the more likely the
individual
Is to report satisfaction with his or her job. Furthermore, the success of motivating people
Depends on recognizing the needs that are unsatisfied and helping the individual to meet those
Needs.
Building on the theories of Maslow, Frederick Hertzburg (1974) suggested that the work
itself could serve as a principal source of job satisfaction. His approach led to the
aforementioned two-continuum model of job satisfaction where job satisfaction was placed on
one continuum and job dissatisfaction was placed on a second. Hertzberg‟s theory recognized
that work characteristics generated by dissatisfaction were quite different from those created by
satisfaction. He identified the factors that contribute to each dimension as “motivators” and
“hygienes”. The motivators are intrinsic factors that influence satisfaction based on fulfillment of
higher level needs such as achievement, recognition, and opportunity for growth. The hygiene
factors are extrinsic variables that such as work conditions, pay, and interpersonal relationships
that must be met to prevent dissatisfaction. When hygiene factors are poor, work will be
dissatisfying. However, simply removing the poor hygienes does not equate to satisfaction.
Similarly, when people are satisfied with their job, motivators are present, but removing the
motivators does not automatically lead to dissatisfaction. Essentially, job satisfaction depends on
the extrinsic characteristics of the job, in relation to the job‟s ability to fulfill ones higher level
needs of self-actualization. Hence the two continuum model of Hertzberg's Motivator-Hygiene
theory.
Process Theories
Process theories attempt to explain job satisfaction by looking at expectancies and values
(Gruneberg, 1979). This theory of job satisfaction suggests that workers‟ select their behaviors
in order to meet their needs. Within this framework, Adams‟ (1963) and Vroom (1982) have
become the most prominent theorists. J. Stacy Adams‟ suggested that people perceive their job as
a series of inputs and outcomes. Inputs are factors such as experience, ability, and effort, while
outcomes include things like salary, recognition, and opportunity. The theory is based on the
premise that job satisfaction is a direct result of individuals‟ perceptions of how fairly they are
treated in comparison to others. This “equity theory” proposes that people seek social equity in
the rewards they expect for performance. In other words, people feel satisfied at work when the
input or contribution to a job and the resulting outcome are commensurate to that of their
coworkers.
According to Milkovich and Newman (1990), this social equity is not limited to others

31. within the same workplace, and the equity comparisons often reach into other organizations that
are viewed as similar places of employment.
Vroom‟s (1964) theory of job satisfaction was similar in that it looked at the interaction
between personal and workplace variables; however, he also incorporated the element of
workers‟ expectations into his theory. The essence of this theory is that if workers put forth
more effort and perform better at work, then they will be compensated accordingly.
Discrepancies that occur between expected compensation and actual outcome lead to
dissatisfaction. If employees receive less than they expect or otherwise feel as if they have been
treaded unfairly, then dissatisfaction may occur. Conversely, overcompensation may also lead to
dissatisfaction and the employee may experience feelings of guilt. The compensation does not
have to be monetary, but pay is typically the most visible and most easily modified element of
outcome. Salary also has significance beyond monetary value and the potential to acquire
material items, and Gruneberg (1979) notes that it is also an indication of personal achievement,
organizational status, and recognition.
Vroom‟s theory also goes one step further to incorporate an individual‟s personal
decision making within the work-place. Vroom (1982) explained that employees would choose
to do or not do job tasks based on their perceived ability to carry out the task and earn fair
compensation. To illustrate and clarify his ideas, Vroom generated a three-variable equation for
scientifically determining job satisfaction. Expectancy is the first variable, and this is the
individual‟s perception of how well he or she can carry out the given task. Instrumentality is the
second variable of the equation, and this refers to the individual‟s confidence that he or she will
be compensated fairly for performing the task. Valence is the third variable, which considers
the value of the expected reward to the employee. In Vroom‟s formula each variable is given a
probability value, and when all three factors are high, workers will be more satisfied and have
more motivation. If any of the factors are low, work performance and employee motivation will
decline.
Situational Theories
The situational occurrences theory emerged in 1992, when Quarstein, McAfee, and
Glassman stated that job satisfaction is determined by two factors: situational characteristics and
situational occurrences. Situational characteristics are things such as pay, supervision, working
conditions, promotional opportunities, and company policies that typically are considered by the
employee before accepting the job. The situational occurrences are things that occur after taking
a job that may be tangible or intangible, positive or negative. Positive occurrences might include
extra vacation time, while negative occurrences might entail faulty equipment or strained
coworker relationships. Within this theoretical framework, job satisfaction is a product of both
situational factors and situational occurrences.

32. B) VARIABLES USED:-
Details of independent variable.
Job Autonomy: The degree of autonomy on the job is
widely regarded as an important determinant of jobs
satisfaction. This can be measured consisting of 10 survey
questions.
Perceived organizational support:-the degree of perceived
support on the job can be measured consisting of 10
survey question.
Details of dependent variable.
Job Satisfaction: Overall job satisfaction will be measured
consisting of 10 survey questions.
CHAPTER 3:- RESEARCH METHODOLOGY
A) OBJECTIVE:-
To measure the impact of Autonomy & perceived
organizational support on job satisfaction.
To explore the relationship on job satisfaction with job
autonomy & perceived organizational support.

33. B) RESEARCH DESIGN:-
Sample size
A sample size of 100 employees will be used to collect
data.
Sampling technique
Convenient sampling
C) SCOPE OF STUDY:-
1) To identify the employees level of satisfaction upon that job.
2) This study is helpful to that organization for conducting
further research.
3) It is helpful to identify the employer’s level of satisfaction
towards welfare measure.
4 This study is helpful to the organization for identifying the
area of dissatisfaction of job of the employees.
5) This study helps to make a managerial decision to the company
D) HYPOTHESIS:-
There is no significant impact of perceived
organizational support & job autonomy on job
satisfaction.

34. E) DATA COLLECTION:-
1. Details of instrument.
Questionnaire consisting of 6 survey Q. of job
autonomy and 10 survey Q. of job satisfaction.
2. Reference of the scales:
A) A scale on job satisfaction was used which is
developed by Scott Macdonald Peter Macintyre,
which could be used in a wide range of
occupational groups.
B) The scale was significantly related to work place
factors such as job stress, boredom, isolation
and danger of-illness or injury.
C)
F) REVIEW OF LITRETURE:-
Gupta & Joshi (2008), concluded in their study that Job
satisfaction is an important technique used to motivate the
employees to work harder. It had often said that, "A HAPPY
EMPLOYEE IS A PRODUCTIVE EMPLPOYEE." Job satisfaction is
very important because most of the people spend a major of
their life at their work place.
Khan (2006), reveals in his study hat Hoppack brought Job
satisfaction to limelight. He observed Job satisfaction in the
combination of psychological & environmental circumstances
that cause person to fully say, "I am satisfied with my job

35. Velnampy (2008), in his study "Job Attitude and Employees
Performance of Public Sector Organizations in Jaffna District, Sri
Lanka" concluded that job satisfaction does have impact on
future performance through the job involvement, but higher
performance also makes people feel more satisfied and
committed. It is a cycle of event that is clearly in keeping with
the development perspective. Attitudes such as satisfaction and
involvement are important to the employees to have high levels
of performance. The results of the study revealed that attitudes
namely satisfaction and involvement, and performance are
significantly correlated.
G) LIMITATION OF STUDY:-
The study conducted is limited to 2 organizations only.
The study conducted with the precincts of one department of
organization only.
Time and money was major limitation, which may have affected
the study.
Some of the respondents were reluctant to share information
with us.
H) SIGNIFICANCE OF STUDY:-
THIS STUDY HELPS IN UNDERSTANDING THE HUMAN
BEHAVIOUR.
THIS STUDY HELPS IN IDENTIFYING THE IMPACT OF
AUTONOMY ON JOB SATISFACTION.
THIS STUDY HELPS IN KNOWING THE IMPORTANCE OF
AUTONOMY AT WORKPLACE.

36. CHAPTER 4:- DATA INTERPRETATION AND ANALYSIS
A) DATA ANALYSIS:-
The value of multiple correlations is .89501
Regression
Variables Entered/Removed
Model Variables Variables
Entered Removed Method
d
1 ja_total, . Enter
a
i
os_total
m
e
n
s
i
o
n
0
a. All requested variables entered.
b. Dependent Variable: js_total
Model Summary
Model Adjusted R Std. Error of the
R R Square Square Estimate
a
D
1 .494 .244 .224 5.59352
i
m
e
n
s
i
o
n
0
a. Predictors: (Constant), ja_total, os_total

37. b
ANOVA
Model Sum of Squares Df Mean Square F Sig.
a
1 Regression 738.440 2 369.220 11.801 .000
Residual 2283.981 73 31.287
Total 3022.421 75
a. Predictors: (Constant), ja_total, os_total
b. Dependent Variable: js_total
Coefficients
Model Standardized
Unstandardized Coefficients Coefficients 95.0% Confidence Interval for B
B Std. Error Beta T Sig. Lower Bound Upper Bound
1 (Constant) 14.393 5.501 2.616 .011 3.429 25.357
os_total .343 .148 .240 2.314 .023 .048 .638
ja_total .385 .103 .389 3.751 .000 .181 .590
a. Dependent Variable: js_total

38. B) DATA INTERPRETATION:-
R-square- .244
ANOVA :- .0003
Organizational support :- .638
Job autonomy:- .590
C) HYPO-TESTING:-
The accuracy of the hypothesis is up to .244.
The hypothesis is rejected that is there is significant
impact of perceived organizational support & job
autonomy on job satisfaction.
There is significant impact of perceived organizational
support on job satisfaction.
There is significant impact of job autonomy on job
satisfaction.

39. CHAPTER 5:- FINDING SUGGESTIONS AND CONCLUSION:-
According to result of research the organization should provide
organizational support & job autonomy to the employees for their job
satisfaction.
As the result shows that there is significant impact of perceived
organizational support & job autonomy on job satisfaction of the
employees, therefore up to some extent the autonomy at work place &
organizational support should be provided to the employees.
The autonomy at work place & organizational support plays an
important role in motivating the employees of the organization.
Therefore manager should think for providing these 2 factors at the work
place.
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