DECLARATION

I, Sonali Arora student of HR Institute of Technology, Batch 2017-2019, hereby declare that
this summer training report entitled “THE IMPACT OF REWARDS ON THE
MOTIVATION OF THE EMPLOYEES OF SUPERTECH LIMITED” is the outcome of
my own research. I also declare that I have prepared this report and the same not submitted to
any other university or institute for the award of any degree.
I also declare that the institute as well as the guide is not liable for any kind of misrepresentation
in the report

PLACE: (Sonali Arora)

DATE: Roll No: 1719470072

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 ACKNOWLEDGMENTS

The list of people who have contributed, directly in the making of this dissertation report a
success is a long one. I take this opportunity to thank all of them for their guidance and
cooperation, which enabled me to complete my dissertation report successfully.

I would also like to express my deep gratitude towards XXXXXXX who have provided us this
period for dissertation.

Last but not the lease I am extremely thankful to my parents and my friends who have been
and are my well-wishers throughout.

Deep regards to all my known and unknown well-wishers.

Sonali Arora

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 TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 4-5

2. INTRODUCTION 6-39

3. RESEARCH METHODOLOGY 40-42

4. DATA ANALYSIS 43-54

5. FINDINGS 55-57

6. CONCLUSION 58-60

7. RECOMMENDATION & SUGGESTIONS 61-63

8. LIMITATIONS 64-65

9. BIBLIOGRAPHY 66-67

REFERENCES 68-69

ANNEXURE – QUESTIONNAIRE 70-73

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EXECUTIVE SUMMARY

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 EXECUTIVE SUMMARY

Human resources are the most important among all the resources an organization owns. To
retain efficient and experienced workforce in an organization is very crucial in overall
performance of an organization. Motivated employees can help make an organization
competitively more value added and profitable. The present study is an attempt to find out the
major factors that motivate employees and it tells. The statistical analysis showed that different
dimensions of work motivation and satisfaction are significantly correlated and reward and
recognition have great impact on motivation of the employees. Implications of the study for
managers and policy makers in the context of human resource practices have been discussed.
Limitations and guidelines for future research are also provided

Motivation is such a factor that exerts a driving force on our actions and work. Motivation is
an accumulation of different processes which influence and direct our behavior to achieve some
specific goal. It is such a dynamic in today’s environment that explicitly creates and
encompasses a positive impact on job. Within an organization, the best performance is feasible
with most committed employees that can only be achieved through employee motivation.
Motivation contains “those psychological processes that cause the arousal, direction and
persistence of voluntary actions that are goal directed.” Motivation depends on certain intrinsic,
as well as, extrinsic factors which in collaboration results in fully committed employees.
Tangible incentives are effective in increasing performance for task not done before, to
encourage “thinking smarter” and to support both quality and quantity to achieve goals.
Incentives, rewards and recognitions are the prime factors that impact on employee motivation.
As the employees engage in their working activities purposely for own’s sake then they will
feel intrinsic motivation in their behaviors as their activities will essentially be enjoyable and
satisfactory. The factors like incentives and rewards are the most preferred factors for
employee motivation programs. This paper is an attempt that focuses on how incentives,
rewards and recognitions impact employee motivation

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INTRODUCTION

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 INTRODUCTION
In a competitive business climate, more business owners are looking at improvements in
quality while reducing cost. Meanwhile a strong economy has resulted into a tight job market.
So business needs to get more from their employees and even the employees are looking for
more out of the business. Rewarding the employees is one of the method by which the
organizations can motivate their employees.

Rewards
Rewards are given to the employees for their excellent performance. Rewards are way by which
the employees get motivated.
Rewards are basically the incentives which are used to motivate the employees.
The rewards can be of various types such as pay and benefits, fringe.
Rewards can be monetary and non-monetary. Rewards are something given or received to
award for worthy behavior.
Rewards are given to the employees to satisfy them, so that they feel appreciated and valued in
the organization.

Rewards can help create the right employee - management team environment. An atmosphere
that is encouraging and favorable to achieving the contributions and efforts you need! Although
these terms are often used interchangeably, reward and recognition systems should be
considered separately. Employee reward systems refer to programs set up by a company to
reward performance and motivate employees on individual and/or group levels. They are

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normally considered separate from salary but may be monetary in nature or otherwise have a
cost to the company. While previously considered the domain of large companies, small
businesses have also begun employing them as a tool to lure top employees in a competitive
job market as well as to increase employee performance. As noted, although employee
recognition programs are often combined with reward programs they retain a different purpose
altogether. Recognition programs are generally not monetary in nature though they may have
a cost to the company. Although many elements of designing and maintaining reward and
recognition systems are the same, it is useful to keep this difference in mind, especially for
small business owners interested in motivating staffs while keeping costs low.

Reward system

Reward system is basically meant for giving away the awards to the employees for their
performance which is collection.

Different Categories of Employee Rewards Programs:

Organizations today have realized that cash is easily replicable by others and hence to remain
competitive in such a dynamic environment they need to introduce a differentiator which caters
to the needs of diverse cultures. Strong Rewards Program is becoming a top priority for
organizations with CEOs and board members getting closely involved and that the
effectiveness of all tangible and intangible rewards programs must be monitored periodically.
Before defining the categories/areas or behavior, one needs to be clear what will they recognize

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or in other words what the organization wants its employees to deliver. In this regard, I thought
of sharing few objectives to reward like:

● Team Work

● People or subordinate development

● Achievement Orientation

● Innovation & Creativity

● Enhancing company’s brand in external forums

● Social work

● Improvements at work place

● Motivation

● Timely Delivery

There can be multiple ways in which a rewards program can be structured to recognize an
employee; some of them are mentioned here:

● Time Based Recognition Awards: Rewards that are time dependent like weekly,
monthly, quarterly, bi-annually, annually etc

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 ● Rewards For Functional Excellence: Rewarding employees for delivering on time,
best team awards, rewarding for exceptional customer service, cost efficiencies

● Rewards For Individual Departments or Groups: Rewarding exceptional

performance in sales, finance, HR etc

● Informal Appreciations: a pat on the back, recognizing in front of the team, group
parties or get together, spot recognitions etc

● Creating individual centric or Popular Category of Rewards: These rewards can be

like brand ambassador, I want to be like, Best Mentor, birthdays and anniversary etc

Types of reward programs:

There are a number of different types of reward programs aimed at both individual and team
performance.

VARIABLE PAY Variable pay or pay-for-performance is a compensation program in which

a portion of a person's pay is considered "at risk." Variable pay can be tied to the performance
of the company, the results of a business unit, an individual's accomplishments, or any
combination of these. It can take many forms, including bonus programs, stock options, and
one-time awards for significant accomplishments. Some companies choose to pay their
employees less than competitors but attempt to motivate and reward employees using a variable
pay program instead. According to Shawn Tully in Fortune, "The test of a good pay-for-
performance plan is simple: It must motivate managers to produce earnings growth that far
exceeds the extra cost of [the program]. Though employees should be made to stretch, the goals
must be within reach."

BONUSES Bonus programs have been used in American business for some time. They usually
reward individual accomplishment and are frequently used in sales organizations to encourage
salespersons to generate additional business or higher profits. They can also be used, however,
to recognize group accomplishments. Indeed, increasing numbers of businesses have switched
from individual bonus programs to one which reward contributions to corporate performance
at group, departmental, or company-wide levels.

According to some experts, small businesses interested in long-term benefits should probably
consider another type of reward. Bonuses are generally short-term motivators. By rewarding

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an employee's performance for the previous year, say critics, they encourage a short-term
perspective rather than future-oriented accomplishments. In addition, these programs need to
be carefully structured to ensure they are rewarding accomplishments above and beyond an
individual or group's basic functions. Otherwise, they run the risk of being perceived as
entitlements or regular merit pay, rather than a reward for outstanding work. Proponents,
however, contend that bonuses are a perfectly legitimate means of rewarding outstanding
performance, and they argue that such compensation can actually be a powerful tool to
encourage future top-level efforts.

PROFIT SHARING Profit-sharing refers to the strategy of creating a pool of monies to be

disbursed to employees by taking a stated percentage of a company's profits. The amount given
to an employee is usually equal to a percentage of the employee's salary and is disbursed after
a business closes its books for the year. The benefits can be provided either in actual cash or
via contributions to employee's 401(k) plans. A benefit for a company offering this type of
reward is that it can keep fixed costs low.

The idea behind profit-sharing is to reward employees for their contributions to a company's
achieved profit goal. It encourages employees to stay put because it is usually structured to
reward employees who stay with the company; most profit-sharing programs require an
employee to be vested in the program over a number of years before receiving any monies.
Unfortunately, since it is awarded to all employees, it tends to dilute individual contributions.
In addition, while profit is important, it is only one of many goals a company may have and is,
according to Jack Stack inInc.,"an accumulation of everything that happens in the business over
a given period of time" and is therefore difficult for most employees to connect their actions
to. Stack argued that "[employees] have to be able to see the connection between their actions,
decisions, and participation, and changes in [a company's goals]." Like bonuses, profit sharing
can eventually be viewed as an entitlement program if the connection between an employee's
actions and his or her reward becomes murky.

STOCK OPTIONS Previously the territory of upper management and large companies, stock
options have become an increasingly popular method in recent years of rewarding middle
management and other employees in both mature companies and start-ups. Employee stock-
option programs give employees the right to buy a specified number of a company's shares at
a fixed price for a specified period of time (usually around ten years). They are generally
authorized by a company's board of directors and approved by its shareholders. The number of

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options a company can award to employees is usually equal to a certain percentage of the
company's shares outstanding.

Like profit-sharing plans, stock options usually reward employees for sticking around, serving
as a long-term motivator. Once an employee has been with a company for a certain period of
time (usually around four years), he or she is fully vested in the program. If the employee leaves
the company prior to being fully vested, those options are canceled. After an employee
becomes fully vested in the program, he or she can purchase from the company an allotted
number of shares at the strike price (or the fixed price originally agreed to). This purchase is
known as "exercising" stock options. After purchasing the stock, the employee can either retain
it or sell it on the open market with the difference in strike price and market price being the
employee's gain in the value of the shares.

Offering additional stock in this manner presents risks for both the company and the employee.
If the option's strike price is higher than the market price of the stock, the employee's option is
worthless. When an employee exercises an option, the company is required to issue a new share
of stock that can be publicly traded. The company's market capitalization grows by the market
price of the share, rather than the strike price that the employee purchases the stock for. The
possibility of reduction of company earnings (impacting both the company and shareholders)
arises when the company has a greater number of shares outstanding. To keep ahead of this
possibility, earnings must increase at a rate equal to the rate at which outstanding shares
increase. Otherwise, the company must repurchase shares on the open market to reduce the
number of outstanding shares.

One benefit to offering stock options is a company's ability to take a tax deduction for
compensation expense when it issues shares to employees who are exercising their options.
Another benefit to offering options is that while they could be considered a portion of
compensation, current accounting methods do not require businesses to show options as an
expense on their books. This tends to inflate the value of a company. Companies should think
carefully about this as a benefit, however. If accounting rules were to become more
conservative, corporate earnings could be impacted as a result

Group-based reward systems:

As more small businesses use team structures to reach their goals, many entrepreneurs look for
ways to reward cooperation between departments and individuals. Bonuses, profit sharing, and

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stock options can all be used to reward team and group accomplishments. An entrepreneur can
choose to reward individual or group contributions or a combination of the two. Group-based
reward systems are based on a measurement of team performance, with individual rewards
received on the basis of this performance. While these systems encourage individual efforts
toward common business goals, they also tend to reward underperforming employees along
with average and above-average employees. A reward program which recognizes individual
achievements in addition to team performance can provide extra incentive for employees.

The elements of a total rewards program:

Armstrong and Murlis suggest four main areas that should be addressed in a reward
management system. These are:

1) Pay structures, which by combining the results of market surveys and job evaluation, define
the levels of pay in the organization;

2) Employee benefits that satisfy the needs of employees for personal and provide remuneration
in forms other than pay;

3) Non-financial rewards which satisfy employees’ needs for variety, challenge, responsibility,
influence in decision-making, recognition and career opportunities; and

4) Performance management that provides the basis for continuing as well as formal reviews
of performance against targets and standards. A performance management system usually leads
to the development of training and development programs that meet the need for growth and
achievement. It also leads to the design of performance-related pay systems that has an impact
on bonus and incentive payments.

The author supports the fact that a reward system should address a variety of processes and
likewise suggested at least four areas; namely compensation, benefits, recognition and
appreciation. Of the above factors, a reward system usually puts compensation at the top of the
list, followed by benefits.

Compensation denotes both the intrinsic and extrinsic rewards employees receive for
performing their jobs. Intrinsic compensation refers to the employee’s psychological mindsets
that result from performing their jobs. It refers to the enjoyment and the sense of achievement
that employees experience as a result of their work. Extrinsic compensation includes both

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monetary and non-monetary rewards. Non-monetary reward includes the benefits that
employees receive apart from pay. Formal reward program denote financial rewards such as
salary, fringe benefits, bonuses, promotions and share options, which play a significant role. In
addition to this, people expect too that the company should offer good benefits, inter alia access
to medical aid and pension funds. However, it appears that employees accept these as intrinsic
factors to the job and that the offerings of such rewards are not the elements that motivate
employees. The most common problem in organization’s today is that they miss the important
components of recognition and or appreciation, which are the low-cost, high-return ingredients
to a well-balanced reward system. Incentive program that involve cash payments are expensive
to maintain and have several drawbacks. Incentive alternatives that have proven to be more
successful are tailored to individuals and their accomplishments and bestowed as frequently as
is necessary. Despite evidence to the contrary, human resources professionals still dismiss
awards, recognition and incentive program as ‘feel good’ activities. Evidence suggests that
there exists a strong link between non-cash awards and incentives and improved job
performance.

However, it appears that employees accept these as intrinsic factors to the job and that the
offerings of such rewards are not the elements that motivate employees. The most common
problem in organization’s today is that they miss the important components of recognition and
or appreciation, which are the low-cost, high-return ingredients to a well-balanced reward
system. Incentive programs that involve cash payments are expensive to maintain and have
several drawbacks. Incentive alternatives that have proven to be more successful are tailored
to individuals and their accomplishments and bestowed as frequently as is necessary. Despite
evidence to the contrary, human resources professionals still dismiss awards, recognition and
incentive programs as ‘feel good’ activities. Evidence suggests that there exists a strong link
between non-cash awards and incentives and improved job performance. A truly motivational
reward system must be designed with a few parameters in mind: it must motivate employees
to perform through valued and truly sufficient rewards, provide them with a clear line of sight,
give them the power to influence their performance, and deliver on its promise. A reward
system needs to have a positive impact on behavior. To accomplish this, rewards need to be:

● Contingent on achieving desired performance levels rather than on merely doing certain
tasks;

● Meaningful and valuable to the individual;

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● Based on objective and attainable goals;

● Open to all, and not based on competitive struggles within the workplace; and

● Balanced between conditions in the workplace (extrinsic) and fulfillment of individual

needs and wants (intrinsic).

Harris, H. (1996) argued that the magnitude of rewards must satisfy the basic human needs of
survival and security. Organizations must choose relevant rewards over which they have the
potential capability to provide and manipulate; the distribution of rewards must be perceived
as being done in a fair and equitable manner; organizational members must perceive a link or
contingency between their job performance and the rewards they receive; and the rewards used
by an organization must be valued by the individual members of that organization. In the
absence of these factors the rewards program will not motivate in the long term and will
discourage risk-taking behavior.

In their drive to stay competitive, organizations increasingly reward and recognize employees
as part of their total quality program. Such programs provide a range of monetary and non-
monetary rewards and are planned and implemented either in-house or using the help of
consultants. People feel appreciated by this and employees identify with the organization and
are more willing to give their best to the job.

Intrinsic Versus Extrinsic Rewards:

According to Jeffries (1997), the discussion of rewards focuses attention on the elements of
intrinsic versus extrinsic rewards and the impact that they could potentially have on reward
program. Individuals engage in work-related activities to attain some variety and magnitude of
rewards. Certain rewards, including pay, promotions, and company status are extrinsic since
they are provided by the organization. Others such as feelings of achievement, accomplishment
and self-satisfaction are intrinsic. Intrinsic rewards stem from Maslow’s higher level needs. It
proposes that people can give themselves rewards in the form of self-esteem as well as in
feelings of achievement and growth. Individuals can literally reward themselves for certain
kinds of behavior because they feel they have accomplished something of worth, achieved a

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personal goal, learnt a new skill, or experienced excitement or intellectual stimulation. It would
appear that the greatest amount of motivation is present when people perform tasks that are
both intrinsically and extrinsically rewarding. The types of rewards available to employees and
the manner of their distribution can have a striking impact on both employee satisfaction and
organizational effectiveness. Although a variety of purposes may potentially be served, rewards
are most typically used to motivate employees or induce some desired action or behavior
(Kreitner and Kinicki, 1992).

Financial reward program – compensation and benefits:

In the view of Fitzgerald and Thirsk (2004), one of the major criteria for the quality of work
life is adequate and fair compensation. Compensation broadly refers to all the ways in which
an organization may reward employees for the services that they render. These rewards could
include wage and salary payments, fringe benefits, such as vacations, pensions, and medical
aid, status symbols, promotion and security. Compensation is the primary inducement offered
to employees in exchange for the contributions of labour services in the employment contract.
Compensation management methods and techniques can significantly affect the relationship
between an organization and its employees. Such methods and / or techniques should not create
fixed cost patterns and operational constraints but should be managed as a variable linked to
the strategy and success of the organization. Compensation should be managed in a way that
reflects and is consistent with the culture of the organization. The rewards offered to
employees, and the occasions for these rewards, are amongst the most visible and potent
manifestations of the organization’s culture.

The compensation system should be designed to drive, reinforce and sometimes alter the
culture in such a way that the organization’s goals will be supported. There are many different
types of pay systems; - piecework with a wide variety of formulae; measured day-work and
high-rate systems; plant-wide incentives and framework processes which affect pay. In its
various ways all these systems all try to relate performance to pay, whether it is individually or
through small or large groups.

“Flexible compensation” or “cafeteria compensation” is another development in the

compensation management arena. Flexible remuneration is a relatively simple concept, which
caters for the differing needs of employees. The total cost of employment is established for a
particular position and from this is deducted the cost to the employer of providing certain

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compulsory benefits such as pension, group life and disability assurance and medical aid. The
employees then select, from the range of benefits that the employer is prepared to provide,
those that are relevant to their specific needs and requirements. The major advantages of this
system are that there are no additional costs to the employer and the individual has the facility
to structure a remuneration package that meets their individual needs. The idea behind flexible
benefits is simple; it reflects the belief that each individual should have the ability to choose
the benefits that are most meaningful to them.

Money as a motivator:

Culture determines and creates the context for money to motivate individuals in different
countries. According to him, employees strive for high levels of performance if they believe
that better performance will result in greater pay. He has drawn up the following list based on
surveys conducted to determine what money means to people.

● A reward for work well done;

● A means to support oneself and one’s family;

● A status symbol - the more you make, the more status you have in the organization
and in society;

● Payment for doing a job – never as much as deserved;

● A trap – the more you make, the more you spend, so the more you need;

● A symbol of professional achievement;

● Payment for doing a job regardless of how well the job was done;

● A means of classifying people (as low-income, middle-income, or high-income);

and

● A company’s obligation to employees.

From the above list it is obvious to conclude that money represents different things to different
people. The question however is, does money motivate employees? The authors postulate that
whether individuals perceive money as a motivator or not depends on what they perceive as

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motivation. Most motivation theories mentioned previously, propose that motivation is an
internally driven desire to achieve a primary goal.

Employees exert high effort to accomplish goals that will make them feel good. Money does
not motivate, but rather moves a person to achieve a goal in order to obtain the reward.
Herzberg’s hygiene-motivator theory, states that extrinsic rewards, such as pay, benefits,
working conditions, or company policies do not motivate, they merely ensure that performance
is at an acceptable level. Motivated people perform at levels that are higher than the acceptable
standard. Intrinsic rewards, such as responsibility, growth, feedback or recognition and
opportunities motivate employees to these high levels of performance, more so than simply
earning a good salary. If money as a reward can cause dysfunctional behavior, it influences
behavior, and therefore also performance. According to him, the effect of money as a motivator
largely depends on the pay system applied in the organization. He further states that when pay
systems are not designed well, they either do not motivate, or motivate the wrong behavior.
Employees under the age of thirty tend to rank “good salary” as first in an order of what is
important on a job. This brings into focus that money, depending on an employee’s age, may
be considered more important than other factors. These theories point to the fact that human
beings are motivated by internal feelings of accomplishment, capability, and competence, not
just by extrinsic rewards such as food, water, acceptance, and financial well-being.

MOTIVATION

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Following are the definitions of motivation:

According to Richard Romando

“Motivation can be defined in a number of ways. It is defined as a driving force that initiates
and directs behavior. In other words motivation is a kind of internal energy which drives a
person to do something in order to achieve something. It is a temporal or dynamic state within
a person which is not concerned with his/her personality. There are different types of
motivation such as achievement motivation, affiliation motivation, competence motivation,
power motivation, and attitude motivation.”

According to Wendy pan

The definition of motivation is to give reason, incentive, enthusiasm, or interests that cause a
specific action or certain behavior. Motivation is present in every life function. Simple acts
such as eating are motivated by hunger. Education is motivated by desire for knowledge.
Motivators can be anything from reward to coercion. There are mainly two types of motivation:
intrinsic and extrinsic.

According to Gregory J Yarmesch

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“To define motivation you have to think about perspective and big picture world view. You
have to think about what drives people to do their best. What’s most important to remember is
that if you want to be truly motivated, you have to find the work that you love to do, and you
have to put all your energy into it. It doesn’t matter what kind of a work it is or how much it
pays. If you put your heart and soul into an activity, then you are being motivated and you are
being successful.”

The Role of Motivation

Why do we need motivated employees? The answer is survival. Motivated employees are
needed in our rapidly changing workplaces. Motivated employees help organizations survive.
Motivated employees are more productive. To be effective, managers need to understand what
motivates employees within the context of the roles they perform. Of all the functions a
manager performs, motivating employees is arguably the most complex. This is due, in part, to
the fact that what motivates employee’s changes constantly. For example, research suggests
that as employees' income increases, money becomes less of a motivator. Also, as employees
get older, interesting work becomes more of a motivator.

An effective rewards and recognition program is a key component of a performance culture.

On a very basic level, employees need tangible feedback in order to know when they are doing
a good job. However, motivating top performance requires an even deeper commitment. State
employees point out that in our current system there is neither meaningful reward for
remarkable performance, nor are there real consequences for poor performance. Many state
employees agree that, currently, the most frequent reward for quality work is being assigned
more work (Jeffries, 1997). The system sends the wrong message. Where there are no means
of recognizing top performance, little incentive exists to achieve it. Some basic benefits of
effective rewards and recognition programs include the following:

● Improved morale

● Enhanced productivity

● Increased competitiveness

● Decreased stress

● Decreased absenteeism

● Decreased turnover

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 ● Lower related operating costs

One strategy to improve rewards and recognition in an agency, and thus improve performance,
is to create a "culture of recognition" which respects differences in individuals, their
motivations and what drives them. Individuals are recognized in ways that are meaningful to
them. When organizations have a "culture of recognition," there is measurable improvement in
job performance and employee engagement. An effective rewards and recognition program can
save money by helping organizations hold on to valued employees and realize sustained
improvements in performance. While cash compensation is often the centerpiece of a rewards
package, rewards for North Carolina state employees go far beyond their salaries. North
Carolina offers a competitive total compensation package to all of its regular full-time
employees and has a number of rewards and recognition programs in place to acknowledge
special achievements and outstanding service. But these are often not fully utilized or
effectively communicated to employees. In addition, traditional forms of rewards and
recognition are often not enough to motivate and retain quality talent (Hinkle et al, 1982).

In order to be truly effective, rewards and recognition programs should be customized to

support the achievement of the organization's strategic goals and offer significant rewards to
the employees who contribute to its success. Employees who consistently produce remarkable
results should be recognized in a meaningful way for their contributions.

Why there is a need to motivate the employees?

Following are the reasons which explain the need to motivate employees:

1. Manpower to action

Majority of the organizations want human resources, financial strength and physical ability to
achieve the targets of the organization. The best way to make full utilization of the
available human resource is by motivating them. The employees should be
encouraged o work hard which will help the organization in attain its targeted goals

2. Increasing the efficiency level of the human resource

The efficiency of the employees working in the organization can be improved assigning the
task in which they expertise. This will help in increasing the productivity and
efficiency and cutting down the cost of operations.

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 3. Attainment of the goal

When the resources are properly utilized and the employees get the favorable working
conditions, it becomes easy for an organization in achieving its target.

4. Builds friendly relationship

When the employees are motivated it helps in building up friendly relationship among the
employees and the organization.

How to motivate the employees?

The Following helps in motivating the employees

A. Recognition given to the employees

When the employees perform any task given to them with 100% commitment, their
work should be appreciated.

B. Applauding

Applauding the employees in meetings, before the shift timing in the social
gatherings, in the office helps in motivating the employees.

C. Training the manpower

By giving the training to the employees who are already working in the organization,
increases the level of motivation in the employees. The employees need a little
training which can help in attaining the goals.

D. Growth opportunity

When the organization provides growth and development opportunity to its

employees, their level of motivation increases

E. Good Work Environment-

When the employees are giving the healthy work environment and healty working conditions
they feel motivated.

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F. Immediately praising

The employees feel very much motivated when they are motivated on the spot or while
performing their work

G. Team Spirit-

The best way to enhance the level of motivation of the employees is to take a picture hung it
on a wall of the organization. Employees feel motivated as they see themselves visiual
as a part of the team.

Concept of motivation
(LM PRASAD)
Today, virtually all people-lay people and scholars have their own concepts of motivation, and
they include various terms like motives, needs,wants, derives, desires, wishes, incentives, etc,
in defining motivation. Technically, the term motivation can be traced to the Latin word movere
which means “to move”. In order to understand the concept of motivation, we have to examine
three terms.
i. Motive

ii. Motivation and

iii. Their relationship

Motive
According to McFarland
“Motivation refers to the way in which urges, drives, desires, aspirations, strivings, or, needs
direct, control or explain the behavior of human beings”.

Types of need
1. Primary needs- primary needs are those needs which are known as physiological,
basic, or unlearned needs. These needs are common to all human beings, though their

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 intensity may differ. Some of the needs are food, sex, sleep, air to breathe, satisfactory
temperature.

2. Secondary needs – these types of needs are not natural needs but are learned by the
individuals through their experience and interaction. These needs are also called
learned or derived needs.

3. General needs – the separate classification for general needs is not always given,
such a category seems necessary because there are a number of needs which lie in the
grey area between the primary and secondary classification.

THEORIES OF MOTIVATION
1) MASLOW’S NEED HIERARCHY

2) HERZBERG’S MOTIVATION-HYGINE THEORY

3) McClelland’s NEED THEORY

4) ALDERFER’S ERG THEORY

5) VROOM’S EXPECTANCY THEORY

6) McGregor’s theory X and Y

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MASLOW’S NEED HIERARCHY-
a. Physiological needs – These needs are the top of the hierarchy because they tend to
have the highest strength until they are reasonably satisfied. Until these needs are
satisfied to the degree needed for the efficient operation of the body, the majority of a
person’s activities will probably be at this level, and other levels will provide him with
little motivation.

b. Safety needs – once the physiological needs are satisfied other needs become
important. Safety needs includes safety from danger, self-prevention. In the industrial
society, safety needs may take considerable importance in the context of the dependent
relationship of employees to employers.

c. Social needs – after the first two needs are satisfied, social needs become important in
the need hierarchy. Since man is a social being, he has a need to belong and to be
accepted by various groups. When social needs become dominant, a person will strive
for meaningful relations with others. In the organization, workers form informal group.

25
 d. Esteem needs – the esteem needs are concerned with self-respect, self-confidence, a
feeling of personal worth, feeling of unique, and recognition. Satisfaction of these needs
produces feelings of self-confidence, prestige, power and control.

e. Self-actualization needs – Self-actualization is the need to maximize one’s potential.

Whatever it may be. This is related with the development of intrinsic capabilities which
lead people to seek situations their potential.

Herzberg’s motivation-hygiene theory

Hygiene factors
According to Herzberg, there are ten maintenance or hygiene factors. These are
i. Policy and administration

ii. Technical supervision

iii. Interpersonal relationships with subordinates

iv. Interpersonal relationships with superiors

v. Salaries

vi. Job securities

vii. Personal lives

viii. Working conditions

ix. statuses

x. Interpersonal relationships with peers

The above mentioned factors are not the intrinsic parts of a job, but they are related to
conditions under which a job is performed. They produce no growth in a worker’s output; they
only prevent losses in worker’s performance due to work restrictions.

Motivational factors
These factors are capable of having a positive effect on job satisfaction often resulting in an
increase in the total output.
The following six factors that motivate the employees are:

26
 i. Achievement

ii. Recognition

iii. Advancement

iv. Work itself

v. Possibility of growth

vi. Responsibility

ALDERFER’S ERG THEORY

This theory is an extension of Maslow’s need hierarchy theory and Herzberg two factor theory
of motivation. Alderfer believes that there is a value in categorizing needs and that there is a
basic distinction between lower-order needs and high order needs.
The first three letters of these needs are used to call it ERG theory.
Existence needs – these needs include all needs related to physiological and safety aspects of
an individual. Thus, existence needs group physiological and safety needs of Maslow into one
category as these have similar impact on the behavior of the individual.
Relatedness needs – these needs include all those needs that involve relationship with other
people whom the individual cares. Relatedness needs cover Maslow’s social needs and that
part of esteem needs which is derived from the relationship with other people.
Growth needs – these needs involve the individual making creative efforts to achieve full
potential in the existing environment. These include Maslow’s self actualization in need as well
as that part of esteem need which is internal to the individual like feeling of being unique,
feeling of personal growth, etc.

VROOM’S EXPECTANCY THEORY

This theory says that the behavior upshots the employee’s performance is based on certain
factors like personality, skills, knowledgeetc.
This theory is based on the following belief
Valence
This term defines the emotional direction the individuals clutch with respect to the outcomes
i.e. rewards. The want of the employees are extrinsic which are money, promotion, time-off,
benefits and intrinsic which are satisfaction. Valence means the strength of an individual’s
preference to a particular outcome.

27
Instrumentality
Another major input into the valence is the instrumentality of the first level outcome in
obtaining a derived second level outcome. It is the insight of the employee that whether he will
get what he actually deserves even when it is promised by the managers.
Expectancy
Another factor determining the motivation is expectancy, that is, the probability that a
particular action will lead to the outcome. Expectancy is different from instrumentality input
into valence. Expectancy differs from instrumentality in that it related efforts to first level
outcomes whereas instrumentality relates first and second level outcomes to each other. Thus,
expectancy is the probability action will lead to a particular first level outcome. The strength
of motivation to perform a certain act will depend on the sum of the products of the values for
the outcomes times the expectancies.

McGREGOR’S THEORY X AND THEORY Y

According to Theory X, management assumes that employees are lethargic and they will try to
avoid the work if possible and also they will not be interested in doing work. As the result,
management starts believing that all the employees need to b e supervised carefully and strictly.
According to this theory,According to this theory, the employees will only show a little
ambition and will try to avoid the task given to them if possible.
Theory Y

● Effort in work is as natural as work and play.

● People will apply self-control and self-direction in the pursuit of organizational objectives,
without external control or the threat of punishment.

● Commitment to objectives is a function of rewards associated with their achievement.

● People usually accept and often seek responsibility.

● The capacity to use a high degree of imagination, ingenuity and creativity in solving
organizational problems is widely, not narrowly, distributed in the population.

● In industry the intellectual potential of the average person is only partly utilised.

4.1 Company Overview: Supertech Ltd.

28
Supertech Group, is founded in 1988, has set new trends and
benchmarks of architectural excellence in the contemporary
global scenario. An ISO 9001:2000 certified company;
Supertech has successfully completed 20 years in real estate
business and today it has revolutionized the real estate arena.
Under the dynamic and pragmatic leadership of Mr.
R.K.Arora, Chairman & CMD and experienced Board
Members, Supertech Group is scaling new heights and
touched the horizon of excellence. Their vision and
entrepreneurial acumen and have taken the group to the
greater heights.

All this dedication and commitment has enabled us to receive the coveted “UdyogRatan
Award”, 2001 for unparalleled contribution to this area. The greatest contributory factor to this
landmark achievement is the vision of Mr. R.K. Arora whose entrepreneurial skills and
business acumen have steered the group diligently on a growth path. Mr. Arora has also been
bestowed with “Excellence Award” for the year 2001 for his outstanding contributions to real
estate industry. Supertech Group has already converted more than 33 million sq. ft. area of
residential and commercial entity into architectural landmarks and more than 36 projects that
accommodates nearly 6000 families. Its various projects viz. Residential & Commercial
Townships, Shopping Malls, Hotels and IT Parks have either completed or about to complete.

4.2 Company History:

Supertech Group was founded in 1988. We developed some of the modern and finest residential
and commercial complexes in Delhi, National Capital Region (NCR) and new urban settlement
like Meerut, Moradabad, Haridwar and Rudrapur. Since our inception we have been
responsible for the development of many of Delhi’s other well known urban housing colonies.
Our foray into real estate and construction industry led to creation of various landmark real
estate projects – Crossings Republik, Emerald Court, Avant-Garde, Shopprix Mall are few
examples of that. Its residential township is having all the modern and essential facilities which
includes commercial and retail properties in a modern city infrastructure with schools,
hospitals, hotels and shopping malls.

29
This Group has crafted architectural masterpieces like Emerald Court at Sector 93, NOIDA
and High End Residential Project with 7 star living facilities at Sector 34 NOIDA and a 7,
00000 square feet commercial hub, The Pentagon Mall in Haridwar. Supertech Group had tied
up with an MNC Group to set up a 5 star Hotel at Rudrapur, Uttarakhand and a major health
care company to open medical facility outlets in different format at all the projects developed
by the Group.

4.3 Philosophy:

Supertech’s business philosophy derives its core strength from a firm belief that it lays stress
on induction of state-of-the-art engineering techniques and use of top quality materials in
construction projects. This results in the cost effective and holistic solutions specific to
contemporary standards for residential complexes and business centres. Supertech with its
unparalleled business approach & vision is consistently working to create value for its customer
and business partners. Using human resource and by harnessing the technological prowess,
today Supertech, is all set to expand its real estate operations and create edifices that will be
the benchmark of architectural finesse.

The Supertech Group is uniquely committed to serving our clients. We place the financial
safety, comfort and success of our investors second to none. They enjoy direct access to our
Mr. R.K. Arora (CMD) and our management team. Our group founded on establishing trust
and long-term relationship. As a result, most of our investors have been with us for two
decades, and more than 80 percent have invested in multiple projects.

We have in our credit over 7.5 million sq.ft.of construction both in residential and commercial
sector and these have been acknowledged as value products in terms of quality, aesthetics,
overall planning, finishing and timely possession. Group is endowed with impeccable
foresight, enviable expertise and innate acumen providing cost effective and holistic solutions
to the real estate and construction world.

4.4 CSR:
Supertech Group has defined its social responsibility to contribute in the development and
growth of the society. This also created a social responsibility to our Group to return it back a
certain share to the society. Supertech is aware about its responsibilities for the society and has
taken various measures to transform social and economic issues across various segments

30
Initiatives:

● Supertech provides public amenities like running of community centres, adoption and
maintenance of parks and walkways where families spend time together further
enriching their lives.
● We fulfill the need of the project area and CSR programmes are developed keeping in
mind the identified need.
● Provision of ample greenery and open space at our residential projects.
● Social responsibility is about giving something back, and we do this with every project
we take on.
● We give our clients a place to live, work and flourish.
● We build developments that enhance their surroundings, that enrich people’s lives.
● Our projects stimulate investment and create jobs.
● We take care of our human resource and provide all basic amenities at project sites.

4.5 Quality Policy:

Supertech Group has been awarded an internationally recognized ISO 9001:2001 certification
and “UdyogRatan” Award for its quality standard. Supertech Group is constantly working
towards creating new benchmarks of architectural excellence in the contemporary global
environment. In this new environment, the demand for multi-faceted real estate development
has become crucial for keeping pace with the progress. Capitalizing on these demand dynamics,
we at Supertech Group have always taken new initiatives and emerged as one of the prominent
entities. Supertech introducing quality into every aspect of the Company ranging from Process,
Human Resource, Technology and Services are to create an all-encompassing quality culture.
Developing an collective willingness towards the discipline of doing things right by using
perfect planning & state of the art technology and delivering highest quality Standard to their
clients. Our strong Quality Consciousness and quest for continuous up gradation for ultra
modern life-style and luxurious living standard. Our clients’ interests are paramount priority
for us. We want all our clients' investment to be safe & profitable. They always try to research,
innovate and improve on service quality. We also provide the most accurate information and
added value in order to fulfill our clients’ demands.

31
4.6 Future Plans:
They are constantly working for the development and shaping of land as well as contributing
in the progress and growth of nation. In our commercial segment, we have developed Malls,
Multiplexes and are now expanding fast into Starred Hotels Category. Next in the line is
development of IT Parks in metros. Supertech Group is all set to foray in the area of
development of IT & Software Parks, where conglomeration of IT & ITES companies will
establishes their organizations and business ventures. Proposed IT Park, Greater Noida will
provide world class infrastructure with ultra modern facilities and business for its client
companies.

4.7 Privacy policy:

Supertech Group is committed to maintain the privacy and accuracy of information that has
been provided on this site. All information which are provided with the complete knowledge
of owner and appropriate measures have been taken to ensure that user's statistics are not
misused, accidentally destroyed or lost within the environment of Supertech Group. The
information we get is purely to determine our site traffic. Although, care has been taken in the
production of information on this website, Supertech Group will not be responsible and accept
any liability for loss incurred in anyway whatsoever, by any person who may seek to rely on
the information contained herein.

By retrieving any content of http://www.supertechlimited.com, website of Supertech Group,

users are supposed to be bound by the terms of use set out below. The content and design of
the website are the exclusive property of Supertech Group. No person can use or reproduce or
allow any other to use or reproduce any image or logo (such as the name) for any reason without
prior written consent from Supertech. Users cannot retrieve and display the content available
on this website for personal, commercial and non-commercial purpose, or cannot reproduce,
modify or in any way to make commercial use of the content. Any use of the content of this
website without prior written permission is explicitly prohibited. Supertech Group, with its sole
discretion, can suspend, change, modify, add or remove portions of the information available
in this website at any time and reserves the right to restrict the use and accessibility of the
website, in its sole discretion, can change these 'Terms of use' without any prior notice.

Supertech Group’s privacy policies are subject to change at anytime or in future. If there are
material changes to any of these privacy policies, we will provide necessary information for

32
those changes and update the effective date of this policy. The policies and procedures
described herein replace all previous policies and procedures regarding this subject

4.8Investors

Financial

The global financial crisis and the resultant slowdown in the global economy during the year
2008-2009 have halted industrial and business expansion. The subsequent drying up of
liquidity has led to an overall slowdown in the real estate sector in India.

Demand in real estate has remained grim, primarily due to low consumer confidence. This can
be attributed to a weak economic scenario. High levels of inflation led to the government
increasing interest rates. This led to the drying up of liquidity available for businesses to
expand, leading to a slowdown in the commercial real estate demand. The increase in the cost
of finance also led to a drop in residential real estate demand.

Due to explosive economic progress of India that captured the world’s attention, its property
market has indeed emerged as one of the most appealing investment destinations for both
domestic and foreign investors The Indian real estate industry seems to have bounced back
after being temporarily affected by the global meltdown. The rapidly growing Indian real estate
market is accelerating towards maturity with increasing participation from prominent local and
international players, rising investor interest and a market-friendly approach. The Reserve
Bank of India estimates place the real GDP growth in India for the year 2010-11 at a robust
8.5% making India amongst the fastest growing economies globally.

As per Cushman & Wakefield research, the pan India cumulative residential demand is
estimated to be over 7.5 million units by 2013 across all category including the economically
weaker sections, affordable, mid and luxury segments. The affordable and mid segment
category is likely to constitute 85% of the total demand. With the revival in sentiment and the
latent demand in the housing segment Supertech Limited was well positioned to capitalize on
the resultant opportunities and launched series of affordable housing projects in National
Capital Region of Delhi (NCR) as after mid 2009, real estate sector across India and particularly
NCR Region witnessed strong growth in all segments.

33
Details of such project are given below:

Name of projects Land Area (in Square meters) Number of Flats

Eco City, Sector – 137, Noida, UP 50,949 1,600
Eco Village (I), Noida Extension, UP 1,74,000 7,363
Eco Village (II), Noida Extension, UP 3,20,000 10,453
Oxford Square, Greater Noida, UP 85,202 2,800
Up Country, Yamuna Express Way, UP 4,00,000 3,500
Cape Town, Sector- 74, Noida, UP 2,00,000 6,939

The greatest assets of the company is adopting latest and innovative construction techniques
that enabled the company to take up complex projects like Meerut Sports City, Meerut and
ECO Village where company is going to apply new technology namely “PRE- CAST”. The
Company enjoys a strong showcase of project reference and it has executed various
prestigious projects in India and planning to launch its projects in Navi Mumbai and
Bangalore.

According toBarling et al (1987), the organizations seek to determine the sense of balance
between the employee commitment and organizational performance. Rewards are considered
as the most reliant factor that keeps the employee’s self esteem high and ardent. It is the job of
the managers to motivate the employees productively and also to influence their behavior of
the employees to attain the superior organization competence.
The way an employee performs at his job is the outcome of his capability and motivation
(Giles, 2004). Skills are formulated all the way through education, guidance, knowledge,
practice, and ease in work. The two types of ability are- mental ability and physical ability.
When an employee performs effectively, it leads to organizational rewards and as a result
motivational factor of employees lies in their performance. (Hinkle et al, 1982).
(GOFTON, 1998) Most of the organizations want that their employees should work as per the
rules and regulations and also according to the job requirements.The employees who are
extremely motivated serves as the competitive advantage for any organization since the
performance of the employees leads the organization to attain its goals. Human resource is the
most important amongst financial economical and human resource as it provides competitive
advantage in comparison with others. Employee commitment is dependent upon rewards.

34
Majority of the organization have gained enormous progress by completely complying with
their strategy of business with the help of a well balanced reward plan for the employees.

The level of motivation of the employees and efficiency can be improved by giving them
rewards which will lead to the increased organizational performance. Organizational success
is completely dependent upon how the organization manages to keep its employees motivated.
The employees can perform well when they are properly motivated. They cannot practice their
skills, ability in a de-motivated environment. While effective rewards are implemented in an
organization, the working conditions become favorable, when motivated employees perform.

HINKLE AT EL (1982) according to him, employees receive rewards as the token of

appreciation and value , which leads to increase in motivation level of the employees and which
automatically results in increased and improved productivity of an organization. The
employees attain the position of satisfaction and joy only after putting their capabilities at work.
Like this motivated employees are retained in the organization, cutting down cost.

GREENFIELD (1993) According to him, the rewards help in keeping the high spirits amongst
the employees, also help in boosting up the confidence. Rewards create the linkage between
employee performance, efficiency and motivation of the employees. Rewards comprise of pay,
benefits, promotions, incentives, financial rewards and incentives which satisfies employees.

BARON (1983) says that when we give recognition to the employees, the efficiency and the
working capacity of the employees increases. Recognition is required the most according to
the survey. Motivation level goes high when the need of the employees is met.

Efficient managers give rewards to the employees by providing them with tangible rewards.
Employees with fair chances of promotion as per their ability and potential helps in making
employees more faithful to their work. Motivation has the following key factors incentives,
rewards and recognition (GILES, 2004).

Employees are close to their organization and their job can become huge pleasure in their life
after having proper rewards at their job. Employee performance and the productivity can be
improved by giving them rewards no matter whether it is employee’s first performance or
frequent. Intrinsic motivation is helpful in producing creativity at work whereas the extrinsic
motivation in not favorable in producing creativity at work HINKLE ET AL (1982). A new
model of knowledge-sharing motivation which provides suggestion for designing five

35
important human resource management (HRM) practices including staffing, job design,
performance and compensation systems, managerial styles and training. There is a statistically
significant relationship between reward and recognition respectively, also motivation and
satisfaction. The study revealed that if rewards or recognition offered to employees were to be
altered, then there would be a corresponding change in work motivation and satisfaction.

ARNOLD ET AL (1986) according to him, the employees not only want the salary and
remuneration; they also want to be appreciation and value in the organization for the work they
perform. Rewards play a significant part role in retaining the employees in the organization.

Introduction to Motivation

In the past, the employees were well thought out as just an input which helps in producing the
goods and services. The result of this study was that employees are not only motivated only
by money but also is related to their attitudes. The Hawthorne Studies began with human
relation approach in which motivation became the main focus of all the managers
(CARNEGIE, 1987)

Motivation Defined

LEARY (2004) according to him, majority of the modern authors motivation has been defined
as a psychological process that behavior a. purpose b. direction. A tendency to behave in a
positive way to attain the targets goals.

Role of motivation

(JEFFRIES, 1997)The efficient reward program is an important part of a performance

tradition. Employees want concrete feedback in order to know about their performance. State
employees indicate that in the present system there is neither useful reward for notable
performance, nor there are actual penalty for deprived performance. Most of the state
employees have the same opinion that presently, the most regular quality reward is being
assigned more work. Wrong messages are being sent by the system. Top performance can be
appreciated by giving little incentives. The following are some benefits of effective rewards.

Improved morale, enhanced productivity, increased competitiveness, decreased stress and

absenteeism.

36
Intrinsic Versus Extrinsic Rewards:

JEFFRIES (1997) According to him, reward programs have the impact of both the intrinsic
as well as extrinsic rewards. The employees work hard to gain some kind of rewards. Extrinsic
rewards include pay, promotion and the status of the company.

Feeling of success, self satisfaction is included in intrinsic rewards. Intrinsic rewards are the
shoot from the MASLOW’S need theory. It says that the employees can give reward to
themselves in the way of self esteem and also in the term of growth and development. The
employees attain the highest level of motivation when they perform task those are intrinsic as
well as extrinsic in reward. The way rewards are being circulated has a great impact on the
level of satisfaction as well as on the effectiveness of the organization. Rewards are given to
the employees to motivate them and also to encourage the desired behavior (KREITNER AND
KINICKI, 1992)

Financial reward program – compensation and benefits:

FITZGERALD AND THIRSK(2004) according to him, the way by which an organization

rewards its employees for their services is through compensation.

Wages, salary, benefits, fringe are included in rewards. Compensation is the main incentive
offered to all the employees in return of the services given by the employees. The methods and
techniques of compensation has a great impact on the relationship of the organization and the
employees. The methods and the techniques of compensation should not have fixed patterns of
cost rather there should be a linkage between the success and strategy of the organization.
Compensation should be managed so wisely that it should imitate and be consistent wit the
culture of the organization.

The system of compensation must be designed in a manner that it should reinforce and also
modify the organization culture in such a way that it supports the organization’s goal.

37
There are many types of pay system- piecework with a wide variety of formulae, measuring
the whole day and high-rate system, plant-wide incentives and frame work processes which
affect pay.

Compensation

Flexible compensation and cafeteria compensation are other areas of compensation

management. Flexible remuneration is fairly a simple conception that caters to the need of the
employee.

Money as a motivator:

According to him, the employees are motivated the most when they know that they will be
highly paid. There is a following list based on the survey conducted to identify how much
money is important to the individuals.

He has drawn up the following list based on surveys conducted to determine what money means
to people.

● A reward for work well done;

● A means to support oneself and one’s family;

● A status symbol - the more you make, the more status you have in the organization
and in society;

● Payment for doing a job – never as much as deserved;

● A trap – the more you make, the more you spend, so the more you need;

● A symbol of professional achievement;

● Payment for doing a job regardless of how well the job was done;

38
 ● A means of classifying people (as low-income, middle-income, or high-income);
and

● A company’s obligation to employees.

It is clearly been shown from the above list that money is an important factor that motivated
the employees. Money plays a significant role in motivating the employees’.

In today’s dynamic environment the highly motivated employees serve as a synergy for
accomplishment of company’s goals, business plans, high efficiency, growth and performance.
Motivation is also required when the organizational workforce has not a good relationship
pattern. Employees’ relation with employees and with supervisor is a key ingredient of the
inner strength of the organization. The ability of supervisors to provide strong leadership has
an effect on job satisfaction of employees. The study relates how the impact of incentives,
rewards and recognition programs drives employee motivation. Rewards play a vital role in
determining the significant performance in job and it is positively associated with the process
of motivation. According to Harris (1996), there are two factors which determine how much a
reward is attractive, first is the amount of reward which is given and the second is the weight
age an individual gives to a certain reward.

Good managers recognize people by doing things that acknowledge their accomplishments and
they reward people by giving them something tangible.” Fair chances of promotion according
to employee’s ability and skills make employee more loyal to their work and become a source
of pertinent workability for the employee. When employees experience success in mentally
challenging occupations which allows them to exercise their skills and abilities, they
experience greater levels of job satisfaction. Incentives, rewards and recognition are the key
parameters of today’s motivation programs according to most of the organizations as these bind
the success factor with the employees’ performance (Giles, 2004). Promotions create the
opportunity for personal growth, increased levels of responsibility and an increase on social
standing. Similarly, the recognition which is a central point towards employee motivation
adores an employee through appreciation and assigns a status at individual level in addition to
being an employee of the organization. The factor in Fortune best companies which
discriminates companies from the others is recognition that is the most important factor of their
reward system.

39
RESEARCH METHODOLOGY

40
 RESEARCH METHODOLOGY
METHODS AND PROCEDURES

Sample Size : 100 respondents (Employees)

Sampling : Convenience sampling

Instruments : Questionnaire

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. Research can use the scientific
method, but need not do so. Scientific research relies on the application of the scientific method,
a harnessing of curiosity. This research provides scientific information and theories for the
explanation of the nature and the properties of the world around us. It makes practical
applications possible. Scientific research is funded by public authorities, by charitable
organizations and by private groups, including many companies. Scientific research can be
subdivided into different classifications according to their academic and application
disciplines.

The selection of the particular research approach depends on the kind of information required.
Qualitative research collects, analyzes, and interprets data that cannot be meaningfully
quantified, that is, summarized in the form of numbers. For this reason, qualitative research is
sometimes referred to as soft research. “Quantitative Research” calls for very specific data,
capable of suggesting a final course of action. A primary role of quantitative research is to test
hunches or hypotheses. These suggest that qualitative approach is a soft research approach in
which collected data cannot be meaningfully quantified and more importantly in this approach
non-structured research is conducted. But so far as quantitative research approach is concerned,
through this approach structured research is conducted with approaching larger respondents
and the collected data can be meaningfully quantified. Research data can be collected either in
the form of secondary or primary or both. Secondary Data usually factual information can be
obtained through secondary data that has already been collected from other sources and is

41
readily available from those sources. The definition and characteristics of secondary data
presented above suggest us that secondary data are data that have already been collected for
purpose other than the problem in hand. Before detailing as how and what secondary data were
collected in this research, in would be worth to examine the advantages and disadvantages of
such data.

Secondary data are easily accessible, relatively inexpensive, and quickly obtained. Some
secondary data are available on topics where it would not be feasible for a firm to collect
primary data. Although it is rare for secondary data to provide all the answers to a non-routine
research problem, such data can be useful in a variety of ways. Primary data is collected for
the specific purpose of addressing the problem at hand. The collection of primary data involves
various steps. Thus obtaining primary data can be expensive and time consuming. These
suggest that primary data are those data that are collected for the particular purpose of research
in hand. The disadvantage of collecting primary data is that it is lengthy and resource and time
consuming process, but the advantage of primary data is that they are first hand information
and comparatively more reliable. A researcher originates primary data for the specific purpose
of addressing the problem at hand.

42
DATA ANALYSIS

43
 DATA ANALYSIS
Q1. From how many years you have been working in this organization?

Less than 2 Years 25%

2 to less than 4 Years 40%

4 to less than 6 Years 30%

More than 6 Years 5%

40% respondents replied that they are working in their organization from 2 to less than 4 years
but 30% respondents replied that 4 to less than 6 years.

44
Q2. What kind of Reward policy is implemented in your organization?

Formal 42%

Informa
l 58%

58% respondents replied that their organizations implemented informal reward policy for the
employees.

45
Q3. Is the reward scheme for every financial year budgeted in your company?

Yes 88%

No 12%

88% respondents replied yes that the reward scheme is budgeted in their organizations for every
financial year

46
Q4. Are all the employees eligible for the reward as per your company policy?

Yes 78%

No 22%

78% respondents replied that all the employees are eligible for the reward as per their company
policy.

47
Q5. In your organization employees are considered for Reward mostly for

Innovative and Creative Ideas 45%

Increased productivity/results/outcome 38%

Customer Satisfaction 17%

45% respondents replied that in their organizations employees are considered for Reward and
Recognition mostly for innovative and creative ideas but 38% respondents replied that in their
organizations employees are considered for Reward and Recognition mostly for increased
productivity/results/ outcomes.

48
Q6. How is the company benefited from the rewards and recognition?

Improved performance 67%

Reduced absenteeism 33%

67% respondents replied that the company is benefited from the rewards and recognition by
getting improved performance.

49
Q7. How frequently do you bring changes in the Reward system practiced in the
organization?

For every 2-3 years 20%

For every one year 55%

For every six months 25%

55% respondents replied that for every one year they bring changes in the reward system
practiced in the organization.

50
Q8. Is your recognition system effective in case of motivating your employees?

Yes 92%

No 8%

92% respondents replied yes that their recognition is very effective in case of motivating their
employees.

51
Q9. “The employees’ motivation, their enthusiastic and energetic behavior towards task
fulfillment play key role in successes of an organization to benefit”

Strongly Agree 26%

Agree 47%

Neutral 15%

Disagree 8%

Strongly Disagree 4%

47% respondents are agreeing with this statement but 26% respondents are strongly agreed
with this statement.

52
Q10.Are employee goals and company goals aligned

Yes 100%

No 0%

100% respondents replied that employee goals and company goals are aligned.

53
Q11. There is strong connection between recognition, reward and motivation?

Strongly Agree 27%

Agree 45%

Neutral 13%

Disagree 12%

Strongly Disagree 3%

45% respondents are agreeing with this statement but 27% respondents are strongly agreed
with this statement.

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FINDINDS

55
 FINDINDS

i. Within an organization, the best performance is feasible with most committed

employees that can only be achieved through employee motivation. Motivation
contains “those psychological processes that cause the arousal, direction and
persistence of voluntary actions that are goal directed.” Motivation depends on certain
intrinsic, as well as, extrinsic factors which in collaboration results in fully committed
employees.

ii. Tangible incentives are effective in increasing performance for task not done before, to
encourage “thinking smarter” and to support both quality and quantity to achieve goals.
Incentives, rewards and recognitions are the prime factors that impact on employee
motivation.

iii. As the employees engage in their working activities purposely for own’s sake then they
will feel intrinsic motivation in their behaviors as their activities will essentially be
enjoyable and satisfactory.

iv. Organizations in today’s environment seek to determine the reasonable balance

between employee commitment and performance of the organization. The reward and
recognition programs serve as the most contingent factor in keeping employees’ self
esteem high and passionate.

v. It is among the function of managers to motivate the employees successfully and

influence their behavior to achieve greater organizational efficiency. Performance at
job is the result of ability and motivation. Ability formulated through education,
equipment, training, experience, ease in task and two types of capacities i.e. mental and
physical.

vi. If an employee performs successfully, it leads to organizational rewards and as a result

motivational factor of employees lies in their performance.

vii. Majority of the organizations require their employees to work according to the rules
and regulations, as well as, job requirements that comply with full standards. The
investigations that have been conducted to find the relationship between compensation
and individuals were focused to increase the performance of employees.

56
viii. The highly motivated employees serve as the competitive advantage for any company
because their performance leads an organization to well accomplishment of its goals.
Among financial, economical and human resources, human resources are more vital
that can provide a competitive edge as compared to others to a company. 45% of the
employees agree that yes there is strong connection between recognition, reward and
motivation.

ix. 58% of the employees agree that in their organization have informal rewards policy.

x. 45% of the employees agree that in their organization most of the employees are
rewarded for Innovative and Creative Ideas.

xi. 67% of the employees agree that the company is benefited through rewards and
recognition through improved performance.

xii. 92% of the employees agree that the company’s recognition system effective in case
of motivation of the employees.

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CONCLUSION

58
 CONCLUSION

i. Commitment of all employees is based on rewards and recognition. Prosperity and

survival of the organizations is determined through the human resources how they are
treated.

ii. Most of organizations have gained the immense progress by fully complying with their
business strategy through a well balanced reward and recognition programs for
employee. The motivation of employees and their productivity can be enhanced through
providing them effective recognition which ultimately results in improved performance
of organizations.

iii. The entire success of an organization is based on how an organization keeps its
employees motivated and in what way they evaluate the performance of employees for
job compensation. Managing the performance of employees forms an integral part of
any organizational strategy and how they deal with their human capital. Today where
every organization has to meet its obligations; the performance of employees has a very
crucial impact on overall organizational achievement.

iv. In a de-motivated environment, low or courage less employees can not practice their
skills, abilities, innovation and full commitment to the extent an organization needs.
When effective rewards and recognition are implemented within an organization,
favorable working environment is produced which motivates employees to excel in
their performance. Employees take recognition as their feelings of value and
appreciation and as a result it boosts up morale of employee which ultimately increases
productivity of organizations. In this way motivated employees are retained with the
organizations thus reducing extra costs of hiring.

v. Rewards and recognition programs keep high spirits among employees, boosts up their
morale and create a linkage between performance and motivation of the employees.
The basic purpose of recognition and reward program is to define a system to pay and
communicate it to the employees so that they can link their reward to their performance
which ultimately leads to employee’s job satisfaction.

vi. The rewards include the financial rewards, pay and benefits, promotions and incentives
that satisfy employees to some extent but for committed employees, recognition must

59
 be given to keep them motivated, appreciated and committed. When we recognize and
acknowledge the employees in terms of their identification, their working capacity and
performance is very high. Recognition today is highest need according to most of the
experts whereas a reward which includes all the monetary and compensative benefits
cannot be the sole motivator for employees’ motivation program.

vii. Employees are motivated fully when their needs are met. The level of motivation of
employees increases when employees get an unexpected increase in recognition, praise
and pay. In today’s dynamic environment the highly motivated employees serve as a
synergy for accomplishment of company’s goals, business plans, high efficiency,
growth and performance.

Motivation is also required when the organizational workforce has not a good relationship
pattern. Employees relation with employees and with supervisor is a key ingredient of the inner
strength of the organization. The ability of supervisors to provide strong leadership has an
effect on job satisfaction of employees. The study relates how the impact of incentives, rewards
and recognition programs drives employee motivation. Rewards play a vital role in determining
the significant performance in job and it is positively associated with the process of motivation.
There are two factors which determine how much a reward is attractive, first is the amount of
reward which is given and the second is the weightage an individual gives to a certain reward.
Fair chances of promotion according to employee’s ability and skills make employee more
loyal to their work and become a source of pertinent workability for the employee. When
employees experience success in mentally challenging occupations which allows them to
exercise their skills and abilities, they experience greater levels of job satisfaction. Incentives,
rewards and recognition are the key parameters of today’s motivation programs according to
most of the organizations as these bind the success factor with the employees performance.

60
RECOMMENDATION & SUGGESTIONS

61
 RECOMMENDATION & SUGGESTIONS

Put together a rewards and recognition program easily by following these steps:

1. Document the program: Make sure the program is official by documenting and
formalizing the program. Define the incentives, rewards, and opportunities for
appreciation and anything else that will be included in the program.

2. Determine the rewards: Rewards can be low cost, like printed certificates, weekly
prizes for exceptional work, allowing employees to award other employees a reward,
staff lunches, ice cream socials, or even bringing baked goods to someone who does
something notable. Other reward ideas may cost a little more, like an extra hour for
lunch, a gift certificate, or a day off.

3. Create opportunities for recognition: Sometimes being recognized for a special

accomplishment or activity is better than a physical reward. Allow several opportunities
for this type of recognition. Opportunities to offer praise and recognition might be staff
meetings, company meetings, e-mail alerts, and verbal praise. Encourage employees to
say ‘thank you’ to each other and recognize the efforts of their co-workers whenever
possible.

4. Announce the program: Make the new rewards and recognition program a big deal.
Announce it a company meeting and send the policy out to all employees. This lets the
staff know that the program is important and there is sincerity in creating it.

5. Follow the policy: A policy is no good unless it is actually followed. Employers must
be an advocate of the rewards and recognition program and encourage others to stick
with it. It is easy to become lax when it comes to appreciation, but keeping up with the
program will encourage employees to keep up with their great work.

Non-Cash Awards:

Employees can be rewarded with cash, of course, but there are non-cash awards that can be
meaningful to employees. While cash awards can be more costly to an organization, non-cash
awards can be less expensive and yet provide a way to reward employees and improve morale.
Ideas for non-cash awards include certificates, which can be framed. This allows an employee

62
to hang the certificate on a wall at work or at home. Items such as coffee cups, pens and mouse
pads can be imprinted with an organizational logo and be used as a non-cash award. Time off
is another non-cash award, although there may be costs associated with this because of the need
to have others fill in to get work completed.

Awarding Ceremonies:

An employer can give an award in the privacy of the employee's cubicle, but if the award is
given in front of the recipient's peers, this act can be in itself a way to ensure that others
recognize the employee's performance. This recognition by peers can help motivate employees
to perform well, and it can be used to meet employee retention goals.

Employee of the Month:

A particular wall can be used to highlight employees who are deserving of praise and
recognition. This could be recognition for the "employee of the month," although other time
frames such as weeks can be used. The employee's picture can be displayed in the spot of honor,
helping to ensure that peers recognize the achievement. This award could also be used in
conjunction with a non-cash award, helping to reinforce to positive behavior.

63
LIMITATIONS

64
 LIMITATIONS

i. The first limitation of my project is that i have only covered limited number of
employees i.e. 100 respondents, so it was very difficult for me to get all the
information as the sample size was only 100 and I could only get limited information
about the company.

ii. The second limitation of my project is that as it is a construction company the rate of
literacy is quite low in the company because lower level (workers & labor) is maximum
in number.

iii. The third limitation of my project is that it covers only a limited part of the company it
does not cover the whole department or whole unit of the company.

65
BIBLIOGRAPHY

66
BIBLIOGRAPHY

BOOKS:-

● Human Resources Management by PhillipKottler

● Research Methodology book by Dr.L.M Prasad

● Research Methodology (Steinmetz)

WEBSITES:

● www.indiaresource.org
● www.supertechlimited.com
● www.google.com

67
REFERENCE
1. L.M Prasaad. Book

2. Arnold, H.J ,& Feldman, D.C (1986). Organizational behaviour. Singapore:

McGraw-Hill International Editions.

3. Armstrong. M, &Murlis, H (1991). Reward management. London: Kogan Page

4. Berry, M. (2005), “Construction firm adopts work-life policy ahead of EU laws”,

Personal Today, 20(5), pp. 30-38.

5. Barling. J ,Fullagar, C, &Bluen, S (1987). Behaviour in organizations. South A

African Perspectives . Johannesburg: Lexicon Press Ltd.

6. Canadian employers moving to total reards approach to compensation (n.d). Retrieved

Febuary 27,2005, from http:www.watsonwyatt.com

7. Carnegie, D. (1987) .Managing through people. New York: Dale Carnegie &
Associates, INC

8. Fitzgerald, J. &Thirsk, J. (2004). Communicating the importance of work-life balance

Retrieved April 15, 2005, from http:www.iveybussinessjournal.com.

9. Gofton .K.(1998). Performance indicators. Marketing 34-36

10. Flannery, T.P, Hofrichter, D.A & Platten, P.E(1996). People, performance & pay.
New York, the free press

11. Giles, T.(2004).Non-monetary rewards as a part of the remuneration equation. New

Zealand management 51(9), 46-48

12. Greenfield, F. (1993). Money: The motivator of the 90’s . Pretoria: Southern book
publishers (pty) ltd.

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13. Harris, H, (1996). Getting employees to fall in love with your company. New York:
AMACOM

14. Hinkle , D.E, Wiersna, W &Jurs, S.G(1982). Basic behavioural statistics. USA:
Houghton Mifflin Company

15. Hofer, C(2005). Whole of life focus, Management, 18(3), 10-14

16. Jeffries, R (1997), Reaping the rewards of recognition. HR Focus, 74(1), 9-10

17. Howard, F, (1997) . Keeping the best employees in the 90’s .Jornal of property
management . 62(3) , 20-25. informal recognition. The biggest part of an effective
recognition strategy. (n.d). BC public service agency. Retrieved April 05, 2005 , from
http:// www.bepublicsevice.ca/awards

18. La Motta T, (1995). Recognition: The quality way. New York. Quality Resources

19. Leary, M.R (2004). Introduction to behavioural research methods. USA: Pearson
Education, Inc

20. Lawler, EE (2003). Treat people right. San Francisco: Jossey-Bass Inc

21. Lawler EE (1990) Strategic Pay San Francisco: Jossey-bass Inc

22. Kalantari, B. (1995). Dyanamics of job Evaluation and dilemma of wage disparity in
the US. Journal of business ethics, 14, 397-403

23. Kreitner, R, &Kinicki, A. (1992). Organisationalbehaviour (2nd ). USA: Richard D.

Irwin Inc.

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QUESTIONNAIRE

70
 QUESTIONNAIRE
Q1. From how many years i have been working in this organization?

a) Less than 2 Years

b) 2 to less than 4 Years
c) 4 to less than 6 Years
d) More than 6 Years

Q2. My organization follows both formal and informal rewards and recognition policy?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q3. The reward scheme for every financial year budgeted in my company?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q4. Are all the employees eligible for the reward as per my company policy?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q5. In my organization employees are considered for Reward and Recognition mostly for
Innovative and Creative Ideas Increased productivity outcome and Customer Satisfaction?

71
 a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q6. Rewards and recognition leads to Improved performance and Reduced absenteeism ?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q7. How frequently do you bring changes in the Reward system practiced in the
organization?

a) For every 2-3 years

b) For every one year
c) For every six months
d) None of the above

Q8. Is my reward system effective in case of motivating employees?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q9. “The employees’ motivation, their enthusiastic and energetic behavior towards task
fulfillment play key role in successes of an organization to benefit”?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

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 e) Strongly Disagree

Q10. Mangers strive hard to link employee goals and company goals to keep the employee
motivated ?

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

Q11. In my organization, the rewards and recognition contribute as a strong component for
motivation.

a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagree

73