A

PROJECT REPORT ON
“TO IDENTIFY THE MOTIVATION LEVEL AND METHODS IN ITC LIMITED
SAHARANPUR”

Submitted

In the partial fulfillment of the award of the degree of

“Master of Business Administration”

From A.P.J Abdul kalam University

LUCKNOW

Submitted by: Submitted to:

AJAY RATHI Mr. PRINCE SHARMA
M.B.A.: 2nd Year. Head of Mgt Dept.
ROLL NO.1562170001 Dev Bhoomi Group of
SESSION: 2015-17 Institution, Saharanpur

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Company certificate

2
 DECLARATION

I hereby declare that this project work entitled “MOTIVATION” is my work, carried out
under the guidance of my faculty guide Mr.Prince Sharma This report neither full nor in
part has ever been submitted for award of any other degree of either this university or any
other university.

(AJAY RATHI)

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 ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany a successful completion of any task
would be incomplete without mentioning the people who made it possible whose consistent
guidance and encouragement crowned the efforts with success.

I would like to thanks for Navneet Damani HR Manager of I.T.C l.t.d and internal
guide MR. Prince Sharma(H.O.D), DEV BHOOMI GROUP OF INSTITUTION
SAHARANPUR (UP) for her guidance and motivation, which is pivotal in completion of
my dissertation report.

I cannot forget the contribution of my project guide for her able guidance and sup-
port throughout the tenure of the report.

Last but not least, I feel indebted to all those persons who have provided help directly
or indirectly in successful completion of this study.

(AJAY RATHI)

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INDEX
PAGE
S.NO. CONTENTS
NO.

1 Main Page 1

2. College Certificate 2

3. Declaration 3

Acknowledgement 4
4.

5. Preface/Index 5-6

6. Introduction 7-18

7. Company Profile 19-46

8. Motivation 47-59

9. 60-61
Research Methodology

10. Objective of study 62-63

11. Analysis 64-75

12. Findings . 76-77

13. Conclusion 78-79

14. Suggestion and Recommendation 80-81

15. Limitation 83

16. Bibliography 84-85

17. Annexure - Questionnaires 86-88

18. Thank you 89

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 PREFACE

Practical Knowledge is an important suffix to theoretical Knowledge. One cannot

merely depend upon the theoretical Knowledge. Classroom lectures make the funda -
mental concept of Management clear. They also facilitate the learning of practical
Things. However, Classroom lectures must be correlated with the Practical training
situations. Market Research is indeed an Ancient Art; it has been practiced in one form of
the other since the day of Adam and Eve. Its Emergence is of relatively recent origin for suc-
cess of any business and within this relatively short period, it has joined a carry great deal of
importance.
Management in India is heading towards a better profession as compared to other profes-
sions. The demand for professional managers is increasing day by day. To achieve profes-
sional competence, manager ought to be fully occupied with theory and practical exposure of
management. A comprehensive understanding of the principle will increases their decision-
making ability and sharpens their tools for this purpose. As an essential part of our course,
I got the privilege to have training in ITC LIMITED.

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Introduction of the
Company

7
 INTRODUCTION OF COMPANY

History and Evolution

 

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of In-
dia Limited. As the Company's ownership progressively Indianised, the name of the Com-
pany was changed from Imperial Tobacco Company of India Limited to India Tobacco Com-
pany Limited in 1970 and then to I.T.C. Limited in 1974.
In recognition of the Company's multi-business portfolio encompassing a wide range of busi-
nesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and
Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety
Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information
Technology - the full stops in the Company's name were removed effective September 18,
2001. The Company now stands rechristened 'ITC Limited,'where ‘ITC ’ is today no longer
an acronym or an initialised form.

A MODEST BEGINNING

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was
the centre of the Company's existence. The Company celebrated its 16th birthday on August
24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L.
Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic
in more ways than one. It was to mark the beginning of a long and eventful journey into In-
dia's future. The Company's headquarter building, 'Virginia House', which came up on that
plot of land two years later, would go on to become one of Kolkata's most venerated land-
marks.

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 1925: Packaging and Printing: Backward Integration
Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC 's Packaging &
Printing Business was set up in 1925 as a strategic backward integration for ITC 's Cigarettes
business. It is today India's most sophisticated packaging house.

1975: Entry into the Hospitality Sector - A 'Welcom' Move

The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC -Welcom-
group Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC 's entry into
the hotels business was rooted in the concept of creating value for the nation. ITC chose the
Hotels business for its potential to earn high levels of foreign exchange, create tourism infra-
structure and generate large scale direct and indirect employment. Since then ITC 's Hotels
business has grown to occupy a position of leadership, with over 100 owned and managed
properties spread across India under four brands namely, ITC Hotels - Luxury Collection,
WelcomHotels, Fortune Hotels and WelcomHeritage
.
ITC Hotels recently took its first step toward international expansion with an upcoming su-
per premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied
up with RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Ho -
tels' 5-star 'WelcomHotel' brand and the mid-market to upscale 'Fortune' brand.

1979: Paperboards & Specialty Papers - Development of a Backward Area

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paper-
boards Limited. Bhadrachalam Paperboards amalgamated with the Company effective March
13, 2002 and became a Division of the Company.

9
Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC 's paper-
boards' technology, productivity, quality and manufacturing processes are comparable to the
best in the world. It has also made an immense contribution to the development of Sarapaka,
an economically backward area in the state of Andhra Pradesh. It is directly involved in edu-
cation, environmental protection and community development. In 2004, ITC acquired the
paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near
Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with re-
duced lead time and a wider product range.

1985: Nepal Subsidiary - First Steps beyond National Borders

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified
into manufacturing and exports of garments.

1990: Paperboards & Specialty Papers - Consolidation and Expansion

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry. The merged entity was named
the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was
merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.

1990: Agri Business - Strengthening Farmer Linkages

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Divi-
sion for export of agri-commodities. The Division is today one of India's largest exporters.
ITC 's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya
farmers in Madhya Pradesh..

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 2002: Education & Stationery Products - Offering the Greenest products
ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To aug-
ment its offering and to reach a wider student population, the Classmate range of notebooks
was launched in 2003. Classmate over the years has grown to become India's largest note-
book brand and has also increased its portfolio to occupy a greater share of the school bag.
Years 2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes, Pens
and Pencils under the 'Classmate' brand. In 2008, ITC positioned the business as the Educa-
tion and Stationery Products Business and launched India's first environment friendly pre-
mium business paper under the 'Paperkraft' Brand. 'Paperkraft' offers a diverse portfolio in
the premium executive stationery and office consumables segment. In 2010, Colour Crew
was launched as a new brand of art stationery.

2000: Lifestyle Retailing - Premium Offerings

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive
stores later expanded its range to include Wills Classic formal wear (2002) and Wills
Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its
men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the
country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained
recognition from buyers and retailers as the single largest B-2-B platform for the Fashion De-
sign industry. To mark the occasion, ITC launched a special 'Wills Signature', taking the
event forward to consumers.

2000: Information Technology - Business Friendly Solutions

In 2000, ITC spun off its information technology business into a wholly owned subsidiary,
ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area.
Today ITC Infotech is one of India's fastest growing global IT and IT-enabled services com-
panies and has established itself as a key player in offshore outsourcing, providing out-

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sourced IT solutions and services to leading global customers across key focus verticals -
Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail,
Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sci-
ences and Transportation & Logistics.

2001: Branded Packaged Foods - Delighting Millions of Households

ITC 's foray into the Foods business is an outstanding example of successfully blending mul-
tiple internal competencies to create a new driver of business growth. It began in August
2001 with the introduction of 'KItc hens of India' ready-to-eat Indian gourmet dishes. In
2002, ITC entered the confectionery and staples segments with the launch of the brands
mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC entered the fast
growing branded snacks category with Bingo! in 2007. In 2010, ITC launched Sunfeast
Yippee! to enter the Indian instant noodles market. In just over a decade, the Foods business
has grown to a significant size under seven distinctive brands, with an enviable distribution
reach, a rapidly growing market share and a solid market standing.

2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
In 2002, ITC 's philosophy of contributing to enhancing the competitiveness of the entire
value chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep and Aim.

ITC 's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifesta-
tion of its partnership with the cottage sector. Mangaldeep is a highly established national
brand and is available across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood
and 'Fragrance of Temple'.

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 2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005. In eight years, the Personal Care portfolio
has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have
received encouraging consumer response and have been progressively extended nationally.
In May 2013, the business expanded its product portfolio with the launch of Engage - one of
India's first range of 'couple deodorants'

2010: Expanding the Tobacco Portfolio

In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining restau-
rants and exclusive clubs.

CREATING ENDURING VALUE

Today, ITC is India's leading Fast Moving Consumer Goods company, the clear market
leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in
farmer empowerment through its wide-reaching Agri Business and runs the greenest luxury
hotel chain in the world. ITC Infotech, a wholly-owned subsidiary, is one of India's fast-
growing IT companies in the mid-tier segment. This portfolio of rapidly growing businesses
considerably enhances ITC 's capacity to generate growing value for the Indian economy.
ITC 's Agri-Business is one of India's largest exporters of agricultural products. The ITC
Group’s contribution to foreign exchange earnings over the last ten years amounted to nearly
US$ 6.6 billion, of which agri exports constituted 57%. The Company's 'e-Choupal' initiative
has enabled Indian agriculture significantly enhance its competitiveness by empowering In-
dian farmers through the power of the Internet. This transformational strategy has already be-
come the subject matter of a case study at Harvard Business School apart from receiving
widespread global acclaim.

13
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to cre-
ate enduring value for the nation provides the motive force to sustain growing shareholder
value. ITC practices this philosophy by not only driving each of its businesses towards inter-
national competitiveness but by also consciously contributing to enhancing the competitive-
ness of the larger value chain of which it is a part."  ITC group directly employs more than
32,000 people and the Company's Businesses and value-chains generate around 6 million
sustainable livelihoods many of whom live at the margin in rural India.

Global Exemplar in Sustainability

Acknowledged as a global exemplar in sustainability, ITC is the only enterprise in the world,
of comparable dimensions to be carbon-positive, water-positive, and solid waste recycling
positive. A testimony to its commitment to a low carbon growth path - over 43 % of the total
energy requirements of ITC is met from renewable sources. All ITC 's premium luxury ho-
tels are LEED (Leadership in Energy and Environmental Design) Platinum certified making
it the "greenest luxury hotel chain" in the world. ITC 's Paperboards and Paper business is an
icon of environmental stewardship.

ITC 's production facilities and hotels have won numerous national and international awards
for quality, productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.
The Company continuously endeavours to enhance its wealth generating capabilities in a
globalising environment to consistently reward more than 5,32,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.

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CREATING ENDURING VALUE FOR INDIA

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ITC
has a leadership position in every segment of the market. ITC 's highly popular portfolio of
brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut,
Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.

The Company has been able to consolidate its leadership position with single minded focus
on continuous value creation for consumers through significant investments in creating &
bringing to market innovative product designs, maintaining consistent & superior quality,
state-of-the-art manufacturing technology, & superior marketing and distribution. With con-
sumers & consumer insights driving strategy, ITC has been able to fortify market standing in
the long-term, by developing & delivering contemporary offers relevant to the changing atti-
tudes & aspirations of the constantly evolving consumer.
ITC 's pursuit of international competitiveness is reflected in its initiatives in overseas mar-
kets. In the extremely competitive US market, ITC offers high-quality, value-priced ciga-
rettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC
markets through its export operations.

15
ITC 's cigarettes are manufactured in state-of-the-art factories at Bengaluru, Munger, Saha-
ranpur, Kolkata and Pune, with cutting-edge technology & excellent work practices bench-
marked to the best globally. An efficient supply-chain & distribution network reaches India's
popular brands across the length & breadth of the country.
Awards
ITC 's Cigarettes business has been winning numerous awards for its quality, environ-
mental management systems and product excellence:
 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of
Cigarettes for 2008 by the Tobacco Board based on previous three years' perfor-
mance.
 Occupational Health and Safety Award 2007 for Excellence in Safety Management
to the Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Pre-
vention of Accidents (ROSPA), U.K.
 5 Star Health and Safety Rating in 2007 from the British Safety Council to the Ben-
galuru, Munger, Kolkata and Saharanpur factories and the "Sword of Honour" for
Bengaluru & Saharanpur factories in 2006.

16
COMPANY PROFILE

17
18
 COMPANY PROFILE  

ITC is one of India's foremost multi-business enterprise with a market capitalisation of US $

40 billion and a turnover of US $ 8 billion. ITC is rated among the World's Best Big Compa-
nies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and as
'India's Most Admired Company' in a survey conducted by Fortune India magazine and Hay
Group. ITC also features as one of world's largest sustainable value creator in the consumer
goods industry in a study by the Boston Consulting Group. ITC has been listed among In-
dia's Most Valuable Companies by Business Today magazine. The Company is among In-
dia's '10 Most Valuable (Company) Brands', according to a study conducted by Brand Fi-
nance and published by the Economic Times. ITC also ranks among Asia's 50 best perform-
ing companies compiled by Business Week.

MULTIPLE DRIVERS OF GROWTH

ITC ’s aspiration to create enduring value for the nation and its stakeholders is manifest in its
robust portfolio of traditional and greenfield businesses encompassing Fast Moving Con-
sumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business,
and Information Technology. This diversified presence in the businesses of tomorrow is
powered by a strategy to pursue multiple drivers of growth based on its proven competencies,
enterprise strengths and strong synergies between its businesses.
The competitiveness of ITC ’s diverse businesses rest on the strong foundations of institu-
tional strengths derived from its deep consumer insights, cutting-edge Research & Develop-
ment, differentiated product development capacity, brand-building capability, world-class
manufacturing infrastructure, extensive rural linkages, efficient trade marketing and distribu-
tion network and dedicated human resources. ITC ’s ability to leverage internal synergies re-
siding across its diverse businesses lends a unique source of competitive advantage to its
products and services.

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VISION & MISSION

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VISION & MISSION

Sustain ITC 's position as one of India's

most valuable corporations through
HE ITC VISION » world class performance, creating grow-
ing value for the Indian economy and the
Company's stakeholders

To enhance the wealth generating capa-

bility of the enterprise in a globalising
THE ITC MISSION »
environment, delivering superior and
sustainable stakeholder value

ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organisational culture rooted in its core values of re-
21
spect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems.

ITC ’S CORPORATE STRATEGIES ARE:

 Create multiple drivers of growth by developing a portfolio of world class businesses
that best matches organisational capability with opportunities in domestic and export
markets.
 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
 Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
 Ensure that each of its businesses is world class and internationally competitive.
 Enhance the competitive power of the portfolio through synergies derived by blend-
ing the diverse skills and capabilities residing in ITC ’s various businesses.
 Create distributed leadership within the organisation by nurturing talented and fo-
cused top management teams for each of the businesses.
 Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
 

CORPORATE GOVERNANCE

Definition and Pur-The Governance StructureRolesBoard Committees

22
 pose
PREAMBLE

Over the years, ITC has evolved from a single product company to a multi-business corpora-
tion. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to
hotels, packaging, paper and paperboards and international commodities trading. Each of
these businesses is vastly different from the others in its type, the state of its evolution and
the basic nature of its activity, all of which influence the choice of the form of governance.
The challenge of governance for ITC therefore lies in fashioning a model that addresses the
uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company
as a whole.
Since the commencement of the liberalisation process, India's economic scenario has begun
to alter radically. Globalisation will not only significantly heighten business risks, but will
also compel Indian companies to adopt international norms of transparency and good gover-
nance. Equally, in the resultant competitive context, freedom of executive management and
its ability to respond to the dynamics of a fast changing business environment will be the new
success factors. ITC 's governance policy recognises the challenge of this new business real-
ity in India.

DEFINITION AND PURPOSE

ITC defines Corporate Governance as a systemic process by which companies are directed
and controlled to enhance their wealth generating capacity. Since large corporations employ
vast quantum of societal resources, we believe that the governance process should ensure that
these companies are managed in a manner that meets stakeholders aspirations and societal
expectations.

CORE PRINCIPLES

ITC 's Corporate Governance initiative is based on two core principles. These are :

23
  Management must have the executive freedom to drive the enterprise forward without
undue restraints; and this freedom of management should be exercised within a
framework of effective accountability.
 ITC believes that any meaningful policy on Corporate Governance must provide em-
powerment to the executive management of the Company, and simultaneously create
a mechanism of checks and balances which ensures that the decision making powers
vested in the executive management is not only not misused, but is used with care and
responsibility to meet stakeholder aspirations and societal expectations.

CORNERSTONES

From the above definition and core principles of Corporate Governance emerge the corner-
stones of ITC 's governance philosophy, namely trusteeship, transparency, empowerment and
accountability, control and ethical corporate citizenship. ITC believes that the practice of
each of these leads to the creation of the right corporate culture in which the company is
managed in a manner that fulfils the purpose of Corporate Governance.
Trusteeship:
ITC believes that large corporations like itself have both a social and economic purpose.
They represent a coalition of interests, namely those of the shareholders, other providers of
capital, business associates and employees. This belief therefore casts a responsibility of
trusteeship on the Company's Board of Directors. They are to act as trustees to protect and
enhance shareholder value, as well as to ensure that the Company fulfils its obligations and
responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsi-
bility to ensure equity, namely, that the rights of all shareholders, large or small, are pro-
tected.
Transparency:
ITC believes that transparency means explaining Company's policies and actions to those to
whom it has responsibilities. Therefore transparency must lead to maximum appropriate dis-

24
closures without jeopardising the Company's strategic interests. Internally, transparency
means openness in Company's relationship with its employees, as well as the conduct of its
business in a manner that will bear scrutiny. We believe transparency enhances accountabil-
ity.
Empowerment and Accountability:
Empowerment is an essential concomitant of ITC 's first core principle of governance that
management must have the freedom to drive the enterprise forward. ITC believes that em-
powerment is a process of actualising the potential of its employees. Empowerment un-
leashes creativity and innovation throughout the organisation by truly vesting decision-mak-
ing powers at the most appropriate levels in the organisational hierarchy.
ITC believes that the Board of Directors are accountable to the shareholders, and the man-
agement is accountable to the Board of Directors. We believe that empowerment, combined
with accountability, provides an impetus to performance and improves effectiveness, thereby
enhancing shareholder value.
Control:
ITC believes that control is a necessary concomitant of its second core principle of gover-
nance that the freedom of management should be exercised within a framework of appropri-
ate checks and balances. Control should prevent misuse of power, facilitate timely manage-
ment response to change, and ensure that business risks are pre-emptively and effectively
managed.
Ethical Corporate Citizenship:
ITC believes that corporations like itself have a responsibility to set exemplary standards of
ethical behaviour, both internally within the organisation, as well as in their external relation-
ships. We believe that unethical behaviour corrupts organisational culture and undermines
stakeholder value.

25
BOARD OF DIRECTORS

26
 BOARD OF DIRECTORS  

CHAIRMAN

Y C Deveshwar

EXECUTIVE DIRECTORS

Nakul Anand P V Dhobale K N Grant

NON-EXECUTIVE DIRECTORS

A Baijal S Banerjee A Duggal

A V Girija Kumar S H Khan R E Lerwill

S B Mainak S B Mathur P B Ramanujam

S S H Rehman Meera Shankar K Vaidyanath

27
 y c deveshwar
Y C Deveshwar (68), joined ITC in 1968 and is an alumnus of the
Indian Institute of Technology, Delhi and Harvard Business School.
He was appointed as a Director on the Board of the Company in 1984
and became the Chief Executive and Chairman of the Board on Janu-
ary 1, 1996. Between 1991 and 1994, he led Air India as Chairman
and Managing Director.

Under his leadership, an abiding Vision was crafted to serve larger national priorities, power-
ing a strategy to make ITC an engine of growth for the national economy through multiple
drivers of growth. He also shaped and implemented a strategy of organisation to enable the
Company derive unique sources of competitive advantage from its diverse businesses lever-
aging the unique enterprise strengths of the organisation. Deveshwar has championed the
cause for Sustainability world-wide bringing into focus the need to innovate corporate strate-
gies that not only enhance shareholder value but add significantly to the development of nat-
ural and social capital.

Spearheading a journey of growth that has led the Harvard Business Review to rank him as
the 7th Best Performing CEO in the world, his stewardship has guided ITC to become In-
dia's foremost FMCG marketer, the country's largest and greenest Paperboards and Packag-
ing business, a globally acknowledged pioneer in farmer empowerment through its wide-
reaching Agri Business, the second largest Hotel Chain in India and a trailblazer in 'green
hoteliering'. The Company's wholly-owned subsidiary, ITC Infotech India Limited, is also
one of India's fast-growing IT companies in the mid-tier segment. Today, ITC is a global ex-
emplar in sustainable business practices and is the only Company in the world of comparable

28
dimensions to be 'carbon positive', 'water positive' and 'solid waste recycling' positive. The
Company's businesses generate livelihoods for around 6 million people, many of whom rep-
resent the poorest in Rural India.

The pioneering farmer empowerment initiative, ITC e-Choupal, is today the world's largest
rural digital infrastructure and is a case study at the Harvard Business School besides receiv-
ing several global awards. ITC was also conferred the World Business and Development
Award 2012 at the Rio+20 United Nations Summit by the United Nations Development Pro-
gramme, the International Chamber of Commerce and the International Business Leaders Fo-
rum for its Social and Farm Forestry Programmes.

Deveshwar is a Director on the Central Board of the Reserve Bank of India. He is a Member
of the National Foundation for Corporate Governance. He is also a member of the Board of
Governors of the Indian School of Business and the former Chairman of the Society and
Board of Governors of the Indian Institute of Management, Calcutta. He serves on the Na-
tional Executive Committees of some of India's premier trade and industry bodies, and has
served as a member of the UK-India CEOs Forum and US-India CEOs Forum instituted by
the respective Governments. Deveshwar is a past President of CII.

In 2011, Deveshwar was conferred the Padma Bhushan, one of the highest civilian awards in
the country by the Government of India. Amongst several other awards and recognitions dur-
ing his distinguished career, Deveshwar has been honoured with the Global Leadership
Award by the US-India Business Council of the US Chamber of Commerce in 2010, the
Business Leader of the Year Award from All India Management Association in 2012

29
 CORPORATE MANAGEMENT COMMITTEE

MEMBERS

Y C Deveshwar Nakul Anand P V Dhobale

Chairman Executive Director Executive Director

Chitranjan Dar
K N Grant Anand Nayak
Quality Assurance, LSTC,
Executive Director Human Resources
CPO & EHS

Sanjiv Puri S Sivakumar K S Suresh

FMCG Businesses Agri & IT Businesses Legal

Rajiv Tandon B B Chatterjee

Finance Secretarial
 

30
 chitranjan dar
C Dar is responsible for overall supervision of Quality Assurance,
ITC Life Sciences & Technology Centre, Central Projects Organisa-
tion and Environment, Health & Safety since June 2015.

Dar is an engineer from IIT, Delhi and an MBA from IIM, Ahmed-
abad.  He started his career in ITC 's Packaging and Printing business
in 1981.  In 1998, he was seconded to the then ITC Bhadrachalam Paperboards Limited as
head of Marketing and was elevated to the Board of that company in 1999.  In 2003, he
joined the Lifestyle Retailing Business Division as its Chief Executive and continued in that
role till he moved in August 2008 to the Foods business as Chief Operating Officer. He took
over as Divisional Chief Executive of the Foods Business in August 2009 and continued in
that role till May, 2015.
 
anand nayak
Anand Nayak, Head of Human Resource Development for ITC , has
been with the Company for 41 years. He has handled senior HR as-
signments in the Company's various Divisions and has been Head of
Human Resource Development since 1996. He is also responsible for
overall supervision of ITC 's Social Development Initiatives. A post-
graduate in Personnel Management and Industrial Relations from
XLRI, Jamshedpur, Nayak has spent his entire professional career with ITC . He is also a Di-
rector on the Board of ITC Infotech.
 

31
 Sanjiv Puri
Sanjiv Puri is President, FMCG Businesses - Cigarettes, Foods, Per-
sonal Care, Education & Stationery Products, Matches and Agarbattis
since December 2014. Prior to that, he was the Divisional Chief Ex-
ecutive of the India Tobacco Division.

An engineering graduate from the Indian Institute of Technology,

Kanpur, Puri joined ITC in 1986 and has handled a wide range of responsibilities in opera-
tions, e-commerce and as a business head. He has led ITC Infotech India Ltd., a wholly
owned subsidiary of ITC , as its Managing Director from May 2006 to August 2009. He has
also been on the Boards of ITC Infotech's wholly owned subsidiaries in the UK and USA.
Prior to that, Puri was the Managing Director of Surya Nepal Pvt Ltd, a joint venture sub-
sidiary company of ITC in Nepal. Besides being on the Boards of other subsidiary and asso-
ciate companies of ITC , he is also a Director on the Board of Tobacco Institute of India,
Member of the Executive Council of The Indian Society of Advertisers and past member of
the Board of Governors of Media Research Users Council.

He is Chairman of FICCI FMCG Committee 2015 and Chairman of the Agri & Food Pro-
cessing Task Force of CII Eastern Region 2015. He is also a Member of the FICCI National
Executive Committee 2015 and Member of CII Eastern Regional Council 2015-16.
 

32
 s sivakumar
S Sivakumar is the Divisional Chief Executive of the Agri Business
Division. He is also the Chairman of Technico Agri Sciences Lim-
ited, and Vice Chairman of ITC Infotech India Limited and its sub-
sidiaries in the UK and USA.

Sivakumar has conceptualised and spearheaded the execution of the

path-breaking ITC e-Choupal model. Topper of the Class of 1983 from the Institute of Rural
Management Anand, (IRMA), Sivakumar worked with a farmers' cooperative for six years
before joining ITC in 1989.

Sivakumar is the Chairman of the National Agricultural Council of the Confederation of In-
dian Industry (CII), Vice Chairman of the World Economic Forum's Global Agenda Council
on Social Innovation, and a member on the Board of Governors of Institute of Rural Manage-
ment, Anand (IRMA).

Sivakumar served on the Boards of India's National Bank for Agriculture and Rural Develop-
ment (NABARD), and Indo US Knowledge Initiative on Agriculture, the Private Sector
Committee of the Consultative Group on International Agricultural Research (CGIAR), and
UN Global Compact's Core Advisory Group to develop Sustainable Agriculture Business
Principles, among other organisations.

33
 k s suresh
K S Suresh is General Counsel of ITC . A lawyer by qualification
and training, he joined the Company in 1990 after being in private
practice, and took charge of the Legal function in 1998. With wide
ranging expertise and experience in corporate laws as well as litiga-
tion, he has guided many important legal issues to successful resolu-
tion for the Company
 
rajiv tandon
Rajiv Tandon, Chief Financial Officer, is a Fellow Member of The
Institute of Chartered Accountants of India with over 30 years of ex-
perience. He has held various positions in ITC including Executive
Vice President - Finance & MIS of the Tobacco Division, Executive
Vice President - Corporate Finance, Finance Advisor and member of
the Management Committee of Agri Business and Tobacco Division.

He is a Director on the board of ITC Infotech India Ltd. and its subsidiaries in the UK and
the USA. He is also on the Board of several other subsidiaries/group companies of ITC .
He has held several important positions in various industry bodies including Chairman of the
Expert Committee on Banking and Finance (Indian Chamber of Commerce), Member -Taxa-
tion and Company Law Committee (Confederation of Indian Industry) and is currently Mem-
ber - Managing Committee (Bengal Chamber of Commerce & Industry).
 

34
 b b chatterjee
B B Chatterjee, Executive Vice President & Company Secretary, is a
Chartered Accountant, Company Secretary and a Law Graduate, and
has over 33 years experience in Corporate laws.
Chatterjee joined ITC in 1983 and is on the Boards of various ITC
subsidiaries including ITC Infotech India Ltd. and its subsidiaries in
the UK and the USA, Surya Nepal Pvt. Ltd., Nepal and WelcomHo-
tels Lanka (Pvt.) Ltd., Sri Lanka.

Chatterjee is on the Executive Committee of the Indian Chamber of Commerce Calcutta and
the Managing Committee of The Bengal Chamber of Commerce & Industry (BCCI). He is
also Chairman of the Corporate Governance Committee of BCCI. Chatterjee has served on
the Central Council and the Secretarial Standards Board of the Institute of Company Secre-
taries of India.

35
 CORPORATE SOCIAL RESPONSIBILITY POLICY  

Philosophy
Recognizing that business enterprises are economic organs of society and draw on societal
resources, it is ITC 's belief that a company's performance must be measured by its Triple
Bottom Line contribution to building economic, social and environmental capital towards en-
hancing societal sustainability. ITC believes that in the strategic context of business, enter-
prises possess, beyond mere financial resources, the transformational capacity to create
game-changing development models by unleashing their power of entrepreneurial vitality, in-
novation and creativity. In line with this belief, ITC will continue crafting unique models to
generate livelihoods and environmental capital. Such Corporate Social Responsibility
("CSR") projects are far more replicable, scalable and sustainable, with a significant multi-
plier impact on sustainable livelihood creation and environmental replenishment. These ini-
tiatives are independent of the normal conduct of ITC 's business. Programmes, projects and
activities (collectively "CSR Programmes") carried out in this regard are the subject matter of
this Policy.
CSR POLICY

It is ITC 's policy:

1. To direct ITC 's CSR Programmes, inter alia, towards achieving one or more of the
following - enhancing environmental and natural capital; supporting rural develop-
ment; promoting education; providing preventive healthcare, providing sanitation and
drinking water; creating livelihoods for people, especially those from disadvantaged
sections of society, in rural and urban India; preserving and promoting sports;
2. To develop the required capability and self-reliance of beneficiaries at the grass roots,
especially of women, in the belief that these are prerequisites for social and economic
development;

36
 3. To engage in affirmative action interventions such as skill building and vocational
training, to enhance employability and generate livelihoods for persons from disad-
vantaged sections of society;
4. To pursue CSR Programmes primarily in areas that fall within the economic vicinity
of the Company's operations to enable close supervision and ensure maximum devel-
opment impact;
5. To carry out CSR Programmes in relevant local areas to fulfil commitments arising
from requests by government/regulatory authorities and to earmark amounts of
monies towards "Enterprise Social Responsibility (ESR)" activities and to spend such
monies through ESR/CSR Cells of such administrative bodies of the government
and/or directly by way of developmental works in the local areas around which the
Company operates;
6. To provide equal opportunities to beneficiaries of the Company's CSR Programmes
as vendors or employees on merit;
7. To promote sustainability in partnership with industry associations, like the Confeder-
ation of Indian Industry (CII) through the CII-ITC Centre of Excellence for Sustain-
able Development, in order to have a multiplier impact.

Implementation
To implement the Company's CSR Programmes through Company personnel or through ex-
ternal implementing agencies or through ITC Education Trust, ITC Rural Development
Trust, ITC Sangeet Research Academy, ITC Bhadrachalam Education Trust, Tribeni Tis-
sues Education Society (and other Trusts, Foundations and Section 8 companies that may be
established by the Company from time to time). In such cases, the Company will specify the
CSR Programmes which may be undertaken by those Trusts in accordance with their Objects
and administrative and accounting processes laid down in the respective Trust Deeds/ Memo-
randa and Articles of Association.

37
 Governance
1. Every year, the CSR and Sustainability Committee will place for the Board's ap-
proval, a CSR Plan delineating the CSR Programmes to be carried out during the fi-
nancial year and the specified budgets thereof. The Board will consider and approve
the CSR Plan with any modification that may be deemed necessary.
2. The Corporate Management Committee (CMC) will assign the task of implementa-
tion of the CSR Plan within specified budgets and timeframes to such persons or bod-
ies as it may deem fit.
3. The persons/bodies to which the implementation is assigned will carry out such CSR
Programmes as determined by the CMC within the specified budgets and timeframes
and report back to the CMC on the progress thereon at such frequency as the CMC
may direct.
4. The CMC shall review the implementation of the CSR Programmes once a quarter
and issue necessary directions from time to time to ensure orderly and efficient exe-
cution of the CSR Programmes in accordance with this Policy.
5. Once every six months the CMC will provide a status update to the CSR and Sustain-
ability Committee on the progress of implementation of the approved CSR Pro-
grammes carried out during the six month period. It shall be the responsibility of the
CSR and Sustainability Committee to review such reports and keep the Board ap-
prised of the status of implementation of the same.
6. At the end of every financial year, the CSR and Sustainability Committee will submit
its report to the Board.

CSR Expenditure
CSR expenditure will include all expenditure, direct and indirect, incurred by the Company
on CSR Programmes undertaken in accordance with the approved CSR Plan. Moreover, any
surplus arising from any CSR Programmes shall be used for CSR. Accordingly, any income
arising from CSR Programmes will be netted off from the CSR expenditure and such net
amount will be reported as CSR expenditure.
38
RESEARCH AND DEVELOPMENT

39
 ITC RESEARCH AND DEVELOPMENT

Innovation has always been integral to ITC 's DNA, the foundation for the unique and differ-
entiated value propositions that it has crafted over the years.

Since I983, ITC R&D Centre in Bengaluru has played a crucial role in building this capabil-
ity, creating products and solutions that sustain the Company's competitive advantage. Now
rebranded as ITC Life Sciences and Technology Centre, this new beginning highlights its in-
tegral part in keeping the Company future-ready and driving its game-changing businesses of
the future. It also reflects the Centre's new mandate- to go beyond supporting and improving
ITC 's existing products and services and create innovations that not only meet but anticipate
consumer needs.
ITC 's ambitious agenda of sharpening its competitive edge in an enormously challenging
marketplace demands better products that can positively impact consumers' lives, demands
solutions that effectively deliver care and wellness to consumers, demands products and ser-
vices that are world-class and a byword for excellence. It is here that the Centre will step in -
endeavouring to develop path-breaking solutions that blend science, research and technology
to enhance not just product experience but overall quality of life.
The challenging task of driving science-led product innovation has been carefully addressed
by appropriately identifying the required set of core competency areas of science such as
Plant Breeding and Genetics, Agronomy, Microbiology, Cell Biology, Genomics, Pro-
40
teomics, Silviculture and several disciplines of Chemistry. Presently, the ITC Life Sciences
and Technology team has evolved with over 250 world-class scientists and is creating Cen-
tres of

The Agrisciences R&D team continues evaluating and introducing several germplasm lines
of identified crops including Casuarina and Eucalyptus to increase the genetic and trait diver-
sities in these species, towards developing new varieties with higher yields, better quality and
other relevant traits for ITC 's businesses.
This high-end lab research is supported by field research at ITC 's R&D Centre at Bhadracha-
lam which is at the core of the Company's fibre strategy for its Paperboards and Specialty Pa-
pers business. This state-of-the-art research centre is consistently striving to improve the pro-
ductivity of several tree species, in order to give attractive land-use alternatives to traditional
farmers and wasteland owners. So far, more than 100 high-yielding, fast-growing and disease
resistant 'Bhadrachalam' clones have been produced on a commercial scale, including 23 site-
specific clones adapted to problematic soils. The productivity of these saplings is 6-9 times
that of normal seedlings.
ITC 's comprehensive R&D facilities at Rajahmundry in Andhra Pradesh cover all aspects of
tobacco crop cultivation. In collaboration with the Central Tobacco Research Institute and
the Tobacco Board, ITC pioneered FCV tobacco cultivation in India and introduced the Bur-
41
ley and HDBRG varieties. ITC 's continued focus on crop development has resulted in new
varieties of seeds and hybrids in Andhra Pradesh and Karnataka, which have significantly
improved farm yields and helped fulfill the demands of a dynamic global market.
Biosciences R&D

ITC Life Sciences and Technology Centre has created a Biosciences R&D team to design
and develop several long-term research platforms evolving multi-generation product con-
cepts and associated claims that are fully backed by scientific evidence for the Foods and
Personal Care businesses. Recognising the unique construct of ITC in terms of its strong
presence in agriculture, food and personal care businesses, a convergence of R&D capabili-
ties is being leveraged to deliver future products aimed at nutrition, health and well-being.
In addition, ITC Life Sciences and Technology Centre has evolved a strategy in building a
new value chain called, 'Nutrition' with a special focus on 'Indianness' and 'health and well-
being' founded on the basis of Value Added Agriculture (VAA). The initial activities related
to VAA have already commenced with a focus on Soya.
Global Collaboration
ITC Life Sciences and Technology Centre has also initiated several research collaborations
with globally recognized Centres of Excellence to remain contemporary and fast track its
journey towards demonstrating multiple 'proofs of concept'. These collaborations, covering
identified species, are designed in a manner that enables ITC to gain fundamental insights
42
into several technical aspects of plant breeding and genetics and the influence of agro-cli-
matic conditions on the growth of these species. Such interventions will accelerate ITC 's ef-
forts in creating future generations of these crops with greater genetic and trait diversities and
leading to significant benefits for the Company's businesses. Further, these outcomes have a
strong potential to contribute towards augmenting the nation's ecological capital as well.
Master Design Facility

Catering to the need of ITC 's Lifestyle Business is a contemporary master Design Facility at
Manesar, Gurgaon. It offers R&D facilities that have enabled the Company to offer interna-
tionally benchmarked fashion collection every season.
Relentless Commitment to Quality
Pursuing the Company's relentless commitment to quality, each business is mandated to con-
tinuously innovate on processes and systems to deliver superior competitive capabilities.
All manufacturing units of the Company have ISO quality certification. All manufacturing
units of the Branded Packaged Foods businesses (including contract manufacturing units)
and hotels have stringent food safety and quality systems. All Company owned units / hotels
and almost all contract manufacturing units of the Branded Packaged Foods businesses are
certified by an accredited 'third party' in accordance with 'Hazard Analysis Critical Control
Points' (HACCP) methodology. Additionally, the quality of all FMCG products of your
Company is regularly monitored through 'Product Quality Ratings Systems' (PQRS).

43
 GROUP COMPANIES

MAJOR SUBSIDIARIES

 ITC Infotech  Srinivasa Resorts Limited

 Surya Nepal Private Limited  Fortune Park Hotels Limited

 Landbase India Limited  WelcomHotels Lanka (Private) Lim-

 Russell Credit Limited ited,

Sri Lanka

OPERATIONAL JOINT VENTURES

 Maharaja Heritage Resorts Ltd.

 ITC Essentra Limited

LISTED ASSOCIATE COMPANIES

 Gujarat Hotels Limited

 International Travel

House Limited

44
Presenting stories of men and women, of lives and lands, of fates and destinies that have wit-
nessed change. Transformed by ITC 's abiding vision to create larger societal value, thou-
sands of lives across the country are testimony to these humble efforts and successful com-
munity engagement through public-private-people partnerships. ITC 's globally acclaimed ru-
ral initiative - the ITC e-Choupal, Afforestation programme, Watershed Development initia-
tive, Livestock Development initiative and its Women's Empowerment and Primary Educa-
tion programmes are enriching rural India,creating a better tomorrow. Presenting some of
these compelling voices who have experienced change. Hear them out.

45
PRODUCTS

ITC PRODUCTS

46
47
Motivation
48
 Employee Motivation

Employee Motivation is the core of management. Employee Motivation is an effective in-

strument in the hands of the management in inspiring the work force .It is the major task of
every manager to motivate his subordinate or to create the will to work among the subordi-
nates .It should also be remembered that the worker may be immensely capable of doing
some work, nothing can be achieved if he is not willing to work .creation of a will to work is
motivation in simple but true sense of term. Employee Motivation is an important function
which very manager performs for actuating the people to work for accomplishment of objec-
tives of the organization .Issuance of well conceived instructions and orders does not mean
that they will be followed. A manager has to make appropriate use of motivation to enthuse
the employees to follow them. Effective motivation succeeds not only in having an order ac-
cepted but also in gaining a determination to see that it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the managers must deter-
mine the motives or needs of the workers and provide an environment in which appropriate
incentives are available for their satisfaction .If the management is successful in doing so; it
will also be successful in increasing the willingness of the workers to work. This will in-
crease efficiency and effectiveness of the organization .There will be better utilization of re-
sources and workers abilities and capacities.

Importance of Motivation

49
Importance of Motivation can have an effect on the output of your business and concerns
both quantity and quality. See it this way: your business relies heavily on the efficiency of
your production staff to make sure that products are manufactured in numbers that meet de-
mand for the week. If these employees lack the motivation to produce completed products to
meet the demand, then you face a problem leading to disastrous consequences. The number
of scenarios is extreme but you get the general picture.

Your employees are your greatest asset and no matter how efficient your technology and
equipment may be, it is no match for the effectiveness and efficiency of your staff.
50
Motiva0tion involves getting the members of the group to pull weight effectively, to give
their loyalty to the group, to carry out properly the purpose of the organization.

The following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with opportuni-
ties to fulfill their physiological and psychological needs. The workers will cooperate
voluntarily with the management and will contribute their maximum towards the goals
of the enterprise.
2. Workers will tend to be as efficient as possible by improving upon their skills and
knowledge so that they are able to contribute to the progress of the organization. This
will also result in increased productivity.
3. The rates of labor’s turnover and absenteeism among the workers will be low.
4. There will be good human relations in the organization as friction among the workers
5. themselves and between the workers and the management will decrease.
6. The number of complaints and grievances will come down. Accident will also be low.
7. There will be increase in the quantity and quality of products. Wastage and scrap will
be less. Better quality of products will also increase the public image of the business.

Determinants of Employee Motivation

51
Traditionally it is believed that employees are motivated by the opportunity to make as such
money as possible and will act rationally to maximize their earnings. The assumption is that
money, because what it can buy, is the most important motivator of all people.
Three types of forces generally influence human behavior
1. Forces operating within the individual,
2. Forces operating within the organization and
3. Forces operating in the environment.

52
Description:

1. The Individual: Human needs are both numerous and complex. Some of the needs can-
not be described and identified because people hide their real needs under the cover of
socially accepted behavior. Further, each person is different and a variety of items may
prove to be motivating, depending upon the needs of the individual, the situation the in-
dividual is in and what rewards the individual expects for the work done. It is the duty
of the manager to match individual needs and expectations to the type of rewards avail-
able in the job setting.

53
2. The Organization: The climate in the organization must be conducive to human perfor-
mance. Climate plays an important part in determining worker’s motivation. The cli-
mate in an organization is determined by a number of variables such as its leadership
style, autonomy enjoyed by members, growth prospects, emotional support from mem-
bers, reward structure.
3. The environment: A worker does not live in two separate worlds, one side the factory
and the other outside it. The troubles and pleasures of off-the-job life cannot be put
aside when reporting for work in the morning, nor can factory matters be dropped when
returning home after work. Culture, norms, customs, images and attributes accorded by
society to particular jobs, professions and occupations and the worker’s home life- all
play a strong motivational role. The factors such as social status and social acceptance
play an important role in shaping the motivations of people.

Main Objectives of Employee Motivation

1. The purpose of motivation is to create condition in which people are willing to work
with zeal, initiative. Interest, and enthusiasm, with a high personal and group moral sat-
isfaction with a sense of responsibility.
2. To increase loyalty against company.
3. For improve discipline and with pride and confidence in cohesive manner so that the
goal of an organization are achieved effectively.
4. Motivation techniques utilized to stimulate employee growth.
5. For the motivation you can buy man’s time. Physical presence at a given place.
6. You can even buy a measured number of skilled muscular motions per hour or day.
7. Performance results from the interaction of physical, financial and human resource.
8. For the achieve a desire rate of production.
54
55
 Basic Characteristics of Motivation

Basic Characteristics of Employee Motivation are as follows:

1. Effort. This refers to the strength of a person’s work-related behavior.

2. Persistence. This refers to the persistence that individual’s exhibit in applying effort to
their work tasks.
3. Direction. This refers to the quality of a person’s work related behavior.
4. Goals. This refers to the ends towards which employees direct their effort.

56
 Five Motivational Factors Every Employee Wants From Work Place

What do employees want from work? There are five factors that must be present in your
workplace for your employees to be happy and motivated at work. Your employees need re-
spect, to be members of the in-crowd, to impact decision making about their jobs, to have the
opportunity to grow and develop, and access to reasonable leadership. The following de-
scribe what employees want from work

57
1. Respect is the fundamental right of every employee in every workplace. If people feel
as if they are treated with respect, they usually respond with respect and dignified ac-
tions. Part of respect is praise and feedback so people know how they are doing at
work.
2. Employees want to feel as if they are members of the in-crowd. This means that they
know and have access to information as quickly as anyone else in your workplace.
3. Employees want to learn new skills, develop their capabilities, and grow their knowl-
edge and careers. Making developmental opportunities available to each employee
demonstrates your commitment to helping them develop their careers. They appreciate
this.
4. Employees want to have an impact on decisions that are made about their jobs. Em-
ployee involvement and employee empowerment help to create engaged employees
willing to put forth their discretionary energy for the business.
5. Employees do want leadership. They want a sense of being on the right track, going
somewhere that has been defined and is important. They like being part of something
bigger than themselves. Employees like to know that someone, who is trustworthy, is in
charge.

58
 The Basic Motivation Force

The best one word definition of a need is a deficiency. In the homeostatic sense, needs are
created whenever there is a physiological or psychological imbalance.

With a few exceptions drives or motives are set up to alleviate needs. A drive can be simply
defined a deficiency with direction. Drives are action oriented and provide an energizing
thrust toward goal accomplishment. They are at the very heart of the motivational process.
The examples of the needs for food and water are translated into the hunger and thirst drives
for affiliation. Goals
At the end of the motivation cycle is the goal. A goal in the motivation cycle can be defined
as anything which will alleviate a need and reduce a drive. Thus attaining a goal will tend to
restore physical or psychological balance and will reduce or cut off the drive. Eating food,
drinking water and obtaining friends will tend to restore the homeostatic balance and reduce
the corresponding drivers. Food water and friends are the goals inthis example

59
 MOTIVATIONAL STRATEGIES
There are several plans in ITC which motivate the employees working there.
Some of the motivational tools used in ITC is as follows-
1. A n n u a l bo nus :

This is the most common type of plan which is used by most of companies to
motivate and retain its employees. Star gives its employees an annual bonus
based on the annual performance of the company. The employees of star also
get the bonus at the time of major festivals.
2. E m pl oye es in st ar al so get so me non m one ta ry ben ef it s w hic h

mo ti va te t hem to ach ie ve the ir go al s, l ik e.

a) T hey r ec ogn iz e th os e e mpl oye es w ho do be tt er i n t he ir w or k and th es e mo ti va te o r t he e mp loy ee s a l ot .

b) T hey a ls o g ive th e ad di ti on al r esp ons ib il it i es t o t he ir em pl oye es so t ha t emp lo yee s m ay f ee l t ha t org ani za ti on hav e

fa it h in th ei r a bi li ti es and th is m ot iv at es th e e mpl oy ees and in cr eas e t he sen se of b el ong ing ne ss.

3. Cola provides subsidized working lunch to its employees.

4 .Employees and their family members are provided medical facilities, free of
cost.

5. Paid holidays to the employees are also provided by star.

6. Employees have to be insured for life and against accidents illness. Company
provides many other facilities to their employees to motivate them like company
transportation facilities, rest rooms, study leaves and company accommodation
etc.

60
 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

61
1:-TYPE OF RESEARCH
Exploratory Research

2:-DATA COLLECTION METHOD

Quantitative and Qualitative Data collection methods
The Quantitative data collection methods rely on random sampling and structured data col-
lection instruments that fit diverse experiences into predetermined response categories. They
produce results that are easy to summarize, compare, and generalize. 
Quantitative research is concerned with testing hypotheses derived from theory and/or being
able to estimate the size of a phenomenon of interest. Depending on the research question,
participants may be randomly assigned to different treatments.  

3:-DATA USED
 PRIMARY DATA.

 SECONDARY DATA.

4:-SAMPLING UNIT

I.T.C LIMITED SAHARNPUR

5:-SAMPLE SIZE

Employee - 35

62
OBJECTIVE OF
THE STUDY

63
 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE
To study the important factors which are needed to motivate the employees.

SECONDARY OBJECTIVE
 To study the effect of monetary and non monetary benefits of employees provided by
organization on the employee’s performance.
 To study the effect of job promotion on employees
 To learn the employee satisfaction on the interpersonal relationship exists in the orga-
nization.
 To provide the practical suggestion for the improvement of organization’s perfor-
mance.
 To Study the concept of motivation of ITC Employees.
 To identify the methods used in identifying which motivation l Factors are used by
ITC .

To study the Employees preference about which factor motivate them.

Effort

Direction.

Goals

Persistence

64
ANALYSIS

65
 Analysis

Q-1 Which of the following motivation do you get Motivate?

a) Need satisfaction

b) Unsatisfied

c) Leads to good human relation

d) Ability to perform

22
25
Need satisfaction
20 15 Unsatisfied
13
15 Leads to good
7 human relation
10 Ability to perform
5
0
EMPLOYEE RESPONSE

In my research I found that 22 respondents said that Leads to good human relations innova-
tive and exciting offers while only 15% respondents said for need satisfaction exciting of-
fers.

66
Q2. Which of the following procedure to employee motivate?
a) Goal directed behavior

b) Equirment & support

c) Leads to higher efficiency effective

d) Professional skills

24
25

20
14 Goal directed behav-
ior
15 12
Equirment & support
10 7 #REF!

#REF!
5

0
EMPLOYEE RESPONSE

In my research I found that 24 respondents said that Leads to Leads to higher efficiency effective
innovative and exciting offers while only 14% respondents said for Goal directed behavior excit-
ing offers.

67
Q3. Which of the following motivation do you get from?

a) Fair remuneration

b) Negative motivation

c) Situational motivation

d) Other incentives

25
21

20 Fair remuneration
16

15 12 Negative motivation

10 8
Situational motivation

5 Other incentives

0
HR RESPONSE

In my research I found that 21 respondents said that Leads to Leads to Fair remuneration
innovative and exciting offers while only 16% respondents said for Other incentives exciting
offers.

Q4. Which of the classification need do you get motivate.

a) Social need

68
 b) Primary need

c) Safety need

d) Job inrechment

30 26

25
Social need Primary need
20
14
15 12
Safety need Job inrechment
8
10

0
EMPLOYEE RESPONSE

In my research I found that 26 respondents said that Social need innovative and exciting of-
fers while only 14 % respondents said for Job inrechment exciting offers.

Q5. . Which of the motive do you get goal oriented process?

a) Self actualization need

69
 b) Work condition

c) Un satisfied need

d) Dynamic & situational

17 17
18
15
16 a)  Self actualization need
14

12 Work condition

10 8
Un satisfied need
8

6
Dynamic & situational
4

0
EMPLOYEE RESPONSE

In my research I found that 17% respondents said that Self Actualization need innovative and
exciting offers while only 17 % respondents said for UN satisfied exciting offers.

Q6. . Which of the hygiene or maintenance factors do you get motivate.

a) Techniques to increase motivation

b) A system approach

c) Employees can be increased

70
 d) Company policy and administration

Aw
are
nes
s of
on-
line

19
sha
re
trad

20
ing

18 Techniques to increase mo-

15 tivation
16 14
14
A system approach
12
9
10 Employees can be increased
8
6 Company policy and adminis-
tratio
4
2
0
EMPLOYEE RESPONSE

In my research I found that 19% respondents said that Employee can be increased need inno-
vative and exciting offers while only 15 % respondents said for Asystem Approach exciting of-
fers.

Q7 which of the following need do you get motivate

a) Primary need

b) Esteem need

c) The responsibility of personal growth

71
 d) Recogination

23
25

#REF!
20

Esteem need
13
15
11 Primary need
10
10 Recogination

0
EMPLOYEE RESPONSE

In my research I found that 23% respondents said that Esteem need innovative and exciting of-
fers while only 13 % respondents said for Recogination exciting offers.

Q8. Which of the following do you get non employee satisfaction of need?
a) Human being lacks ambition

b) Constructive behavior

72
 c) Possibility of personal growth

d) Coordination and control

19

16
Human being lacks ambition
13
Constructive behavior

9 Possibility of personal growth

Coordination and control

EMPLOYEE RESPONSE

In my research I found that 19% respondents said that Possibility of personal growth
innovative and exciting offers while only 16 % respondents said for Human being lacks ambition
exciting offers.

Q9. Which of the following benefit from employee motivation?

a) Efficient system of grievance redresssal

b) Participation

c) Financial motivators

d) Need may be a nature

73
 30
30

25
Efficient system of
20 grievance redresssal
14 Participation
15
Financial motivators
8
10 Need may be a nature
5
5

0
EMPLOYEE RESPONSE

In my research I found that 30 % respondents said that Participation innovative and exciting of-
fers while only 14 % respondents said for Financial motivators exciting offers.

Q10. Which of the following performance do you get success?

DE
MA
T
ac-
cou
nt
ma r
ket

a) Leads to good corporate image

b) Competent leadership

c) Freedom of association

d) Problem of uneven

74
 Leads to good corporate image Competent leadership
Freedom of association Problem of uneven

22

16

10
9

EMPLOYEE RESPONSE

In my research I found that 22 % respondents said that Freedom of association innovative and ex-
citing offers while only 16 % respondents said Leads to good corporate image exciting offers.
S a
tis -
fa c
t io
n
le v
e l
am
o n
g
Cu
st o
m e
rs
w it
h
cu r
re n
t
b r
o k
er

Q11. Which of the following incentive plan do you get?

1. Hasley plan
2. Annual Bonus
3. Point rating
4. Profit sharing

75
 Frequency
of T rading

27
30 HASLEY PLAN
25
ANNUL BONUS
20 15
12 POINT RATING
15
10 PROFIT SHARING
3
5
0
EMPLOYEE RESPONSE

In my research I found that 27 % respondents said that Annual Bonus innovative and exciting of-
fers while only 15 % respondents said Profit Sharing exciting offers.

76
 FINDINGS

FINDINGS

Per
c en-
ta g e
of
e a r
n in g
s
in-
v es t
e d
in
Sh a
r e
tr a d
in g

 Most of the employee motivate through promotion.

 ITC is the market leader in the Itc Company.
 40% respondents are aware about the Motivate Policy About the company.

77
 Employee are very much stick to Provide services because the motivate by the com-
pany.
 In my Findings I found that 27 % respondents said that Annual Bonus innovative and ex-
citing offers while only 15 % respondents said Profit Sharing exciting offers.
 In my Project I found that 19% respondents said that Possibility of personal growth innova-
tive and exciting offers while only 16 % respondents said for Human being lacks ambition
exciting offers.
 In my Survey I found that 23% respondents said that Esteem need innovative and exciting
offers while only 13 % respondents said for Recogination exciting offers.
 In my research I found that 17% respondents said that Self Actualization need innova-
tive and exciting offers while only 17 % respondents said for UN satisfied exciting of-
fers.
 In my Projects I found that 22 respondents said that Leads to good human relations
innovative and exciting offers while only 15% respondents said for need satisfaction
exciting offers.

78
CONCLUSION

79
 CONCLUSION

Motivation is an aspect which covers almost all the employee from the managing directors to
his peon. The motivation is a live issue for all.

Motivation is psychological concept. Motivation is not a cause but rather the effect or result
of many going awry. Motivation drifters from person to person, industry to industry, level of
education age, nature of work etc. Motivation may be range from very high to very low.
By this study it is clear that various faction which influences motivation and productivity of
the employees each as Social Security measures, welfare facilities, salary status, Bonus,
heath condition, shift system and recognition of work are getting much importance.

As we have seen that Employee at ITC getting more benefits in term of monetary or non-
monetary. So, in today’s competitive world it is necessary to attract the talent and retain that
talent within the organization. It can be done only if any organization giving enough benefits
to their employees. Employees of ITC get more Motivation of other companies’ employee.
Through this survey I know which type of Motivation they are getting like:-

a) Social need

b) Primary need

c) Safety need

d) Job inrechment

80
 SUGGESTIONS
&
RECOMMENDATIONS

81
 SUGGESTIONS & RECOMMENDATIONS
 In the I.T.C employees feel that the salary structure is very good but give
amount is not satisfactory. 55%of the employees are satisfied by their salary
and increment, financial reward. as it is very low rate
 The higher number of employees (85%) has given strongly agree. It means in
I.T.C the belongingness o employees are very good. They have a good rela-
tionship with everyone.
 65% of employees are satisfied with recognition programs and performance
appraisal system. But 35%of the employee is still feeling that the performance
appraisal system and recognition programmer are not proper. Hence HR de-
partment should know why the employees are not satisfied whit the perfor-
mance appraisal system and which type of recognition program me they want
in future.
 The HR department should make the job more challenging. Exciting and
meaningful by the factor like goal setting. Creative work. Job rotation. Skill
diversity.

 Promotion Through Work :

Through motivating the existing employee to get more business can be

one of the modes to have greater access or approachability. The motiva-
tion to employee can be through gifts or through any memento.

 Training:

Provide the Training to our Employee. For increase sale. Few of the
Drinkers customers specially esteemed ones can be asked to give refer-
ences about relatives/ friends or any acquaintance that they consider po-
tential customer. Thus the business volume can be increased

82
LIMITATION

83
 LIMITATION

 Lack of time

 Employee are not giving the proper answer

 Less inflexion with Employee

 We Don’t know more about the Hr polices of ITC

 All detail are employee Motivation scheme not available

 Less sample selection due to more employees in the organization

84
BIBLIOGRAPHY

85
 BIBLIOGRAPHY

1). Kotler, Philip, Marketing Management, Delhi, Pearson Education Pvt. Ltd., 2004

2). Kothari, C.R., Research Methodology, New Delhi, Wishwa Prakashan Pvt. Ltd., 2003

Websites:

 www.coke.com

 www.cococolaindia.com

 www.tropicana.com

 www.google.com

Magazines:

 Business world

 Business today

News Paper

Economic Times

86
ANNEXURE

87
 ANNEXURE

1. Which of the following motivation do you get Motive?

e) Need satisfaction

f) Unsatisfied

g) Leads to good human relation

h) Ability to perform

2. Which of the following procedure to employee motivate?

e) Goal directed behavior

f) Equirment & support

g) Leads to higher efficiency effective

h) Professional skills

3. Which of the following motivation do you get from.

e) Fair remuneration

f) Negative motivation

g) Situational motivation

h) Other incentives

4 .which of the classification need do you get motive.

e) Social need

f) Primary need

g) Safety need

h) Job inrechment

5. Which of the motive do you get goal oriented process?

e) Self actualization need

f) Work condition

g) Un satisfied need

h) Dynamic & situational

6. Which of the hygiene or maintenance factors do you get motivate.

e) Techniques to increase motivation

f) A system approach

g) Employees can be increased

h) Company policy and administration

88
7. which of the following need do you get motivate
e) Primary need

f) Esteem need

g) The responsibility of personal growth

h) Recogination

8. Which of the following do you get non employee satisfaction of need?

e) Human being lacks ambition

f) Constructive behavior

g) Possibility of personal growth

h) Coordination and control

9. Which of the following benefit from employee motivation?

e) Efficient system of grievance redresssal

f) Participation

g) Financial motivators

h) Need may be a nature

10. Which of the following performance do you get success?

e) Leads to good corporate image

f) Competent leadership

g) Freedom of association

h) Problem of uneven

Q11. Which of the following incentive plan do you get?

1. Hasley plan
2. Annual Bonus
3. Point rating
4. Profit sharing

89
90