A STUDY ON REWARD AND RECOGNITION PROGRAM AND

ITS EFFECTIVENESS AMONG THE EMPLOYEES IN

MURUGAPPA GROUPS.

Project submitted to Auxilium College (autonomous) in the partial fulfilment of

the requirements for the award of the Human Resource Management and
Development-UGC Certificate course

Submitted by
P.PAVITHRA
(Reg.No-30517U10044)

Under the guidance of

MS.THENMOZHI M.Com, M.Phil.

AUXILIUM COLLEGE (Autonomous)

(Re-Accredited by NAAC with a CGPA of 3.55 out of 4 in the 3rd cycle)
MARCH-2020

7
 CERTIFICATE

This is to certify that the project entitled “A STUDY ON REWARD AND RECOGNITION
PROGRAM AND ITS EFFECTIVENESS”, submitted by P.PAVITHRA to Auxilium College
(Autonomous), in partial fulfilment of the requirement for the award of the Human Resource
Management and Development is a record of bona fide project work done by the candidate
during the period 2019-2020.

HRM CO-ORDINATOR SIGNATURE OF THE GUIDE

VIVA Examination date:

EXTERNAL EXAMINER INTERNAL EXAMINER
 DECLARATION

I hereby declare that the project entitled “A STUDY ON REWARD AND RECOGNITION
PROGRAM AND ITS EFFECTIVENESS”, in partial fulfilment of the requirement for the
award of the Human Resource Management and Development.

PLACE-VELLORE
P.PAVITHRA
DATE-
 ACKNOWLEDGEMENT
I thank almighty God for giving me Physical, mental, strength and ability for the
effective completion of this project.

I take this opportunity to express my deep sense of gratitude and respectful regards
to our esteemed principal Dr. (Sr) Regina Mary M.Sc., M.Phil., Ph.D.
and I dedicate my sincere thanks to our respected Vice Principal Sr.Sumathi M
MA., M.Phil., SET, (Ph.D.) on this occasion.

I thank our respected guide Ms.Thenmozhi M.com., M.Phil.

Department of Commerce, Auxilium College Vellore, for her consistent
encouragement during the project work. Her motivation helped me to achieve great
things, during the course of study.

Finally with great enthusiasm I express my thanks to all my department lecturers

for providing necessary information and their sustained interest in my part of
fruitful completion.

P.PAVITHRA
S.NO SUBJECT PAGE NO

1. CHAPTER-1 1-7
1.1 INTRODUCTION 1
1.2 OBJECTIVE OF THESTUDY 1
1.3 NEED FOR THE STUDY 2
1.4 RESEARCH METHODOLOGY 3
1.5 SCOPE OF THE STUDY 4
1.6 LIMITATION OF THE STUDY 4
2 CHAPTER-2 8-10
2.1 REVIEW OF LITERATURE 8
3 CHAPTER-3 11-22
3.1 CONCEPTUAL FRAMEWORK 11
4 CHAPTER-4 22-32
4.1 DATA ANALYSIS AND INTREPRETATION 23
5 CHAPTER-5 33-35
5.1 FINDINGS,SUGGESTIONS AND 33
CONCLUSIONS
 CHAPTER -1

INTRODUCTION

CHAPTER-1
 INTRODUCTION
The reason behind doing this project is to examine that, what is the role of rewards and
recognition scheme in employee’s motivation .The basis for the efficient functioning of a
company is that its employees work hard and stay motivated. This can only happen if the
employees find a driving force towards working in a better way from within a company. And a
company can reciprocate to its employees in no better way than the rewards and recognition
along with constant appreciation and most importantly constructive criticism have been the
reason for the employees to work better than they do before. By implementing different awards
and recognition, firms show that the employee is not unnoticed and that their work is dearly
valued.

Organisational success is driven by satisfied and motivated employees. Satisfaction

and motivation can be enhanced through rewards and recognition. Recognises and rewards are
achievements that have a notable impact on a program, to project an individual activity that
contributes to the vision and to the pursuit of excellence.

OBJECTIVE OF THE STUDY.

PRIMARY OBJECTIVE:

To study The Reward and Recognition program and its effectiveness among the employees.

SECONDARY OBJECTIVES:

1. To assess the overall employee opinion about the current Reward and Recognition program in
the organization.

2. To determine the factors which can motivate the employees to perform to the fullest extent of
the capabilities.

3. To identify the level of satisfaction employees have towards the current Reward and
Recognition program in the organization.
4. To discuss alternative Reward and Recognition program including Non-monetary Benefits.

5. To suggest various methods which instantly and innovatively recognize and Reward
Employees for Exemplary individual and team behaviors

NEED OF THE STUDY

The employee recognition is so important in today’s competitive workplaces. But here are some
significant reasons why three is a need to consider implementing a recognition routine in the
office today to continue to build a great business:

1. To meet the present and emerging challenges of the organization a need has been felt to
optimize the potential of executives, in line HRM Mission.

2. Improve Reward and Recognition program & Team Culture in the organization.

3. Increased Performance -Motivated and driven employees produce outstanding results. Take
pride in their work and in their job responsibilities

4. Feel appreciated for their contributions

 RESEARCH METHODOLOGY

Introduction

The data collection for this research as provided the base for its analysis and interpretation.
The data was collected was used to drafts charts, illustrate through graphs and thus provide for
its adequate interpretation. In this research, primary data as well as secondary data has been used.

Methods of data collection

Primary data was collected through questionnaire to each person and secondary data was
collected through reports, magazines and internet.

Methodological assumptions

The data provided are assumed to be true and unbiased.

Research design

The research design is empirical in nature. This study was both analytical and diagnostic
approach. The study is based on the primary data gathered the self-administered questionnaire.

Plan of analysis:

 For the purpose of analysis, the data collection from question has been classified
and tabulated.
 Percentage have been taken to get a better picture of the analysis.
 The set of analysis have been formed on the basis to draw conclusion and
suggestions have been made on the inference and analysis drawn.

Sample size:

The sample size of this survey is the working employees of PARRY CO.,
MURUGAPPA GROUPS. The number of respondents of the sample is 50.
SCOPE OF THE STUDY.

1. The study enumerates the importance of the Reward and Recognition and its Effectiveness in
the organization.

2. Recognizing and rewarding good performance in an organization.

3. Building an effective employee recognition strategy.

4. Work content probed the respondents feeling about the type of work they do.

5. Payment probed respondent’s satisfaction with their salary.

6. Promotion probed for the opportunity that the organization offers for promotion.

7. Recognition probed whether the respondent was receiving the recognition and feedback for the
job they perform.

8. Working conditions were probed as the fifth factor and looked at opportunity to mix with
colleagues and inter personal relationships

9. Benefits looked at whether the benefits such as Reward and Recognition schemes satisfactory.

10. Personal probed the respondents feeling towards their job.

11. Leadership or supervision probed the level of satisfaction with the manager.

12. General probed if the respondents has considered alternative employment, and hence their
level of satisfaction with the organization.

LIMITATION OF THE STUDY.

Time was the most important constraint in carrying out this project. During the research
methodology process/time, it was difficult to collect. Information because of the busy schedule
for their work. There was scope of biased response. Employees could be biased.
 COMPANY PROFILE
Murugappa Group

Founded in 1900, the INR 369 Billion (36,893 Crores) Murugappa Group is one of India's
leading business conglomerates. The Group has 28 businesses including nine listed Companies
traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group
include Carborundum Universal Ltd., Cholamandalam Financial Holdings Ltd., Cholamandalam
Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company
Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., EID Parry (India)
Ltd., Parry Agro Industries Ltd., Shanthi Gears Ltd., Tube Investments of India Limited., Net
Access India Ltd and Wendt (India) Ltd.

Corporate office of Murugappa Group

Type Private

Industry Conglomerate

Founded 1900; 120 years ago

Headquarter Chennai
s

Key people M. M. Murugappan (Executive Chairman)

M.V. Subbiah
Products Cycles, general
insurance, Fertilizers, Abrasives, Automotive
chains, Car door frames, Steel
tubes & Gearboxes.

Revenue  ₹36,893 Crores (US $5.3 billion) (FY

2018-19) 

Number of 49000
employees

Parent Murugappa Holdings Limited, New Ambadi

Estates Private Limited, Ambadi Enterprises
Private Limited

Website www.murugappa.com
One of India’s largest integrated agri solutions providers, we, Coromandel International Ltd., are
a flagship company of the diversified ₹329 billion Murugappa Group.
Our roots can be traced back to 1906 when our parent company E.I.D Parry started operating the
first Single Super Phosphate plant in India at Ranipet. Currently, with the manufacturing
capacity at nearly 4.5 million tons, we provide unique crop solutions to nearly 2 Crore farmers in
India and around the world. We rank amongst the leading Indian manufacturers and marketers of
Crop Protection products. We have been collaborating with farmers and bringing the latest
innovations in farm technology to improve their overall well-being through our high quality
products. We accomplish this through our wide network of around 800 Retail Centers across the
states of Andhra Pradesh, Telangana, Karnataka and Maharashtra.

Vision

To be the leaders in Farm Solutions business in geography of choice, consistently delivering

superior value to stakeholders through highly engaged employees, with a strong commitment
towards sustainability and our values.

Mission

To enhance prosperity of farmers through quality farm solutions with sustainable value for all
stakeholders.
 CHAPTER-2

REVIEW OF LITERATURE

CHAPTER-2

REVIEW OF LITERATURE

Albert Bandura (1969): The implications of social learning theory for employee
motivation are abundant and hence it is imperative to assess the theory in the light of the present
research concern. According to the theory, the importance associated to the concept of
recognition would depend on an individual's past experiences and his or her self-belief about it.
Likewise, one's perception would also be influenced by others (top management and senior)
behaviour. That is to say the social learning theory plays a critical role in understanding an
individual's perception of recognition and the value associated with it.

Heike (2009): The phenomenon of recognition as introduced in the earlier chapter

provides for Individual political, social and psychological benefits. After food, it is by far the
most significant of human needs and as Heikki (2009) points out, "without recognition humans
in general would not lead a life above merely animal existence." (Heikki 2009, p.39) Role of
recognition in driving human action can be gauged by its placement in the various theories of
motivation; need for recognition has been a part of both the traditional and contemporary
theories of motivation.

David McClelland (1953): Maslow's need theory and condensed it to three main needs for
power, affiliation and achievement. Here again the need for recognition is manifested in all the
three forms of needs suggested by McClelland. Frederick Herzberg (1959) opined that human
needs were derived either from animal instincts of humans (survival, hunger etc) or from an
individual's urge to realize potential. He and his associates developed a framework of two factor
theory called motivation and hygiene theory which categorized factors associated with work as
either motivators (driven from intrinsic needs) or movers (driven from extrinsic needs).
Recognition was found in Herzberg's study as a source of motivation when given in the form of
direct feedback.

  Alderfer's ERG theory (1972): Alderfer's ERG theory (1972) also points out the role of
recognition in context of an individual's need for relatedness. Thus as a basic psychological need
of human beings, recognition invariably finds its place in need based theories of human work
motivation. A comparison of all such theories illustrates the congruence as they relate to the
same set of needs. . A comparison of content theories; other than the lower order needs,
recognition finds its place at the higher end of the hierarchy. Through recognition from group
members an individual satisfies the need for acceptance in social life. Through recognition of an
individual's efforts, one satisfies the need for self-esteem and self-actualization.
 Gneezy (2003) The Gneezy conclude that effect of extrinsic rewards on performance depends
on the size of reward and that counter productivity happens in case of small incentives and not
large ones. Citing a study by Lazear (2000), (where a 44% rise in productivity was observed with
a change in the payment scheme), Gneezy asserts that economic theory and psychological and
sociological findings for the role of reward depends on the size of reward. It is concluded that
using high payoffs that are contingent on performance result in higher productivity. A plot with
incentives on the horizontal axis (such that fines are on the negative side and rewards on the
positive), and performance on the vertical axis, resulted in a W-shaped graph.

Morgan (1984) The reviewed literature in the field of class room learning and intrinsic
motivation and concluded that undermining and enhancing effect of rewards depends on
circumstances and that the effect does not necessarily lead to decrement in performance. It was
suggested that recipient's perspective of reward was important in determining the effect of
reward and that the reward size and type did not matter. The study disapproves of 'blanket
condemnation of concrete rewards' as proposed by the over justification theory.

Eisenberger and Cameron (1996) It suggested that it is time to move beyond the traditional
notion of detrimental effect of rewards. It is asserted by the authors that the negative effect of
rewards is largely restricted and that positive effects can be attained easily with the use of
behavioural theory techniques. 

Elaborating on the nature of rewards, Weick (1978): He discussed the role of individual's
instrumentality in determining the impact made by a reward. Taking further the argument of 'no
universal reward' author claimed that an individual's instrumentality keeps changing with
situation and as such which reward would determine what in whom was difficult to answer.
"When using instrumentality notions, we must remember that instrumentality is fluid and
malleable rather than stable and durable. A person's ideas about instrumentality itself can shift
dramatically overtime.
 Lawerence Lindhal (1949), He conducted a series of researches where employees
consistently ranked items such as "full appreciation for work done", "feeling in on things", and
"interesting work" as being more important to them than the traditional incentives such as "good
wages", "job security", or "promotion/growth opportunities". (Cited in Nelson 2001) Lindhal's
study had set off a large number of studies in this area and the results of the study were
replicated by many researchers like Kenneth Kovach (1980), Valerie Wilson, Achievers
International (1988), Bob Nelson, Blanchard Training & Development (1991), Sheryl & Don
Grimme, GHR Training Solutions (1997-2001).
 CHAPTER-3

CONCEPTUAL FRAMEWORK

CHAPTER-3

CONCEPTUAL FRAMEWORK

Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources. A
company or organization's HR department is usually responsible for creating, putting into effect
and overseeing policies governing workers and the relationship of the organization with its
employees. The term human resources was first used in the early 1900s, and then more widely in
the 1960s, to describe the people who work for the organization, in aggregate.

HRM is really employee management with an emphasis on those employees as assets of the
business. In this context, employees are sometimes referred to as human capital. As with other
business assets, the goal is to make effective use of employees, reducing risk and maximizing
return on investment.

The modern HR TECHNOLOGY term, human capital management, has come into more
frequent use than the term, HRM, with the widespread adoption by large and midsize companies
and other organizations of software to manage many HR functions.

Objectives of human resource management

The objectives of HRM can be broken down into four categories:

Societal objectives: Measures put into place that respond to the ethical and social needs or
challenges of the company and its employees. This includes legal issues such as equal
opportunity and equal pay for equal work.

Organizational objectives: Actions taken that help to ensure the efficiency of the organization.
This includes providing training, hiring the right amount of employees for a given task or
maintaining high employee retention rates.

Functional objectives: Guidelines used to keep the HR functioning properly within the
organization as a whole. This includes making sure that all of HR’s resources are being allocated
to its full potential.

Personal objectives: Resources used to support the personal goals of each employee. This
includes offering the opportunity for education or career development as well as maintaining
employee satisfaction.

Employee Reward and Recognition Systems

In a competitive business climate, more business owners are looking at improvements in quality
while reducing costs. Meanwhile, a strong economy has resulted in a tight job market. So while
small businesses need to get more from their employees, their employees are looking for more
out of them. Employee reward and recognition programs are one method of motivating
employees to change work habits and key behaviours to benefit a small business.

REWARD VS. RECOGNITION

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
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. They are intended to provide a psychological—
rewards a financial—benefit. 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.

DIFFERENTIATING REWARDS FROM MERIT PAY AND THE PERFORMANCE

APPRAISAL
In designing a reward program, a small business owner needs to separate the salary or merit pay
system from the reward system. Financial rewards, especially those given on a regular basis such
as bonuses, profit sharing, etc., should be tied to an employee's or a group's accomplishments and
should be considered "pay at risk" in order to distance them from salary. By doing so, a manager
can avoid a sense of entitlement on the part of the employee and ensure that the reward
emphasizes excellence or achievement rather than basic competency.

Merit pay increases, then, are not part of an employee reward system. Normally, they are an
increase for inflation with additional percentages separating employees by competency. They are
not particularly motivating since the distinction that is usually made between a good employee
and an average one is relatively small. In addition, they increase the fixed costs of a company as
opposed to variable pay increases, such as bonuses, which have to be "re-earned" each year.
Finally, in many small businesses teamwork is a crucial element of a successful employee's job.
Merit increases generally review an individual's job performance, without adequately taking into
account the performance within the context of the group or business.

DESIGNING A REWARD PROGRAM

The keys to developing a reward program are as follows:

 Identification of company or group goals that the reward program will support
 Identification of the desired employee performance or behaviours that will reinforce the
company's goals
 Determination of key measurements of the performance or behaviour, based on the
individual or group's previous achievements
 Determination of appropriate rewards
 Communication of program to employees

In order to reap benefits such as increased productivity, the entrepreneur designing a reward
program must identify company or group goals to be reached and the behaviors or performance
that will contribute to this. While this may seem obvious, companies frequently make the
mistake of rewarding behaviors or achievements that either fail to further business goals or
actually sabotage them. If teamwork is a business goal, a bonus system rewarding individuals
who improve their productivity by themselves or at the expense of another does not make sense.
Likewise, if quality is an important issue for an entrepreneur, the reward system that he or she
designs should not emphasize rewarding the quantity of work accomplished by a business unit.

Properly measuring performance ensures the program pays off in terms of business goals. Since
rewards have a real cost in terms of time or money, small business owners need to confirm that
performance has actually improved before rewarding it. Often this requires measuring something
other than financial returns: reduced defects, happier customers, more rapid deliveries, 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. Good incentive
pay packages provide an optimal challenge, one that stretches employees but remains in reach. If
too much is required to reach the goal, the program will be ignored.

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 an
employee's performance for the previous year, 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 of 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 money.
Unless well managed, profit sharing may not properly motivate individuals if all receive the
share anyway. A team spirit (everyone pulling together to achieve that profit) can counter this—
especially if it arises from the employees and is not just management propaganda.

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 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 cancelled. 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
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 under-performing 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.

RECOGNITION PROGRAMS
For small business owners and other managers, a recognition program may appear to be merely
extra effort on their part with few tangible returns in terms of employee performance. While
most employees certainly appreciate monetary awards for a job well done, many people merely
seek recognition of their hard work. For an entrepreneur with more ingenuity than cash available,
this presents an opportunity to motivate employees.

Nor will the entrepreneur be far off the mark. As Patricia Odell reported, writing for Promo,
"Cash is no longer the ultimate motivator." Odell cited data from the Forum for People
Performance Management and Measurement at Northwester University—which had discovered
that non-cash awards tend to be more effective; the exception was rewarding increasing sales.
"The study found," Odell wrote, "that non-cash awards programs would work better than cash in
such cases as reinforcing organizational values and cultures, improving teamwork, increasing
customer satisfaction and motivating specific behaviors among other programs."

In order to develop an effective recognition program, a small business owner must be sure to
separate the program from the company's system of rewarding employees. This ensures a focus
on recognizing the efforts of employees. To this end, although the recognition may have a
monetary value (such as a luncheon, gift certificates, or plaques), money itself is not given to
recognize performance.

Recognition has a timing element: it must occur so that the performance recognized is still fresh
in the mind. If high performance continues, recognition should be frequent but cautiously timed
so that it doesn't become automatic. Furthermore, like rewards, the method of recognition needs
to be appropriate for the achievement. This also ensures that those actions which go farthest in
supporting corporate goals receive the most attention. However, an entrepreneur should remain
flexible in the methods of recognition, as different employees are motivated by different forms of
recognition. Finally, employees need to clearly understand the behavior or action being
recognized. A small business owner can ensure this by being specific in what actions will be
recognized and then reinforcing this by communicating exactly what an employee did to be
recognized.

Recognition can take a variety of forms. Structured programs can include regular recognition
events such as banquets or breakfasts, employee of the month or year recognition, an annual
report or yearbook which features the accomplishments of employees, and department or
company recognition boards. Informal or spontaneous recognition can take the form of privileges
such as working at home, starting late/leaving early, or long lunch breaks. A job well done can
also be recognized by providing additional support or empowering the employee in ways such as
greater choice of assignments, increased authority, or naming the employee as an internal
consultant to other staff. Symbolic recognition such as plaques or coffee mugs with inscriptions
can also be effective, provided they reflect sincere appreciation for hard work. These latter
expressions of thanks, however, are far more likely to be received positively if the source is a
small business owner with limited financial resources. Employees will look less kindly on
owners of thriving businesses who use such inexpensive items as centrepieces of their reward
programs.

Both reward and recognition programs have their place in small business. Small business owners
should first determine desired employee behaviors, skills, and accomplishments that will support
their business goals. By rewarding and recognizing outstanding performance, entrepreneurs will
have an edge in a competitive corporate climate.

Employee Recognition in the Workplace: The Why and How

In today’s ultra-competitive work environment, the companies with the winning edge
are the ones that have the best-trained and well-skilled staff. However, even the best employees
cannot perform well (or can even jump ship) when they are not motivated enough. This is why
employee recognition in the workplace has to be an innate part of any company’s culture.
What is employee recognition?

Employee recognition is the acknowledgment of a company’s staff for exemplary performance.

Essentially, the goal of employee recognition in the workplace is to reinforce particular
behaviors, practices, or activities that result in better performance and positive business results.

Why is employee recognition that important?

One of the biggest motivators for employees is to be held in high esteem by their peers. The best
way of earning this respect is by being acknowledged for being good at what they do.

While most would relate rewards and recognition to monetary bonuses or extravagant awarding
events, employee appreciation doesn’t have to be that expensive or glamorous. Employee
rewards can be as candid as a pat-on-the-back and a genuine compliment. It can also be as simple
as a ‘thank you’ email or a friendly greeting at work.

Here are the four main benefits of employee recognition:

Make employees happier

Happy employees are more productive. Being recognized gives your staff the feeling of job
mastery and that they are a great fit for their role and for the company.

Acknowledgment can also improve productivity, enhance loyalty, and promote collaboration. To

add, the workplace should be an environment where positive reinforcement is promoted and
constructive feedback is embraced.

Improve employee retention

Hiring your staff only marks the beginning of the employee cycle. Next, you need to train,
develop, motivate to them to perform, and ultimately, keep them. So, how do you keep your
company’s most valued asset? The answer – incentive programs.
Employee retentions the ability of an organization to retain its employees. Employee rewards and
recognition is one of the possible approaches to retain your staff. One example can be financial
incentives such as raises, bonuses, and stock options.

Employee recognition gifts are also a great plus – for example, a gift card from their favourite
store or a token of appreciation for every five years of service. Incentive programs as means of
employee recognition in the workplace is a great way to show appreciation for your employees,
keep them motivated, and make them stay.

Cultivate a culture of self-improvement

Another benefit of employee recognition in the workplace is that it can be the foundation of
cultivating a culture of self-improvement. One of the best ways for staff recognition is to provide
them with opportunities to learn and make themselves better at what they do. To take it a step
further, it will also be great to incentivize learning – reward those who have taken the time to
focus on self-improvement.

Boost morale

The way your organization’s leaders manage your employees also plays a significant factor in
employee motivation. Letting your staff know their hard work is being recognized by the
management can help motivate your company’s most valuable asset.

A simple greeting before and at the end of the day is an obvious but sometimes overlooked form
of recognition. Saying a sincere thank you and apologizing for some misunderstanding can be
subtle ways of showing appreciation and respect. These small gestures may seem quite trivial.
But, these are some of the best (and most cost-effective) ways of employee recognition in the
workplace

Employee Appreciation Events/ Days

It’s always better to praise your best employees in front of their co-workers because it can boost
their self-esteem. Not only that, your employees will do their best to get recognized, knowing
that you’re an appreciative employer. You can have an ‘Employee(s) of the Month/ Quarter/
Year’ for your team’s top performers.
Don’t forget to also celebrate birthdays, work anniversaries, new additions to the family, and
other noteworthy life-occasions. Attach a card to say thanks to your employee’s pay checks.
Send a thank you email for a job well done. Always remember that employee recognition in the
workplace doesn’t have to be expensive or complex programs. Even the smallest of gestures can
have the biggest of impacts.

Bonus/ Treats

There are so many ways to treat your employees for doing a great job. Here are some ideas:

· Monetary bonuses will show them they are valued and make them feel their hard work is
paying off and is greatly appreciated by the company.
· Give away company-branded gift tees, sweatshirts, or tokens (like pens, bags, mugs, etc.) to
employees who are doing great.

Employee recognition wall

Another one of those creative employee recognition ideas is the Recognition Wall. We can set-
up a board in the office and have everyone at the office fill it with sticky notes that contain
congratulatory messages to exemplary co-workers.

This can serve as inspiration for those who did well to keep doing better. It will also challenge
those who don’t find their names on the wall to keep on trying to do better until they see posted
messages addressed to them.

Extra Tips
 Recognition programs should be all-inclusive. Everyone needs to be eligible for the
rewards. Excluding specific employee or groups can negatively affect performance.
 Don’t hold up too long to remember somebody for their diligent work. ‘Now’ is always
the best time to say ‘thanks,’ ‘congratulations,’ or ‘job well done.’ This is so that the
employee can associate the recognition with the exact behaviors that resulted in an
exemplary performance.
Conclusion
There are countless ways to put employee recognition in the workplace into action; however, it
all begins with company culture. A winning employee recognition program starts with having a
company culture that advocates appreciation for top performers. This can be the foundation for
solid staff engagement, continuous employee development, and retention strategy for the future.
 Chapter-4

DAT ANALYSIS

&

INTERPRETATION

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

GENDER WISE DISTRIBUTION OF THE RESPONDENTS

Gender Frequency Percent Cumulative percent

 Male 50 100 100
Female 0 0 0

Chart Title
60

50

40

30

20

10

0
Male Female

INFERENCES:

From the above table it is clear that 100% of the respondents are male and there is
no female.

EDUCATIONAL QUALIFICATION

Qualification Frequency percent Cumulative percent

ITI 30 60 60
Diploma 5 10 70
Under graduate 12 24 94
 Post graduate 3 6 100
TOTAL 50 100

Chart Title

6%
ITI
Diploma
24%
Undergraduate
Post graduate
60%
10%

INFERENCES:

From the above table it is clear that, 60% of the respondents qualification is ITI,
10% of the respondents are diploma, 24% of the respondents are undergraduates, 6% of the
respondents are post graduates.

DESIGNATION WISE DISTRIBUTION OF THE RESPONDENTS

DESIGNATION FREQUENCY PERCENT CUMULATIVE

Fitter/plant worker 13 26 26
Electrician/technician 10 20 46
Operators 11 22 68
Officers/Maintenance/Accou 14 28 96
ntant
Management/HR 2 4 100
 TOTAL 50 100

Chart Title
16
14
12
10
8
6
4
2
0

INFERENCES:

From the above table it is clear that, 26% are working as fitter/plant workers, 20%
are working as electrician/technician, 22% are working as operators, 28% are working as
officers/maintenance/accountant, 4% are managers/HR.

AGE WISE DISTRIBUTION OF THE RESPONDENTS

AGE(in years) FREQUENCY PERCENT CUMULATIVE

Below 20 0 0 0
21-30 4 8 8
31-40 27 54 62
41-50 18 36 98
Above50 1 2 100
TOTAL 50 100
 Chart Title

27

18

0 4
1
BELOW 20 21-30 31-40 41-50 ABOVE50

INFERENCES:

From the above table it is clear that, 54% of the respondents are between the age
group 31-40 years, 36% of the respondents are between the age group 41-50, 8% of the
respondents are between the age group 21-20 years, 2% of the respondents are above 50 years
and there is no respondents below 20 years.

SALARY WISE DISTRIBUTION OF THE RESPONDENTS

Salary(per month) Frequency Percent Cumulative

Below 10000 0 0 0
10001-20000 4 8 8
20001-30000 29 58 66
30001-40000 15 30 96
Above 40000 2 4 100
50 100
 Chart Title
35

30

25

20

15

10

0
Below 10000 10001-20000 20001-30000 30001-40000 Above 40000

INFERENCES:

From the above table it is clear that, 58% of the respondents are earning between
20001-30000, 30% of the respondents are earning between 30001-40000, 4% of the respondents
are earning above 40000 and none of the respondents are earning below 10000.

REWARD AND RECOGNITION GIVEN TO THE EMPLOYEES

S.NO STATEMENTS VERY GOOD FAIR POOR VERY TOTAL

GOOD POOR
1 Promotion and 26.70% 54.30% 19% 0% 0% 100.00%
transfer
2 Incentives 14.30% 63.80% 20% 1.90% 0% 100.00%

3 Special wages 15.20% 62.90% 20% 1.90% 0% 100.00%

4 Cash awards 11.40% 48.60% 37.10% 2.90% 0% 100.00%

5 Gift coupons 15.20% 42.90% 33% 9.00% 0% 100.00%

6 Leave travel 17.10% 46.20% 36% 1.00% 0% 100.00%

concessions
7 Bonus 19.50% 33.40% 40% 7.10% 0% 100.00%

8 Family trips and 22.75% 46.20% 30% 1.00% 0% 100.00%

tours
9 Best employee 17.10% 48.10% 34% 1.00% 0% 100.00%
award
 Chart Title
70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

VERY GOOD GOOD FAIR POOR VERY POOR

INFERENCES:

From the above tale it is clear that the 54.3% of the respondents feels that the reward
of promotion and transfer are good ,63.8% of the respondents feels that the reward of incentives
are good,62.9% of the respondents feels that the reward of special wages are good,48.6% of the
respondents feels that the reward of cash awards are good,42.9% of the respondents feels that the
reward of gift coupons are good,46.2% of the respondents feels that the reward of leave travel
concession is good,40% of the respondents feels that the reward of bonus is fair,46.2% of the
respondents feels that the reward of family trips and tours are good and 48.1% of the respondents
feels that the reward of best employee award is good.
PART-C: Effectiveness of rewards and recognition

(Highly satisfied-HS, Satisfied-S, Neither –N, Dissatisfied-DS, Highly dissatisfied-HDS)

Statements HS S N DS HDS TOTAL

1 Encouraging the 29.0% 56.7% 14.3% 0% 0% 100%
performance with
designation helps
employees to work
efficiently to increase the
production
2 Individual bonus incentives 18.1% 62.9% 19% 0% 0% 100%
improves the performance
of the employees to work
the stress free and
involvement

3 Providing team rewards and 24.3% 51% 24.7% 0% 0% 100%

recognition build a team
spirit and cooperation
among the co-workers.

4 Employees efforts are 16.10% 55.2% 26.70% 1% 0% 100%

valued and respected by
means of special
incentives/bonus creates
job satisfaction
5 Rewarding the best 22.4% 55.6% 21% 1% 0% 100%
performance create a
competitive spirit among
the employees towards the
job.
 Chart Title

22.40% 55.60% 21% 1%

0%

16.10% 56.20% 27% 1%

0%

24.30% 51.00% 25% 0%

18.10% 62.90% 19% 0%

29.00% 56.70% 14% 0%

HIGHLY SATISFIED SATISFIED NEITHER

DISSATISFIED HIGHLY DISSATISFIED

INFERENCES:

From the above table it is that the, 56.7% of the respondents agree that
encouragement helps to work efficiently, 62.9% of the respondents agree that individual bonus
improves in involvement in performance, 51% of the respondents agree that providing team
rewards builds the spirit of team work, 55.2% of the respondents agree that employees efforts are
valued by special bonus which creates job satisfaction, 55.6% of the respondents agree that
rewarding the best performance creates a competitive spirit
 C
HAPTER-5

FINDINGS, SUGGESTIONS

&

CONCLUSIONS

CHAPTER-5

FINDINGS, SUGGESTIONS& CONCLUSIONS

FINDINGS:

 100% of the respondents are male.

 60% of the respondent’s qualification is ITI.
 28% of the respondent’s designation are office, maintenance/accountant.
 54% of the respondents are between the age group 3-40 years.
 58% of the respondents are earning between 20001-30000.
 54.3% of the respondents feels that the reward of promotion and transfer are good.
 63.8% of the respondents feels that the reward of incentives are good.
 62.9% of the respondents feels that the reward of special wages are good.
 48.6% of the respondents feels that the reward of cash awards are good.
 42.9% of the respondents feels that the reward of gift coupons are good.
 46.2% of the respondents feels that the reward of leave travel concession is good.
 40% of the respondents feels that the reward of bonus is fair.
 46.2% of the respondents feels that the reward of family trips and tours are good.
 48.1% of the respondents feels that the reward of best employee award is good.
 56.7% of the respondents agree that encouragement helps to work efficiently.
 62.9% of the respondents agree that individual bonus improves in involvement in
performance to work without stress.
 51% of the respondents agree that providing team rewards builds the spirit of team work.
 55.2% of the respondents agree that employee’s efforts are valued by special bonus
which creates job satisfaction.
 55.6% of the respondents agree that rewarding the best performance creates a competitive
spirit.

SUGGESTIONS

 The observation and survey suggests that the management provides reasonable facilities
and reward systems to the workers.
 The employees must make use of all the facilities which are provided in the company to
work better for the success of the management goal. This can increase their opportunity
to receive a rewards and recognitions.
 CONCLUSION

The reward and recognition are the best way to improve the performance of the workers to attain
the organisational goals. Rewards like incentives, bonus and cash awards motivate the worker to
show more interest in their work. The recognition of best employee awards, encouraging in front
of others for their best performance give them a competitive spirit to work for the company.

BIBLIOGRAPHY
Brandi, JoAnna. "9 Ways to Keep Employees Engaged." Entrepreneur. 12 April 2005.

Grimaldi, Lisa. "Study proves recognition pays off." Meetings & Conventions. August 2005.

Henneman, Todd. "Daniels' Scientific Method." Workforce Management. 10 October 2005.

Odell, Patricia. "Live from the Mo Show: Non-Cash Awards More Effective." Promo. 28
September 2005.
Parker, Owen, and Liz Wright. "Pay and Employee Commitment: The Missing Link." Ivey
Business Journal. January 2001.

Rauch, Maggie. "Communications Gap: Majority of businesses give managers little guidance on
recognition." Incentive. September 2005.

Ventrice, Cindy. "Make Their Day! Employee Recognition That Works." Berrett-Koehler

Publishers. April 2003.

Ashwathapa Human resource management

C.B.Gupta Research methodology

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A STUDY ON REWARD AND RECOGNITION PROGRAM AND ITS

EFFECTIVENESS AMONG THE EMPLOYEES IN MURUGAPPA GROUPS.

PART –A: Employee profile

NAME
GENDER M F
QUALIFICATION
DESIGNATION

Age (in years):

Below 20 21-30 31-40 41-50 Above 50

Monthly salary:

Below 10001- 20001- 30001- Above

10000 20000 30000 40000 40000

PART-B: Rewards and recognition given to employees:

Statements Very good Good Fair Poor Very poor

1 Promotion and
transfer
2 Incentives
3 Special wage
increase
4 Cash awards
5 Gift coupons
6 Leave travel
concessions
7 Bonus
8 Family trips and
tours
Best employees
award
PART-C: Effectiveness of rewards and recognition

(Highly satisfied-HS, Satisfied-S, Neither –N, Dissatisfied-DS, Highly dissatisfied-HDS)

Statements HS S N DS HDS
1 Encouraging the performance with designation
helps employees to work efficiently to increase the
production
2 Individual bonus incentives improves the
performance of the employees to work the stress
free and involvement
3 Providing team rewards and recognition build a
team spirit and cooperation among the co-workers.
4 Employees efforts are valued and respected by
 means of special incentives/bonus creates job
satisfaction
5 Rewarding the best performance create a
competitive spirit among the employees towards the
job.