A

Project Report

On

“Employee Engagement And Employee

Motivation On The Performance Of
Employees In Retail Industry”

Submitted in the partial fulfillment of the degree

of

Bachelor of Commerce (H)

Faculty Guide: Submitted by:

Ms.Ankita Singh Anurag Rai

Lecturer AJU/00561/17

ARKA JAIN University 2017-20

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 ACKNOWLEDGEMENT:

A sense of contentment and elation that accompanies the successful working of this
project would be incomplete without mentioning the names of the people who helped
me to accomplish this project, people whose constant guidance, support and
encouragement resulted in its realisation. I am highly indebted to Arka Jain
University, Jharkhand for providing me with the opportunity to work on this
Dissertation report.

I owe much to my mentor Mrs. Ankita Singh for the inspiration and guidance which
enabled me for the inspiration and guidance which enabled me to take up work which
made me learn new things and concepts.

I also wish to express my gratitude to all those seen or unseen hands and minds,
which have been in direct or indirect help in completion of my dissertation report.

Anurag Rai,

3rd Year B.COM (H),

Arka Jain University,

Jharkhand.

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 School of Commerce and Management

Certificate by the Faculty Mentor

This is to certify that Mr. ANURAG RAI Roll. No.105, a student of B.COM (H). (2018-20), has
undertaken the Project titled „„Employee Engagement And Employee Motivation On The
Performance Of Employees In Retail Industry’’ he Project report is hereby submitted by the student
for the partial fulfillment of requirement for the award of Bachelor of Commerce (H), under my
supervision. To the best of my knowledge, this project is the record of authentic work carried out during
the academic year (2019-20) and has not been submitted anywhere else for the award of any
Certificate/Degree/Diploma, etc.

Guided By: Verified By:

Ms.Ankita Singh Ms Priya Raman,

Lecturer Programme Coordinator B.Com (H)

Verified By: Verified By:

Dr.Angad Tiwary

Dean-School of Commerce & Management External Examiner

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 School of Commerce and Management

Declaration by the Student

I, ANURAG RAI , hereby declare that the Project titled, “Employee Engagement And
Employee Motivation On The Performance Of Employees In Retail Industry”, has been
carried out by me and is hereby submitted for the partial fulfillment of the requirement for the
award of degree of Bachelor of Commerce (H). To the best of my knowledge, the project
undertaken, has been carried out by me, and is my own work. The contents of this report are
original and this report has been submitted to the „ARKA JAIN University‟, Jamshedpur and it has
not been submitted elsewhere, for the award of any Certificate/Diploma/Degree etc.

ANURAG RAI

Roll No AJU/00561/17.

B.COM (H). Batch 2017-20

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 EXECUTIVE SUMMARY:

The study emphasizes the employee motivation and employee engagement and its
impact on the job performance. In order to carry out this research, the researcher has
taken the case of Retail industries. On completion of this research the author has
analysed employee motivation, employee engagement, and human resource
management in various retail industries.

This entire dissertation includes six chapters. The first chapter of this dissertation is
introduction section under which overall overview of the project is explained.
Whereas the second section that is the literature review critically evaluated theoretical
frameworks related to employee motivation and employee engagement and its impact
on job performance. The sources of literature review were books, academic journals,
publication, websites and magazines. The methodology chapter emphasized the
techniques, methods, strategies used to conduct the research. The fourth chapter
highlights the data analysis and findings of the research, whilst the fifth chapter puts
forwards the conclusion of the research underpinning the outcome of the research and
achievement of objectives. The last chapter describes the personal development
obtained by author by accomplishing this exceptional research. This report is a
descriptive one.

The employee‟s motivation cannot be effected abruptly; organized steps are highly
essential for the same. Good tactical proposals and approaches are the vital part of
such steps. Motivation is extremely crucial in shaping up the positive nature of
organisations and for giving the desired levels of motivation to the employees,
excellent interactions with them are necessary.

It was found in the research was the motivation is not the mere increase of salary or
related cash rewards. The creative force of motivation is different in different
employees and the manager should be able to gauge this difference effectively; then
only he will be able to lead them for attaining the set goals of the organization. In
addition, the creative force of motivation is different in different employees and the
manager should be able to gauge this difference effectively; then only he will be able

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to lead them for attaining the set goals of the organization. The carried out research
was effective in sorting out a few valuable directions with respect to some basic
organizational functions like „time management‟, „resource management‟,
„appraisement‟, „observation‟ and „analysis‟.

Potential winning characteristics of the research were created with the creative
assistance of the gathered data. This research project conducted on Retail industries
was very useful for analysing the human resource strategies pursued by them and also
to resolve the issues taken place in terms of both employee motivation and employee
engagement.

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 CONTENTS:

Chapter No. Chapter Name Page No.(s)

1. Introduction 8-11

1.1 Objectives of the study 12

1.2 Scope of the study 13

1.3 Review of literature 14-17

1.4 Research methodology 18

2. Data analysis 19-28

3. Recommendations 29

4. Conclusion 30

5. Bibliography 31

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 CHAPTER-1

INTRODUCTION:

 What is motivation in HRM?

Motivation is the internal and external factors that stimulate, desire and energy
in people to be continually interested and committed to a job, role or subject, or
to make an effort to attain a goal. It is the driving force behind behaviour.

 EMPLOYEE MOTIVATION:
Employee motivation is defined as the enthusiasm, energy level, commitment
and the amount of creativity that an employee brings to the organization on a
daily basis. It is all about how engaged an employee feels in tandem to the
organization‟s goals and how empowered he/she feels. Motivation is of 2 types:

 Intrinsic Motivation:
It means that an individual is motivated from within. He/she has the
desire to perform well at the workplace because the results are in
accordance with his/ her belief system.

 Extrinsic Motivation:
It means an individual‟s motivation is stimulated by external factors-
rewards and recognition. Some people may not be motivated internally
and only external motivation would work with them to get the tasks
done.

FACTORS of Employee Motivation:

 Appreciation or recognition for a job well done.
 Being in the known about company matters.
 An understanding attitude from the management.
 Job security.

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  Good wages.
 Interesting work.
 Career advancement opportunities.
 Loyalty from management.
 Good working conditions.
 Tactful discipline.

CONSEQUENCES of Employee Motivation:

 POSITIVE EFFECTS:
 Improved Job Performance: Motivated employees are much
more likely to perform at a higher standard than employees who
feel unmotivated to do their best. Motivational incentives will not
only improve job performance, but they will also improve
production.

 Improved Job Satisfaction: When employees are motivated

by monetary and non-monetary incentives, they tend to feel more
empowered to do their jobs at a consistently high level. That, in
turn, helps them to feel like they are a valued and important part
of your company, which correlates to increased job satisfaction.

 NEGATIVE EFFECTS:
 Can Create Workplace Conflict: It can create conflict and
tension at your workplace. That‟s because employees who don‟t
receive the same level of motivation may feel resentful towards
those who do, which can create discord.

 Employees Focus Solely On Incentives: Another negative

aspect is that the employees can become so focused on obtaining
incentives that they feel satisfied when they reach that goal and

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 don‟t push for more. In other words, employees can fall into the
trap of wanting to get that incentive rather than focusing on
performing.

 EMPLOYEE ENGAGEMENT:
Employee engagement is a workplace approach designed to ensure that
employees are committed to their organization‟s goals, objectives and values,
encouraged to contribute to organizational success, and are able at the same
time to enhance their own sense of well-being.

FACTORS of Employee Engagement:

 Career development opportunities
 Flexi-hours
 Fair pay structure and benefits
 Adopt a learning culture
 Leadership
 Communication
 Employee recognition
 Incentives and compensation
 Health and safety

CONSEQUENCES of Employee Engagement:

 Higher profits and productivity: Proper employee engagement will
help in incurring higher profits and at the same time the productivity
also increases.

 Improved Quality: Employee engagement helps in maintaining the

improved quality of the organization when proper opportunities are
given to the employees, this will have an influence on customer
satisfaction.

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  Customer loyalty: The employees who are happy in their work are
more likely to create loyal customers. Engaged employees tend to have a
better understanding of how to meet customer needs and as a result,
customer loyalty tends to be better in organizations where the employees
are engaged.

 Financial success: Effective employee engagement will be having a

higher effect on the organization‟s financial success. Employee
engagement predicts the employee outcomes, organizational success,
and financial performance.

 Employee performance: Engagement affects employee performance.

„Engaged employees work harder, are more loyal and are more likely to
go the „extra mile‟ for the corporation. Engagement is an „illusive force‟
that motivates an individual to achieve higher levels of performance.

Aspects of Employee Engagement:

The 3 basic aspects of employee engagement according to the global studies
are:
 The employees and their own unique psychological makeup and experience.
 The employers and their ability to create the conditions that promote employee
engagement.
 Interaction between employees at all levels.

Thus it is largely the organization‟s responsibility to create an environment and

culture conducive to this partnership, and a win-win equation.

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 1.1-OBJECTIVES OF THE STUDY:

The following objectives need to be accomplished in depth in order for procuring the
aim of the research.

 To critically review the theoretical frameworks related to employee

engagement and motivation.

 To critically analyse the significant correlation between employee motivation,

employee engagement and job performance.

 To evaluate employee engagement and employee motivation at retail industries

and its impact on the performance of employees.

 To provide recommendations for enhancing employee performance in retail

industries by emphasizing employee motivation and employee engagement
techniques and practices.

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 1.2- SCOPE OF THE STUDY:

This research emphasizes the significant relation between employee

motivation, employee engagement and job performance.

Employee motivation as well as employee engagement is the significant focus

of job performance in the retail sector. This research critically assesses the
effects of employee motivation and employee engagement on the performance
of employees in the retail industries. Retail industry can embrace effective
motivation and employee engagement practices and techniques with the help of
this research.

This research not only aims to present the theoretical aspects, but also focuses
on the significant relation between employee motivation, employee
engagement and job performance. The importance of this topic is that today
employee engagement and employee motivation has been a glowing topic
amongst irrespective of the industries.

The research determines the factors that retail organizations need to consider
for employee motivation and employee engagement.

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 1.3- REVIEW OF LITERATURE:

T.Suhasini and Dr.K.K.Kalpana (2018): This study reveals that Employee

engagement is a comprehensive task and cannot be accomplished by the effective
training programs also. Organizations can improve engagement by opportunity
thinking, enhancing employee decision making, and commitment. Employee
engagement results in reduced turnover intentions and increased innovative work
related behaviour

NP Myilswamy, Dr.R.Gaytri (2014): According to their research role of Employee

Engagement in organizational Effectiveness. It is concluded that the level of
Engagement determines employees productivity and their intention to stay in the
organization. Employee Engagement drives organizational effectiveness by improving
loyalty, retention, safety, productivity and profitability. And the employees who are
highly involved in work are more engaged.

Susi and Jawaharrani (2011): According to the literature study on Employee

engagement identified work-place culture, work-life balance policies and practices
followed in industries promotes employee engagement in their organizations to rise
productivity and retention rate .

Lockley (2012): Offering training and development programs that effectively

contributes to personal and professional growth of individuals is another effective
employee motivation strategy. At the same time he warns that in order for
motivational aspects of training and development initiatives to be increased, ideally
they need to be devised and implemented by a third party with relevant competency
and experience.

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Thomas (2009): The main challenge of motivation in workplace s is identifying what
motivates each individual employee taking into account his or her individual
differences. In other words, individual differences have been specified by Thomas
(2009) as the major obstruction for management in engaging in employee motivation
in an effective manner.

The employees and the business can be directly influenced by the programs like
development and communication events, team building etc. points out that an
organization need to have the ability in managing employee engagement and
employee motivation since they contribute a large to the success of the organization.
Performance level of employee can be enhanced through well motivation programs.

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 1.4- INDUSTRY PROFILE:

Retail in India‟s largest industry, accounting for over 10 per cent of the country‟s
GDP and around 8 per cent of the employment. Retail industry in India is at the
crossroads. It has emerged as one of the most dynamic and fast paced industry with
several players entering the market. But because of the heavy initial investments
required, breakeven is difficult to achieve and many of these players have not tasted
success so far. However, the future is promising; the market is growing, government
policies are becoming more favourable and emerging technologies are facilitating
operations. Retailing in India is gradually inching its way toward becoming the next
boom industry.

Modern retail has entered India as seen in Sprawling shopping centres, multi-storied
malls and huge complexes offer shopping, entertainment and food all under one roof.
The Indian retailing sector is at an inflexion point where the growth of organized
retailing and growth in the consumption by the Indian population is going to take a
higher growth trajectory.

The Indian population is witnessing a significant change in its demographics. A large

young working population with medium age of 24years, nuclear families in urban
areas, along with increasing working-women population and emerging opportunities
in the services sector are going to be the key growth drivers of the organized retail
sector in India.

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 1.5- COMPANY PROFILE:

 PANTALOONS:
Pantaloons Retail (India) Limited, is India‟s leading retailer that operates
multiple retail formats in both the value and lifestyle segment of the Indian
consumer marker. Headquartered in Mumbai, the company operates over 5
million square feet of retail space, has over 350 stores across 40 cities in India
and employs over 18000 people. A uniquely Indian hypermarket chain, food
bazar, a supermarket chain, blends the look, touch and feel of Indian bazaars,
with aspects of modern retail like choice, convenience and quality and Central,
a chain of seamless destination malls.

 BIG BAZAR:
Big bazar is an Indian retail chain of hypermarkets, discount department stores,
and grocery stores. The retail chain was founded by Kishore Biyani under his
parent organization Future Group, which is known for having a significant
prominence in Indian retail and fashion sectors.

 RELIANCE RETAIL LIMITED:

Reliance retail limited is a subsidiary company of Reliance Industries Limited.
Founded in 2006, it is the largest retailer in India in terms of revenue. Its rental
outlets offer foods, groceries, apparel and footwear, lifestyle and home
improvement products, electronic goods, and farm implements and inputs. The
company‟s outlets also provide vegetables, fruits, and flowers. It focuses on
consumer goods, consumer durables, travel services, energy, entertainment and
leisure, and health and well-being products, as well as on educational products
and services.

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 1.4- RESEARCH METHODOLOGY:

Research methodology is a methodology for collecting all sorts of information and

data pertaining to the subject in question. The objective is to examine all the issues
involved and conduct situational analysis. The methodology used in the study consists
of Secondary data. Secondary data has been collected from the official websites of
some retail industries, reviews from previous reports, and other related projects.

DATA COLLECTION:

The data‟s collected are from Secondary source:

 Secondary Source of Data:

 Study of files and other related projects and documents.
 Official websites of some Retail industries.
 Review of previous reports related to the topic.
 Various websites providing data on the topic.

Research Design:

 Data Collection: Secondary Data

 Research Technique: Descriptive
 Data Type: Exploratory

Exploratory Research:

It is defined as a research used to investigate a problem which is not clearly

defined. It is conducted to have a better understanding of the existing problem, but
will not provide conclusive results. Such a research is usually carried out when the
problem is at a preliminary stage. This exploratory study utilized the qualitative
research technique of interviewing.

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 CHAPTER-2

DATA ANALYSIS:

EMPLOYEE ENGAGEMENT:

It is the extent to which employees feel passionate about their jobs, are committed to
the organization, and put discretionary effort into their work.

The following is the process of Employee Engagement:

 PROCESS OF EMPLOYEE ENGAGEMENT:

 Prepare and design:

The first step in the process is about discovering the specific requirements of
your organization and deciding the priorities. After that a customised design of
carrying the whole process can be designed. It is recommended to seek advice
of expert management consultant in order to increase the chances of getting it
done right at the first attempt.

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 Employee Engagement Survey:
Design the questions of the employee engagement survey and deploy it with
the help of an appropriate media. It can be either in printed form or set online
depending upon the comfort level of the employees and your questionnaire
evaluation process.

 Result Analysis:
It is the most important step in the entire process. It is time when reports are to
be analysed to find out what exactly motivates employees to perform their best
and what actually disengages them and finally compels them to leave the
organization. The results and information can then be delivered through
presentations.

 Action Planning:
How to turn the results of the survey in to an action is a challenging question
that organizations need to deal with the utmost care. Coaching of line managers
as well as HR professionals is very important in order to tell them how to take
appropriate actions to engage employees. They should also be told about do‟s
and don‟ts so that they can successfully implement the changes.

 Action Follow-up:
Action follow up is necessary in order to find out if the action has been taken in
the right direction or not and if it is producing the desired results.

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Employee Motivation policies and Schemes at various retail Industry:

At Pantaloons:

Wage structure  The salary allocated ranges depends upon the employees
position type for employees performing the standard duties
of their jobs.

Reward Policies Pantaloons believe in sharing its progress and profitability and
reward accordingly.
 Healthcare Offers:
i. Pantaloons offers healthcare options to all monthly paid
employees and their partners.
ii. Private health insurance
iii. Gratuity scheme
iv. Free medical treatment for the employees, spouse and
the dependent family members.\

 Travel and Expenses:

Pantaloons offers travel options in a secure and comfortable
manner.

 Social Activities:
i. Pantaloons provide the employees the scheme named
“Seekho” which enables them to develop their skill sets
and opt for any educational courses.
ii. Every employee of Pantaloons contributes a small
amount from their salary each month voluntarily to the
pantaloons foundation which they can use for any
emergency needs.

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Lifestyle Options Pantaloons provides following options and benefits:
i. Flexible working.
ii. Employees can avail advance of 7 days of all purpose
leave during the probation period which will be adjusted
in the employees leave balance.
iii. Leave accumulation will be permissible up to 90 days
period.
iv. Corporate helpline- A 24-hr confidential support service
which help employees to manage stress, personal
traumatic issues.

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 At Big Bazar:

Compensation and i. The employees at Big Bazar are rewarded suitably with
rewards attractive pay packages.
ii. Salary of an employee includes basic pay, HRA, special
allowance, PF, ESI, mediclaim.
iii. Annual bonus will be given at the time of Diwali.

Lifestyle Options  Healthcare Offers:

i. The employees and their dependents are also entitled for
medical treatment in recognised hospitals with cashless
hospitalisation with whom the company has tie-ups.
ii. If a hospital is not recognised, the amount spent by the
employee will be reimbursed.

 Discount Offers:
Employees are given a card known as „Employee Discount
card‟ (EDC) through which they can buy any product at Big
Bazar at a special discount of 20-30%.

Leave Options i. An employee during his probationary period is entitled

for 7 days of leave.
ii. A confirmed employee is entitled for 30 days of leave in
a year.
iii. There is only one type of leave the employees can take
which is known as All Purpose Leave (APL).

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Performance i. Based on their performance increments will be given in
Appraisal their pay.
ii. If an employee achieves or exceeds the target given to
them along with their team members will be provided an
attractive cash price and other incentives.

At Reliance Ltd.:

Employee Reliance follows the cost to company (CTC) structure that

Remuneration reflects the total cost of an employee to an organization.

 Provident Fund:
i. The employee can take loan for specific purposes against
his/her provident fund accumulation.
ii. The employee is also covered under an Insurance
scheme, which provides for a payment of 37,000 in case
of his/her death.

 Gratuity:
Employees who have completed 5 years continuous service
with the company are eligible for the gratuity on separation
from the company. In case of death service requirement of 5
years does not apply.

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Children i. Employee can claim exemption of 2400 per year.
Education ii. This exemption is restricted up to two children.
Allowance iii. To get this benefit child‟s age should be more than 3.5
years.

Gift coupons A sum of 5000 would be exempted against the gift coupons.

Conveyance If the employee is not using company‟s car then only he can
Allowance claim this option.

Food Coupons i. The company gives SODEXHO passes in term of food

coupons.
ii. Coupons are provided on monthly basis of 1300.

Medical Allowance The employee gets an exemption of 15000 p.a.

House Rent The employees get an allowance for the house rent depending
Allowance upon his/her designation.

Paid, Casual, sick i. There are 30 days PL available with the employee after
and Optional leave the conformation.
ii. There are 5 days CL available to an employee from the
date of joining, he/she can take 1-3 days CL at a time.
iii. There are 10 days SL available to an employee from the
date of joining.
iv. There are 3 days OL available to an employee from the
date of conformation.

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 IMPACT OF MOTIVATION ON THE JOB PERFORMANCE :
 Many researchers have been concentrating on the studies dealing with the
study of the impact of motivation of employees on their job performance.
 The motivation of the employees directs and guides these employees
towards the goals, and thereby the achievement of the objectives of the
concerned firm.
 A positive correlation was identified through the research work performed
by William et al (2011), by which he strongly suggests that the motivation
of the employees in the firm.
 A motivated worker or employee of a firm, could be very well considered
as the productive employee, whose efficiency and skills have been
increased to a large extent through the process of motivation.
 The profits gained by the organization through the motivated employees,
also cause the profits and benefits to the employees.

 IMPACT OF EMPLOYEE ENGAGEMENT ON THE PERFORMANCE

LEVEL OF EMPLOYEES:
 The job performance of the employees is greatly enhanced through the
employee engagement. The enhancement in the job performance would be
mainly accomplished through the intrinsic motivation.
 The engaged employees are created as a result of the contentment as well as
the satisfaction of the employees. The employee engagement would result
in the intrinsic motivation of these employees. Through, intrinsic
motivation, there is a significant enhancement in the level of performances
in their jobs by the employees.
 With the development of employee engagement in a firm, the interactions
of these employees with the clients occur smoothly which also smoothens
the climate of service which prevails in the firm.

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 IMPACT OF EMPLOYEE ENGAGEMENT AND EMPLOYEE
MOTIVATION ON JOB PERFORMANCE:
 All employees in an organization require wages and benefits for their work.
The success of a business needs highly talented, motivated and experienced
workforce.
 Development of leadership, training, work appraisal, security, personnel
development and communication events, team building etc.
 An organization needs to have the ability in managing employee
engagement and employee motivation since they contribute a large to the
success of the organization.
 Performance level s of employees can be enhanced through well motivation
employees. An engaged and motivated employee works long for the
organization with better efforts that he/she can put to have success.
 Hence, employee engagement and motivation are unavoidable factors
concerning an organization and its success.

 RELATION BETWEEN MOTIVATION AND EMPLOYEE

ENGAGEMENT:
 There is need for all employees in the organization that they must also be
clear in their mind that which factors are motivating them and how these
factors can motivate them and satisfied them as well at the workplace.
 Employees should be more concerned and open about this issue and they
should also discuss their values with co-workers and can also be with their
employer.
 Organizations need to help employees take more responsibility in this case
and should make a strategy and processes that can help the employee in
understanding that they have a responsibility for their own development.

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 CHAPTER-3

RECOMMENDATIONS:

These are some of the recommendations to the managers of retail industries for
enhancing the quality of employee‟s motivation:

 Employees should be encouraged more so that they are engaged and feel
coherence of their goals with organizational goals.

 Co-ordination in terms of work management between various departments

should be worked upon and maintained.

 To bridge the gaps between various departments, communications and

interactions should happen in the form of various informal gatherings.

 The management can think of supplementary incentives, apart from the usual
ones, which will surely make the employees loyal and committed.

 Maintain a business culture within the organization and create a stress-free

atmosphere in all matters.

 Include employees in the decision making process and provide recreational

facilities.

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 CHAPTER-4

CONCLUSION:

The conducted research on the present day human resource challenges of the
managers of retail industries and the diverse „human resources‟ strategies used for
tackling them, with special focus on „employee motivation and engagement‟, has
fleshed out a good bundle of sensible instruction, for effective organizational
management. It clearly stipulates that equal opportunity and justice must be created
and maintained in every organization.

An effective manager must be able to motivate the employees by conducting training

programs or by employing various employee assistance programs and also by carrying
out effectual interactions with them. The employee‟s motivation cannot be effected
abruptly; organized steps are highly essential for the same. The managers must
posse‟s the proficiency and potential to motivate the employees and make them
perform, they must be able to inspire their subordinates for working in a cohesive
manner, for achieving the company goals.

Employee engagement is a measurable degree of an employee‟s positive or negative

emotional attachment to their job, colleagues and organization which profoundly
influences their willingness to learn and perform at work. Thus engagement is
distinctively different from satisfaction, motivation, culture, climate and opinion and
very difficult to measure.

Overall this dissertation was a wonderful experience. This project gave me an insight
of employee engagement and motivation in retail industries. Really, I enjoyed this
project work in its real spirit.

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 CHAPTER- 5

BIBLIOGRAPHY:

The sources through which I have been able to make this project has helped me
provide data of the company. Interpretation was not to write but irrespective of my
mentor these websites helped me in building a favourable project.

The WEBSITES which I referred to are:

1. http://study.com/academy/lesson/employee-engagement-and-motivation-in -hr-
lesson-quiz.html
2. www.quora.com
3. http://www.findarticles.com/
4. http://www.slideshare.com/
5. www.google.com
6. http://www.wikipedia.com
7. www.pantaloons.com
8. www.bigbazar.com
9. http://www.scribd.com
10. Reference of other similar dissertations.

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