DISSERTATION

ON

“A STUDY ON EMPLOYEE
MOTIVATION IN IT SECTOR”
 EXECUTIVE SUMMARY

Motivation is the complex of forces starting and keeping a person at work in an

organisation. Motivation is something that moves the person to action, and continues

him in the course of action already initiated.

Motivation refers to the way in which urges, drives, desires, aspirations, strivings or

needs direct, control or explain the behaviour of human beings.” Motivation has close

relationship with the behaviour of human beings. It explains how and why human

behaviour is caused.

So with this reference the project titled “Employee Motivation in IT sector” has been

conducted based on primary research using survey monkey software along with some

secondary data. The questionnaire is used to do the primary research while the

secondary sources include case study and Articles.

This project emphasizes on understanding the need and importance of Employee

motivation in IT sector and to analyse the various factors affecting employee

motivation at work place.

The study shows that the Employee motivation is needed in all the organisations for

proper working environment. The employees must be provided good working

environment. They must be given proper conducive environment in order to work

properly. Employees want that organisation should provide them opportunities to

define their own short term goals.

ii
Performance appraisal plays an important role in motivating employees, if an

employee will be getting timely performance appraisal then he will be very aware of

his performance and will always try to do better next time.

Any kind of incentives plays important role in motivating the employees, however,

monetary incentives are the most important type of motivating factors for employees.

Top management must also show their interest in motivating the employees. Thus,

they should participate actively in employee motivation.

If the employees will be made clear in the starting about the objectives of the

organisation and the kind of reward system associated with them, employees will do

their work in a proper manner and with full potential. Thus, rewards must be defined

well in advance.

Overall, for a better work output and for achieving organisational goals it is required

to motivate employees in a proper manner.

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 TABLE OF CONTENTS

CHAPTER PARTICULARS PAGE NO.

CERTIFICATE BY PROJECT GUIDE ii

DECLARATION BY THE CANDIDATE iii

ACKNOWLEDGEMENT iv

EXECUTIVE SUMMARY v-vi

CHAPTER-1 INTRODUCTION 1-6

1.1 CONCEPT OF MOTIVATION 2

1.2 NATURE OF MOTIVATION 4

1.3 OBJECTIVES OF THE STUDY 5

1.4 RESEARCH METHODOLOGY 5

1.5 LIMITATIONS OF THE STUDY 6

CHAPTER 2 IT SECTOR IN INDIA 7-11

CHAPTER 3 DESCRIPTIVE STUDY OF EMPLOYEE 12-38

MOTIVATION

3.1 DEFINITION OF MOTIVATION 13

3.2 NEED AND SIGNIFICANCE OF 14

MOTIVATION

3.3 EMPLOYEE MOTIVATION 15

3.4 IMPORTANCE OF EMPLOYEE 15

MOTIVATION

iv
 3.5 OBJECTIVES OF EMPLOYEE 17

MOTIVATION

3.6 DETERMINANTS OF EMPLOYEE 17

MOTIVATION

3.7 THEORIES OF MOTIVATION 19

3.8 FINANCIAL AND NON-FINANCIAL 37

INCENTIVES

CHAPTER 4 ANALYSIS AND INTERPRETATION OF 39-52

DATA

CHAPTER 5 FINDINGS,CONCLUSIONS AND 53-

SUGGESTIONS

5.1 FINDINGS 54

5.2 CONCLUSIONS 55

5.3 SUGGESTIONS 57

BIBLIOGRAPHY 58-59

ANNEXURES 60-64

v
 LIST OF DIAGRAMS

FIGURE NO. TOPIC PAGE NO.

FIG. 1.1 Motivation process 3
Fig. 3.1 Types of forces influencing human behavior 18

Fig. 3.2 Theories of motivation 19

Fig. 3.3 Maslow’s need hierarchy 20

Fig. 3.4 Comparison between herzberg and maslow 25

models
Fig. 3.5 Various elements of porter and lawler’s 29
model

vi
 LIST OF TABLES

TABLE NO. TOPIC PAGE NO.

Table No. 1.1 Big Four IT Services Company 10

Table No. 1.2 Major IT hubs 10

Table No. 3.1 Maslow Model vs. Herzberg Model 25

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 CHAPTER-1
INTRODUCTION

1.1 Concept of Motivation

1.2 Nature of Motivation

1.3 Objectives of the study

1.4 Research Methodology

1.5 Limitations of the study

1
 INTRODUCTION

1.1 CONCEPT OF MOTIVATION:

According to Robert Dubin “Motivation is the complex of forces starting and keeping

a person at work in an organisation. Motivation is something that moves the person to

action, and continues him in the course of action already initiated.” Motivation refers

to the way a person is enthused at work to intensify his desire and willingness to use

his energy for the achievement of organisational objectives. It is something that

moves a person into action and continues him in the course of action enthusiastically.

The role of motivation is to develop and intensify the desire in every member of the

organisation to work effectively and efficiently in his position.

In the words of Dalton E. McFarland, “Motivation refers to the way in which urges,

drives, desires, aspirations, strivings or needs direct, control or explain the behaviour

of human beings.” Motivation has close relationship with the behaviour of human

beings. It explains how and why human behaviour is caused. McFarland considers the

terms used in his definition in a general sense “as forms of tension occurring within

individuals, with resulting behaviour aimed at reducing, eliminating or diverting the

tension. Understanding the needs and drives and their resulting tensions helps to

explain and predict human behaviour, ultimately providing a sound basis for

managerial decision and action.” Thus, motivation is a term which applies to the

entire class of urges, drives, desires, needs and similar forces.

2
 Needs
Tension
Goals Behaviour
(motives)

Reduction of tension Goals Goals Not

Achieved Achieved

Frustration

Fig. 1.1 Motivation Process

As shown in fig 1.1, the unsatisfied needs of a person are the starting point in the

motivation process. The unsatisfied need results in tension within the individual and

motivates him to search for the ways to relieve this tension. He develops certain goals

for himself. If he is successful in achieving his goals, certain other needs will engage

himself in either constructive or destructive behaviour. This process never stops. It

keeps on working within an individual.

3
1.2 NATURE OF MOTIVATION:

The features of motivation are as under:

(i) Internal Feeling: Motivation is an internal feeling of an individual. It cannot be

observed directly; we can observe an individual’s actions and then interpret his

behaviour in terms of underlying motives. This leaves a wide margin of error.

Our interpretation may not reveal the individual’s true motivation.

(ii) Complex Process: Motivation is a complex process. Individuals may differ in

their motivation even though they are performing the same type of job. For

example, if two men are engaged in cutting stones for constructing a temple, one

may be motivated by the amount of wages he gets and the other by the

satisfaction he gets by performing his job.

(iii) Continuous Process: Motivation is a continuous process that produces goal

directed behaviour. The individual tries to find alternatives to satisfy his

needs.

(iv) Dynamic Process: Needs and motives of an individual change from time to time,

even though he may continue to behave in the same way. For example, a

temporary worker may produce more in the beginning to become permanent.

When made permanent, he may continue to produce more, this time to get a

promotion.

(v) Different from Satisfaction: Motivation is different from satisfaction. Motivation

implies a drive towards an outcome while satisfaction involves outcomes already

experienced. Satisfaction is the contentment experienced when a want has been

satisfied.

4
1.3 OBJECTIVES OF THE STUDY:

 To determine “motivational factors” for employees in IT sector.

 To identify the “practices” to motivate employees at work place.

 To evaluate effectiveness of current motivational practices in IT sector.

 To understand importance of employee motivation in IT sector.

1.4 RESEARCH METHODOLOGY:

The project study will be based upon the information gathered through primary

sources as well as through secondary sources. The questionnaire will be used to do the

primary research while the secondary sources include case studies, articles, journals

and blogs. Primary data has been collected from the respondents of different IT

companies to determine the best employee motivation practice being followed in IT

sector and the sample size has been restricted to 40 respondents. For collecting

primary data I has been using “Survey monkey” software. The collected responses has

been analyzed on Microsoft Excel by using algebraic tools like summation and

percentage. The pie-charts and graphs has been drawn on the basis of the responses

collected. Secondary data has been gathered by case studies and articles on employee

motivation of various IT companies.

My research study has been putting more emphasis on exploratory and descriptive

research methods.

5
1.5 LIMITATIONS OF THE STUDY:

 The sample size is small due to time constraint.

 Cost Constraint.

 The research may be biased as per the perception of the respondents.

 Some respondents might not give the correct information as they consider it as

wastage of their time.

 Respondents generally restrict themselves from giving online information.

6
 CHAPTER-2

IT SECTOR IN INDIA

7
 IT SECTOR IN INDIA

The Information technology industry in India has gained a brand identity as

a knowledge economy due to its IT and ITES sector. The IT–ITES industry has two

major components: IT Services and business process outsourcing (BPO). The growth

in the service sector in India has been led by the IT–ITES sector, contributing

substantially to increase in GDP, employment, and exports. The sector has increased

its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012.According

to NASSCOM, the IT–BPO sector in India aggregated revenues of US$100 billion in

FY2012, where export and domestic revenue stood at US$69.1 billion and US$31.7

billion respectively, growing by over 9%. The major cities that account for about

nearly 90% of this sectors exports are Bangalore, Hyderabad, Chennai, Delhi,

Mumbai and Bangalore is considered to be the Silicon Valley of India because it is

the leading IT exporter. Export dominate the IT–ITES industry, and constitute about

77% of the total industry revenue. Though the IT–ITES sector is export driven, the

domestic market is also significant with a robust revenue growth. The industry’s share

of total Indian exports (merchandise plus services) increased from less than 4% in

FY1998 to about 25% in FY2012.

This sector has also led to massive employment generation. The industry continues to

be a net employment generator - expected to add 230,000 jobs in FY2012, thus

providing direct employment to about 2.8 million, and indirectly employing 8.9

million people. Generally dominant player in the global outsourcing sector. However,

the sector continues to face challenges of competitiveness in the globalized world,

particularly from countries like China and Philippines.

8
India's growing stature in the Information Age enabled it to form close ties with both

the United States of America and the European Union. However, the recent global

financial crises have deeply impacted the Indian IT companies as well as global

companies. As a result hiring has dropped sharply, and employees are looking at

different sectors like the financial service, telecommunications, and manufacturing

industries, which have been growing phenomenally over the last few years. India's IT

Services industry was born in Mumbai in 1967 with the establishment of Tata Group

in partnership with Burroughs.] The first software export zone SEEPZ was set up here

way back in 1973, the old avatar of the modern day IT park. More than 80 percent of

the country's software exports happened out of SEEPZ, Mumbai in 80s.

Today, Bangalore is known as the Silicon Valley of India and contributes 33% of

Indian IT Exports. India's second and third largest software companies are head-

quartered in Bangalore, as are many of the global SEI-CMM Level 5 Companies.

Mumbai too has its share of IT companies that are India's first and largest,

like TCS and well established like Reliance, Patni, LnT Infotech, i-Flex, WNS, Shine,

Naukri, Jobspert etc. are head-quartered in Mumbai. And these IT and dot com

companies are ruling the roost of Mumbai's relatively high octane industry

of Information Technology.

Such is the growth in investment and outsourcing; it was revealed that Cap

Gemini will soon have more staff in India than it does in its home market

of France with 21,000 personnel+ in India.

On 25 June 2002 India and the European Union agreed to bilateral cooperation in the

field of science and technology. A joint EU-India group of scholars was formed on 23

November 2001 to further promote joint research and development. India holds

9
observer status at CERN while a joint India-EU Software Education and Development

Center is due at Bangalore.

Table 1.1: Big Four IT Services Company

Firm Revenues Employees Fiscal Year Headquarters

TCS $10.17 billion 254,076 2012 Mumbai

Wipro $7.30 billion 140,569 2012 Bangalore

Infosys $7.00 billion 153,761 2012 Bangalore

HCL
$4.3 billion 85,335 2012 Noida
Technologies

Table 1.2: Major IT hubs

Ran
City Description
k

Popularly known as the Silicon Valley of India and leading software

1 Bangalore exporter from India. Bangalore is considered to be a global technology
hub of India.

Chennai is a major destination of India and is the BPO hub of India.

2 Chennai
Chennai has the largest operations centers of TCS, and CTS.

Development of HITEC City prompted several IT and ITES companies to

Hyderaba
3 set up operations in the city, and has led civic boosters to call their city
d
"Cyberabad".

10
 The Financial capital of India, but recently many IT companies have
4 Mumbai
established offices.

The National Capital Region comprising Delhi, Gurgaon and Noida are
5 Delhi
clusters of software development.

Major Indian and International Firms present in Pune. Pune is also C-DAC
6 Pune
Head-Quarter.

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 CHAPTER-3
DESCRIPTIVE STUDY OF
EMPLOYEE MOTIVATION
3.1 Definition of Motivation
3.2 Need and Significance of Motivation
3.3 Employee Motivation
3.4 Importance of Employee Motivation
3.5 Objectives of Employee Motivation
3.6 Determinants of Employee Motivation
3.7 Theories of Motivation
3.8 Financial and Non-financial Incentives

12
 DESCRIPTIVE STUDY OF EMPLOYEE MOTIVATION

3.1 DEFINITION OF MOTIVATION:

The definition of motivation is to give reason, incentive, enthusiasm, or interest that

causes a specific action or certain behaviour. Motivation is present in every life
function. Simple acts such as eating are motivated by hunger. Education is motivated
by desire for knowledge. Motivators can be anything from reward to coercion.

There are two main kinds of motivation:

 intrinsic and
 extrinsic.
Intrinsic motivation is internal. It occurs when people are compelled to do something
out of pleasure, importance, or desire.

Extrinsic motivation occurs when external factors compel the person to do

something. However, there are many theories and labels that serve as sub tittles to the
definition of motivation. For example: "I will give you a candy bar if you clean your
room." This is an example of reward motivation.

Motivation is a psychological feature that arouses an organism to act towards a

desired goal and elicits, controls, and sustains certain goal directed behaviors. It can
be considered a driving force; a psychological drive that compels or reinforces an
action toward a desired goal. For example, hunger is a motivation that elicits a desire
to eat. Motivation has been shown to have roots in physiological, behavioral,
cognitive, and social areas.

Motivation may be rooted in a basic impulse to optimize well-being, minimize

physical pain and maximize pleasure. It can also originate from specific physical
needs such as eating, sleeping or resting, and sex.

13
 Motivation is an inner drive to behave or act in a certain manner. These inner
conditions such as wishes, desires, goals, activate to move in a particular direction in
behaviour.

3.2 NEED AND SIGNIFICANCE OF MOTIVATION:

Rensis Likert has called motivation as the ‘core of management’. Motivation is an

important function which every manager performs for actuating the people to work
for the accomplishment of objectives of the organisation. Issuance of well-conceived
instructions and orders does not mean that they has been followed. A manager has to
make appropriate use of various techniques of motivation to enthuse the employees to
follow them. Effective motivation succeeds not only in having an order accepted but
also in gaining a determination to see that it is executed efficiently and effectively.

Motivation is an effective instrument in the hands of manager for inspiring the

workforce and creating a confidence in it. By motivating the workforce, management
creates ‘will to work’ which is necessary for the achievement of organizational goals.
Motivation 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 organisation.

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

(i) The workforce has been better satisfied if management provides them with

opportunities to fulfil their physiological and psychological needs. The

workers will cooperate voluntarily with the management and will contribute
their maximum towards the goals of the enterprise.

(ii) 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
organisation. This will also result in increased productivity.

(iii) The rate of labour turnover and absenteeism among the workers has been low.

14
(iv) There have been good human relations in the organisation as friction among

the workers themselves and between the workers and the management will
decrease.

(v) The number of complaints and grievances will come down. Accident rate has

been low.

(vi) There has been increase in the quantity and quality of products. Wastage and

scrap has been less. Better quality of products will also increase the public
image of the business.

3.3 EMPLOYEE MOTIVATION:

Employee Motivation is an effective instrument 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 subordinates .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 every manager performs for

actuating the people to work for accomplishment of objectives 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 accepted 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
determine 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 increase efficiency and effectiveness of the

15
organization .There will be better utilization of resources and workers abilities and
capacities.

3.4 IMPORTANCE OF EMPLOYEE MOTIVATION:

Motivation can have an effect on the output of your business and concerns both
quantity and quality. Any business relies heavily on the efficiency of your production
staff to make sure that products are manufactured in numbers that meet demand for
the week. If these employees lack the motivation to produce completed products to
meet the demand, then business will face a problem leading to disastrous
consequences.

Employees are the greatest assets of any business and no matter how efficient
technology and equipment may be it is no match for the effectiveness and efficiency
of the staff.

Motivation 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
opportunities 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 themselves and between the workers and the management will
decrease.

16
5. The number of complaints and grievances will come down. Accident will also
be low.

6. 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.

17
3.5 OBJECTIVES OF EMPLOYEE MOTIVATION:

Main Objectives of Employee Motivation are as follows:

 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 satisfaction with a sense of responsibility.

 To increase loyalty against company.

 To improve discipline, pride and confidence in cohesive manner so that the

goal of an organization are achieved effectively.

 Motivational techniques to stimulate employee growth.

 One can even buy a measured number of skilled muscular motions per hour or
day.

 To achieve a desire rate of production.

3.6 DETERMINANTS OF EMPLOYEE MOTIVATION:

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.

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 INDIVIDUAL

FORCES
INFLUENCING
HUMAN
BEHAVIOR
ENVIRONMENT ORGNIZATION

Fig. 3.1 Types of forces influencing human behavior

1. Forces operating within the individual: Human needs are both numerous
and complex. Some of the needs cannot 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
individual 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 available in the job setting.

2. Forces operating within the organization: The climate in the organization

must be conducive to human performance. Climate plays an important part in
determining worker’s motivation. The climate in an organization is determined
by a number of variables such as its leadership style, autonomy enjoyed by
members, growth prospects, emotional support from members, reward
structure.

3. Forces operating in 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.

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 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.

3.7 THEORIES OF MOTIVATION:

Management can do its job effectively only through motivating people to work for the
accomplishment of organisational objectives. But according to authors like
McGregor, Maslow, Herzberg and Vroom, it is difficult to understand motivation
without considering what people want and expect from their work. Maslow’s theory is
considered an important theory of motivation because it highlights the needs of the
people.

MASLOW'S NEED HIERARCHY

MODEL

HERZBERG'S MOTIVATION-
HYGIENE MODEL

McCLELLAND'S THEORY

PORTER AND LAWLER

EXPECTANCY MODEL

EQUITY MODEL

MzGREGOR'S THEORY 'X' AND

THEORY 'Y'

OUCHI'S THEORY Z

Fig. 3.2 Theories Of Motivation

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A. MASLOW’S NEED HIREARCHY MODEL

A.H. Maslow developed a conceptual framework for understanding human motivation

which has been widely acclaimed. He defined a person’s effectiveness as a function of
matching man’s opportunity with the appropriate position of hierarchy of needs.
Process of motivation begins with an assumption that behaviour, atleast in parts, is
directed towards the achievement of satisfaction of needs. Maslow proposed that
human needs can be arranged in a particular order from the lower to the higher as
shown in the figure below:

Fig.3.3 Maslow’s Need Hierarchy

The need hierarchy is as follows:

(i) Basic Physiological Needs: The needs that are taken as the starting point for
motivation theory are the so-called physiological needs. These needs relate to the
survival and maintenance of human life. They include such things as food,
clothing, shelter, air, water and other necessities of life.

21
(ii) Safety and Security Needs: After satisfying the physiological needs, people want
the assurance of maintaining a given economical level. They want job security,
personal bodily security, security of source of income, provision for old age,
insurance against risks, etc.

(iii) Social Needs: Man is social being. He is, therefore, interested in conversation,
sociability, exchange of feelings and grievances, companionship, recognition,
belongingness, etc.

(iv) Esteem and Status Needs: These needs embrace such things as self-confidence,
independence, achievement, competence, knowledge, and success. They are also
known as egoistic needs. They are concerned with prestige and status of the
individual.

(v) Self-fulfilment Needs: The final step under the need priority model is the need for
self-fulfilment or the need to fulfil what a person considers to be his mission in
life. It involves realising one’s potentialities for continues self-development and
for being creative in the broadest sense of the word. After his other needs are
fulfilled, a man has the desire for personal achievement. He wants to do
something which is challenging and since this challenge gives him enough dash
and initiative to work, it is beneficial to him in particular and to the society in
general. The sense of achievement gives him psychological satisfaction.

Maslow proposed that the needs have a definite sequence of domination. Second need
does not dominate until first need is reasonably satisfied and third need does not
dominate until first two needs have been reasonably satisfied and so on. The other
side of the need hierarchy is that man is wanting animal, he continues to want
something or the other. He is never fully satisfied. If one need is satisfied, the other
need arises. As said above need arise in a certain order of preference and not
randomly. Thus, if one’s lower level needs are unsatisfied; he can be motivated only
by satisfying his lower level needs and not his upper level needs. Another point to

22
note is that once a need or a certain order of needs is satisfied, it ceases to be a
motivating factor.

B. HERZBERG’S MOTIVATION-HYGIENE MODEL:

The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-
factor theory) states that there are certain factors in the workplace that cause job
satisfaction, while a separate set of factors cause dissatisfaction. It was developed by
Frederick Herzberg, a psychologist, who theorized that job satisfaction and job
dissatisfaction act independently of each other.

Two-factor theory fundamentals: Attitudes and their connection with industrial mental
health are related to Maslow's theory of motivation. His findings have had a
considerable theoretical, as well as a practical, influence on attitudes toward
administration. According to Herzberg, individuals are not content with the
satisfaction of lower-order needs at work, for example, those associated with
minimum salary levels or safe and pleasant working conditions. Rather, individuals
look for the gratification of higher-level psychological needs having to do with
achievement, recognition, responsibility, advancement, and the nature of the work
itself. So far, this appears to parallel Maslow's theory of a need hierarchy. However,
Herzberg added a new dimension to this theory by proposing a two-factor model of
motivation, based on the notion that the presence of one set of job characteristics or
incentives lead to worker satisfaction at work, while another and separate set of job
characteristics lead to dissatisfaction at work. Thus, satisfaction and dissatisfaction are
not on a continuum with one increasing as the other diminishes, but are independent
phenomena. This theory suggests that to improve job attitudes and productivity,
administrators must recognize and attend to both sets of characteristics and not
assume that an increase in satisfaction leads to decrease in unpleasurable
dissatisfaction.

The two-factor, or motivation-hygiene theory, developed from data collected by

Herzberg from interviews with a large number of engineers and accountants in the

23
Pittsburgh area. From analyzing these interviews, he found that job characteristics
related to what an individual does — that is, to the nature of the work he performs —
apparently have the capacity to gratify such needs as achievement, competency,
status, personal worth, and self-realization, thus making him happy and satisfied.
However, the absence of such gratifying job characteristics does not appear to lead to
unhappiness and dissatisfaction. Instead, dissatisfaction results from unfavourable
assessments of such job-related factors as company policies, supervision, technical
problems, salary, interpersonal relations on the job, and working conditions. Thus, if
management wishes to increase satisfaction on the job, it should be concerned with
the nature of the work itself — the opportunities it presents for gaining status,
assuming responsibility, and for achieving self-realization. If, on the other hand,
management wishes to reduce dissatisfaction, then it must focus on the job
environment — policies, procedures, supervision, and working conditions. If
management is equally concerned with both, (as is usually the case), then managers
must give attention to both sets of job factors.

Two-factor theory distinguishes between:

 Motivators (e.g. challenging work, recognition, responsibility) that give

positive satisfaction, arising from intrinsic conditions of the job itself, such as
recognition, achievement, or personal growth, and

 Hygiene factors (e.g. status, job security, salary, fringe benefits, work
conditions) that do not give positive satisfaction, though dissatisfaction results
from their absence. These are extrinsic to the work itself, and include aspects
such as company policies, supervisory practices, or wages/salary.

Essentially, hygiene factors are needed to ensure an employee is not dissatisfied.

Motivation factors are needed to motivate an employee to higher performance.
Herzberg also further classified our actions and how and why we do them, for
example, if you perform a work related action because you have to then that is classed

24
as movement, but if you perform a work related action because you want to then that
is classed as motivation.

Unlike Maslow, who offered little data to support his ideas, Herzberg and others have
presented considerable empirical evidence to confirm the motivation-hygiene theory,
although their work has been criticized on methodological grounds.

Comparison of Herzberg and Maslow Models

There appears to be a great similarity between Herzberg’s and Maslow’s models. A

close examination of Herzberg’s model indicates that what he actually says is that
some employees may have achieved a level of social and economic progress in the
society and for them higher level needs of Maslow (esteem and self actualization) are
the primary motivators. However, they still must satisfy the lower level needs for the
maintenance of their current state. Thus, we can say that money might still be a
motivator for operative employees and for some managerial employees. Herzberg’s
model adds to the Maslow’s need hierarchy model because it draws distinction
between the two groups of factors, namely, motivational and maintenance, and points
out that the motivational are often derived from the job itself. Most of the
maintenance factors come under comparatively lower order needs. In economically
advanced countries, such needs of the employees are fulfilled and hence cease to be
motivators.

As shown in fig.3.4 Maslow’s physiological; security and social needs come under
Herzberg’s maintenance factors whereas self-fulfilment under motivating factors. It
may further be noted that a part of esteem need comes under maintenance factors and
another under motivational factors. The esteem needs are divided because there are
some distinct differences between status per se and recognition. Status tends to be a
function of the position one occupies. This position may be gained through family ties
or social pressures and so this may not be a reflection of personal achievement or
earned recognition. Recognition is gained through competence and achievement. It is
earned and granted by others. That is why, status is classified with physiological,

25
safety and social needs as a hygiene factors, while recognition is classified with
esteem as a motivator.

Self-fulfilment Herzberg
Model

Esteem

Social Maslow
Model

Safety

Physiological

Fig.3.4 Comparison of Herzberg and Maslow Models

Table 3.1 Maslow Model vs. Herzberg Model

Basis Maslow Herzberg

1. Hierarchy of Needs Sequential arrangement of No hierarchical

needs. arrangement of needs.

2. Nature Descriptive theory. Perspective theory

3. Central Theme Unsatisfied needs energize Gratified needs cause

behaviour; this behaviour performance.
causes performance.

4. Motivational Factor Any need can be a motivator Only higher order needs
if it is relatively unsatisfied. serve as motivators.

5. Applicability Takes a general view of the Takes a micro view and

26
 motivational problems of all deals with work-oriented
workers. motivational problems of
higher-level professional
employees.

6. Empirical Data Need hierarchy theory is Motivational-hygiene

based on intuition and not theory is based on study of
on any empirical study. empirical data collected
from professional
accountants and engineers.

C. McCLELLAND’S THEORY:

Another motivational model stressing higher-level needs is that David McClelland

who described people in terms of three of three needs: Power, achievement, and
affiliation. These are discussed below:

(i) Need for Power (n Pow): The need for power is expressed as a desire to influence
others. In relation to Maslow’s hierarchy, power would fall somewhere between
the needs for esteem and self-actualisation. People with a need for power tend to
exhibit behaviours such as out-spokeness, forcefulness, willingness to engage in
confrontation, and a tendency to stand by their original position. They often are
persuasive speakers and demand a great deal from others. Management often
attracts people with a need for power because of the many opportunities it offers to
exercise and increase power. Managers who are motivated by the need for power
are not necessarily “power hungry” in the sense in which the expression is often
used.

(ii) Need for Achievement (nAch): The need for achievement would fall between
those for esteem and self-actualisation. This need is satisfied not by the
manifestations of success, which confer status, but with the process of carrying
work to its successful completion.

Individuals with a high need for achievement generally will take moderate risks,
like situations in which they can take personal responsibility for finding solutions

27
 to problems, and want concrete feedback on their performance. As McClelland
points out, “No matter how high a person’s need to achieve may be, he cannot
succeed if he has no opportunities, if the organisation keeps him away from taking
initiative, or does not reward him if he does.” Thus, if management wishes to
motivate individuals operating on the achievement level, it should assign them
tasks that involve a moderate degree of risk of failure, delegate to them enough
authority, to take initiative in completing their tasks, and give them periodic,
specific feedback on their performance.

(iii) Need for Affiliation (nAff): McClelland’s affiliative motive is similar to

Maslow’s. The person is concerned with forming friendly relations with others,
desire for companionship, and the desire to help others. People dominated by the
affiliative need would be attracted to jobs that allow considerable social
interactions. Managers of such individuals should create a climate that does not
constrain interpersonal relations. A manager could also facilitate their need
satisfaction by spending more time with such individuals and periodically
bringing them together as a group.

D. PORTER AND LAWLER EXPECTANCY MODEL:

Lyman W. Porter and Edward E. Lawler developed a more complete version of

motivation depending upon expectancy theory.

Expectancy (Effort – Performance Probability): It refers to the extent to which the

person perceives or believes that his efforts would lead to the completion of a task.
Expectancy is stated as a probability i.e., an individual’s estimate of the probability of
an outcome from an action. Since it is an association between efforts and
performance, its value may range from 0 to 1. If the individual feels that chances of
achieving an outcome are zero, he will not even try. On the other hand, if expectancy
if higher, the individual would put higher efforts to achieve the desired outcome.

Instrumentality (Performance- Reward Probability): It refers to the probability to

which the performance (first level outcome) would lead to the desired reward (second
level outcome). For instance, an individual wants a promotion and feels that superior
performance is very important in achieving promotion. Superior performance is the
first level outcome. The first level outcome of high performance acquires a positive

28
valence by virtue of its expected relationship to the preferred second level outcome of
promotion. In other words, superior performance (first level outcome) will be
instrumental in obtaining promotion (second level outcome). The value of
instrumentality also ranges from 0 to1 as it is the probability of achieving the desired
outcome.

Motivation is the product of valence, expectancy and instrumentality. These three

factors in the expectancy model may exist in an infinite number of combinations
depending upon the range of valence and the degree of expectancy and
instrumentality. The combination that produces the strongest motivation is high
positive valence, high expectancy and high instrumentality. If all the three are low, the
resulting motivation will be weak. In other cases, motivation will be moderate.
Similarly, the strength of avoidance behaviour will be determined by the negative
valence and expectancy and instrumentality factors.

A worker may exhibit a poor behaviour or low level of motivation due to:

(i) Behaviour is determined by a combination of factors in the individual and in the

environment.

(ii) Individuals make conscious decision about their behaviour in the organisation.

(iii) Individuals have different needs, desires and goals; and

(iv) Individuals decide between alternate behaviours on the basis of their expectations
that a given behaviour would lead to a desired outcome.

Porter and Lawler applied their model to study the behaviour of managers and
concluded that there exists a complex relationship between job attitudes and job
performance. This model encounters some of the simplistic traditional assumptions
about the positive relationship between satisfaction and performance. “The emphasis
in expectancy theory on rationality and expectations seems to us to describe best the
kinds of cognition that influence managerial performance. We assume that managers
operate on the basis of some sort of expectancies which although based upon previous
experience are forward- oriented in a way that does not seem to be easily handled by
the concept of habit strength.”

29
The various elements of Porter and Lawler’s model as depicted in figure 3.5 are
discussed below:

Fig. 3.5 Various elements of Porter and Lawler’s model

Effort: It refers to the amount of energy exerted by a person on a job.

Value of Reward or valence: The outcome of a particular behaviour (i.e., effort put
by an individual), has a specific valence (or motivating power or value) for each
individual. For instance, the possibility of promotion may have a high valence for
individuals who like higher responsibilities and may have a low value for individuals
who don’t want to accept higher responsibilities. Thus, valence is determined by the
concerned individual and is not an objective quality of the outcome itself.

Perceived Effort-Reward Probability: Efforts leads to performance. But both may

not be equal. In fact, performance is determined by the amount of effort and ability
and role perception of the individual. That means, if an individual is lacking in ability

30
and/or has wrong role perception, his performance is bound to be unsatisfactory in
spite of his putting great efforts.

Rewards: Performance may lead to two kinds of rewards, namely, intrinsic rewards
such as sense of self actualisation and extrinsic rewards such as working conditions
and status. The intrinsic rewards are much more likely to produce attitudes about
satisfaction that are related to performance. Moreover, the perceived equitable
rewards vitally affect the performance- satisfaction relationship. They reflect the fair
level of rewards that the individual feels should be given for a particular level of
performance.

Satisfaction: The extent to which actual rewards fall short, meet or exceed the
individual’s perceived level of equitable rewards determines the degree of
satisfaction. If actual rewards meet or exceed perceived equitable rewards, the
individual will feel satisfied and if these are less than equitable rewards, the individual
will feel dissatisfied.

E. EQUITY THEORY:

Equity theory is a theory that attempts to explain relational satisfaction in terms of

perceptions of fair/unfair distributions of resources within interpersonal relationships.
Considered one of the justice theories, equity theory was first developed in 1963
by John Stacey Adams, a workplace and behavioural psychologist, who asserted that
employees seek to maintain equity between the inputs that they bring to a job and the
outcomes that they receive from it against the perceived inputs and outcomes of
others (Adams, 1965). The belief is that people value fair treatment which causes
them to be motivated to keep the fairness maintained within the relationships of their
co-workers and the organization. The structure of equity in the workplace is based on
the ratio of inputs to outcomes. Inputs are the contributions made by the employee for
the organization.

Equity theory proposes that individuals who perceive themselves as either under-
rewarded or over-rewarded will experience distress, and that this distress leads to
efforts to restore equity within the relationship. It focuses on determining whether the
distribution of resources is fair to both relational partners. Equity is measured by
comparing the ratios of contributions and benefits of each person within the

31
relationship. Partners do not have to receive equal benefits (such as receiving the
same amount of love, care, and financial security) or make equal contributions (such
as investing the same amount of effort, time, and financial resources), as long as the
ratio between these benefits and contributions is similar. Much like other prevalent
theories of motivation, such as Maslow’s hierarchy of needs, equity theory
acknowledges that subtle and variable individual factors affect each person’s
assessment and perception of their relationship with their relational partners.
According to Adams, anger is induced by underpayment inequity and guilt is induced
with overpayment equity. Payment whether hourly wage or salary, is the main
concern and therefore the cause of equity or inequity in most cases.

In any position, an employee wants to feel that their contributions and work
performance are being rewarded with their pay. If an employee feels underpaid then it
will result in the employee feeling hostile towards the organization and perhaps their
co-workers, which may result in the employee not performing well at work anymore.
It is the subtle variables that also play an important role in the feeling of equity. Just
the idea of recognition for the job performance and the mere act of thanking the
employee will cause a feeling of satisfaction and therefore help the employee feel
worthwhile and have better outcomes.

Definition of equity:

An individual will consider that he is treated fairly if he perceives the ratio of his
inputs to his outcomes to be equivalent to those around him. Thus, all else being
equal, it would be acceptable for a more senior colleague to receive higher
compensation, since the value of his experience (and input) is higher. The way people
base their experience with satisfaction for their job is to make comparisons with
themselves to people they work with. If an employee notices that another person is
getting more recognition and rewards for their contributions, even when both have
done the same amount and quality of work, it would persuade the employee to be
dissatisfied. This dissatisfaction would result in the employee feeling
underappreciated and perhaps worthless. This is in direct contrast with the idea of
equity theory, the idea is to have the rewards (outcomes) be directly related with the
quality and quantity of the employees contributions (inputs). If both employees were

32
perhaps rewarded the same, it would help the workforce realize that the organization
is fair, observant, and appreciative.

This can be illustrated by the following equation:

If the ratios are in balance, the individual experiences positive feelings of equity,
fairness and justice.

Inputs and outcomes

Inputs:

Inputs are defined as each participant’s contributions to the relational exchange and
are viewed as entitling him/her to rewards or costs. The inputs that a participant
contributes to a relationship can be either assets – entitling him/her to rewards – or
liabilities - entitling him/her to costs. The entitlements to rewards or costs ascribed to
each input vary depending on the relational setting. In industrial settings, assets such
as capital and manual labor are seen as "relevant inputs" – inputs that legitimately
entitle the contributor to rewards. In social settings, assets such as physical beauty and
kindness are generally seen as assets entitling the possessor to social rewards. Inputs
typically include any of the following: Time, Effort, Loyalty, Hard Work,
Commitment, Ability, Adaptability, Flexibility, Tolerance, Determination,
Enthusiasm, and Personal sacrifice, Trust in superiors, Support from co-workers and
colleagues and Skill.

Outcomes:

Outputs are defined as the positive and negative consequences that an individual
perceives a participant has incurred as a consequence of his/her relationship with
another. When the ratio of inputs to outcomes is close, than the employee should have
much satisfaction with their job. Outputs can be both tangible and intangible. Typical
outcomes include any of the following: Job security, Salary, Employee benefit,
Expenses, Reputation, Responsibility, Sense of achievement, Praise and Thanks

33
Propositions:

Equity theory consists of four propositions:

1. Individuals seek to maximize their outcomes (where outcomes are defined as

rewards minus costs).

2. Groups can maximize collective rewards by developing accepted systems for

equitably apportioning rewards and costs among members. Systems of equity
will evolve within groups, and members will attempt to induce other members
to accept and adhere to these systems. The only way groups can induce
members to equitably behave is by making it more profitable to behave
equitably than inequitably. Thus, groups will generally reward members who
treat others equitably and generally punish (increase the cost for) members
who treat others inequitably.

3. When individuals find themselves participating in inequitable relationships,

they become distressed. The more inequitable the relationship, the more
distress individuals feel. According to equity theory, both the person who gets
“too much” and the person who gets “too little” feel distressed. The person
who gets too much may feel guilt or shame. The person who gets too little
may feel angry or humiliated.

4. Individuals who perceive that they are in an inequitable relationship attempt to

eliminate their distress by restoring equity. The greater the inequity, the more
distress people feel and the more they try to restore equity.

F. McGREGOR’S THEORY ‘X’ AND THEORY ‘Y’:

Theory X and Theory Y are theories of human motivation created and developed
by Douglas McGregor at the MIT Sloan School of Management in the 1960s that
have been used in human resource management and organisational behaviour,
organisational communication and organisational development. They describe two
contrasting models of workforce motivation.

Theory X and Theory Y have to do with the perceptions managers hold on their
employees, not the way they generally behave. It is attitude not attributes.

34
Theory X:

In this theory, which has been proven counter effective in most modern practice,
management assumes employees are inherently lazy and will avoid work if they can
and that they inherently dislike work. As a result of this, management believes that
workers need to be closely supervised and comprehensive systems of controls
developed. A hierarchical structure is needed with narrow span of control at each and
every level. According to this theory, employees will show little ambition without an
enticing incentive program and will avoid responsibility whenever they can.
According to Michael J. Papa, if the organizational goals are to be met, theory X
managers rely heavily on threat and coercion to gain their employees' compliance.
Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive
atmosphere. The Theory X manager tends to believe that everything must end in
blaming someone. He or she thinks all prospective employees are only out for
themselves. Usually these managers feel the sole purpose of the employee's interest in
the job is money. They will blame the person first in most situations, without
questioning whether it may be the system, policy, or lack of training that deserves the
blame. A Theory X manager believes that his or her employees do not really want to
work, that they would rather avoid responsibility and that it is the manager's job to
structure the work and energize the employee. One major flaw of this management
style is it is much more likely to cause diseconomies of scale in large business

Theory Y:

In this theory, management assumes employees may be ambitious and self-

motivated and exercise self-control. It is believed that employees enjoy their mental
and physical work duties. According to them work is as natural as play. They possess
the ability for creative problem solving, but their talents are underused in most
organizations. Given the proper conditions, theory Y managers believe that employees
will learn to seek out and accept responsibility and to exercise self-control and self-
direction in accomplishing objectives to which they are committed. A Theory Y
manager believes that, given the right conditions, most people will want to do well at
work. They believe that the satisfaction of doing a good job is a strong motivation.
Many people interpret Theory Y as a positive set of beliefs about workers. A close
reading of The Human Side of Enterprise reveals that McGregor simply argues for

35
managers to be open to a more positive view of workers and the possibilities that this
creates. He thinks that Theory Y managers are more likely than Theory X managers to
develop the climate of trust with employees that are required for human resource
development. It's human resource development that is a crucial aspect of any
organization. This would include managers communicating openly with subordinates,
minimizing the difference between superior-subordinate relationships, creating a
comfortable environment in which subordinates can develop and use their abilities.
This climate would be sharing of decision making so that subordinates have say in
decisions that influence them.

G. OUCHI’S THEORY Z:

International attention is being focussed on the outstanding performance of the

Japanese economy and the success of management practices being adopted by
Japanese firms. Interest in Japanese management has rapidly increased in America
and other countries. William Ouchi made a comparative study of America and
Japanese management practices. He came to the conclusion that many of the Japanese
management practices can be adopted in American context. He suggested the
adoption of Theory Z. It may be noted that theory Z is not a theory in the true sense. It
is merely a label interchangeable with type Z. It describes human behaviour as in the
case of theories X and Y. The expression ‘Theory Z’ was adopted not for analytical
purpose but for promotional purpose. It may be noted that the label Z has been used
by Urwick, Rangnekar and Ouchi, but Ouchi’s views have got much publicity in the
business world.

Japanese Management:

Japanese management can be characterised by the following principles:

(i) Lifetime Employment: Japanese workers tend to make a lifetime commitment to

their organisations and, in turn, organisations assume responsibility for lifetime
employees. Promotions are based on seniority, loyalty and harmonious behaviour.

(ii) Emphasis on Group: Japanese relish life in groups. By focussing on the group
instead of the individual, Japanese companies are able to get best out of their
employees in terms of both quantity and quality. Japanese management emphasizes
the permanence of the group. The employees are appointed with the understanding

36
 that they are joining for life-pay and incentives for workers depend partly on the
financial performance of the group. Group cohesiveness is supported by company
songs, recitations of the company creed, and other activities..

(iii) Concerns for Employees: American organisations tend to view people as tools to
fill slots that have specific job descriptions. In Japan, however, the permanence
of the group forces managers to place more emphasis on people than on the
system. This emphasis on human relations can be seen in careful recruitment
practices, a concern for the whole employee, harmonious resolution of conflict,
etc. The companies provide housing facilities, welfare facilities and counselling
services to their employees.

(iv) Collective Decision Making: employees and managers seek consensus on

decisions and endorse collective decision-making processes. Thus, joint decision-
making is emphasized by the Japanese management.

(v) Role of Top Management: Managers are generalists and they operate as social and
symbolic leaders. Their role is that of facilitator and not of decision-makers. In
other words, group decision-making is encouraged. The managers do not follow
specialised career paths as is the case with the American managers.

Features of Theory Z:

(i) Strong bond between the company and the employees.

(ii) Employee’s participation.

(iii) Mutual trust.

(iv) Integrated structure

(v) Human resource development

(vi) Informal controls

37
3.8 FINANCIAL AND NON-FINANCIAL INCENTIVES:

Incentive is an act or promise for greater action. It is also called as a stimulus to

greater action. Incentives are something which are given in addition to wagers. It
means additional remuneration or benefit to an employee in recognition of
achievement or better work. Incentives provide a spur or zeal in the employees for
better performance. It is a natural thing that nobody acts without a purpose behind.
Therefore, a hope for a reward is a powerful incentive to motivate employees. Besides
monetary incentive, there are some other stimuli which can drive a person to better.
This will include job satisfaction, job security, job promotion, and pride for
accomplishment. Therefore, incentives really can sometimes work to accomplish the
goals of a concern. The need of incentives can be many:

1. To increase productivity,

2. To drive or arouse a stimulus work,

3. To enhance commitment in work performance,

4. To psychologically satisfy a person which leads to job satisfaction,

5. To shape the behavior or outlook of subordinate towards work,

6. To inculcate zeal and enthusiasm towards work,

7. To get the maximum of their capabilities so that they are exploited and utilized
maximally.

Therefore, management has to offer the following two categories of incentives to

motivate employees:

 Monetary incentives- Those incentives which satisfy the subordinates by

providing them rewards in terms of rupees. Money has been recognized as a
chief source of satisfying the needs of people. Money is also helpful to satisfy
the social needs by possessing various material items. Therefore, money not
only satisfies psychological needs but also the security and social needs.
Therefore, in many factories, various wage plans and bonus schemes are
introduced to motivate and stimulate the people to work.

38
 Non-monetary incentives- Besides the monetary incentives, there are certain
non-financial incentives which can satisfy the ego and self- actualization needs
of employees. The incentives which cannot be measured in terms of money are
under the category of “Non- monetary incentives”. Whenever a manager has to
satisfy the psychological needs of the subordinates, he makes use of non-
financial incentives.

39
 CHAPTER-4

ANALYSIS
AND
INTERPRETATION

40
 ANALYSIS AND INTERPRETATION OF DATA

The primary data is collected through the questionnaire and results are analyzed on

the Excel.

Pie-Charts and Graphs are made on the basis of the results obtained through Excel.

Results of Excel

Q1) Are you satisfied with the support from the HR department?

Fig. 4.1

INTERPRETATION:

50% of the employees are satisfied with the support they are getting from HR

department. While 17.5% are neutral about the support from HR department. Thus,

the bar-graph depicts most of the employees are satisfied with the support they are

getting from HR department.

41
Q2) The organization provides you opportunity to define short-term goals for

yourself?

Fig. 4.2

INTERPRETATION:

As can be seen by the above column-chart 35% of the respondents answered that the

organization sometimes give them opportunity to define their short-term goals.

30%answered that organization always give them opportunity to define their short-

term goals. 8% answered that they have no idea and can’t say anything. Thus, it

shows that the organisation gives opportunity to employees in defining their short-

term goals and thus do not just provide them goals without their consent.

42
Q3) Does your organization provide opportunities for learning and development?

Fig. 4.3

INTERPRETATION:

55% of the respondents answered that organisation sometimes give them

opportunities for learning and development. 22.5% answered that they are always

given opportunities for learning and development by the organisation. While,

15%answered that the organisation hardly give them opportunity for learning and

development. As can be seen from the above chart most of the organisations in IT

sector give opportunities to their employees for learning and development.

43
Q4) Does ‘Performance Appraisal’ motivates you to perform better?

Fig. 4.4

INTERPRETATION:

52.5% of the respondents answered that performance appraisal motivates them to

perform better at their work place. While, 27.5% answered performance appraisal

sometimes motivates them to perform better. Thus, the above pie-chart depicts that

performance appraisal plays an important role in motivating employees which will as

a result will help them to perform better.

44
Q5) Does the organizational reward system motivate you to achieve organizational

objectives?

Fig. 4.5

INTERPREATATION:

25%of the respondents answered that the ‘reward system’ of the organisation always

motivates them in achieving organisational objectives.37.5% answered that the

‘reward system’ sometimes motivates them in achieving organisational objectives.

While, 27.5% of the respondents answered that they are not sure whether reward

system of the organisation motivates them in achieving organisational objectives or

not. Thus, the above cylindrical-chart depicts that reward system of the organisation

plays an important role in achieving organisational objectives.

45
Q6) Do Career Opportunities in your organization motivate you at work place?

Fig. 4.6

INTERPRETATION:

45% of the respondents answered that the ‘Career Opportunities’ in the organisation

motivates them. 20% answered that not always but sometimes career opportunities at

work place helps in motivating them. 12.5% answered career opportunities hardly

ever motivate them. While, rest 20% answered that they do not know whether career

opportunities in the organisation motivate them or not. Thus, from the above pie-chart

it can be concluded that good career opportunities in the organisation helps in

motivating employees.

46
Q7) Does your workplace provide you with conducive environment to perform better

at your work place?

Fig. 4.7

INTERPRETATION:

45% of the respondents answered that ‘Conducive environment’ at work place always

helps in motivating the employees. 27.5% of the respondents answered that conducive

environment sometimes help in motivating them.15%answered that conducive

environment hardly ever motivate them. Thus, a conducive environment must be

provided at work place to motivate employees.

47
Q8 Would you have higher motivation if you could see a correlation between the work you

perform and the results you desire?

Fig. 4.8

INTERPRETATION:

32.5% of the employees answered that they will always have a higher motivation if

they see a correlation between the work they perform and the result they are

expecting. 37.5% of the employees answered they sometimes have a higher

motivation if they find any kind of correlation between the work they perform and the

result they are expecting. Thus, above chart reveals that there must be a correlation

between the employee’s work and the result expected by them.

48
Q9) Does your organization provides you clarity on your Objectives and associated

rewards?

Fig. 4.9

INTERPRETATION:

40% of the respondents answered that organisation sometimes provides clarity to the

employees about the objectives and the reward associated with it. 22.5% of the

respondents answered that the organisation always provides them clarity about the

objectives and the reward associated with it. While, 30% of the respondents answered

they do not know whether organisation provides them with clarity or not. Thus, from

the above chart we can conclude that the organisations most of the times provides

clarity on the objectives and the work associated with it.

49
Q10) What type of incentives motivate you more?

Fig. 4.10

INTERPRETATION:

52.5% of the respondents answered that incentives in the form of money motivates

them more. 17.5% of the respondents answered that non-monetary incentives

motivates them more. While, rest 30% answered that both types of incentives helps in

motivating them. Thus, from the above area-chart it can be concluded that monetary

incentives helps more in motivating employees.

50
Q11) Do you think that the, top management is interested in motivating the employees?

Fig. 4.11

INTERPRETATION:

35.9% of the respondents answered that the top management is always interested in

motivating employees. 28.2% of the employees answered that the top management is

sometimes interested in motivating employees.23.1%% of the respondents answered

that they can’t say whether top management is interested in motivating the employees

or not.10.3% of the respondents answered that top management is hardly ever

interested in motivating them. Rest 2.6% answered that top management is never

interested in motivating them. Thus, the above bar-graph depicts that top management

is not much interested in motivating the employees.

51
Q12) Rate your level of satisfaction with the work culture of the organisation.

Fig. 4.12

INTERPRETATION:

65% of the respondents answered that they are satisfied with the work culture of the

organisation. 10% of the respondents answered that they are highly satisfied with the

work culture of the organisation. 15% of the respondents are neutral i.e. they are

neither satisfied nor dissatisfied with the work culture of the organisation. 2.5% of the

respondents are dissatisfied with the work culture of the organisation. While, 7.5%

answered that they are highly dissatisfied with the work culture of the organisation.

Thus, the above pie-chart reveals that employees are satisfied with the work culture of

the organisation.

52
Q13) Arrange the following factors in order of their role as motivational factors (1:

Most Important, 2: Important, 3: Neutral, 4: Not important and 5: Least

important).

Fig. 4.13

INTERPRETATION:

When respondents were asked to rate the factors that motivates them the most, 37.5%

ranked ‘Esteem or Status’ and Self Actualisation as no.1, ‘Security and safety’ as 2nd,

‘Acceptance or Application’ as 3rd, ‘Physiology Needs’ as 4th. Thus, from the above

graph it can be seen that people give priority to their Self Actualisation and Esteem or

Status least priority to Physiological needs.

53
 CHAPTER-5
FINDINGS, CONCLUSIONS
AND SUGGESTIONS
5.1 Findings

5.2 Conclusions

5.3 Suggestions

54
 FINDINGS, CONCLUSIONS AND SUGGESTIONS

5.1 FINDINGS:

 50% of the employees are satisfied with the support they are getting from HR

department..

 Organisation sometimes provides an opportunity to employees in defining their

short-term goals.

 35% of the respondents answered that organisation sometimes give them

opportunities for learning and development.

 Performance appraisal plays an important role in motivating employees which as

a result will help them to perform better.

 40% of the respondents answered that the reward system of the organisation

always motivates them in achieving organisational objectives.

 Good career opportunities in the organisation help in motivating employees.

 45% of the respondents answered that conducive environment at work place

helps in motivating them.

 37% of the respondents agreed that there must be a correlation between the

employees work and the result expected by them.

 40% of the respondents agreed that organisation sometimes provide clarity to the

employees about the objectives and the reward associated with it.

 Most of the employees get motivated by monetary incentives rather than non-

monetary incentives.

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  Top management is not much interested in motivating the employees.

 65% of the respondents are satisfied by the work culture of the organisation.

 People usually give top priority to Esteem or Status with self actualisation..

5.2 CONCLUSIONS:

On the basis of the results obtained through the primary study:

It is perceived that

 Organisation must provide opportunities to employees for learning and

development.

 Performance appraisal plays an important role in motivating employees.

 Reward system of the organisation helps in motivating employees.

 Good career opportunities in the organisation help in motivating employees.

 A good correlation between the employee’s work and the result expected by

them helps employees in performing better.

 Monetary incentives help a lot in motivating people and as a result help them

in performing better at work place.

 Esteem or status with self Actualisation are much important than any other

kind of needs.

Some of the conclusions based on the case study of Siemens are:

 Siemens provide an open culture for employees at all levels.

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  A creative environment is provided for learning and development of the

employees.

 Employees are allowed to perform different roles within the organisation.

 Employees are allowed to be imaginative and influence their own work.

 Siemens motivate employees by giving them empowerment.

 It encourages employee involvement in the organisation.

 Siemens also provides opportunities to the employees for self-recognition.

Some of the conclusions based on the various articles:

INFOSYS:

 Infosys provide Talent edge’s career planning business process which make

use of employee talents to its full potential.

 In this, it assesses and ranks workers, records job preferences, creates career

paths, develops long-term goals, assigns mentors, identifies competencies,

devises training plans, and creates development plans.

 Financial incentives play much important role in motivating people.

 Infosys has formed the best practice compensation and incentives policies for

their employees.

TCS:

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  TCS has adopted some strategies for employee motivation. These are-

Building competencies, engaging people at all levels and giving them

continuous technology domain capability.

 Two way communication with supervisor and senior employees.

 Provides freedom to employees to experiment with their career path.

5.3 SUGGESTIONS:

Some of the suggestions are:

 HR department must support their employees.

 Conducive environment must be provided at the work place to the employees.

 Top management should be interested in motivating the employees.

 A positive work culture must be provided at the organisation.

 Importance must be given to the career path of the employees.

 Clarity on the objectives and reward associated with it must be provided to the

employees as it will help employees to perform better.

 Opportunities must be given to employees for self recognition.

 Incentives must be provided for any kind of work.

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BIBLIOGRAPHY

59
 BIBLIOGRAPHY

Websites:

http://www.studymode.com/essays/Three-Strategies-Adopted-By-Tcs-

760037.html

http://www.infosys.com/talentedge/offerings/career-planning/Pages/

index.aspx

http://omkasi.files.wordpress.com/2011/12/tcs-project-report1.pdf

http://en.wikipedia.org/wiki/Motivation

http://www.academiaresearch.com/filecache/instr/a/_/

665402_a_review_of_employee_motivation_theories_and_their_implications.pdf

http://www.the-no-sugar-coach.com/employee-motivation-definition.html

http://en.wikipedia.org/wiki/Information_technology_in_India

http://businesscasestudies.co.uk/siemens/motivation-within-a-creative-

environment/scientific-management.html

http://www.studymode.com/essays/Employee-Motivation-And-Rewards-

516205.html

BOOKS:

T.N. Chhabra, Human Resource Management

T.N.Chhabra, Management Process And Organisational Behaviour

Barry Silverstein, Motivating Employees

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ANNEXURES

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 QUESTIONNAIRE

1.) Name (optional): _________________________________

E- Mail Id: ______________________________________

2.) Gender

( ) Male ( ) Female Other ( )

3.) Age

( ) 18-25 ( ) 26-30

( ) 31-40 ( ) Above 40

4.) Work Experience

( ) Less than 5 years ( ) 6 years- 10 years

( ) 11 years- 15 years ( ) More than 15 years

5.) Are you satisfied with the support from the HR department?

( ) Highly satisfied

( ) Satisfied

( ) Neutral

( ) Dissatisfied

( ) Highly dissatisfied

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6.) The organization provides you opportunity to define short-term goals for yourself?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

7.) Does your organization provide opportunities for learning and development?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

8.) Does ‘Performance Appraisal’ motivate you to perform better?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

9.) Does the organizational reward system motivate you to achieve organizational

Objectives?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

10.) Do Career Opportunities in your organization motivate you at work place?

1 2 3 4 5

Always Sometimes Can’t’ Say Hardly Ever Never

63
11.) Does your workplace provide you with conducive environment to perform better

at your work place?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

12.) Would you have higher motivation if you could see a correlation between the

works you perform and the results you desire?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

13.) Does your organization provide you clarity on you Objectives and associated

rewards?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

14.) What type of incentives motivates you more?

1 2 3

Monetary Non-Monetary Both

15.) Do you think that the top management is interested in motivating the employees?

1 2 3 4 5

Always Sometimes Cant’Say Hardly Ever Never

64
16.) Rate your level of satisfaction with the work culture of the organisation.

1 2 3 4 5

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied

17.) Arrange the following factors in order of their role as motivational factors (1:

Most Important, 2: Important, 3: Neutral, 4: Not important and 5: Least

important).

No. Factors Rank

i Self Actualization

ii Esteem or Status

iii Application or Acceptance

iv Security or Safety

v Physiological Needs

************THANK YOU*************

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