REWARD PROJECT N - Merged

A STUDY ON THE IMPACT OF REWARD SYSTEM ON EMPLOYEES’
PERFORMANCE IN TI CYCLES OF INDIA, AMBATTUR
By
JESHURAN BEN JESTIN
Register No.: 961821631027
of
PONJESLY COLLEGE OF ENGINEERING

Nagercoil
A PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT SCIENCES
In partial fulfilment of the requirement
for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
ANNA UNIVERSITY
CHENNAI - 600 025

APRIL - 2023
DEPARTMENT OF MANAGEMENT STUDIES
PONJESLY COLLEGE OF ENGINEERING
Approved by AICTE & Permanently Affiliated to Anna
University,Recognized Under UGC 2(f) & 12 (B)
Nagercoil - 629 003, Kanyakumari District, Tamil Nadu.
Phone: 04652259680 Email : mba@ponjesly.com,

Fax : 04652259605 Website: www.ponjesly.com.
Dr. R. Sam Renu, M.B.A., M.Phil., Ph.D.
Associate Professor,
Department of Management Studies.
BONAFIDE CERTIFICATE
Certified that this project report titled “A STUDY ON THE IMPACT OF
REWARD SYSTEM ON EMPLOYEES’ PERFORMANCE IN TI CYCLES OF
INDIA, AMBATTUR” is the bonafide work of JESHURAN BEN JESTIN done
under my supervision and guidance. Certifiedfurther, that to the best of my knowledge
the work reported herein does not form part of any other project report or dissertation
on the basis of which a degree or award was conferred to him on an earlier occasion
or any other candidate.
Place: Nagercoil,
Date: Signature of the Supervisor
Forwarded by
Dr. G. Arumugasamy, M.Com, M.B.A., M.Phil., Ph.D.

Professor & Head of the Department
Viva-Voce Examination held on:
Internal Examiner External Examiner

DECLARATION
I hereby declare that the project report entitled “A STUDY ON THE IMPACT OF
REWARD SYSTEM ON EMPLOYEES’ PERFORMANCE IN TI CYCLES OF
INDIA” submitted to Anna University in partial fulfillment for the award of Degree of
Master of Business Administration, is a record of independent research work carried out by
me under the guidance of Dr. R. Sam Renu , M.B.A., M.Phil., Ph.D., Associate Professor,
Department of Management Studies, Ponjesly College of Engineering, Alamparai. I also
declare that this project report is the result of my own effort and has not been submitted
earlier for the award of any other Degree / Diploma or Associate ship by Anna University
or any other University.
Place: Nagercoil,
Date: JESHURAN BEN JESTIN

ACKNOWLEDGEMENT
First and foremost I thank Almighty God with hearts and immense
pleasure forthe grace blessings enabling to complete this book.
I express my sincere gratitude our Chairman Shri. Pon Robert Singh,
M.A., Ponjesly Group of Institution for giving me an opportunity to undertake
this project.
I wish to convey my profuse thanks to our Director Prof. P. Arulson
Daniel, M.Sc., M.Phil., and our Advisor Dr. S. Kaliappan, M.E., Ph.D.,
Ponjesly College of Engineering for giving guidance and for the successful
completion of this project.
I express my sincere thanks to our Principal Dr. T. Natarajan, M.E.,
Ph.D., Ponjesly College of Engineering who had given me the official
permission for doing this project work.
I express my deep sense of gratitude to Dr. G. Arumugasamy, M.Com.,
M.B.A., Ph.D., Professor & Head, Department of Management Studies,
Ponjesly College of Engineering for his extraordinary guidance which helped
me to complete this study successfully.
I am greatly privileged to express my profound indebtedness to our
Project Co-ordinator Mr. N. Prem Santhosh, B.E., M.B.A., Assistant Professor
and my Project Guide Dr. R. Sam Renu , M.B.A., M.Phil., Ph.D., Associate
Professor, Department of Management Studies, Ponjesly College of Engineering
their valuable suggestions and encouragement throughout the project work.
I take this wonderful opportunity to express my sincere thanks to
Mr. K. Gowdhaman, Head – HR & IT, TI Cycles of India, Ambattur for
giving permission to undertake this project. And I profusely thank to all the
employees of TICI, Ambattur for guiding throughout my project.
Finally, I wish to express my sincere thanks to my family and friends for
their constant encouragement, support, help and valuable advice to make this
project in the way to success.
- JESHURAN BEN JESTIN
LIST OF CONTENTS
Chapter Contents Page No.
I INTRODUCTION 1
1.1 Industry Profile 4
1.2 Company Profile 7
1.3 Product Profile 13
II REVIEW OF LITERATURE
2.1 Special Concept 18
2.2 Literature Review 21
III RESEARCH DESIGN
3.1 Scope of the study 23
3.2 Need of the study 23
3.3 Objectives of the study 23
3.4 Type of Research 24
3.5 Sources of Data Collection 24
3.6 Sample size 24
3.7 Sampling method 24
3.8 Statistical tools used for analysis 25
3.9 Period of the Study 26
3.10 Limitations of the Study 26
IV ANALYSIS AND INTERPRETATION

4.1 Percentage Analysis (28 – 52)
4.2 Chisquare Test 53
4.3 ANOVA Test 56
V FINDINGS, SUGGESTIONS & CONCLUSION
5.1 Findings 59
5.2 Suggestions 61
62
5.3 Conclusion
BIBLIOGRAPHY 63
APPENDIX 65
LIST OF TABLES
Table Title Page

No. No.
4.01 Table Showing Age wise Classification 28
4.02 Table showing the classification of Gender 30
4.03 Table showing classification of Education qualification 31

4.04 Table showing the Classification of Experience 32
4.05 Table showing the classification of Designation 33
4.06 Table showing opinions on employees being aware of the rewards and 34
recognition provided by the organization.
4.07 Table showing opinions on employees can understand how their 35

performance is evaluated.
4.08 Table showing opinions on reward system in the organization is fair and 36
equitable.
4.09 Table showing opinions on getting salary on time motivates me to perform 37

better.
4.10 Table showing opinions on receiving right amount of salary for the effort 38
and skills.
4.11 Table showing opinions on salary increases are decided on a fair 39

manner.
4.12 Table showing the opinions on receiving bonus helps to maintain the 40
commitment towards work while going another year.
4.13 Table showing opinions on ‘Attendance Bonus’ provided in the firm 41
encourages employees to be more committed in their work.
4.14 Table showing the opinions on ‘Spot Award’ is really a motivation for 42
employees to achieve more in their career.
4.15 Table showing the opinions on ‘Sprayer Allowance’ provided for 43
employees to achieve more in their career
4.16 Table showing the opinions on there is enough publicity given for award 44
winners
4.17 Table showing the opinions on low performers are encouraged in the firm 45
to work hard and better
4.18 Table showing the opinions on appreciation is necessary for employees in 46
organizations for their work
4.19 Table showing the opinions on appreciation and recognition is given in 47
public in the case of special performance in my firm.
4.20 Table showing the opinions on promotion is timely in the company and it 48
leads to higher productivity.
4.21 Table showing the opinions on promotion is provided in a fair and honest 49
way.
4.22 Table showing the preferences of employees on different kinds of 50
rewards.
4.23 Table showing the opinions on reward system should include career plan 51
based on performance.
4.24 Table showing the opinions on some more improvements are needed in 52
the reward system in the organization
4.25 Table showing relationship between education of employees and 53

employees receiving right amount of salary for their effort and skills
4.26 Chi – Square test Table 54
4.27 Table showing relationship between years of experience and promotion 56

being provided fair and honestly
4.28 ANOVA test solution table 57

LIST OF FIGURES
Figure Title Page

No. No.
4.01 Figure Showing Age wise Classification 29
Figure showing the classification of Gender 30

4.02
4.03 Figure showing classification of Education qualification 31
4.04 Figure showing the Classification of Experience 32
Figure showing the classification of Designation 33

4.05
4.06 Figure showing opinions on employees being aware of the rewards and 34
recognition provided by the organization.
4.07 Figure showing opinions on employees can understand how their 35

performance is evaluated.
4.08 Figure showing opinions on reward system in the organization is fair and 36
equitable.
4.09 Figure showing opinions on getting salary on time motivates me to 37

perform better.
4.10 Figure showing opinions on receiving right amount of salary for the effort 38
and skills.
4.11 Figure showing opinions on salary increases are decided on a fair 39

manner.
4.12 Figure showing the opinions on receiving bonus helps to maintain the 40
commitment towards work while going another year.
4.13 Figure showing opinions on ‘Attendance Bonus’ provided in the firm 41

encourages employees to be more committed in their work.
42
4.14 Figure showing the opinions on ‘Spot Award’ is really a motivation for
employees to achieve more in their career.
43
4.15 Figure showing the opinions on ‘Sprayer Allowance’ provided for
employees to achieve more in their career
44
4.16 Figure showing the opinions on there is enough publicity given for award
winners
45
4.17 Figure showing the opinions on low performers are encouraged in the
firm to work hard and better
46
4.18 Figure showing the opinions on appreciation is necessary for employees
in organizations for their work
47
4.19 Figure showing the opinions on appreciation and recognition is given in
public in the case of special performance in my firm.
48
4.20 Figure showing the opinions on promotion is timely in the company and
it leads to higher productivity.
49
4.21 Figure showing the opinions on promotion is provided in a fair and
honest way.
50
4.22 Figure showing the preferences of employees on different kinds of
rewards.
51
4.23 Figure showing the opinions on reward system should include career plan
based on performance.
52
4.24 Figure showing the opinions on some more improvements are needed in
the reward system in the organization
CHAPTER 1
INTRODUCTION
A reward system is important for the employee performance. As employee
performance will be more effective to high reward system. That how to be high
performance is base high reward vice versa. Job performance is also part of human
resources management. Performance is an important for the organization succession
and achieving the goals. Rewards are considered an important tool to check the
employee’s performance in every organization.
Reward system is essential to the organization as it has become important in

managing employee's performance. Other elements in compensation have evolved to
provide employers with a broad scope of reward, and thus, it motivates the
employees. The reward systems are directly and indirectly involved in the vision and
mission of the organization that gives sense to the employee that a reward system will
benefit both parties. Reward systems have a huge impact on organizations to retain
and motivate the employees and as a result of achieving high levels of performance.
Thus, organizations must develop programs such as reward systems to fulfill
employees' needs and motivate them to work.
Management use rewards for employees motivations. So we can say that

effective reward system attract new employees for organization and motivate existing
employees to perform high levels. Employee’s good work is necessary to achieve the
specific goals. Employees give their good efforts for achieving goals and good effort
depends on rewards. In other words we can say that good rewards are most important
way to engage the employees with their work and with their organization.
Reward System:
Most organizations have problems to decide the right reward systems and
which reward system suit the most for the employees. A properly administered system
of rewards can provide good quality of employee performance. If the organization
does not have a proper reward system, it will lead to problems such as low employee
morale, the unproductive performance of the employees, or it can lead to high
turnover rate among employee.
1
The organization needs employees with high performance to meet goals,
deliver products and services and to achieve competitive advantage in the market.
Performance is very crucial same as to reward system because when employees
achieve their high level of performance, they want an adequate reward in return.
Rewards may be studied in two dimensions consisting of extrinsic rewards and

intrinsic rewards. Extrinsic rewards offer the job holder in the job context only. They
are external to the job. They are the combination of direct-indirect financial rewards
and non-financial rewards. When more expected rewards of extrinsic nature are in the
hand of the top management, employees look to the management for such rewards.
When employees have extrinsic rewards they do the assigned job in effective way.
The examples of extrinsic rewards are: pay, fringe benefit, job security, good
working condition, supportive supervision, status, power, promotional opportunities,
group working atmosphere, respect, recognition, praise, and so on. Intrinsic rewards
are the satisfaction that employees obtain from their job themselves. They are directly
related to job content. They are internal and integral to the work itself. They are self
granted and internally experienced by an individual.
Employee Performance:
The performance of employee which exists in activity and organizational

psychology is considered as fundamental theory. A motivated person will result in a
good performance as the employees know there is a reward waiting at the end of
every month. Reward systems have a huge impact on organizations to retain and
motivate the employees and as a result of achieving high levels of performance.
The management of individual performances within an organization has

traditionally centered on performance appraisal and award allocation, with effective
performance seen as a result of interaction between effective skills and motivation. It
is increasingly acknowledged that planning and performance in a competent
environment have a serious impact on individual performance, with goals and
standards, appropriate resources, guidance and managerial support all becoming
central.
2
The Relationship between Reward and Employee Performance:
Rewarding high-performance levels in the real world is very essential because

it performs and controls employees’ activities. In fact, reward approaches ensure the
level and addition of non-monetary and monetary rewards needed to fascinate,
maintain and encourage skilled and semi-skilled workers to enrich the organization.
Even though some of these benefits are monetary forms, such as salary
sacrifices and competitive pay options, there are many monetary paybacks that
companies can provide to employees. Indeed, there are some of the factors that can
encourage staffs. Therefore, for a manager, it is important to know how to encourage
real employees.
It is strongly stated that promotions build chances for individual improvement,

increase the level of responsibility and increase social status. Similarly, recognition is
the central point of employee motivation as it realizes the appreciation of an employee
and confers dignity on the individual as well as being an employee of the
organization. Another research conducted by Shields and associates advocated that
the reward system should be implemented based on the needs and preferences of
employees as someone’s needs may be fulfilled by monetary rewards while others are
searching for promotion, appreciation, increase of responsibilities, trainings and other
types of nonmonetary rewards. An efficient reward system should be flexible and
contain both monetary and non-monetary rewards to fulfill the expectations of all
employees.
Theoretical Framework:
This study focused on reward systems consisting of extrinsic rewards and

intrinsic rewards and its impact on employee performance. Salary, bonus and
promotion are taken as proxies of extrinsic reward. Similarly, three variables of
intrinsic rewards consisting of empowerment, achievement and appreciation are taken
into account for analysis.
3
1.1 INDUSTRY PROFILE
The bicycle industry or cycling industry can broadly be defined as

the industry concerned with bicycles and cycling. It includes at least bicycle
manufacturers, part or component manufacturers, and accessory manufacturers. It can
also include distributors, retailers, bicycle organizations, bicycle event promoters, and
bicycle related service providers.
The Indian bicycle industry produces almost 15.5 million bicycles per annum,
providing employment to almost 1 million people. Valued at approximately $ 1.5
billion, the industry is the second largest in the world, catering for 10% of the world’s
production (The Energy and Resources Institute (TERI), 2014). The Indian bicycle
industry is growing at approximately 4% and the production of bicycles is mainly
directed towards domestic markets, with exports representing approximately 5-7% of
the total production.
The product mix comprises basic roadster category bicycles (60%), children’s
bicycles (35%) and medium-to-high-end bicycles (about 5%). The nature of the
domestic demand, therefore, is mainly from the low-income population, making it a
price-sensitive industry (The Energy and Resources Institute (TERI), 2014). The
exports are also monopolized by the basic roadster bicycle segment and are mostly
directed towards developing countries in Africa and South Asia.
The bicycle market is projected to register a CAGR of 4.09% over the

upcoming five years. The sales of bicycles initially witnessed a slump due to the
closure of offline stores worldwide due to the COVID-19 pandemic-induced
restrictions. However, after the pandemic, the demand for bicycles started picking up
recently and almost came back to normal, with significant growth in consumers trying
to avoid public transportation due to a fear of contracting the virus. Thus the market is
again expected to go for the old pace of bicycle sales and assumed to reach the sale in
every segment of bicycle and may surely lead the bicycle industries to employ more
people for work to revive the employment and the industry which improves the
national economy as well. Moreover, with the growing health consciousness among
consumers, bicycles are now seen as an increasingly dependable and healthy mobility
option.
4
For instance, in September 2021, the Dutch e-bike brand VanMoof raised over
USD 128 million from venture capitalists as sales of battery-powered bikes (e-bikes)
tripled during the pandemic.
Furthermore, the number of cycling events increased in the middle of 2021.

Over the forecast period, favorable government and employer initiatives are expected
to drive the market studied. In addition, various governing bodies in Europe, Asia-
Pacific, and Africa, particularly South Africa, promote road racing, touring and
leisure cycling, track racing, off-road racing, and mountain biking events.
Besides the European region, in countries like China and Japan, e-bikes have
gained prominence. Some of the significant reasons considered for adopting and
driving e-bikes worldwide are their health benefits, the avoidance of traffic
congestion, the environmental benefits, and the increased demand for e-bikes as
sports equipment. Furthermore, with consistent technological advancements, key
manufacturers, such as Accell Group and Giant Manufacturing Co., are focusing on
enhancing the overall user interface by designing and developing bicycles that can
integrate with the rider’s smartphone and provide real-time information on the speed
and battery status. Therefore, the aforementioned are expected to propel market
growth over the forecast period.
Market Insights:
Asia-Pacific is the largest and fastest-growing region in the bicycle market.

China, Japan, Australia, India, and South Korea are some of the leading countries in
the region. Moreover, these countries have started hosting numerous cycling
tournaments, which may increase the popularity and demand for sports bicycles.
Factors such as the rise in women’s sports participation rates and government
initiatives are likely to boost the demand for bicycles in the region. Moreover, due to
increased demand, bicycle companies in the market are launching innovative bicycles
and accessories, which is expected to lead to significant market growth during the
forecast period.
The e-bike boom is clearly here to stay with 26% more cyclists logging e-bike
rides in 2022. E-bike rides are 30% more likely than non-e-bikes rides to be a
5
commute. kind of makes sense as you are less likely to get sweaty on an e-bike ride.
Additionally, old people are leading the e-bike charge by a huge margin.
According to cycling statistics 2023, the global bicycle market will grow at a
CAGR of 6.3% between 2021 and 2028, reaching a value of $52.81 billion by 2028.
It’s worth noting that the actual growth of the market can be affected by various
factors such as economic conditions, governmental regulations, and technological
advancements.
Segment Insights:
The industry is classified into five product segments -- standard, premium,

kids, exports, and E-bikes. The top 3 exporters of Bicycle are China, India, and
Vietnam. The market share of exports is expected to increase from 8.49% in FY 2022
to 9.71% by the end of 2027. In FY 2022, China was the largest exporter of Bicycles
and accounted for 988,055 shipments, followed by India with 367,964 and Vietnam at
the 3rd spot with 345,214 shipments. In FY 2022, the Roadster segment held a major
market share of 40.51%. Since e-bikes are a more affordable form of transportation
than other fuel-based vehicles, it is predicted that the e-bike segment will grow its
market share from 0.01% in FY 2022 to 3.45% by FY 2027 with a CAGR of 49.74%.
Competitive insights:
Tube Investments of India Limited holds the major market share of the Indian
bicycle market and followed by Hero cycles and others. These bicycle companies are
continuously innovating their product range to serve the changing customer
preference.
6
1.2 COMPANY PROFILE
About TI Cycles of India:
TI Cycles was established by the Murugappa Group in the year 1949, in

collaboration with Tube Investments, UK. The first Hercules bicycle rolled out in
1951. Three more brands were added to the portfolio -Phillips in 1959, BSA in 1964
and Montra in 2011. Today, TI Cycles is the leader in the 'specials' segment. The
energy of the company can be felt nationwide, thanks to a network of around 1,500
primary dealers and 10,000 secondary dealers.
TI Cycles has the capacity to manufacture 4 million cycles a year at 3 plants

across India - Chennai in the South, Nasik in the West and Noida in the North. This
is supported by 4 zonal offices and 4 warehouses across the country.
TI Cycles has been at the forefront of personal mobility solutions for over 6
decades and has gone from being a pioneer in bicycle manufacture and design to a
complete mobility and well- being expert. Standing for the core promise of fun,
fitness and freedom, TI Cycles offers consumers a range of bicycles, e-scooters,
fitness equipment and infant mobility solutions.
Known best for its flagship bicycle brands, BSA, Hercules and Montra, TI
Cycles has practically created and perfected every new cycle category in the
country. The first MTB, the first geared bike, the first Shox model, the first girls'
bike, the first kids' bike, the first light roadster and the first carbon frame bike were
all introduced by TI Cycles.
TI Cycles has constantly come up with new trends to suit evolving consumer
needs. With the changing retail environment, TI Cycles has introduced BSA
Hercules exclusive stores, which have revolutionised the bicycle outlet in India. A
one-stop premium shop for all bicycling and fitness requirements, the exclusive
stores have a customer-friendly ambience and serves as a model for other bicycle
outlets in the country. TI Cycles has also launched urban and rural Hercules BSA
Zone formats in the retail segment. A new initiative, Track and Trail, offers an
international range of bikes for the discerning cyclist. Faster, lighter and stronger
7
than any cycle every created in India, Montra brings international standard carbon
frame bike ingeniously manufactured for the first time in India.
A pioneer in the Cycles market, TI Cycles, formed in 1949, has constantly

come up with new trends in line with evolving consumer needs. TI Cycles' vision is
"To be the most preferred brand in fitness, recreation & personal mobility
solutions". It strives to give its customers not only a bicycle but a lifetime
experience.
TI Cycles have introduced fun and entertaining stores across the length and
breadth of India. The company has been proactive and was first Bicycle Company to
change the cycle retail landscape, both in urban and rural areas. With the first urban
store in 2007, Hercules is sold in over 200 exclusive urban stores known as 'BSA
Hercules Exclusive Stores' which have revolutionised the way people buy bicycles
in India. These stores are a one-stop premium shop for all Hercules, BSA & Montra
products and have a customer friendly ambience which serves as a model for other
bicycle outlets in the country. In 2010, the company started "Hercules BSA Cycles"
to provide the urban retail buying experience in smaller towns. In just over a year's
time, there are over 200 of these rural stores. For its retail innovation, the company
recently received the certificate of appreciation for 'Excellence in Rural Retailing' at
the ET Retail Awards 2011.TI Cycles is a quality and customer centric organization.
Recently, the company has entered the growing e-scooter and fitness equipment
segment in ordertocater to the contemporary consumer needs.
VISION
No one should lose business with whom you do business, so the company will be
successful.
MISSION
Ethical norms in dealing with all the stakeholders. Provide value of money to
customers through quality and services. Treat employees with respect; provide
opportunity to learn innovativeness and creativity in business.
8
TI CYCLE CREDO:
THE ONLY LANGUAGE - PRODUCTION
THE ONLY CREED - QUALITY
THE ONLY RELIGION - PRODUCTIVITY
THE ONLY DIRECTION - GROWTH
THE ONLY ETHOS - EXCELLENCE
About Tube Investments Of India Limited:
A reputed engineering company in India, driving excellence in work and part of the
US
$1.5 billion India conglomerate, the Murugappa Group.
Corporate Chronicle:
 Incorporate in 1949- TI cycles of India (TICI) in collaboration with TI, UK

the world's largest manufacturer of bicycles.
 A tube product of India (TPI) was established in 1955 with the objectives of
providing backward integration to bicycles.
 TPI merged with TICI in 1959. Name of the company changed to tube
investments of India Ltd.
 TPI established a cold Rolling mill in 1962 for the production of cold Rolled
close annealed steel strip.
 TPI established EOU at Avadi in 1996
 Tube plant commissioned in 1997 at Shirwal, Maharashtra.
 Facilities to produce doorframes for Maruti 800 cc and Hyundai Santro in
1998
 Bicycles manufacturing plant at Nashik set up in 2001.
9
Tube Investments of India limited is the flagship company of Rs. 6250 cr.
Murugappa Group. It manufactures precision steel tubes and ships, car door flames,
auto motives and industrial chain and bicycles.
The company has 13 manufacturing assembly units spread across the country.
Marketing offices that act as interface between customer requirements and
production trainably support these units. The company's shares are listed on the
national, Mumbai and Chennai stock exchanges within India and GDRS on the
Luxembourg stock Exchange. The company's product segments are- Engineering,
metal formed products and cycles.
The company also has an interest in the services sector through its investments
in Cholamandalam Investment and finance company Ltd and Cholamandalam MS
general insurance Co.Ltd.
TII is the second largest manufacturer of bicycles in India, marketing top

brands like Hercules, BSA and Philips, and had a market share of 31 percent in
2003-04.In the value-added special segment, TI is the leader, with a 50 percent
market share. More recently, the company entered the promising health conscious
'exercise' bicycle' segment in 2002-03. TI cycles of India, one of the leading bicycle
manufacturers, started in 1949, have been at the forefront of innovation and are a
pioneer in the market of bicycles. TI cycles are the makers of the country's most
famous brands like Hercules, BSA and Philips cycles. The company's vision is to be
a worldwide leader in cycling and solution by instilling the pride of ownership in the
customers.
Units:
TI CYCLES OF INDIA.
TUBE PRODUCTS OF INDIA. .
TI METAL FORMING OF INDIA.
TIDC INDI
10
About Murugappa Group:
The Murugappa group, headquartered in Chennai, India, is a $1.5 billion

conglomerate with interest in engineering, abrasives, sanitary ware, fertilizers,
finance, bio-products and plantations. It has 29 companies under its umbrella; eight
are listed and actively handed on the national stock exchange and the Bombay stock
exchange. Together, they have over 28,000 employees.
The business has its origins in 1990, when Dew a Bahadur AM Murugappa
chattier established a money-lending and banking business in Burma (now
Myanmar), which then spread to Malaysia, Sri Lanka, Indonesia and Vietnam. A
century down the line, it has withstood enormous vicissitudes (including
strategically moving its assets bank to India and restarting from scratch in the 30's
before the Japanese invasion in world war 2) to became one of the country's biggest
industrial houses. The group turnover crossed the $1 billion mark in 2003-04, with
an impressive growth of 25% Rs. 42,060 million in 2002-03. The group clocked a
40 percent jump in profit before tax over the previous year. Murugappa Group's
consolidated turnover for 2004- 05 crossed $1.44 billion. The group achieved a
growth of 20 percent over the previous year.
The group is a market leader in India across a spectrum of products like

sanitary ware, fertilizers, abrasive, automotive chains, car doorframes and steel
tubes. Neemzal, a neem-based organic pesticide, is the country's best known brands
like BSA and Hercules in bicycles, parry ware in sanitary ware, parry's spirulina and
parry's Beta carotene in nutraceuticals, ball master and Ajax in abrasives, Gromor
and Paramfos in fertilizers, and many more come from the Murugappa group
Its companies have tie-up with Borg-Warner of the USA, wend of Germany.
Morgan Crucibles of the U.K and Mitsui Sumitomo insurance of Japan. It has
registered 43 International patents for its research and development innovation. The
group has grown consistently through its decisive and visionary response to change
times. Its pioneering efforts, steadfast commitment to ethical business practices and
its dogged pursuit of new arras to extend its business acumen have brought in its
wake several prestigious national and international awards.
11
Social commitment has always been the cornerstone of the group's ethos and
it has been at the forefront of eco-conservation, public health, and education in the
communities where its companies operate, since 1957. It runs four schools, a
polytechnic college and four hospitals. Besides, the group runs a research and
development center for rural development the sir AMM Murugappa Chettiar
research centre (MCRC), which has been a deigning simple, cost-effective
technology for local artisans since 1977. The Murugappa group has 29 companies
active in the area of engineering, abrasive, sanitary- ware, fertilizers, finance, bio-
products and plantations.
The major companies of the group are:
 Carborumdum universal limited
 Cholamandalam investment& finance company Ltd.
 Coromandel fertilizers Limited
 EID parry Indian Limited
 Godavari fertilizers Limited
 Parry Agro industries Limited
 Parry Nutraceuticals Limited
 Tube investment of India Limited
12
1.3 PRODUCT PROFILE:
TI cycles today boast of a tailor made, wide portfolio of product in over 200 color
combinations for every possible customers. TI has a stable of about 50 products for
its domestic markets. Products are also exported to countries like Germany,
Denmark, USA, UK and Sri Lanka in their own brand name. Products are also
imported from china and Taiwan started new business in Trade marketing. TI cycles
have segmented the market and product range into 9 categories.
 Standards
 SLRs
 Racers
 MTBS Geared
 Juvehile
 Ladies
 Kids
 Trim gym
The Brands are listed with the models based on segment:
Brands
1. BSA
BSA stands for style, fun and comfort. There are several models catering to
consumer segments ranging from kids, ladies and other premium end customers. BSA
Ladybird, BSA SLR, BSA Champ, BSA Mach are trendsetters and icons in their
respective categories. It signifies the joy of cycling. Excitement and comfort go hand
in hand with BSA. Today, BSA is an intrinsic part of the Indian family
13
 BSA Kids
 BSA Ladybird
 BSA Roadsters
 BSA Jr. Roadsters
2. HERCULES
Our first brand is still as young as ever, signifying strength and passion. It is
rugged, robust and is for the rough and tough. Hercules stands for a unique pride of
possession. The range of Hercules Roadeo and Hercules MTB Turbodrive have been
pioneers in the bicycles category catering to the youth. The range of Hercules Ryders
is for urban adults for them to ride towards a healthier, happier self. The Hercules
Popular brand of “standard” bicycle is a market leader in the segment.
 Hercules Roadeo cycles

 Hercules MTB cycles
 Hercules kids cycles
 Hercules Roadster cycles
 Hercules JR. Roadster cycles
3. MACH
 City Terrain Bikes

 Mach City Bikes
4. MONTRA
Faster, lighter and stronger than any cycle ever created in India, Montra brings
international standard carbon frame bike for the first time in India. It is designed and
manufactured ingeniously and is a part of the flagship range of TI cycles under Track
14
and Trail. Montra, meaning “My Track” is the bike that lets you ride your aspirations,
that lets you choose your own path.
 Rock 27.5T
 Rock 29T
 Madrock 27.5T
 Madrock 29T
 Backbeat 27.5T
 Backbeat 29T
5. TRACK & TRAIL
Track and Trail is the ultimate destination for everything in cycles – from the best
of international bicycles and world-class accessories to a network of people with
expertise on technology, performance and the intricacies of cycling. For mountain,
road and hybrid bikes, you can choose from Cannondale, Bianchi or Schwinn –
world-class brands known for incomparable designs, superior comfort and ease of
riding. We also have an exciting range of BMX and MTB cycles from GT and
Mongoose for those who like a bit of adventure in their lives.
 City Bike
 Girls Bike
 Hybrid Bike
 Kids Bike
 Mountain Bike
 Urban Sport Bike
15
ORGANISATIONAL CHART
PRESIDENT
SENIOR VICE
SENIOR VICE
PRESIDENT
PRESIDENT
(RETAIL & BAS
(BICYCLE &
MOTORS)
FITNESS)
GM GM
VICE PRESIDENT (MOTORS) VICE PRESIDENT (BSA)
(RETAIL)
SALES & MARKETING (PRODUCTION)
GM GM GM
GM GM GM
(HR) (SOUTH (MARKETING) (WESTY
OPS)
(NORTH, EAST (FINANCE)
OPS & OPS)
NATIONAL
SOURCING)
16
CHAPTER II
17
CHAPTER 2
REVIEW OF LITERATURE
2.1 SPECIAL CONCEPT

An employee reward system comprises an organization’s coherent strategies,
procedures and, system for recognizing the employee in terms of their involvement,
skills and, potential and their market value. This system is created within the structure
of the organization’s reward beliefs, strategies, and policies. It consists of an
arrangement in the framework of progression, routine, structure that will impart and
perpetuate the apt type and level of pay, benefits and, other forms of reward. The
reward system intends to “attract, retain, and motivate” the workforce. This system
plays a vital role in ensuring employee engagement by providing each individual with
the most suitable motivational factor. Since every individual has different needs and
goals, they are driven by different sets of motives, as some may seek a bonus whereas
others may desire a sense of recognition or a promotion to a higher post. Thus, these
factors influence their performance, behavior, and commitment to the job. Henceforth,
developing a reward system that caters to every employee’s needs is extremely
crucial.
Importance of Rewards System:
The employees are the backbone of an organization. Thus, an organization

achieves its goals only when the employees are determined to work harder and
contribute towards the end goal. This determination arises from a desire to achieve a
personal target that is aligned with their job. Rewards are a link between these
personal goals and their motive to work. When the staff feels they are justly rewarded
for their ability, expertise, intellect, and involvement, they are considered to be
satisfied with their job, resulting, they perform better at their job. Factors such as
providing a bonus on achieving more than the target sales and recognizing their work
and praising them are rewards that motivate an employee. This satisfaction of work
helps to retain the staff and maintain the employee turnover. Frequent distribution of
rewards and appreciation improves their performance perpetually and provides them
with a sense of accomplishment as well as creates a path for career growth.
18
Types of Rewards Systems:
Rewards can be categorized into 2 types: Intrinsic rewards and extrinsic

rewards. Intrinsic rewards are also known as “non-financial rewards” that are
ingrained to a task and their administration is not determined by the “presence or
actions” of another individual. It includes the feeling of being acknowledged, praised
for doing a good job, and participating and being involved in something. Some of the
types of intrinsic rewards are- a sense of meaningfulness, sense of choice, sense of
growth, and sense of community. On the other hand, extrinsic rewards are financial
rewards that are administered by an external agent. It includes financial motivations
like money, retirement benefits, health insurance scheme, compensation, salary,
bonus, etc. These two types of rewards combined help to keep the employees engaged
and motivated at work.
19
2.2 LITERATURE REVIEW
Nirma Sadamali Jayawardena and Darshana Jayawardena(2020) Studied on the
extrinsic and intrinsic rewarding system on employee motivation. The study
contributed to identify the employee motivational factors in the selected company and
to reduce current labour turnover ratio by identifying the factors which motivate the
current workforce.
Walters T. Ngwa(2019) conducted a study on the effect of reward system on

employee performance. The study assesses the degree to which profit sharing affects
employee commitment. Firstly, because reward systems are not a one size fit for
every firm, it will be interesting to investigate the effect of reward system on
employee performance in service firms. Employee task are more routine with a
relatively lower level of creativity and innovation. Secondly, wages and salaries
constitute a significant part of expenses made by firms. Considering that reward is an
important tool that can be used to attract the right employee, keep them and constantly
motivate them to perform at optimum level, reward systems are expected to deliver
attractive packages.
Zhen Zhang, Lianying Zhang, Aibin Li(2019) found that reward system as an
effective tool to manage NPD(new product development) collaboration. Yet, our
understanding about what types of rewards should be used for NPD collaboration is
still unclear. This research examines the effects of reward interdependence and
nonfinancial incentives on NPD collaboration, as well as the moderating roles of team
size and deep-level heterogeneity.
Juma Al Darmak(2017), observed the role of rewards in promoting innovation has

received considerable attention in both theory and practice. The fact that rewards have
a positive impact on promoting innovation is well established. However, this
relationship is complex since different types of rewards are suited for various kinds
and stages of innovation. Further, an alternate view undermines the role of rewards in
promoting innovation. Research explains that reward plays a significant role in the
motivation of employees since it creates a certain degree of excitement among
employees, thus leading to the development of innovation culture within the
organization.
20
Felista Ngozi Abasili, Abdu Ja’afaru Bambale(2017), investigate the direct
relationship between reward and employee performance using the variables including
salary, bonus, incentive, promotion, recognition, pension and gratuity as independent
variables and performance as dependent variable. Employee performance and the
level of job satisfaction and commitment to their job is a direct function of the
compensation packages and reward system of the organization.
Ofelia Robescu and Alina-Georgiana Iancu(2016) says that the most important
finding of the study is that a large part of employees agree that recognition motivates
and influence the performance. In summary, recognition can be a powerful tool used
to motivate employees. It is desired by employees and significantly increase their
performance. Some suggests that social rewards, such as recognition may affect
employee performance to the same level as payment.
Abdifatah Abdilahi Ali(2015), opined that there is a positive relationship between

extrinsic rewards and employee satisfaction. Giving of rewards to the best performing
employees motivates them to increase their job satisfaction as well as encouraging the
other employees to enter into a competitive performance for them to be rewarded too.
Appreciation of the work done and provision of performance benefits affects
employee satisfaction level thereby promoting their morale in their work.
Ayesha Binte Safiullah(2014), From this study it can be inferred that it is not just one
factor, for example it is not just monetary rewards which motivate an employee,
though monetary compensation is the physiological factor to the employees. This
essentially says that the employees need to be motivated with the content of their job.
That is the employees in any organization need to be constantly provided with
opportunities for learning new skills so that they do not feel monotonous.
Dr. Baskar , Prakash Rajkumar. K. R,(2014) studied that a variety of factors

influence employee motivation and satisfaction. It was also significant to discover that
there is a direct and positive relationship between rewards and recognition and job
satisfaction and motivation. Hence, if rewards and recognition offered to employees
were to be altered, then there would be a corresponding change in work motivation
and satisfaction.
21
CHAPTER III
22
CHAPTER 3
RESEARCH METHODOLOGY
3.1 SCOPE OF THE STUDY
 The study aims to measure the impact of reward system on employees in TICI,
Ambattur.
 The study helps the organization to understand the image in the mind of the
employees.
 The study helps the organisation to understand the satisfaction level of

employees towards recruitment and selection.
3.2 NEED OF THE STUDY
 The project work gives a crucial information on reward system and its impact
on employees in TICI, Ambattur.
 Project work has been really beneficial for my course and is a guidance to my
future career.
3.3 OBJECTIVES OF THE STUDY
3.3.1 PRIMARY OBJECTIVE:
 To study the impact of reward system on employee performance in TI Cycles
of India, Ambattur.
3.3.2 SECONDARY OBJECTIVES:
 To analyse the existing reward system in the organisation.
 To evaluate the opinions of employees on monetary rewards.
23
 To analyse the effect of special rewards provided to employees.
 To observe the opinions on recognition provided to employees.
 To suggest changes and ideas to improve the reward system.
3.4 TYPE OF RESEARCH
In this study research design is descriptive in nature. Descriptive research

involves survey of facts, findings and enquiries of different kinds. The major purpose
of descriptive research is description of the state of affairs as it exists at present. The
main characteristics of this method is that the researcher has no control over the
variables; they can only report what has happened or what is happening.
3.5 METHODS OF RESEACH DESIGN
3.5.1 PRIMARY DATA
A questionnaire was prepared and was used to collect the primary data from
the selected members of the sample.
3.5.2 SECONDARY DATA
The secondary data mainly consist of a data and information. Secondary data
was collected from the company's records, officers and websites.
3.6 SAMPLE SIZE
Population Size : 600
Sample size taken for this study : 100
3.7 SAMPLING METHOD
The method of sampling used in this study is Simple random sampling method.
24
3.8 STATISTICAL TOOLS USED FOR ANALYSIS
 Percentage Analysis Method.

 Chi-Square test Method.
 ANOVA test Method.
3.8.1 Percentage Analysis Method
Percentage refers to a special kind of ratio. Percentage is used in making

comparison between two or more series of data. Percentage can also use to compare
the relative terms, the distribution of two or more series of data.
The easy and simplicity of calculating, the general understanding of its

purpose and the universal applicability of the percent static have made it most widely
and standardizes tool in researcher.
Percentage Analysis Formula:
Percentage of respondents = (No. Of Respondents/Total no. of Respondents) * 100
3.8.2 Chi Square Test method
The chi-square test is one of the simplest and most widely uses non parametric
tests in statistical work. The symbol is the Greek letter chi. Karl Person first used
the chi-Square test in the year 1980. The Quality chi-square describes the magnitude
of the discrepancy between and observation.
Chi-square formula:
3.8.3 ANOVA Test method
ANOVA in SPSS is used as the test of means for two or more populations.
ANOVA in SPSS must have a dependent variable which should be metric (measured
using an interval or ratio scale). ANOVA in SPSS must also have one or more
independent variables, which should be categorical in nature.
25
3.9 PERIOD OF THE STUDY
The study was conducted for a period of three months.
3.10 LIMITATIONS OF THE STUDY
The following of the limitations faced by me during the course of study
 As the study is based on primary data, the researcher has only depended
upon the information given by the respondents.
 Responses of the employees could be biased.
26
CHAPTER IV
27
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1 PERCENTAGE ANALYSIS
In the percentage analysis method, classification and tabulation of results from the
questionnaire is done first. Then the percentage of employee response for each
question in the questionnaire is found. Then the results are shown by the diagram.
Alter the analysis of the results, an interpreter is available.
Simple percentage method= (is the number of employee's /sample size) *100
Table 4.01
Showing Age wise Classification
Age Group No. of Respondents Percentage
18-25 39 39.0
26-35 35 35.0
36-45 20 20.0
46 & Above 6 6.0
Total 100 100.0
28
Fig 4.01 Age of the employees
39 % 35 %
20 %
6%
Interpretation:
From the table, it is interpreted that 39% of the respondents are from the age group of
18-25 years, 35% of the respondents are from the age group 26-35 years, 20% of the
respondents are from the age group 36- 45 years and 6% of the respondents are from
the age group of 46 years and above.
29
Table 4.02
Showing Gender wise Classification
Gender No. of Percentage

Respondents
Male 90 90
Female 10 10
Total 100 100
Fig 4.02 Gender of the employees
Interpretation:
From the table, it is interpreted that 90% of the respondents are Male and 10% of the
respondents are Female.
30
Table 4.03
Showing Education of the employees
Gender No. of Respondents Percentage
UG 71 71
PG 7 7
ITI/Diploma 19 19
Others 3 3
Total 100 100
Fig 4.03 Education of the employees
Interpretation:
From the table, it is interpreted that 71% of the respondents are UG graduates, 7% are
PG graduates, 19% are ITI/Diploma and 3% are others.
31
Table 4.04
Showing Experience of the employees
Experience (Years) No. of Respondents Percentage
0-2 36 36
3-5 35 35
6-8 22 22
Above 8 7 7
Total 100 100
Fig 4.04 Experience of the employees
Interpretation:
From the table, it is interpreted that 36% of the respondents are experienced of 0-2 years, 35%
are 3-5 years, 22% are 6-8 years and 7% are experienced above 8 years.
32
Table 4.05
Showing Designation of the employees
Designation No. of Respondents Percentage
Employer 0 0
Employee 90 90
Trainee 10 10
Others 0 0
Total 100 100
Fig 4.05 Designation of the employees
Interpretation:
From the table, it is interpreted that 90% of the respondents are Employees and 10% are Trainees.
There are no respondents in Employers and others category.
33
Table 4.06
Employees are aware of firm's rewards and recognition
Particulars No. of Respondents Percentage
Strongly Agree 13 13
Agree 48 48
Neutral 30 30
Disagree 9 9
Strongly Disagree 0 0
Total 100 100
Fig 4.06 Employees are aware of firm’s rewards and recognition
90%
10%
Interpretation:
From the table, it is interpreted that 13% of the employees Strongly Agree, 48% of them Agree,
30% are neutral and 9% of them disagree the statement . There are no respondents who strongly
disagree the statement.
34
Table 4.07
Employees understand their performance evaluation
Agree 29 29
Neutral 42 42
Disagree 7 7
Total 100 100
Fig 4.07 Employees understand their performance evaluation
Interpretation:
From the table, it is interpreted that 19% of the employees strongly agree, 29% of them agree,
42% are neutral, 7% of them disagree and 3% strongly disagree the statement.
35
Table 4.08
Reward System in your firm is fair and equitable
Agree 45 45
Neutral 17 17
Disagree 3 3
Total 100 100
Fig 4.08 Reward System in your firm is fair and equitable
Interpretation:
17% are neutral and 3% of them disagree the statement .There are no respondents who strongly
36
Table 4.09
Getting salary on time gives motivation to perform better
Agree 47 47
Neutral 30 30
Disagree 3 3
Total 100 100
Fig 4.09 Getting salary on time gives motivation to perform better
Interpretation:
30% are neutral and 3% of them disagree the statement .There are no respondents who strongly
37
Table 4.10
Employees receive right amount of salary for their effort and skills
Agree 50 50
Neutral 19 19
Disagree 6 6
Total 100 100
Fig 4.10 Employees receive right amount of salary for their effort and skills
Interpretation:
19% are neutral, 6% of them disagree and 3% of them strongly disagree the statement.
38
Table 4.11
Salary increases are decided on a fair manner
Strongly Agree 7 7
Agree 49 49
Neutral 35 35
Disagree 9 9
Total 100 100
Fig 4.11 Salary increases are decided on a fair manner
Interpretation:
35% are neutral and 9% of them disagree the statement. There are no respondents who strongly
39
Table 4.12
Bonus helps maintaining work commitment
Designation No. of Respondents Percentage
Agree 43 43
Neutral 37 37
Disagree 7 7
Total 100 100
Fig 4.12 Bonus helps maintaining work commitment
Interpretation:
40
Table 4.13
Attendance bonus encourages commitment in employees towards work
Agree 51 51
Neutral 15 15
Disagree 0 0
Total 100 100
Fig 4.13 Attendance bonus encourages commitment in employees towards work
Interpretation:
From the table, it is interpreted that 34% of the employees strongly agree, 51% of them agree and
15% are neutral. There is no one who disagree and strongly disagree the statement.
41
Table 4.14
Spot Award is a motivation to achieve in career
Agree 39 39
Neutral 27 27
Disagree 0 0
Total 100 100
Fig 4.14 Spot Award is a motivation to achieve in career
Interpretation:
From the table, it is interpreted that 34% of the employees strongly agree, 39% of them agree and
27% are neutral. There is no one who disagree and strongly disagree the statement.
42
Table 4.15
Sprayer Allowance provided for employees engaged at high risk work is an effective reward
Agree 58 58
Neutral 7 7
Disagree 3 3
Total 100 100
Fig 4.15 Sprayer Allowance provided for employees engaged at high risk work is
\ an effective reward
Interpretation:
7% are neutral, 3% disagree the statement. No one strongly disagree the statement.
43
Table 4.16
There is enough publicity given for award winners
Agree 24 24
Neutral 40 40
Disagree 10 10
Total 100 100
Fig 4.16 There is enough publicity given for award winners
Interpretation:
44
Table 4.17
Low performers are encouraged in your firm to work hard and better
Agree 34 34
Neutral 50 50
Disagree 3 3
Total 100 100
Fig 4.17 Low performers are encouraged in your firm to work hard and better
Interpretation:
45
Table 4.18
Appreciation for work is necessary for employees
Agree 48 48
Neutral 17 17
Disagree 13 13
Total 100 100
Fig 4.18 Appreciation for work is necessary for employees
Interpretation:
46
Table 4.19
Appreciation and recognition is given in public for special achievements
Strongly Agree 3 3
Agree 44 44
Neutral 37 37
Disagree 13 13
Total 100 100
Fig 4.19 Appreciation and recognition is given in public for special achievements
Interpretation:
47
Table 4.20
Promotion is timely in my company. Hence it leads to higher productivity
Agree 42 42
Neutral 34 34
Disagree 6 6
Total 100 100
Fig 4.20 Promotion is timely in my company. Hence it leads to higher productivity
Interpretation:
48
Table 4.21
Promotion is provided in a fair and honest way
Agree 31 31
Neutral 49 49
Disagree 3 3
Total 100 100
Fig 4.21 Promotion is provided in a fair and honest way
Interpretation:
49
Table 4.22
Choose the reward which value you most
Monetary Rewards 40 40
Non - Monetary Rewards 43 43
Recognition 17 17
Total 100 100
Fig 4.22 Choose the reward which value you most
Interpretation:
From the table, it is interpreted that 40% of the employees prioritise monetary rewards, 43% of
them prefer non-monetary rewards and 17% of them value the recognition as their preferred
reward.
50
Table 4.23
Reward system should include career plan based on performance.
Strongly Agree 9 9
Agree 58 58
Neutral 22 22
Disagree 7 7
Total 100 100
Fig 4.23 Reward system should include career plan based on performance.
Interpretation:
51
Table 4.24
Some more improvements are needed in the reward system in your organisation
Agree 51 51
Neutral 19 19
Disagree 6 6
Total 100 100
Fig 4.24 Some more improvements are needed in the reward system in your
organisation
Interpretation:
52
CHI-SQUARE TEST
TABLE: 4.25
CHI-SQUARE TESTS FIND OUT THE RELATIONSHIP BETWEEN

EDUCATION AND EMPLOYEES RECEIVING RIGHT AMOUNT OF
SALARY FOR THEIR EFFORT AND SKILLS.
Null Hypothesis (Ho):There is no significant relationship between education of

employees and employees receiving right amount of salary for their effort and skills.
Alternative Hypothesis (Hi):There is significant relationship between education of

employees and employees receiving right amount of salary for their effort and skills.
RELATIONSHIP BETWEEN EDUCATION AND EMPLOYEES RECEIVING

RIGHT AMOUNT OF SALARY FOR THEIR EFFORT AND SKILLS
Education of Employees receive right amount of salary for their effort and skills
the employees
Strongly Agree Neutral Disagree Strongly Total
Agree Disagree
UG 16 39 10 6 0 71
PG 0 4 3 0 0 7
ITI/Diploma 6 7 3 0 3 19
Others 0 0 3 0 0 3
Total 22 50 19 6 3 100
53
SOLUTION:
Oi Ei (Oi – Ei) (Oi – Ei)2 (Oi – Ei)2/Ei

16 15.6 0.4 0.16 0.01
0 1.5 -1.5 2.25 1.5
6 4.2 1.8 3.24 0.77
0 0.7 -0.7 0.49 0.7
39 35.5 3.5 12.25 0.35
4 3.5 0.5 0.25 0.07
7 9.5 -2.5 6.25 0.66
0 1.5 -1.5 2.25 1.5
10 13.5 -3.5 12.25 0.9
3 13 1.7 2.89 0.22
3 3.6 -0.6 0.36 0.1
3 0.6 2.4 5.76 9.6
6 4.3 1.7 2.89 0.67
0 0.4 -0.4 0.16 0.4
0 1.1 -1.1 1.21 1.1
0 0.2 -0.2 0.04 0.2
0 2.1 -2.1 4.41 2.1
0 0.2 -0.2 0.04 0.2
3 0.6 2.4 5.76 9.6
0 0.1 -0.1 0.01 0.1
TOTAL 30.75
54
CALCULATION:
Calculated value = 30.75
Degree’s of freedom = (c-1) (r-1)
= (5 - 1) (4 - 1)
= 4*3 = 12
Level of significance = 5%
5% = 0.05
0.05 = 21.026
Calculated value > Table value
30.75 > 21.026
INFERENCE:
Since the calculated value is greater than the table value, we reject the null hypothesis.
Thus there is significant relationship between education of employees and employees
receiving right amount of salary for their effort and skills.
55
ANOVA TEST
TABLE: 4.26
ONE WAY ANOVA TEST TO FIND OUT THE RELATIONSHIP

BETWEEN YEARS OF EXPERIENCE AND PROMOTION
BEING PROVIDED FAIR AND HONESTLY
Null Hypothesis (Ho): There is no significant relationship between years of

experience and promotion being provided fair and honestly
Alternative Hypothesis (Hi): There is significant relationship between years of

experience and promotion being provided fair and honestly.
RELATIONSHIP BETWEEN YEARS OF EXPERIENCE AND PROMOTION

BEING PROVIDED FAIR AND HONESTLY
Descriptives
PROMOTION IS TIMELY IN MY COMPANY LEADING TO HIGHER PRODUCTIVITY

95% Confidence Interval for
Mean
Age group N Mean Std. Deviation Std. Error Lower Bound Upper Bound Min. Max.
0-2 36 2.17 .811 .135 1.89 2.44 1 4
3-5 35 2.80 .933 .158 2.48 3.12 1 5
6-8 22 2.27 1.032 .220 1.82 2.73 1 4
Above 8 7 2.00 .000 .000 2.00 2.00 2 2

Total
100 2.40 .921 .092 2.22 2.58 1 5
56
ANOVA
Promotion is timely in my company leading to higher productivity
Sum of Degrees of Mean

Squares freedom Square F Sig.
Between Groups 9.036 3 3.012

3.857 .012
Within Groups 74.964 96 .781
Total 84.000 99
Calculation:
Calculated Value > Table Value
3.86 > 2.680
Inference:
Since the calculated value is greater than the table value, we reject the null hypothesis.
Thus there is significant relationship between experience of employees and timely
promotion is in the company leading to higher productivity.
57
CHAPTER 5
58
CHAPTER-5
FINDINGS, SUGGESTION & CONCLUSION
5.1 FINDINGS
 39% of the respondents are 18 to 25 years and 35% are 26 to 35 years of age.
 Maximum of the respondents are male working in the organization.
 Most of the respondents in the firm are UG graduates.
 36% of the respondents are experienced 0-2 years and 35% of 6-8 years.
 90% of respondents are employee and the rest are trainees.
 Nearly half of the respondents agree that the employees are aware of firm’s
rewards and recognition.
 As much as 42% of the respondents are neutral about employees
understanding their performance evaluation.
 About 45% of the respondents agree that reward system in the firm is fair and
equitable.
 Almost half of the respondents agree that getting salary on time motivates to
perform better.
 Half of the respondents agree that employees receive right amount of salary
for their effort and skills.
 All but half of the respondents agree that salary increases are decided on a fair
manner.
 43% of the respondents agree and 37% are neutral that bonus helps
maintaining work commitment.
 About 51% of the respondents agree that attendance bonus encourages
commitment in employees towards work.
 Close to 75% stand with the statement that spot award is a motivation to
achieve in career.
 Half of the respondents admit that there is enough publicity given for award
winners and the other bigger portion stay neutral.
 Majority of the respondents count on the assertion that appreciation for work
is necessary for employees.
 44% of the respondents agree that appreciation and recognition is given in
public for special achievements.
59
 42% agree and 34% stay neutral with the statement that promotion is timely
and leads to productivity.
 Nearly half of the respondents stay neutral and around 44% admit with the
statement of promotion being provided fair and honestly.
 40% and 43% of the respondents chose monetary and non-rewards
respectively as the one they value most. Rest of them preferred recognition.
 Larger portion of the respondents agree that reward system should include
career plan based on performance.
 Almost half of the respondents agree that some more improvements are
needed in the reward system in your organization.
CHI-SQUARE TEST
 There is significant relationship between years of experience and promotion

being provided fair and honestly.
ANOVA TEST
 There is significant relationship between experience of employees and timely

promotion is in the company leading to higher productivity.
60
5.2 SUGGESTION
 Steps should be taken to help employees understand their performance

evaluation.
 Career plan should be included and thus resulting in improvement in the
performance of the employees and their career growth.
 The steps should be taken to check whether the salary is provided to
employees on time.
 Recognition is necessary for the employees for their efforts and thus they
should be recognized with appreciation in public.
 Some steps should be taken so that employees understand how their
performance is evaluated to rewards.
 Changes should be made by hearing the suggestion from the employees thus
improving the reward system.
 Thus the suggestion can be implemented to bring further advancement in the
reward system.
61
5.3 CONCLUSION
It is seen that the majority of the employees feel that motivation in the
workplace depends on the effectiveness of reward system. Low motivation in the
workplace, leads to many problems such as high absenteeism, decline in productivity,
lower profit margins, and so on. Employees feel that motivation can be increased by
recognition in work, bonus, and promotion. Moreover, the research also helped to
uncover the fact that the employees did not just require improvement in reward
systems but also recognition for their contribution of work . Recognition in this firm
is given in awards like ‘Employee of the month’ and specially ‘Spot Award’ is an
excellent reward to recognize and appreciate employees who put their extra effort and
do achievements. Different allowances are provided here and ‘Sprayer Allowance’ is
an important one which is given to employees who are engaged in high risk work of
spraying the paint under very high temperature. It is also suggested from the
employees that improvisation is needed and still can be made in the reward system
which is like including career plan, new rewards which could be effective. Thus this
study shows the effectiveness of reward system in employees’ performance and it is
found that revamping the reward system with the trend can surely result in boost in
individual as well as firm’s growth.
62
BIBLIOGRAPHY
 Antoni, H, C. (2012). Guest Editor‟s Introduction: Reward Management.

Journal of International Studies & Organization, 42 (1), 3-6. Bhattacharya, S.,
& Mukherjee, P. (2009). Rewards as a Key to Employee Engagement: A
Comparative Study on I.T. Professionals. ASBM Journal of Management,
2(1), 160-175.
 Bispo, M, D, S., & Gherardi, S. (2019). Flesh-and-blood knowing: Interpreting
qualitative data through embodied practice based research. RASP
Management Journal, 54 (4), 371-383.
 Čížek, P. (2012). The Application of Maslow‟s Hierarchy of Needs to the
Entrepreneur‟s Motivation – The Example from Region Pardubice. Scientific
Papers of the University of Pardubice, 18(24), 43-50.
 Dobija, D., Górska, A. M., Grossi, G., & Strzelczyk, W. (2019). Rational and
Symbolic Uses of Performance Measurement: Experiences from Polish
Universities. Accounting, Auditing & Accountability Journal, 32(3), 750-781.
 Giacomelli, G., Annesi, N., & Barsanti, S. (2019). Combining Ideal Types of
Performance and Performance Regimes. International Journal of Public Sector
Management, 32(7), 721-740.
 Gkorezis, P., & Kastritsi, A. (2017). Employee expectations and intrinsic
motivation: work-related boredom as a mediator. 39 (1), 100-111
 Korlen, S., Essen, A., Lindgren, P., Wahlin, A, I., & Schwarz, T, U. (2017).
Managerial Strategies to make incentives meaningful and motivating. Journal
of Health Organisation and management, 31 (2), 126-141.
 Kroon, B., Woerkom, V, M., & Menting, C. (2017). Mindfulness as a
substitute for transformational leadership. Journal of Managerial Psychology,
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doi/10.1108/full/html
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64
A STUDY ON THE IMPACT OF REWARD SYSTEM ON EMPLOYEE
PERFORMANCE
IN TICI, AMBATTUR, CHENNAI – 53.
QUESTIONNAIRE:
1. Name :
2. Age : a) 18-25 b) 26-35 c) 36-45 d) 46 & above
3. Gender : a) Male b) Female
4. Education : a) UG b) PG c) ITI/Dip. d) others
5. Experience : a) 0-2 b) 3-5 c) 6-8 d) Above 8
( in years )
6. Designation : a) Employer b) Employee c) Trainee d) others
REWARD SYSTEM :
7. Employees are aware of the rewards and recognition provided by your

organisation.
a) Strongly Agree b) Agree c) Neutral d) Disagree
e) Strongly Disagree
8. Employees can understand how their performance is evaluated.
9. Reward system in your organisation is fair and equitable.
65
MONETARY REWARDS :
10. Getting salary on time motivates me to perform better.
11. Receiving the right amount of salary for my effort and skills.
12. Salary increases are decided on a fair manner.
13. Receiving Bonus helps me to maintain the commitment towards work while
going another year.
14. ‘Attendance Bonus’ provided in my firm encourages employees to be more

committed in their work.
SPECIAL REWARDS :
15. ‘Spot Award’ is really a motivation for employees to achieve more in their
career.
66
16. ‘Sprayer Allowance’ provided for employees engaged at high risk work is an
effective reward.
17. There is enough publicity given for award Winners.
APPRECIATION AND PROMOTION :
18. Low performers are encouraged in your firm to work hard and better.
19. Appreciation is necessary for employees in organisations for their work.
20. Appreciation and recognition is given in public in the case of special

performance in my firm.
21. Promotion is timely in my company. Hence it leads to higher productivity.
67
22. Promotion is provided in a fair and honest way.
OTHER PERCEPTIONS AND SUGGESTIONS :
23. Choose the reward that value you most.
Monetary rewards (Salary, Bonus)
Non-monetary rewards (Gifts, Awards)
Recognition (Promotion, Appreciation)
24. Reward system should include career plan based on performance.
25. Some more improvements are needed in the reward system in your
organisation.
68

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A STUDY ON THE IMPACT OF REWARD SYSTEM ON EMPLOYEES’

PERFORMANCE IN TI CYCLES OF INDIA, AMBATTUR

JESHURAN BEN JESTIN

Register No.: 961821631027

PONJESLY COLLEGE OF ENGINEERING

FACULTY OF MANAGEMENT SCIENCES

In partial fulfilment of the requirement

for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

CHENNAI - 600 025

Phone: 04652259680 Email : mba@ponjesly.com,

Dr. R. Sam Renu, M.B.A., M.Phil., Ph.D.

Department of Management Studies.

Date: Signature of the Supervisor

Dr. G. Arumugasamy, M.Com, M.B.A., M.Phil., Ph.D.

Viva-Voce Examination held on:

Internal Examiner External Examiner

Date: JESHURAN BEN JESTIN

IV ANALYSIS AND INTERPRETATION

Table Title Page

4.02 Table showing the classification of Gender 30

4.03 Table showing classification of Education qualification 31

4.05 Table showing the classification of Designation 33

4.07 Table showing opinions on employees can understand how their 35

4.09 Table showing opinions on getting salary on time motivates me to perform 37

4.11 Table showing opinions on salary increases are decided on a fair 39

4.25 Table showing relationship between education of employees and 53

4.26 Chi – Square test Table 54

4.27 Table showing relationship between years of experience and promotion 56

4.28 ANOVA test solution table 57

Figure Title Page

Figure showing the classification of Gender 30

Figure showing the classification of Designation 33

4.07 Figure showing opinions on employees can understand how their 35

4.09 Figure showing opinions on getting salary on time motivates me to 37

4.11 Figure showing opinions on salary increases are decided on a fair 39

4.13 Figure showing opinions on ‘Attendance Bonus’ provided in the firm 41

Reward system is essential to the organization as it has become important in

Management use rewards for employees motivations. So we can say that

Rewards may be studied in two dimensions consisting of extrinsic rewards and

The performance of employee which exists in activity and organizational

The management of individual performances within an organization has

Rewarding high-performance levels in the real world is very essential because

It is strongly stated that promotions build chances for individual improvement,

This study focused on reward systems consisting of extrinsic rewards and

The bicycle industry or cycling industry can broadly be defined as

The bicycle market is projected to register a CAGR of 4.09% over the

Furthermore, the number of cycling events increased in the middle of 2021.

Asia-Pacific is the largest and fastest-growing region in the bicycle market.

The industry is classified into five product segments -- standard, premium,

About TI Cycles of India:

TI Cycles was established by the Murugappa Group in the year 1949, in

TI Cycles has the capacity to manufacture 4 million cycles a year at 3 plants

A pioneer in the Cycles market, TI Cycles, formed in 1949, has constantly

THE ONLY LANGUAGE - PRODUCTION

THE ONLY CREED - QUALITY

THE ONLY RELIGION - PRODUCTIVITY

THE ONLY DIRECTION - GROWTH

THE ONLY ETHOS - EXCELLENCE

About Tube Investments Of India Limited:

$1.5 billion India conglomerate, the Murugappa Group.

 Incorporate in 1949- TI cycles of India (TICI) in collaboration with TI, UK