PROJECT REPORT

A STUDY ON REWARDS AND RECOGNITION

AT
“Dr. REDDY LABS”, HYDERABAD
MASTER OF BUSINESS ADMINISTRATION

Submitted by

(Student Name)

HT NO: 21WJ1E****

Under the Guidance of

Mr. K. SANDEEP REDDY

ASSISTANT PROFESSOR

School of Management studies

GURUNANAK INSTITUTIONS TECHNICAL CAMPUS

(Autonomous)
 PAGE
CHAPTER CONTENTS
NO.
INTRODUCTION
 Objectives of the study

CHAPTER - I  Need for the study

 Scope of the study

 Research Methodology

CHAPTER - II REVIEW OF LITERATURE

CHAPTER -
COMPANY PROFILE
III
CHAPTER -
THEORETICAL FRAMEWORK
IV
DATA ANALYSIS &
CHAPTER - V
INTERPRETATION
 Findings
CHAPTER -
 Suggestion
VI
 Conclusion
Annexure / Questionnaire
INDEX
ABSTRACT:
The general objective of the research was to study the impact of rewards and recognition on
employee motivation. And the specific objectives were to identify the most effective means
of rewards and recognition, to study the behavioral differences between appreciated and non-
appreciated employees, to understand the extent to which motivation enhances employee’s
performance, to identify if the motivation has an effect on individual and organizational
growth and to study if rewards and recognition results in emotional conflicts between
employees. The descriptive research design was adopted for this study. Various employees
from the companies were the respondents. It is evident from the study 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.
The direct translation of this could be that the better the rewards and recognition, the hi her the
levels of motivation and satisfaction, and possibly therefore, the greater the levels of
performance and productivity. In the event of major inconsistencies, especially for emotional
conflicts between performers and non performers, the organization should make an effort to re-
assess and rectify this situation. In the event that the organization does not re-assess this
situation, it could have a resultant negative impact on job performance and productivity as
well as on the retention of minorities. In accordance with Maslow’s hierarchy o f needs, the
lower level needs such as salary and benefits must first be met before the higher level
needs, which impacts motivation can be satisfied.

Keywords: Rewards, Recognition, Employee, motivation

 CHAPTER – I
INTRODUCTION
 INTRODUCTION

Rewards and Recognition can be powerful tools for employee motivation and
performance improvement. Reward means something given for performance. Recognition is an
important feature in retaining excellent employees and for improving performance. Many types
of rewards and recognition have direct costs associated with them, such as cash bonus stock
awards, and wide variety of company paid perks. The primary objective of providing Reward
and Recognition is to encourage and motivate the employees to do better performance Rewards
and Recognition are one of the motivation aspects in Human Resources.
Rewards and Recognition are given to achieve desired goals. Rewards system should be
closely aligned to organizational strategies. These strategies could be designed to faster
innovation to provide unique products or services. Rewards and recognition may be monetary,
or non-monetary. Monetary rewards include cash bonus, stock awards, company paid perks, gift
certificates. Non monetary rewards and recognition including compliments, extra time off,
ceremonial awards, and small trinkets such as mugs, t-shirts, sets of pens and pencils. Rewards
and Recognition are very useful to reinforce good performance.

Pharmaceutical Industry:
The pharmaceutical industry is one of the largest and the most exciting sectors to be
working today. It is a rapidly changing environment where many advances have taken place over
the past 20 years. Furthermore, it will continue to develop and evolve at an ever-increasing pace
over the next decade. New drugs, new technologies and exciting new discoveries have driven
this evolution. Pharmaceuticals are the medicinally effective chemicals which are converted to
dosage forms suitable for patients to imbibe. In its basic chemical form, pharmaceuticals are
called bulk drugs or active pharmaceutical ingredients (APIs) and the final dosage forms are
known as formulations.

Active pharmaceutical ingredients or bulk drugs are derived from four types of
intermediates (raw materials), namely.
 Plant derivatives (herbal products)
 Animal derivatives e.g. insulin extracted from Bovine Pancreas
 Synthetic chemicals
 Biogenetic (human) derivatives e.g. human invectives

Classification of pharmaceuticals
The Registration Regulation which ran into force on March 2 nd, 1996 suggests the
classification of pharmaceuticals as prescription or non-prescription on their stage of registration
or registration renewal. Almost all of the pharmaceuticals which are supplied to healthcare
services are in the extent of prescription pharmaceuticals. But in practice, nearly all of the
pharmaceuticals except narcotics and psychographs may be purchased without prescriptions
from pharmacies.

The ministry of Health, in the context of its studies on harmonization to EU

pharmaceuticals regulations with a regulation published on April 27 th, 1996 permitted the public
advertisement of non-prescription pharmaceuticals. But, on the trial opened by the application of
Turkish Union of Pharmacists, the Council of State took the decision of stopping the execution.
For this reason, no further development could be recorded later than the regulation published on
April 27th, 1996 on the legislation related with pharmaceuticals.

Basing on the Registration Regulation which ran into force on March 2 nd, 1996 the
Ministry of Health turned the license status of many pharmaceuticals applied for registration and
many pharmaceuticals in the same category existing on the market to the status on non-
prescription pharmaceuticals.

Due to some practices in basic applications like promotion, pricing, registration,

packaging information on prescription and non-prescription pharmaceuticals, a quite different
appearance than the EU centuries to which we are targeting to harmonies came out.
 It must be paid attending that, as in all European counties, the application of “non-
prescription pharmaceuticals” is formed of the following conditions and the arrangement should
be made synchronously.

 The classification of pharmaceuticals existing in the market.

 Freedom in pricing.
 The reimbursement in defined conditions.
 The placement of promotion Regulation to life and the determination of promotion
princes for those pharmaceuticals
 The rearrangement of packaging information.
Scope of the Study:
 Rewards and Recognitions are important tools for any organization to motivation the
employees to improve the performance.
 Because money isn’t everything when it comes to keeping your employees motivated.
 The subject of Rewards and Recognition covers monetary rewards and non monetary
reward, recognitions, awards.
 More specifically we may examine that how us Rewards and Recognition are in a
company to achieve a target.
 The scope of the study is to know the total reward system in the DRL.
Need for the Study:

Dr. Reddy’s Laboratories Limited has been in the Pharmaceutical Industry since many
years and witnessing their expertise in this pharmacy field it was obvious that they had soon
marked a name for themselves in the global pharmaceutical industry. Dr. Reddy’s Laboratories
Limited, today internationally has its presence in majority of the countries around the world.
To motivate the employees to improve their excellence in performance, Dr. Reddy’s
Laboratories limited providing many rewards & recognitions to their employees, and satisfy the
employees to work in esteem organization.
More specifically the project aim is to know the Rewards & Recognition provided by the
DRL to their employees, and how much the Rewards & Recognition are affecting the employees
and as the company growth.
Objectives of the Study:

 To understand the extent to which the rewards & recognition provided by the Dr.
Reddy’s laboratories ltd., towards their employees.
 To know the motivation and satisfaction level of the employees through the rewards &
recognition provided by the Dr. Reddy’s laboratories.
 To examine the Rewards & Recognition incorporation units multiple industry.
 RESEARCH METHODOLOGY
The researcher mainly based on two sources of the data via:
(i) Primary source
(ii) Secondary Sources

Primary source:
The primary source of data is applied for getting the required and relevant information
directly from the department heads in the course of discussion with Jr. Managers. The following
are the data collected through primary source.
a) The Different rewards and recognition provided by the Dr. Reddy’s laboratory.
b) Refreshment courses conducted in the integrated product Development.
c) About the course covered through discussion with the employees & through
questionnaire.

Secondary Source:
The secondary source of data was collected through obtaining rewards and files from the
integrated product development unit of Dr. Reddy’s some part of Data was collected from the
Internet. The institutional guide gave us the remaining necessary information and the staff
relating to administration gave me all the necessary information to complete the study.

Sample Study:
The sample selected for gathering the data is based on ‘random sampling’ technique to
give rewards to the Dr. Reddy’s employees a sample size of 50 employees was considered, who
underwent job related to rewards and recognition centre in Dr. Reddy’s.

Analysis:
The data has been analyzed after collection and a study was made by classifying
tabulating and drawing graphs in order to draw conclusions to the subject.
Limitations of the Study

 Time was the major constraint as the mentioned period was not enough to
collect the data in detail.
 Secondary source information availability was largely restricted to internet
and online journals.
 A sample size was restricted to only 50 employees.
 Lack of secondary sources such as magazines.
 The collected information mainly depends on the interviews, survey findings
and the Internet.
 CHAPTER – II

REVIEW OF LITERATURE
 REVIEW OF LITERATURE

Reward and Recognition

The strong relationship between reward and recognition and its importance for job
satisfaction of employees has also been explained by various theorists from around the world
such as Maslow’s need hierarchy theory (1943, 1954), Herzberg two factor theory (1959),
Aldefer ERG theory (1972) and most recently Vroom’s Valence, Instrumentality and Expectancy
Theory (1964). These theories deal in detail with the concept of reward and recognition and
employee’s motivation and job satisfaction.

Maslow’s Need Hierarchy Theory

According to this theory there are two types of needs. Lower level and higher level needs. Lower
level needs can be satisfied externally (extrinsically) and higher level can be satisfied internally
(intrinsically). Lower level needs are the basic biological human needs such as food, shelter, sex
and dress while upper level needs are those which individual strives to achieve after the
satisfaction of the lower level such as self-esteem and self-actualization. Walker, Churchill, and
Ford (1979) pointed out that intrinsic rewards are intangible such as recognition, appreciation
and praise. Whereas, extrinsic rewards are external and tangible and reflect lower-order human
needs such as food, shelter sex and dress. In his theory Maslow (1943) also discusses that
employees can be motivated by satisfying their needs. In work setting employees are motivated
through recognition, an increase in responsibility, high status, appreciation and positive
feedback.

According to Maslow (1943) needs emerge as a hierarchy. When lower level needs are
satisfied in the hierarchy, individual strive for the next level. We can say that when
physiological, safety and social needs are satisfied, the individual strives for self-esteem and
self–actualization. Hence, Maslow’s hierarchy theory broadly supports the concept that reward
and recognition (basic needs) and (self-esteem needs) of employees, if met, lead to satisfaction of
the particular employee. The theory says that needs at different hierarchy level reflect reward and
recognition. For example, physiological needs represent the tangible reward in the shape of
salary and food. Social needs are intangible rewards provided by colleagues and superiors in the
shape of encouragement, appreciation and positive feedback. Similarly, an individual strives for
recognition which increases his / her self-esteem. It is the recognition that an individual wants to
receive for his / her performance. Broad (2007) argues that incentives, reward and recognition
are the basic factors for motivation of the employees. Reward and recognition develop an
enthusiasm among employees, increase their desire for work and also establish a linkage between
performance and motivation of the employees. (Flynn, 1998)

Deci (1975) explored that behaviors which are motivated by need for self-esteem, competence
and self-determination are called intrinsic factors, while behaviors which are satisfied by reward
are extrinsic. Porter and Lawler (1968) added that extrinsic and intrinsic reward enhances
employee’s performance and it will lead to higher job satisfaction. At organizational levels
employee extrinsically motivated by providing them with higher pay and promotions.
Recognizing the contributions of the workers will add to the strengthening of their self-esteem. It
will extrinsically motivate them towards better performance.

Hertzberg Two Factor Theory

Hertzberg (1959) explored motivation by offering Two Factor Theory. He divided the
factors of motivation in two categories such as Satisfiers or (motivators) and Dissatisfies or
(hygiene). According to Herzberg, satisfiers or motivators are intrinsic motivational factors
which are related to job itself and internal to individual such as, recognition, development and
responsibility. It also corresponds to Maslow’s motivation or need hierarchy theory where self-
esteem is an upper level need. Dissatisfaction or hygiene are extrinsic motivational factors which
remove dissatisfaction such as salary, working condition and relationship with colleagues. It
reflects Maslow’s lower level or physiological needs. The Herzberg theory constitutes the same
framework in support of the argument of reward and recognition and its effect on employee’s job
satisfaction as constituted by Maslow’s hierarchy theory. The motivating factors reflect self-
esteem which is actually recognition. Hygiene factor reflects the lower level needs like
physiological. According to Armstrong (1991) two factor theory of Herzberg’s two divides
human needs into two groups such as satisfiers or motivators and dissatisfiers. The satisfiers or
motivators are responsible for motivating the individuals to better performance and efforts,
whereas, the dissatisfiers actually prevent job dissatisfaction by describing the environment. This
has very little effects on positive job motivation. These are preventative and environmentally
based and are also called hygiene factors.

Robbins (1993) further explains that job satisfaction consistently contingent upon certain factors
such as achievement, recognition, responsibility and advancement that is related to intrinsic
motivation. Dissatisfied employees attribute their work dissatisfaction to extrinsic factors such as
company policy, salary, working condition, administration and supervision. Hence, Herzberg
discovered through his experiments that dissatisfaction is not the opposite of satisfaction.
Removing dissatisfying factors from a job does not necessarily make the job satisfying. Thus he
concludes that opposite of satisfaction is not dissatisfaction and the opposite of dissatisfaction
would not be satisfaction.

This point of view is supported by LaMotta (1995) by saying that according to Herzberg
two factor theory of motivation organization cannot motivate their employees unless they
remove their dissatisfies. He further argues that hygiene factors such as salary, supervision and
working environment do not motivate employees towards a certain behavior when these factors
are met. There are other type of hygiene factors such as company policy, poor interpersonal
relationship and job security. Hence, the meeting of lower needs does not necessarily motivate
employees rather it may demotivate the employees if these factors are not met properly.

Schultz (1982) strongly favors LaMotta (1995) and Robbins (1993) that Herzberg’s
satisfiers motivate employees to a highest level of performance or achievement. These
motivating factors are essential factors of employee’s work behavior. These include factors such
as sense of achievement, nature of work, responsibility, opportunity for personal development
and growth, recognition and feedback. This point of view has been further elaborated by Net et al
(2001) that a dissatisfied employee cannot be motivated unless and until the employee gets
reward and recognition. Hence, the researcher advises that organizations must give attention to
hygiene factors before introducing motivators in the workplace of employees.

Barling et al (1987) opposes the above views that the central idea in Herzberg theory is that only
satisfiers motivate employees for certain desirable behavior because the duration of hygiene
factors are short time and these factors could never be associated with work motivation. Rather,
the employees would be involved reducing negative factors in the work environment. It can be
concluded that motivators are recognition which cause intrinsic motivation of the employees and
hygiene are reward in the shape of salary which cause extrinsic motivation.

Aldefer’s ERG Model

Alderfer (1972) modified Maslow’s theory divided the need hierarchy into three basic
levels such as Existence Needs (incentives and physical requirements such as pay, security and

working conditions.), Relatedness Needs (need for social relations such as relationships with
family, friends and colleagues) and Growth Needs (self-fulfillment, the desire for career growth
development and competency). According to this model all the basic needs motivate behavior at
the same time and might not emerge like Maslow’s Need Hierarchy Theory. It means that any
need emerges any time to motivate employees regardless of the fulfillment of the other need. It
can be argued that the three levels of needs in the ERG model represent reward and recognition.
Existence needs such as pay and incentives corresponds with reward. Relatedness needs like
social relations (family, friends and colleagues) correspond with recognition. Thus reward and
recognition motivate employees regardless of any hierarchy.

According to Armstrong (1991) existence needs are likened to physiological and safety needs of
Maslow’s theory. This theory is concerned with the material satisfaction and maintaining balance
that people want to have regarding certain substances. Schultz (1982) explains that organizations
can satisfy these needs through salary, fringe benefits, safe working environment and job
security. It relates to tangible goals such as food, pay, home and so on.
 i. NEED FOR REWARDS AND RECOGNITION
Most employees feel that they are worth more than they are actually paid. There is a
natural disparity between what people think they should be paid and what organizations spend in
compensation. When the difference becomes too great and another opportunity occurs, turnover
can result. Pay is defined as the wages, salary or compensation given to an employee in exchange
for services the employee performs in the organization.
Pay is more than "dollars and cents;" it also acknowledges the worth and value of the
human contribution. What people are paid has been shown to have a clear, reliable impact on
turnover in numerous studies.
Employees want to be recognized for a job well done. Rewards and recognition respond
to this need by validating performance and motivating employees toward continuous
improvement. Rewarding and recognizing people for performance not only affect the person
being recognized, but others in the organization as well.
Through a rewards program, the entire organization can experience the commitment to
excellence. When the reward system is credible, rewards are meaningful; however, if the reward
system is broken, the opposite effect will occur.
Employees may feel that their performance is unrecognized and not valued or that others
in the organization are rewarded for the wrong behaviors. Unrecognized and no valued
performance can contribute to turnover.
Recognition for a job well done fills the employees' need to receive positive and honest
feedback for their efforts. Recognition should be part of the organization's culture because it
contributes to both employee satisfaction and retention. Organizations can avoid employee
turnover by rewarding top performers. Rewards are one of the keys to avoiding turnover,
especially if they are immediate, appropriate, and personal. A Harvard University study
concluded that organizations can avoid the disruption caused by employee turnover by avoiding
hiring mistakes and selecting and retaining top performers.
One of the keys to avoiding turnover is to make rewards count. Rewards are to be
immediate, appropriate, and personal. Organizations may want to evaluate whether getting a
bonus at the end of the year is more or less rewarding than getting smaller, more frequent
payouts. Additionally, a personal note may mean more than a generic company award.
Employees should be asked for input on their most desirable form of recognition. Use what
employees say when it comes time to reward for performance (St. Amour, 2000).

Designing a Rewards and Recognition Solution

In designing a rewards and recognition program, the following guidelines should be
considered.
 Rewards should be visible to all members of the organization.
 Rewards should be based on well-defined, credible standards that have been developed
using observable achievements.
 Rewards should have meaning and value for the recipient.
 Rewards can be based on an event (achieving a designated goal) or based on a time frame
(performing well over a specific time period).
 Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly
motivating and should also use a set criteria and standard to maintain credibility and
meaning.
 Rewards should be achievable and not out of reach by employees.
 Non monetary rewards, if used, should be valued by the individual. For example, an avid
camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical
activity, that employee might be given a spa membership. The non monetary rewards are
best received when they are thoughtfully prepared and of highest quality. Professionalism
in presenting the reward is also interpreted as worthwhile recognition.
 Rewards should be appropriate to the level of accomplishment received. A cash award of
$50 would be inappropriate for someone who just recommended a process that saved the
organization a million dollars.
 Determining the amount of money given is a delicate matter of organizational debate in
which organizational history, financial parameters, and desired results are all factors.
Recognition for a job well done can be just as valued and appreciated as monetary
awards.
Formal recognition program can be used with success. First Data Resources, a data
processing services company that employees more than 6,000 individuals in Omaha, Nebraska,
uses a formal recognition program (Adams, Mahaffey, and Rick, 2012). Rewards are given on a
monthly, quarterly, and yearly basis, and range from Nebraska football tickets, gift certificates,
pens, plaques, mugs, and other items.
One of the most popular awards at First Data is called the "Fat Cat Award" that consists
of:
 $500 gift check
 Professional portrait of the employee
 Appreciation letter from the CEO and senior management
 E-mails, phone calls, and notes from peers
In addition to Non monetary rewards, employees can be rewarded using money in
numerous ways. Cash is a welcome motivator and reward for improving performance, whether at
formal meetings or on the spot. Variable bonuses linked to performance are another popular
reward strategy.
Profit sharing and pay-for- skills are monetary bonus plans that both motivate
individuals and improve goal achievement. Small acts of recognition are valuable for employee
daily motivation. Sometimes a personal note may mean more than a generic company award. In
one survey, employees cited the following as meaningful rewards (Moss, 2000):
 Employee of the month awards
 Years of service awards
 Bonus pay (above and beyond overtime) for weekend work.
 Invitations for technicians to technical shows and other industry events

Objectives of Rewards & Recognition:

 To increasing degree of responsibility.
 To motivate the employees to pursue their goals and reach their potential.
 To improve the quality of the product.
 To increase the productivity.
 To meet the competition.
 To create the right employee- management team environment.
 It is an atmosphere that is encouraging & favorable.
 To improve the employees self confidence.
 To create self esteem and royalty among employees.
  To encourage behavior of the employees to reach strategic goals.
People are motivated to higher levels of job performance by positive recognition from
their managers and peers. Creative use of personalized non-monetary rewards reinforces
positive behavior and improves employee’s retention and performance. Non-monetary Rewards
and Recognition can be in expensive to give, but priceless to receive.
 CHAPTER – III

INDUSTRY PROFILE
COMPANY PROFILE
INDUSTRY PROFILE

INDUSTRY PROFILE
Introduction

Healthcare has become one of India’s largest sector, both in terms of revenue and employment.
Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine,
medical tourism, health insurance and medical equipment. The Indian healthcare sector is
growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by
public as well private players.
Indian healthcare delivery system is categorised into two major components public and private.
The Government, i.e. public healthcare system, comprises limited secondary and tertiary care
institutions in key cities and focuses on providing basic healthcare facilities in the form of
primary healthcare centres (PHCs) in rural areas. The private sector provides majority of
secondary, tertiary, and quaternary care institutions with major concentration in metros and tier I
and tier II cities.
India's competitive advantage lies in its large pool of well-trained medical professionals. India is
also cost competitive compared to its peers in Asia and Western countries. The cost of surgery in
India is about one-tenth of that in the US or Western Europe. India ranks 145 among 195
countries in terms of quality and accessibility of healthcare.

Market Size
The healthcare market can increase three-fold to Rs. 8.6 trillion (US$ 133.44 billion) by 2022.
Indian medical tourism market is growing at 18% y-o-y and is expected to reach US$ 9 billion
by 2020. There is a significant scope for enhancing healthcare services considering that
healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. The
Government’s expenditure on healthcare sector has grown to 1.6% of the GDP in FY20BE from
1.3% in FY16.
Health insurance is gaining momentum in India. Gross direct premium income underwritten by
health insurance grew 17.16% y-o-y to Rs. 51,637.84 crore (US$ 7.39 billion) in FY20.
Investment
Between April 2000 and September 2020, FDI inflows for drugs and pharmaceuticals sector
stood at US$ 16.87 billion, according to the data released by Department for Promotion of
Industry and Internal Trade (DPIIT). Some of the recent initiatives in the Indian healthcare
industry are as follows:
In December 2020, a new COVID-19 vaccine delivery digital platform called 'CO-WIN' is being
prepared to deliver vaccines. As a beneficiary management tool with different modules, this
user-friendly mobile app for recording vaccine data, is in the process of establishing the
‘Healthcare Workers’ database, which is in an advanced stage across all states/UTs.
As of December 2020, under universal immunization programmes, ~1.54 lakh ANMs (auxiliary
nurse midwives) are operating as COVID-19 vaccinators. For further expansion of vaccinators,
the government plans to take collaborative effort with states and UTs.
In November 2020, EEPC India and the National Design Institute teamed up to facilitate and
improve design and technology for the medical device industry to help meet the increasing needs
of the country’s health sector, especially considering the COVID-19 pandemic.
In October 2020, All India Institute of Ayurveda signed a MoU with Amity University for
Ayurveda Research.
Government Initiatives
Some of the major initiatives taken by the Government of India to promote Indian healthcare
industry are as follows:
In December 2020, the Union Cabinet approved a memorandum of understanding for
cooperation between the Indian Government and the Ministry of Health of the Government of
the Republic of Suriname in the field of health and medicine.
The government plans to increase the number of research and COVID-19 RT-PCR labs to
strengthen COVID-19 testing services by making COVID-19 testing afPharmacitical able and
more accessible to every citizen.
In November 2020, a mobile COVID-19 RT-PCR lab was launched at the Indian Council of
Medical Research (ICMR) in New Delhi. The laboratory has NABL accreditation and is
accredited by the ICMR.
In Union Budget 2020 21, Rs. 35,600 crore (US$ 5.09 billion) has been allocated for nutrition-
related programmes.
The Government has announced Rs. 69,000 crore (US$ 9.87 billion) outlay for the health sector
that is inclusive of Rs. 6,400 crore (US$ 915.72 million) for PMJAY in Union Budget 2020–21.
The Government of India aims to increase healthcare spending to 3% of the Gross Domestic
Product (GDP) by 2022.

Achievements
Following are the achievements of the Government:
The number medical colleges in India increased to >560 in November 2020 from 412 in FY16.
According to Sample Registration System Bulletin-2016, India has registered a 26.9% reduction
in Maternal Mortality Ratio (MMR) since 2013.
On December 14, 2020, eSanjeevani telemedicine service of the Health Ministry crossed 1
million (10 lakh) teleconsultations, since its launch, enabling patient-to-doctor consultations
from the confines of their home, as well as doctor-to-doctor consultations.
Road Ahead
India is a land full of opportunities for players in the medical devices industry. The country has
also become one of the leading destinations for high-end diagnostic services with tremendous
capital investment for advanced diagnostic facilities, thus catering to a greater proportion of
population. Besides, Indian medical service consumers have become more conscious towards
their healthcare upkeep.
Indian healthcare sector is much diversified and is full of opportunities in every segment, which
includes providers, payers, and medical technology. With the increase in the competition,
businesses are looking to explore for the latest dynamics and trends which will have positive
impact on their business. The hospital industry in India is forecast to increase to Rs. 8.6 trillion
(US$ 132.84 billion) by FY22 from Rs. 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–
17%.
The Government of India is planning to increase public health spending to 2.5% of the country's
GDP by 2025.
India's competitive advantage also lies in the increased success rate of Indian companies in
getting Abbreviated New Drug Application (ANDA) approvals. India also offers vast
opportunities in R&D as well as medical tourism. To sum up, there are vast opportunities for
investment in healthcare infrastructure in both urban and rural India.
Indian healthcare sector is expected to reach US$ 193.83 billion by 2020. Rising income level,
greater health awareness, increased precedence of lifestyle diseases and improved access to
insurance would be the key contributors to growth. Health insurance is gaining momentum in
India. Gross direct premium income underwritten by health insurance grew 17.16% y-o-y to Rs.
51,637.84 crore (US$ 7.39 billion) in FY20.

The country had 393 Ayurveda and 221 homeopathy Government recognised colleges.
As of April 2020, number of sub centres reached 169,031 and number of primary health centres
(PHCs) increased to 33,987.

The hospital industry size is estimated to touch US$ 193.83 billion by 2020 and US$ 372 billion
by 2022.

In November 2020, National Telemedicine services completed 8 lakh teleconsultations since its
launch, enabling patient-to-doctor consultations from the confines of their home, as well as
doctor-to-doctor consultations.

Private sector has emerged as a vibrant force in India's healthcare industry, lending it national
and international repute. It accounts for almost 74% of the country’s total healthcare expenditure.
Telemedicine is a fast-emerging trend in India. Major hospitals (Apollo, AIIMS, and Narayana
Hrudayalaya) have adopted telemedicine services and have entered several public-private
partnerships (PPP). Further, presence of world-class hospitals and skilled medical professionals
has strengthened India’s position as a preferred destination for medical tourism.

Indian medical tourism market is growing at the rate of 18% y-o-y and is expected to reach US$
9 billion by 2020. The value of merger and acquisition (M&A) deals in hospital sector jumped to
a record 155% at Rs. 7,615 crore (US$ 1.09 billion) in FY19.

The Government of India has approved the continuation of National Health Mission with a
budget of Rs. 34,115 crore (US$ 4.88 billion) under Union Budget 2020–21. National Nutrition
Mission is aimed to reduce the level of stunting by 2%, under-nutrition by 2%, anaemia by 3%
and low birth babies by 2% ever year. The Ayushman Bharat-Pradhan Mantri Jan Arogya
Yojana (PMJAY), the largest Government funded healthcare program targeting more than 500
million beneficiaries, has been allocated Rs. 6,429 core (US$ 919.87 million) under Union
Budget 2020–21. As of November 2019, nearly 63.7 lakh people received free treatment under
PMJAY.

Under Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), allocation of Rs. 3,000 crore (US$
429.25 million) has been made under Union Budget 2020–21. Intensified Mission Indradhanush
(IMI) 2.0 was launched by the Ministry of Health and Family Welfare from December 2019 to
March 2020.
Under Union Budget 2020–21, Rs. 65,012 crore (US$ 9.30 billion) and Rs. 2,100 crore (US$
300.47 million) has been allocated to the Ministry of Health and Family Welfare and the
Department of Health Research, respectively.

The Government’s expenditure on the health sector has grown to 1.6% of the GDP (Gross
Domestic Product) in FY20 from 1.3% in FY16. The Government is planning to increase its
public health spending to 2.5% of the country's GDP by 2025. Healthcare’s share of GDP is
expected to rise by 19.7% by 2027.
During April 2000–March 2020, Foreign Direct Investment (FDI) inflow in drugs and
pharmaceuticals sector stood at US$ 16.50 billion.
COMPANY PROFILE:
Dr. Reddy's Laboratories is an Indian multinational pharmaceutical company located in
Hyderabad, Telangana, India. The company was founded by Anji Reddy, who previously worked
in the mentor institute Indian Drugs and Pharmaceuticals Limited.[2] Dr. Reddy's manufactures
and markets a wide range of pharmaceuticals in India and overseas. The company has over 190
medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits,
critical care, and biotechnology products.

Dr. Reddy's began as a supplier to Indian drug manufacturers, but it soon started exporting to
other less-regulated markets that had the advantage of not having to spend time and money on a
manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food
and Drug Administration (FDA). By the early 1990s, the expanded scale and profitability from
these unregulated markets enabled the company to begin focusing on getting approval from drug
regulators for their formulations and bulk drug manufacturing plants - in more-developed
economies. This allowed their movement into regulated markets such as the US and Europe. In
2014, Dr. Reddy Laboratories was listed among 1200 of India's most trusted brands according to
the Brand Trust Report 2014, a study conducted by Trust Research Advisory, a brand analytics
company.

By 2007, Dr. Reddy's had seven FDA plants producing active pharmaceutical ingredients in
India and seven FDA-inspected and ISO 9001 (quality) and ISO 14001 (environmental
management) certified plants making patient-ready medications – five of them in India and two
in the UK.

In 2010, the family-controlled Dr Reddy's denied[5] that it was in talks to sell its generics
business in India to US pharmaceutical giant Pfizer,[6] which had been suing the company for
alleged patent infringement after Dr Reddy's announced that it intended to produce a generic
version of atorvastatin, marketed by Pfizer as Lipitor, an anti-cholesterol medication.

Reddy's was already linked to UK pharmaceuticals multinational Glaxo Smithkline

Ask any of the 20,000 employees at Dr. Reddy’s why they come to work every day, and you are
bound to hear, because ‘Good Health Can’t Wait.’ Th¬¬ese simple words describe the deep-
rooted belief that drives us. Sometimes, the simplest words describe the most profound truths.

'Good Health’ is always our goal. We see medicines not just as molecules, but as means to help
patients regain their health. As a leader in the pharmaceutical industry, we realize our unique
role; we have the ethical and moral imperative to ensure good health can be delivered to those
who need it, and to promote wellness among them.

'Can't Wait’ reflects our commitment to act with speed to find innovative solutions that address
the unmet needs of patients, and to accelerate access to much-needed medicines for people
around the world.

Our belief is guided by our principles - Empathy and Dynamism - which provide both guidance
for our current behaviour and inspiration for our future actions.

DR. REDDY’S LABORATORIES LTD was founded by Dr Anji Reddy, a entrepreneur-

scientist, in 1984. The DNA of the company is drawn from its founder and his vision to establish
India’s first discovery led global pharmaceutical company. In fact, it is this spirit of
entrepreneurship that has shaped the company to become what it is today.

Dr Anji Reddy, having moved out of Standard Organics Limited, a company he had
successfully co-founded, started DR. REDDY’S LABORATORIES LTD with $ 40,000 in cash
and $120,000 in bank loan! Today, the company with revenues of Rs.2,427 crore (US $546
million), as of fiscal year 2006, is India’s second largest pharmaceutical company and the
youngest among its peer group.

The company has several distinctions to its credit. Being the first pharmaceutical
company from Asia Pacific (outside Japan) to be listed on the New York Stock Exchange (on
April 11, 2001) is only one among them. And as always, Dr. Reddy’s chose to do it in the most
difficult of circumstances against widespread skepticism. Dr. Reddy’s came up trumps not only
having its stock oversubscribed but also becoming the best performing IPO that year.
 Dr. Anji Reddy is well known for his passion for research and drug discovery. Dr.
Reddy’s started its drug discovery programme in 1993 and within three years it achieved its first
breakthrough by out licensing an anti-diabetes molecule to Novo Nordisk in March 1997. With
this very small but significant step, the Indian industry went through
a paradigm shift in its image from being known as just

‘copycats’ to ‘innovators’! Through its success, Dr. Reddy’s pioneered drug discovery in
India. There are several such inflection points in the company’s evolution from a bulk drug (API)
manufacturer into a vertically integrated global pharmaceutical company today.

Today, the company manufactures and markets API (Bulk Actives), Finished
Dosages and Biologics in over 100 countries worldwide, in addition to having a very promising
Drug Discovery Pipeline. When Dr. Reddy’s started its first big move in 1986 from
manufacturing and marketing bulk actives to the domestic (Indian) market to manufacturing and
exporting difficult-to-manufacture bulk actives such as Methyldopa to highly regulated overseas
markets, it had to not only overcome regulatory and legal hurdles but also battle deeply
entrenched mind-set issues of Indian Pharma being seen as producers of 'cheap' and therefore
‘low quality’ pharmaceuticals. Today, the Indian pharma industry, in stark contrast, is known
globally for its proven high quality-low cost advantage in delivering safe and effective
pharmaceuticals. This transition, a tough and often-perilous one, was made possible thanks to the
pioneering efforts of companies such as Dr. Reddy’s.

Today, Dr. Reddy’s continues its journey. Leveraging on its ‘Low Cost, High
Intellect’ advantage. Foraying into new markets and new businesses. Taking on new challenges
and growing stronger and more capable. Each failure and each success renewing the sense of
purpose and helping the company evolve.

With over 950 scientists working across the globe, around the clock, the
company continues its relentless march forward to discover and deliver a

breakthrough medicine to address an unmet medical need and make a difference

to peoples lives worldwide. And when it does that, it would only be the beginning and yet it
would be the most important step. As Lao Tzu wrote a long time ago, ‘Even a 1000 mile journey
starts with a single step.’

2.1 Business

Dr. Reddy's is a vertically integrated, global pharmaceutical company with proven

research capabilities and presence across the pharmaceutical value chain. We manufacture
Active Pharmaceutical Ingredients and Finished Dosage forms and market them globally, with a
focus on United States, Europe, India and Russia. In addition, the drug discovery arm of the
company conducts basic research in the areas of diabetes, cardiovascular, inflammation and
bacterial infection.

2.2 Board Of Directors

Dr. Reddy's has a board comprising of eminent individuals from diverse fields.
The board acts with autonomy and independence in exercising strategic supervision, discharging
its fiduciary responsibilities, and in ensuring that the management observes the highest standards
of ethics, transparency and disclosure.

Our Directors are experts in the diversified fields of medicine, chemistry and
medical research, human resource development, business strategy, finance and economics. They
review all information relating to significant business decisions, including strategic and
regulatory matters. Every member of the board, including the non-executive directors, has full
access to any information related to the company.

Committees appointed by the board focus on specific areas, and take decisions within
the authority delegated to them by the board. The committees also make specific
recommendations to the board on various matters from time-to-time.

2.3 Corporate Governance

Dr. Reddy's long-standing commitment to high standards of corporate

governance and ethical business practices is a fundamental shared value of its Board of
Directors, management and employees. The Company's philosophy of corporate governance
stems from its belief that timely disclosures, transparent accounting policies, and a strong and
independent Board go a long way in preserving shareholders trust while maximizing long-term
shareholder value.

Good corporate governance flows out of the commitment of the Management and
the Board of Directors. When the commitment is backed by the fundamental beliefs of
maximizing value for stakeholders; transparent actions in the business; values of a corporate; and
mutual trust amongst all constituents of the business, the organization transforms itself into a
higher plane of leadership.

The forward-looking approach of Dr. Reddy's has always helped it, in achieving the
desired results. This approach has transformed the company's culture to one that is relentlessly
focused on the speedy translation of scientific discoveries into innovative products. Dr. Reddy's
commitment towards Corporate Governance started well before law mandated such practices.

The company has identified and established its core purpose, mission and core
values for achieving corporate excellence. Dr. Reddy's believes in crafting an environment where
the parameters of conduct and behavior of the company and its management is constantly aligned
with the business environment.

The highlights of Dr. Reddy's Corporate Governance systems are an independent

Board of Directors following international practices, committed management team, internal
control systems and dissemination of information to various stakeholders.

Awards & Accolades

The Appreciation Certificate of the District Collector for being the “Best Clean
Production Industry” for the year 2006 awarded to API Unit-V.

The CII "Southern Region Leadership Excellence Award" is won by Dr. Reddy's for the
year 2005.

 5The CII "National Award for 'Excellence in Water Management" for the year 2005 is
won by both API Unit-II as well as API Unit-VI.
 The Generics Unit of Dr. Reddy's achieves the new ISO 14001:2004 standard on 9th
June, 2005.
 The "Greentech Environmental Excellence Silver Award" for the year 2004-05 is won
by API-Global Business Unit.
 CHAPTER-IV
THEROTICAL FRAME WORK
 REWARDS & RECOGNITION IN DR. REDDYS LABORATORIES
Dr. Reddys Laboratories consider the Human Resources as the most important of all the
resources in the company. Therefore in its pursuit of enriching the quality of its employees, to
improve their performance, to motivate its employees and to satisfy their needs, the company has
providing many Rewards & Recognition. These rewards motivate the employees to improve
their performance further. This in turn leads to self-commitment of the employee to learn
further, acquire latest skills & knowledge and to develop their human resource. Non-monetary
rewards are encourage the employees to perform better.
The important Rewards and Recognition provided by the Dr. Reddys are:
Monetary Rewards :
1. Promotions.
2. Incentives.
3. Performance bonus.
4. Training.
5. Job rotation.
6. Work shops.
Non-Monetary Rewards :
1. Lunches and Dinner.
2. Celebrations.
3. Awards.
4. Certificate of Appreciation’s.
5. Small Trinkets.
6. Complements.

Promotion :
A promotion is the transfer of an employee or upwards advancement of an employee in
an organization to another job, which commands better pay/wages better status/prestige, better
walking environment and a higher rank. These promotions will be given by the measuring the
performance. The Dr. Reddys provide this promotion to recognize individual’s performance and
reward him for his work so that he may have an incentive to forge ahead. Employees will have
little motivation if better jobs are reserved for outsides.
Incentives:
Dr. Reddy’s is providing the incentives to their employees to motivate and reward the
sales team with in an organization. Incentives are designed to motivate and recognize
participants for meeting exceptional level of performance in supporting of company goals.
Incentives often include small gifts like gift cards. Dr. Reddys provided the incentives
like travel packages, big name sporting events.

Performance bonus:
The minimum bonus is paid as per the payment of bonus Act 1965 to all the employees
who are working under organization. Dr. Reddys provide the bonus as per the act as well as
something given or paid in additional to what is usual for the excellence performance of the
employees. This performance bonus will be given to those who perform better than other.

Training :
Dr. Reddy’s has provided employees with the many training programs to improve the
knowledge apart from the work.
The out bound training is a program educating the participants on different aspects of
working effectively in a team, how perceptions/paradigms affect their communication &
behaviour, how to deal with various situations and how creativity could help in solving
problems. This type of training program is also one type of reward to the employees to acquire
knowledge.
The ‘Behaviour Training Exercise’ for its employees. Popularly known as “Express
yourself clearly’ program, it identifies/extracts training needs from the perfect IDPs. This
training tells the real-life situations & some case studies other training programs like “A
mountain of learning” it tells about the value of team -work & discipline.

Job Rotation:
This job rotation is one type of reward to get the job knowledge and gains experience
from his supervisor or trainer in each of the job assignment. Through this the employees may
understand the problem of each every job. This is also one type of training.
Work Shop:
The workshops will be conducted by the company which were extremely practical and
interactive, have drawn much appreciation from the trainees. Dr. Reddys planned more
workshops on ‘Lateral Thinking’, ‘Team Dynamics’ ‘Personnel Development’ ‘Leadership’,
Communication Skills’, and ‘Problem Solving, Decision making and Time Management’.
These workshops are very useful for employees to known how the performance could achieve.

Non-Monetary Rewards :
Lunch & Dinner:
Provide the Lunch & Dinner when celebrations & Award functions are held.
Celebrations:
Celebrations are held for the purpose of fan, friendship & togetherness. Dr. Reddys
celebrates the important days like women days, may day, independent days and new year
celebrations.
Celebrations are a forum for recognizing the “Spirit of Excellence” in the company. The
‘Spirit of Excellence” Celebrations is a big event of Dr. Reddys. It is a two days program. On
first day there will be a carnival time. The carnival includes the variety of fun games, stilt
walkers, tattoo artists, pottery stalls, bangle stalls, fun rides for children. Many dance programs
and musical programs. The second day is celebrated through distribution of spirit of excellence
award to the excellence performance.Also conduct the quality celebrations programs, to spread
good manufacturing practices awareness among the employees and resolve non-compliance
issues. And also conducted the safety celebrations to know the importance of safety in the work
place.

Awards :
The Dr. Reddy Laboratories provide these to recognize the excellence performance. The
awards can be motivated the employees to perform better.
Spirit of excellence awards :
 To recognize excellence performance and efforts towards organization building the
company will distributes the CM excellence awards, team awards and certificates for
appreciation (Special Recognition Award) on the occasion of ‘Spirit of Excellence’ celebrations.
The team awards givens to
 Best unit.
 Best Management work place.
 Best Sales & Marketing team.
 Best Innovation Team.
 Best team contribution to Society/Environment.
 Best team Initiative.
 Best Service Excellence.

Certificate of Appreciation :
The certificate of Appreciation will be given to recognize persons. It includes family in
presentations when possible:This extends the recognition and resulting “good feeling” to the
entire family. Some programs conducted by the Dr. Reddys will invite the employees as well as
their families. The ‘Spirit of excellence award celebration’ invite the employees as well as their
families, and also provide the dinners.
Elite :
Elite is a Dr. Reddys special program Dr. Reddys honoured its top 52 professional their
targets for 3 years in a row and helping in building the companies brands in the field.
The Elite as they are called – were invited to some place with their families and
entertained lavishly and at a gala dinner held in the everything at celebrity they were presented
with special plaques. There were prices for employees and children’s as well.
Small Trinkets : Small trinkets will be given to their employees like t-shirts, pens, ties etc.
Complements: Complements will be comes from the superior, when ones performance is great.
This is also one form of non-monetary reward.

Article II. Achievements & Awards Received by Dr. Reddy’s

The efforts of Dr. Reddy’s have been recognized in various. Some of the major awards
received by Dr. Reddy’s are in the area of packaging, best unit, innovation etc.
When the company bagged prestigious awards for their products. The employees are motivated
to work in the esteemed organization to improve their performance towards success of the
organization.
Some of the important awards received by Dr. Reddy’s in 2014 -2015:
 AT the 4th Express Pharma pulse, awards function organization Mumbai on may 28, 2014
Dr. Reddy’s was voted the “Best Bulk Drug company” & Best Pharma company for
Excellence in Research” by Express Pharma pulse”, India’s leading pharmaceutical
weekly.
 Dr. Reddy’s Brazil has bagged prestigious “convite para o premio” – Top of business
award for the year 2014 from montreal events & globo.com.
 April 6, 2015 the Chemtech Foundation honoured Dr. Anji Reddy, chairman of
Dr.Reddy’s lab bagged prestigious “Hall of fame’ award at its annual Chemtech –
pharmabio award for 2015.
 Dr. Reddy’s has bagged 10 prestigious ‘Indian star 2014’ national awards this year for
excellence in the package.
 Dr. Reddys won award from the ‘Public Relation society of India” on Feb’14 th 2014 at
the 7th Andhra Pradesh public relations conference.
 Elixur – The House Magazine of Dr. Reddy’s Laboratories was awarded a trophy and an
appreciation certification by the public relations society of India in the 6 th ‘All India
Awards’ as a part of the 7th Andhra Pradesh Public Relations Conference conducted on
February 14th, 2014.
 March 14th, 2015 Dr. Reddy’s has been rated among the 13 best managed companies in
India.
REWARDS
Objective
Reward systems have three main objectives: to attract new employees to the organization, to
elicit good work performance, and to maintain commitment to the organization.

Meaning of Rewards
Reward system or management usually means the financial reward on organization gives its
employees in return for their labour. While the term rewards system, not only includes material
rewards, but also non-material rewards. The components of a reward system consist of financial
rewards (basic and performance pay) and employee benefits, which together comprise total
remuneration. They also include non-financial rewards (recognition, promotion, praise,
achievement responsibility and personal growth) and in many case a system of performance
management. Pay arrangements are central to the cultural initiative as they are the most tangible
expression of the working relationship between employer and employee. Many papers examine
the role of organizational culture i.e., the demand for monitoring compensation. Such
investigations conclude that organizational culture places a significant role in determining the
level of economic demands. Recent researches on industrial unrest rest indicate that reward
criteria of the organizations both financial and non-financial rewards have tremendous influence
upon the employees and employers performance.

Meaning of Awards

An award is something given to a person or a group of people to recognize excellence in a

certain field; a certificate of excellence. Awards are often signified
by trophies, titles, certificates, commemorative plaques, medals, badges, pins, or ribbons. An
award may carry a monetary prize given to the recipient, for example, the Nobel Prize for
contributions to society. An award may also simply be a public acknowledgment of excellence,
without any tangible token or prize.
Awards can be given by any person or institution, although the prestige of an award usually
depends on the status of the awarder. Usually, awards are given by an organization of some sort,
or by the office of an official within an organization or government.

One common type of award in the United States is the Employee of theMonth award, where
typically the recipients' names are listed in a prominent place in the business for that month.

Kinds of Rewards
Monetary Rewards
This includes:
• Bonus
• Variable pay
• Vouchers
• Cash payments

Non- Monetary Rewards

Recognition (To notice, show appreciation)
Say Thank You!!!
It is important that we always thank young people for their work – either verbally or in writing
(i.e. letter, text, e- mail). Recognize the value of young people’s involvement and of
volunteering. Help them to understand the value of giving something back to their community,
developing skills, the sense of achievement and the ‘feel good’ factor.
Certificates
The employees who are performing well they should be given the certificates as appreciation for
their good work. Because giving certificates to the employees helps them a lot in increasing their
motivation level.
Feedback
Young people want to know what difference their contribution has made. Has what they have
done led to any action or change?
It is important that when you are doing a piece of work with young people you agree with them at
the outset how you will feedback to them. Agree methods, timescales etc.
Other Inexpensive Ways to Reward Employees
- A thanks can be said
- A handwritten note can be dropped to them
- A program can be named after the employees
- The staffs can be praised at staff & other public meetings
- A new training programs can be created for the staff

Difference between Awards and Rewards?

Volunteer, staff or community member recognition is the crucial process of rewarding and
motivating the people who have contributed positively to your community. It's a crucial area for
any community manager and you are quite right to make a distinction between awards and
rewards.

Here are some definitions which may help evince the differences between these two ways of
recognising the people who make your community "happen".

1) Awards
"Awards" are the periodic provision of tokens of appreciation or symbols of recognition to
individuals. Awards can take place both in a group and a one-to-one basis, but in either instance
they usually are publicly presented. Awards generally fall into two categories.

The first is 'tangible items' in the way of merchandise or gifts, which

might include:
1. Certificates
2. Pins
3. Group Photographs
4. 4.Items of clothing, such as T-shirts, caps, etc.

The second category is 'events', including:

1. Lunches and dinners
2. Parties and celebrations
 3. Field trips e.g. to the organizations offices

Awards are particularly useful in generating a sense of bonding or group involvement among
those who do not often have an opportunity to gather together or for whom sharing their
togetherness is otherwise difficult. Awards are good short-term bonding or motivating tools at
a group level. In the case of events, often there is a mutual appreciation and recognition of
everyone else's contribution to the team effort or goal.

2) Rewards

"Rewards" are the more intangible day-to-day activities of recognition and motivation that are
given to individuals to encourage them and to acknowledge their contributions. As such, rewards
tend to be less formal, more private and more personal.
Example of rewards includes:

 Saying 'Thank You'.

 Giving respect and equal status to volunteers and/or staff.
 Maintaining a personal interest in the volunteer, staff.
 Spending time and effort in supervision.
 Giving the individual more responsibility.
 Spotlighting a community member on the front page of your site.
 Sending a personal message to a community member thanking them for
their participation
 Rewards tend to be more effective long-term motivators of individual
volunteers, staff or community members -- the feel good factor.

Types of Recognition Programmes

There are some types of recognition programmes which are mentioned under:
TYPE DESCRIPTION EXAMPLES
Spot Recognition programmes that have low or minimal
programmes cost and do not require a formal plan document or 􀂃 Movie tickets
extensive administration. 􀂃 Paid meals
􀂃 Flowers
􀂃 Tickets to special
events

Symbolic Recognition programmes designed to provide a

awards tangible award or memento. 􀂃 Service award
􀂃 Quality award
􀂃 Recognition
certificates
􀂃 Plaques and
trophies

Verbal This approach provides praise directly to the

recognition individual or team. 􀂃 Thank you card
􀂃 Testimonies from
senior leadership
􀂃 Customer
feedback
􀂃 Written
congratulations
􀂃 Public recognition
Nelson (1994) sums it up very well when he says “you get the best effort from employees not by
lighting a fire under them, but building a fire within them.” In his book “1001 Ways to recognize
employees” he makes the following suggestions for informal recognition. These types of
recognition would fit into the above category of informal recognition, such as spot programmes
or verbal recognition and are generally low cost in nature.
• Buy “welcome to the team” flowers for a new employee on their first day;
• Put gold stars on employees’ name badges;
• Give out “time off” certificates;
• Create a “hall of fame” for top employees;
• Hand out thank you cards with flowers or candy;
• Give movie tickets;
• A personal note of thanks;
• Spoken ‘thank you’;
• Travelling trophy;
• Plaque or certificate;
• Achievement acknowledged at staff meetings;
• Volunteer to do a colleague’s least desirable work task for a day;
• Pay for a magazine subscription;
• Give sticky notes with a saying appropriate to their personalities;

Lack of recognition has been cited as one of the primary reasons for top talent leaving. The
challenge of informal rewards is to find the right match between the individual and the
recognition given, as the psychic income of being openly acknowledged and appreciated equals
or exceeds the material, monetary income. In conjunction with this, Pollock (1995) argues that
leaders who recognize the power of the emotional appeal of informal forms of recognition can
more easily motivate employees to higher levels of performance, often for much lower costs than
monetary rewards.

CHARACTERISTICS OF NON-FINANCIAL RECOGNITION PROGRAMMES

Wilson (1994) makes the following suggestions for conditions that stimulate the same or related
behaviors in the future:

• Specific. Employees must know what they did to earn the recognition, and therefore
they need to continue doing it. Performance measurement and feedback are essential for
consequences to be effective in shaping desired behaviours.
• Personalized. Recognition has to be meaningful to the employee. Thus the method of
delivery and the source of the reward are often as important as the item, comment or
activity.
• Contingent. Recognition has to be earned so that employees feel that they have truly
achieved some action or result. Further, for a reward to be effective, the desired
behaviour/ performance needs to be within the employee’s ability and control (or
influence).
• Sincere. Recognition has to be given in a manner that is honest, sincere and from the
heart.
• Immediate. Recognition must be provided soon following the achievement or
contribution. Waiting for approval, deadlines or completion may reduce the impact of the
reward.

The trend to add informal recognition systems to complement formal rewards programmes have
emerged as companies struggled to retain the best employees. In their efforts they have
discovered that employee motivation is highly individualized.
If the intention of a recognition programme is to motivate, then the impact of such recognition
should be individualized as well. Formal programmes, although successfully meeting specific
organizational goals, do not achieve this. They tend to be impersonal and infrequent, usually
once a year or quarterly. The same incentives used over and over also tend to lose its
effectiveness.

Why reward system is required?

These components will be designed, developed and maintained on the basis of reward strategies
and policies which will be created within the context of the organizations between strategies,
culture and environment: they will be expected to fulfill the following broad aims:
 Improve Organizational Effectiveness: Support the attainment of the organization's
mission, strategies, and help to achieve sustainable, competitive advantage.
 Support and change culture: Under pin and as necessary help to change the
'organizational culture' as expressed through its values for performance innovation, risks
taking, quality, flexibility and team working
 Achieve Integration: Be an integrated part of the management process of the
organization. This involves playing a key role in a mutually reinforcing and coherent
range of personal policies and process.
 Supportive Managers: Support individual managers in the achievement of their goals.
 Motivate Employees: Motivate employees to achieve high levels of quality performance.
 Compete in the Labour Market: Attract and retain high quality people.
 Increased Commitment: Enhance the commitment of employees to the organization that
will a) want to remain members of it, b) develop a strong belief in and acceptance of the
values and goals of the organization and c) be ready and willing to exert considerable
effort on its behalf.
 Fairness and Equity: Reward people fairly and consistently according to their
contribution and values to the organization.
 Improved Skills: Upgrade competence and encourage personal development.
 Improved Quality: Help to achieve continuous improvement in levels of quality and
customer service
 Develop team working: Improve co-operation and effective team working at all level.
 Value for money: Pride value for the money for the organization
 Manageable: Be easily manageable so that undue administrative burdens are not imposed
on managers and members of the personal department.
 Controllable: Be easily controllable so that the policies can be implemented consistently
and costs can be contained within the budget.

Meaning of reward to people

Pay is frequently used as a motivator and reinforce on it can easily be differentiated and
computed, linked, clearly and visibly to direct performance and is generally valued reward.
While outlined the major components in the meaning of reward to people;
 Short-term material enjoyment
 Long term security
 Social status
 Recognition of personal achievement

Significant Reasons to develop better reward management system

 To reduce the dissatisfaction of the employees on promotion criterion
 To reduce the dissatisfaction of the employees on appraisal system.
 To reduce the dissatisfaction of the employees on salary, bonus and other fringe benefits.
 To improve the work performance
 To improve the productivity
 To reduce the level of occupational stress that arises from feeling of inequality on reward
 To reduce the perceptional gap on reward management system and develop a culture of
high performance.

Seven Levels of Rewards

The question thus arises whether it is possible to attract, retain and motivate employees with
rewards, and if so, who will resonate with which reward practices?
Organizations and individuals seldom display the characteristics of one level of consciousness
only, and many spread across a number of levels, with a focus on one or two levels. For
simplicity, we discuss the various distinct levels of employee consciousness, how they manifest
and how these relate to tangible and intangible reward practices.

LEVEL 1 - SURVIVAL
Characteristic of level 1 focus on physical survival. Individuals focusing on this level are
concerned with financial stability, safety, and health. The negative manifestation of excessive
focus at this level manifests as greed and control.
An excessive focus on level 1 from an employee is likely to result in scarcity mentality where
nothing is enough and the need for a regular income becomes the greed for an income beyond
what can reasonably be expected for the job. This results in a mind set of entitlement and
bargaining.

LEVEL 2 – RELATIONSHIPS
At level 2, the quality of interpersonal relationships is important and individuals value open
communication, friendship and respect. When level 2 expresses in a negative sense, it includes
intolerance or an excessive need to be liked.
Examples abound in business of verbal abuse, sexual innuendo and lack of respect for language,
religion, culture and ethnicity.
At this level, role sizing is important since it provides a basis to compare the relative size or
complexity of positions. Setting remuneration levels relative to job size then facilitates the
management of internal equity and compare to market.
An excessive focus on level 2 from employees is likely to result in excessive collective
bargaining and unrealistic demand.
A healthy expression of tangible rewards at level 2 includes a measure of relativity of role sizes
using a transparent and credible system, preferably with wide participation. This is then linked to
remuneration guidelines, which are applied in a consistent and fair manner. The intangible
rewards at this level include open communication with employees and treating all individuals
and groups with dignity and respect.

LEVEL 3 – SELF-ESTEEM
Employees at this level are typically concerned with professional growth and recognition.
Excessive focus at this level could manifest as status consciousness, image building and
arrogance. From a reward perspective, employees would like to see their efforts recognized. This
ideally takes the form of tangible as well as intangible rewards. Tangible rewards for
performance have historically been provided via salary increases in excess of inflation. In an era
of single digit inflation it is difficult to truly differentiate increase levels. There is growing trend
to recognize performance tangibly through short term incentives.
A healthy expression of level 3 remuneration practices balances the needs of levels 1 and 2.
Incentive pay is appropriate to the type of work, the time horizon of the work and the
performance aligned with organization objectives, while encouraging constructive co operation
between employees as well as healthy client and supplies relationships. Promotion is not
provided as a reward for performance, but is only used when the person takes on a different role
with more responsibility and complexity.

At the intangible reward levels, recognition, either private or public, for outstanding performance
is highly valued as is the opportunity to learn and develop. Internal and external training
programs relevant to the employee’s development are congruent with the needs at this level.
Intangible rewards take the form of opportunities for learning and professional development as
well as public recognition of achievement and contribution. As excessive focus from an
individual at this level is likely to manifest in a mind set of earning and bargaining or individual
performance being achieved at the cost of the collective.

LEVEL 4 – TRANSFORMATION
Individuation is characteristic of the level of transformation and a growing awareness of the
importance of personal growth. At this level employees display a growing awareness of context
and interdependency.
Individuals at this level often reflect on what is truly important to them and become aware of the
need for balance between tangible and intangible rewards, the balance between self-interest and
the common good as well as the need for work/life balance.

At this level, individuals accept and understand the imperatives for tangible rewards at the
previous levels, but question the need to have the package structuring prescribed. The concept of
flexible benefits and total cost of employment are typical issues to be raised at this level.

LEVEL 5 – INTERNAL COHESION

Level 5 concerns the individual’s search for meaning and community. Individuals at this level
transcend the concept of a career and think of a mission or a purpose in life. At this level,
creativity, enthusiasm, excellence and generosity are valued.
These individuals typically view the workplace as a community and will view the interaction
between the internal stakeholder from the perspective of contributing to the sense of community
or not.

Employees focused at this level will understand and respect the building blocks of the previous
levels in remuneration, but look beyond these. At this level, employees will develop discomfort
with practices that they see as detrimental to internal community building.

LEVEL 6 – MAKING A DIFFERENCE

Level 6 consciousnesses is about making a difference in the world and individuals who are
focused at this level are often actively involved in the local community. These individuals value
environmental awareness and show empathy in dealing with others.
Individuals at this level show understanding for the needs of both tangible and intangible rewards
at the previous levels. These individuals are generally motivated more by intangible rewards than
tangible rewards and remuneration is seldom their primary reason for working as they have the
perspective of a life purpose, rather than a career.

The intangible rewards that are likely to appeal to individuals at this level relate to the ability to
make a difference to society. Time off work for community work, environmental projects and
social upliftment are likely to be valued.
Individuals that have a calling to make a difference are likely to resonate with organizations that
have a strong community and environmental awareness and programs that give expression to
this.

LEVEL 7 – SERVICE
Level 7 reflects the highest order of internal and external connectedness. Individuals operating at
this level focus on service to others. These individuals value wisdom, compassion and
forgiveness. They have a long term perspective and are concerned with issue such as social
justice and human rights.
Individuals at this level find it hard to work for organizations that violate any of the lower level
needs of employees and are insensitive to society or the planet.

Remuneration practices are viewed from long term sustainability over the long term is an
example of this. Employees with a focus at this level are likely to identify with employers that
show a global awareness, a balance between long term and short term success indicators (both
financial and non-financial) and balance the needs of this generation of stakeholders with the
needs of future generations

Maintaining Motivation and Morale

Five steps to maintain staff motivation:
 Communication: Keep everyone informed of company successes through regular
communication, such as weekly motivational newsletter.

 Company Awards: If you don’t already have them, introduce company awards. These can
be weekly, monthly, quarterly and annually, and don’t need to cost you a fortune.

 The little extras: You may no longer be able to offer big bonuses, but you can implement
things such as letting employees leave work early on a Friday, or giving them their
birthday off. At Pareto, we also give our top monthly performer a month or free lunches.

 Add some fun: We have used themed days for years, and they create a real buzz. When
the schools went back, everyone dressed in school uniform. When England played
Australia in the Ashes, we all came to work in cricketing whites. Get everyone involved
and the office will come alive.

 Personal Support: This is completely free, but can make a huge difference to individual
motivation. Ensure each member of staff has a mentor that they can go to and learn from.
At Pareto, everyone can speak to a director at any time for advice and support
Case Study:

A Story about Sarah and Marian………

Sarah and Marian both worked for the same small organization. Marian was your typical high
flyer, full of energy and potential, eager to do well and was going places. She loved the
challenges her work provided and was keen to do well. Sarah worked very hard, she managed the
admin team and was a real barometer of the organizations values, if she felt something wasn’t
right you could pretty much guarantee it wasn’t right. Sarah had a small son, and if money had
allowed it, she would probably have given up work when he was born- however that wasn’t a
possibility. Marian did not have children, she and her partner had a good life, both working full
time.

To reward Sarah the manager did not have the option to give her more money, and even if she
could she knew that actually giving time was a greater reward, so telling Sarah to take Friday
afternoon off was a greater reward. She did the same to Marian who went home and worked
some more. To reward Marian, the line manager needed to recognize her “Drivers”. Knowing
that Marian was ambitious. Marian could have been a good project to manage, something that
was high profile working with important clients, something where the manager showed that
Marian was not only capable, but trusted to take on such a project. At different times both
deserved to be rewarded for their contributions to the organization, however the reward, to be
meaningful needed to reflect what was important to each and within the gift of the manager. So
for reward and recognition to be successful you have to know your staff very well.

It is important that rewards reflect the contribution. Giving a small reward for a big action will
have a more negative impact than giving nothing at all. Likewise giving very large rewards for
small contributions will not be looked upon positively. When recognition or a reward is given it
should be done in a genuine manner and the person made to feel that this is special – That they
are special and appreciated.

Individual or Team Based Rewards.

Even if some contributors are not so easy to measure, it is unlikely that every one makes a
contribution to the organization. Most recognition and reward systems are based on individual
performance, however increasingly people are tuning to group based reward and recognition
strategies. The advantages in individual based strategies are mainly that:
 Cheaper than team based strategies!
 Easy to identify who has made contribution
 Can be tailored to the individual

Of course there are potential disadvantages in that individual strategy;

 Can create unhealthy conflict or competition
 Can be open to favoritism
 Ignores the ‘value added’ in the team or chain.

What type of strategy to adopt depends very much on the nature of the organization and how
work is organized? If you adopt an individual approach, ensure that the quieter and more
invisible members of staff are not ignored.

There are some principles that underpin a good reward and recognition strategy-
 The implementation of the procedures should be fair – now and in the future.
 The policy should include all members of staff
 The reward or recognition should be of equal value to the contribution being recognized.
 The reward should be meaningful to the recipient.
 Criteria for reward and recognition should be transparent.
 The system should be sustainable.
 Teams as well as individuals can be rewarded.
 The supervisor or line managers are in the best position to recognize and reward
contributions.

How to Choose the Right Rewards

 The idea of rewarding staff is not a new one. The most successful companies have been
doing it for years, because they know that recognizing the efforts of their employees gets
results that range from increased productivity to higher profits. Employees who are
reward for their efforts are more willing to go the extra mile for a company, to contribute
their intellectual capital, and to stay around for longer. Staff who feel valued and
appreciated are motivated and that’s good news for any company because motivated
people can do a lot to contribute to growth and productivity.
 Where as once a big pay packet was thought of as the only way to reward employees, that
perception has changed. So too has the notion that only large companies have the
resources to reward their staff. Companies of all sizes have come up with ways to reward
their employees that extend well outside the realm of salaries and cash bonuses. Many
rewards don’t involve money at all, and if a reward is used the right way, it can achieve
results, regardless of whether you employ 10 people, 100 or 1000.
 There’s no one right way to reward a staff member because different rewards work for
different people, according to their age and their individual interests. What particular
rewards work for employees is likely to change throughout their life, and also throughout
their career. However, the sorts of rewards employees are using are mostly tied to
company culture. They are rewards that are influenced by the particular industry a
company is part of, or by the ages and interests of employees. There are the rewards that
are given for specific achievements or behaviors, such as meeting sales target, coming up
with a cost saving idea or attracting new client. Than there are more general rewards
given to say “Thank you for working for this company, we value you as an employee”
 These might include flexible work hours; time off to work on a community project or
setting up a special work environment for employees. There are also workplaces that
provide intrinsic rewards for people-
 That is, the good feelings they get from the work they do.
 Rewards can be material or non material. Material rewards might very well include cash
bonuses, profit share, gifts, tickets to events, holidays, prizes or superannuation top ups.
 Non material rewards might be time off to pursue personal interests, or organizing a staff
function or a special theme day once a month to boost morale.
 Non material rewards might also include giving staff special training or projects to help
keep their job challenging, broaden their experience and boost their worth in the job
market.

Employee Reward and Recognition System

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

Reward vs. Recognition

 Although these terms are often used interchangeably, reward and recognition systems
should be considered separately. Employee reward systems refer to programs set up by a
company to reward performance and motivate employees on individual and/or group
levels. They are normally considered separate from salary but may be monetary in nature
or otherwise have a cost to the company. While previously considered the domain of
large companies, small businesses have also begun employing them as a tool to lure top
employees in a competitive job market as well as to increase employee performance.

 As noted, although employee recognition programs are often combined with reward
programs they retain a different purpose altogether. Recognition programs are generally
not monetary in nature though they may have a cost to the company. Sue Glasscock and
Kimberly Gram in Productivitytoday differentiate the terms by noting that recognition
elicits a psychological benefit whereas reward indicates a financial or physical benefit.
Although many elements of designing and maintaining reward and recognition systems
are the same, it is useful to keep this difference in mind, especially for small business
owners interested in motivating staffs while keeping costs low.
Designing a Reward Program

The keys to developing a reward program are as follows:

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

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

Properly measuring performance ensures the program pays off in terms of business goals. Since
rewards have a real cost in terms of time or money, small business owners need to confirm that
performance has actually improved before rewarding it. Once again, the measures need to relate
to a small business' goals. As Linda Thornburg noted in HR Magazine, "Performance measures
in a rewards program have to be linked to an overall business strategy…. Most reward programs
use multiple measures which can include such variables as improved financial performance
along with improved customer service, improved customer satisfaction, and reduced defects."

When developing a rewards program, an entrepreneur should consider matching rewards to the
end result for the company. Perfect attendance might merit a different reward than saving the
company $10,000 through improved contract negotiation. It is also important to consider
rewarding both individual and group accomplishments in order to promote both individual
initiative and group cooperation and performance.

Lastly, in order for a rewards program to be successful, the specifics need to be clearly spelled
out for every employee. Motivation depends on the individual's ability to understand what is
being asked of her. Once this has been done, reinforce the original communication with regular
meetings or memos promoting the program. Keep your communications simple but frequent to
ensure staffs are kept abreast of changes to the system.

Recognition Programs

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

In order to develop an effective recognition program, it must be sure to separate it from the
company's reward program. This ensures a focus on recognizing the efforts of employees. To
this end, although the recognition may have a monetary value (such as a luncheon, gift
certificates, or plaques), money it is not given to recognize performance. Recognition methods
should be sincere; fair and consistent; timely and frequent; flexible; appropriate; and specific.
explain that it is important that every action which supports a company's goals is recognized,
whether through informal feedback or formal company-wide recognition. Likewise, every
employee should have the same opportunity to receive recognition for their work. Recognition
also needs to occur in a timely fashion and on a frequent basis so that an employee's action does
not go overlooked and so that it is reinforced to spur additional high performance. Like rewards,
the method of recognition needs to be appropriate for the achievement. This also ensures that
those actions which go farthest in supporting corporate goals receive the most attention.
However, an entrepreneur should remain flexible in the methods of recognition, as employees
are motivated by different forms of recognition. Finally, employees need to clearly understand
the behavior or action being recognized. A small business owner can ensure this by being
specific in what actions will be recognized and then reinforcing this by communicating exactly
what an employee did to be recognized.

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

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

Motivation

Meaning and Theories of Motivation

Motivation
Motivation is the internal condition that activates behavior and gives it direction; energizes and
directs goal-oriented behavior. The term is generally used for human motivation but,
theoretically, it can be used to describe the causes for animal behavior as well. According to
various theories, motivation may be rooted in the basic need to minimize physical pain and
maximize pleasure, or it may include specific needs such as eating and resting, or a desired
object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as
altruism, morality, or avoiding mortality.

Motivation Concepts
Intrinsic and extrinsic motivation
Intrinsic motivation
Intrinsic motivation comes from rewards inherent to a task or activity itself – the enjoyment of a
puzzle or the love of playing basket ball, for example one is said to be intrinsically motivated
when engaging in an activity itself. This form of motivation has been studied by social and
educational psychologists since the early 1970’s. Research has found that it is usually associated
with high educational achievement and enjoyment by students. Intrinsic motivation has been
explain by fritz Heider’s attribution theory, Bandura’s work on self efficacy and Ryan and Deci’s
cognitive evaluation theory. Students are likely to be intrinsically motivated if they:
 Attribute their educational results to internal factors that they can control (e.g. the amount
of effort they put in),
 Believe they can be effective agent in reaching desired goals ( i.e. the results are not
determined by luck ),
 Are interested in mastering a topic, rather than just role learning to achieve good grades.

Extrinsic Motivation
Extrinsic motivation comes from outside of the performer. Money is the most obvious example,
but coercion and threat of punishment are also common extrinsic motivations. In sports, the
crowd may cheer the performer on, and this motivates him or her to do well. Trophies are also
extrinsic incentives. Competition is often extrinsic because it encourages the performer to win
and beat others, not to enjoy the intrinsic rewards of the activity. Social psychologists research
has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in
intrinsic motivation.
Extrinsic incentives sometimes can weaken the motivation as well. In one classic study done by
green and lepper children who were lavishly rewarded for drawing with felt tip pens later
showed little interest in playing with the pens again.

Motivational Theories

The Incentive Theory of Motivation

A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior)
with the intent to cause the behavior to occur again. This is done by associating positive meaning
to the behavior. Studies show that if the person receives the reward immediately, the effect
would be greater, and decreases as duration lengthens. Repetitive action reward combination can
cause the action to become habit. Motivation comes from two sources; one self and other people.
These two sources are called intrinsic motivation and extrinsic motivation, respectively.
Motivation is the internal condition that activates behavior and gives it direction; and energizes
and directs goal oriented behavior. The term is generally used for human motivation but,
theoretically, it can be used to describe the causes for animal behavior as well. This article refers
to human motivation. According to various theories, motivation may be rooted in the basic need
to minimize physical pain and maximize pleasure, or it may include specify needs such as eating
and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less
apparent reasons such as altruism, morality, or avoiding mortality.

Drive Reduction Theory

There are number of drive theories. The Drive Reduction Theories grows out of the concept that
we have certain biological needs, such as hunger. As time passes the strength of the drive
increases as it is not satisfied.
Then as we satisfy that drive by fulfilling its desire, such as eating, the drive’s strength is
reduced. It is based on the theories of Freud and the idea of feedback control systems, such as a
thermostat.
There are several problems, however, that leave the validity of the drive reduction theory open
for debate. The first problem is that it does not explain how secondary reinforces reduce drive.
For example, money does not satisfy any biological or psychological need but reduces drive on a
regular basis through a pay check second order conditioning. Secondly, if the drive reduction
theory held true we would not be able to explain how a hungry human being can prepare a meal
without eating the food before they finished cooking it.

Cognitive Dissonance Theory

Suggested by Leon Festinger, this occurs when an individual experiences some degree of
discomfort resulting from an incompatibility between two cognitions. For example, a consumer
may seek to reassure himself regarding a purchase, feeling, in retrospect, that another decision
may have been preferable.
Need Theories
Need Hierarchy Theory
Abraham Maslow’s hierarchy of human needs theory is the one of the most widely discussed
theories of motivation.
This theory can be summarized as follows:
 Human beings have wants and desires which influence their behavior. Only unsatisfied
needs influence behavior, satisfied needs do not.
 Since needs are many, they are arranged in order of importance, from the basic to the
complex.
 The person advances to the next level of needs only after the lower level need is at least
minimally satisfied.
 The further the progress up the hierarchy, the more individually, humanness and
psychological health a person will show.

The needs, listed from basic to the most complex are as follows:
 Physiological
 Safety
 Belongingness
 Esteem
  Self Actualization

Herzberg’s Two Factor Theory

Frederick Herzberg two factor theories, aka intrinsic and extrinsic motivation, concludes that
certain factors in the workplace result in job satisfaction, but if absent, lead to dissatisfaction.
The factors that motivate people can change over their lifetime, but “Respect for me as a person”
is one of the top motivating factors at any stage of life.
He distinguished between:
 Motivators: (e.g. challenging work, recognition, responsibility) which give positive
satisfaction,
 Hygiene Factors: (e.g. status, job security, salary and fringe benefits) that do not motivate
if present, but, if absent, result in demotivation.
This theory is sometimes called the “Motivator Hygiene Theory”
Self determination Theory
Self determination theory, developed by Edward Deci and Richard Ryan, focuses on the
importance of intrinsic motivation in driving human behavior. Like Maslow’s hierarchical theory
and others that built on it, SDT posits a natural tendency towards growth and development.
Unlike these other theories, however, SDT does not include any sort of “Autopilot” for
achievement, but instead requires active encouragement from the environment. The primary
factors that encourage motivation and development are autonomy, competence feedback, and
relatedness.

Cognitive Theories
Goal Setting Theories
Goal Setting Theory is based on the notion that individuals sometimes have a drive to reach a
clearly defined end state. Often, this end state is a reward in itself. A goal’s efficiency is affected
by three features: Proximity, Difficult and Specificity. An ideal goal should present a situation
where the time between the initiation of behavior and the end state is close. This explains why
some children are more motivated to learn how to ride a bike than mastering algebra. A goal
should be moderate, not too hard or too easy to challenge (which assumes some kind of
insecurity of success).
Models of Behavior Change
Social cognitive models of behavior change include the constructs of motivation and volition.
Motivation is seen as a process that leads to the forming of behavioral intentions. Volition is seen
as a process that leads from intention to actual behavior. In other words, motivation and volition
refers to goal setting and goal pursuit, respectively. Both processes require self regulatory efforts.
 CHAPTER – V

DATA ANALYSIS AND INTERPRETATION

 DATA ANALYSIS AND INTERPRETATION

1. The company providing you any rewards and recognitions?

Response % of Respondents
Yes 70%
No 30%
Total 100%

80%
70%
70%

60%

50%

40%
30%
30%

20%

10%

0%
Yes No

Series1

From the above analysis the employees are providing rewards &

recognition by Yes 70%, No 30%.

2. Type of Rewards and Recognition are provided to you

Response % of Respondents
Monetary 60%
Non Monetary 40%
Total 100%

70%
60%
60%

50%
40%
40%

30%

20%

10%

0%
Monetary Non Monetary

Series1

From the above analysis the employees are provided rewards & Recognition

are monitory 60% and non-monitory 40%.

3. The Rewards and Recognition provided to you by the organization?

Response % of Respondents
Yes 65%
No 35%
Total 100%

70% 65%

60%

50%

40% 35%

30%

20%

10%

0%
Yes No

Series1

From the above analysis the rewards & recognition by organization to

employees is Yes 65%, No. 35%.

4. Rewards and Recognition being introduced in the Organisation?

Response % of Respondents
Superior 50%
Co-worker 30%
Websites 20%
Total 100%

60%
50%
50%

40%
30%
30%
20%
20%

10%

0%
Superior Co-worker Websites

Series1

From the above analysis the new rewards and recognition introduced in

organization by superior 50% workers 30%.

5. The Opinion on rewards and Recognition provided by your Organization?

Response % of Respondents
Excellent 40%
Good 30%
Average 20%
Satisfaction 10%
Total 100%

45%
40%
40%
35%
30%
30%
25%
20%
20%
15%
10%
10%
5%
0%
Excellent Good Average Satisfaction

Series1

From the above analysis the rewards and recognition are provided by

organization is excellent 40%, good 30%.

6. Have you get any Rewards and Recognition for your performance in your

organization?

Response % of Respondents
Yes 70%
No 30%
Total 100%

80%
70%
70%

60%

50%

40%
30%
30%

20%

10%

0%
Yes No

Series1

From the above analysis the rewards and recognition for performance in

organization is Yes 70%, No 30%.

7. The rewards and recognition do you prefer more?

Response % of Respondents
Monetary 60%
Non Monetary 40%
Total 100%

80%
70%
70%

60%

50%

40%
30%
30%

20%

10%

0%
Monetary Non Monetary

Series1

From the above analysis the rewards and recognition prefer is

monitory 70% and non-monitory 30%

8. The Motivation level of you through these Rewards and Recognition

provided by your Organization?

Response % of Respondents
Yes 80%
No 20%
Total 100%

90%
80%
80%
70%
60%
50%
40%
30%
20%
20%
10%
0%
Yes No

Series1

From the above analysis the motivational aspects provided by organisation is

Yes. 80%, No. 20%.

9. The satisfaction level of you through these Rewards and Recognition

provided by you Organization?

Response % of Respondents
Very Good 50%
Good 30%
Bad 20%
Total 100%

60%
50%
50%

40%
30%
30%
20%
20%

10%

0%
Very Good Good Bad

Series1

Above analysis the satisfaction level through rewards and recognition

is very good 50%, Good 30%.

Article III. 10. The success of your organization largely depends on the

Rewards and Recognition, system forward by your company.

Response % of Respondents
Yes 65%
No 35%
Total 100%

70% 65%

60%

50%

40% 35%

30%

20%

10%

0%
Yes No

Series1

From the above analysis the success of organization is depends on rewards

& recognition by Yes 65%, NO. 35%.

11. The different monetary rewards provided to you?

Response % of Respondents
Profits 60%
Bonus 40%
Total 100%

70%
60%
60%

50%
40%
40%

30%

20%

10%

0%
Profits Bonus

Series1

From the above analysis the organization is provided by monetary is profits

60% bonus 40%.

12. The different non monetary rewards provided to you?

Response % of Respondents
Gifts 60%
Hikes 20%
Perks 20%
Total 100%

70%
60%
60%

50%

40%

30%
20% 20%
20%

10%

0%
Gifts Hikes Perks

Series1

From the above analysis the organization is providing non-monetary

gifts 60% hikes 20%.

 CHAPTER – VI
FINDINGS:
SUGGETIONS
COCLUSIONS
FINDINGS

1. Finally it's realized that Recognition and rewards of the group it properly on employees.
2. Rewards as well as Recognition programmed is utilized to cultivate the employee performance
and abilities.
3. This company is providing far more festinates to employees.
4. The company is delivering brand new sort of methods within the business.
5. The updated programmed, and also Rewards supplied by the group to workers in almost all
levels of aspects.
6. The company is offering Rewards on functionality of employees.
7. The business is providing additional facilities on the financial level.
8. The business is providing far more kinds of Motivational features to the workers.
9. The business is providing additional concern to gratify the employees of theirs.
10. The businesses is prosperous in supplying Recognition and rewards to the workers.
11. It is giving all New Rewards type to the employees of theirs.
12. It is offering Recognition and rewards to workers all over their effectiveness to the work of
theirs.
 a. SUGGESTIONS
1. There should be a permanent display about the rewards and recognition to make clear
awareness among the employees about the different rewards provided in their organization.
2. Most of the rewards and recognition’s provided to the managers & executives only. The
companies should also provide to the employees.
3. The management should conduct the survey to collect the opinions of employees regarding
the rewards and recognition to know their satisfaction level. So, as to improve the effective
reward system.
4. The workers representatives should be involved in management decision making process
regarding the rewards and recognition.
5. The management should update its rewards systems in order to motivate the employees from
time to time.
6. The management is encouraging the employees for their outstanding performance and at the
same time it should have perfect counseling for the employees who are about to reach their
target.
7. The rewards and recognitions provided by the organization should be satisfaction as the
success of the organization largely depends.
8. The training and relation should be improved and trade union should actively participate in
where ever the workers are brutally suppressed.
9. Reward revision should be facilitated as per needs/requirements. Timely rewards revisions
reduce 100% problems.
 b. CONCLUSION
1. Finally it is concluded that Rewards and Recognition of the organization it effectively on

employees.

2. Rewards and Recognition programme is used to develop the employee performance and

skills.

3. This organization is providing more festinates to employees.

4. The organization is providing new type of techniques in the organization.

5. The updated programme, and Rewards provided by the organization to employees in all

levels of areas.

6. The organization is providing Rewards on performance of employees.

7. The company is providing more facilities to the monetary level.

8. The company is providing more types of Motivational aspects to the employees.

9. The company is giving more priority to satisfy their employees.

10. The companies is successful in providing Rewards and Recognition to the employees.

11. It is providing all New type of Rewards to their employees.

12. It is providing Rewards and Recognition to employees on their effectiveness to their work.
 BIBLIOGRAPHY

Books:

 Carver .C.S., On the self-regulation of behavior, Cambridge University Press, 2001

 Charles .N., Employee - Employer relationship: Theory and Research, New York, 1967
 Baumeister.R.F., Handbook of self-regulation, Research, theory, and applications, 2004
 Employee Behavior in Organizations. on the Current State of Research By von
Rosenstiel, Lutz Management Revue, Vol. 22, No. 4, October 1, 2011
 Labor-Management Relations: Conditions for CollaborationBy Rubin, Barry; Rubin,
RichardPublic Personnel Management, Vol. 35, No. 4, Winter 2006
 Fulfilling the Promise of the National Labor Relations Act: A Review of Taking Back the
Workers' LawBy Hodges, Ann CLabor Law Journal, Vol. 57, No. 3, October 1, 2006
 Regional Competitiveness: Labor-Management Relations, Workplace Practices, and
Workforce QualityByKleinhenz, Jack; Smith, RussBusiness Economics, Vol. 46, No. 2,
April 2011

Websites:
* Company Profile - www.drreddys.com

* Rewards & Recognition - www.google.com

- The House Magazine of

Dr. Reddy’s Laboratory

Websites:

 www.pharma.org
 www.pharmaceutical_industry.info
 www.pharmaceutical_drug_manufactures.com.
 www.drreddys.com
 c. QUESTIONNAIRE
Name of the Company:
Type of Business: Manufacturing Services
Location:
Designation:
Department:
Number of Employees:
Various other locations:
Number of years in business:

1. What kind of Reward policy is implemented in your organization?

a. Formal
b. Informal

2. . Is the reward scheme for every financial year budgeted in your company?

Yes No

3. If yes, what percentage of revenue is earmarked for the reward in the

financial year?

4. Is the Reward system in your organization

a) Monetary
b) Non monetary
c) Both

5. What are the various Non monetary rewards practiced in your organization?
6. Is the reward system practiced in the organization properly communicated to
all the employees in the organization?

Yes No

If yes, How?

7. How often are the employees rewarded?

a) Monthly
b) Quarterly
c) Half yearly
d) Yearly
e) Occasionally based on extra ordinary accomplishments.

8. What are the behaviours that you are trying to encourage in your employees?

9. Are all the employees eligible for the Reward as per your company policy?

Yes No

10.If No, which level of employees are eligible?

11.The criteria considered for rewarding the employees:

12.In your organization employees are considered for Reward and Recognition
mostly for

a) Innovative and Creative Ideas

b) Increased productivity/results/outcome
c) Customer Satisfaction
d) All of the above
e) Others

13.How is an employee selected for a reward? Is it through

a) Group vote
b) Decision from top officials
c) Decision from a single manager
d) None of the Above

14.How is the company benefited from the rewards and recognition?

a) Improved performance
b) Reduced absenteeism
c) Others

15.How old is the current Reward Policy?

16.How frequently do you bring changes in the Reward system practiced in the
organization?

a) For every 2-3 years

b) For every one year
c) For every six months
 d) None of the above

17.Are the employee suggestions considered while reviewing the Reward

program?

Yes No

18.How do you treat Non-Performers in your organizations?

a) Training to develop their skills

b) Any counseling been done
c) Any other measures

19.If there is no improvement in the Employee’s performance would you

a) Review job of the employee

b) Transfer of Department
c) Demotion
d) Pay/Salary Cut
e) Termination

20.What are the various short comings in your company’s Reward &
Recognition Scheme?

21.What are the measures taken to overcome or correct the same?

22.Is your company providing you any Rewards and Recognition’s?

a) Yes b) No

23.Which type of Rewards and Recognition are provided to you ?

 a) Monetary b) Non monetary c) Both

24.Are you aware of all the Rewards and Recognition provided to you by the

organization ?

a) Yes b) No c) Partially.

25.How did you come to know about any new Rewards and Recognition being

introduced in the organization?

a) Through superior b) Co-workers

c) Through websites d) when necessary comes

26.What is your opinion on Rewards and Recognition provided by your

organization?

a) Excellent b) Good c) Average d) Satisfaction

27.Did you get any Rewards and Recognition for your performance in your

organization?

a) Yes b) No

If yes what are they?

28.Which type of Rewards and Recognition do you prefer more.

a) Monetary b) Non monetary c) both

29.What is the motivation level of you through these Rewards and Recognition

provided by your organization?

 a) 0-25% b) 25%-50% c) 50%-75% d) 75%-

100%

30.What is the satisfaction level of you through these Rewards and Recognition

provided by your organization?

a) 0-25% b) 25%-50% c) 50%-75% d) 75%-

100%

31.Do you accept that the success of your organization largely depends on the

Rewards and Recognition system followed by your company.

a) Yes b) No c) Partially.

32.What are the different monetary rewards provided to you ?

a) Profits b) Bonus

33.What are the different non monetary rewards provided to you ?

a) Gifts b) Hikes c) Perks