PROJECT REPORT

ON
EMPLOYEE MOTIVATION AT VARIOUS ORGANIZATION

I.K.G PUNJAB TECHNICAL UNIVERSITY,

KAPURTHALA
in the partial fulfillment of the requirement for the award of degree
of
MASTER OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:

Prof. Manmeet Kaur Inderpreet Kaur
MBA 4th Sem
Roll No. 1910667

GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, DAKHA
2019-2021

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STUDENT DECLARATION

I, “Inderpreet Kaur”, hereby declare that I have completed a project titled, “Employee

Motivation at various organization” under the guidance of Prof. Manmeet Kaur.

Further I hereby confirm that the work presented herein is genuine and original and has not

been published elsewhere.

Date : Inderpreet Kaur

Roll No.1910667

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FACULTY DECLARATION

I hereby declare that the student Mr. Inderpreet Kaur of MBA (II) has completed his

project report under my periodic guidance on the project titled “Employee Motivation at

various organization”.

Further I hereby declare that the student was periodically in touch with me during his

research period and the work done by student is genuine and original.

___________________

(Signature of Supervisor)

PROF. MANMEET KAUR

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ACKNOWLEDGEMENT

“Knowledge is the end based on Acknowledgement”

Acknowledging any one in mere words is a very difficult job. I would like to pay my sincere

thanks to all those persons who have helped me during this project work with their able

guidance and invaluable advice.

I am highly indebted to my project supervisor, Prof. Manmeet Kaur, Management

Department, GTB-IMT, Dakha for her guidance and constant supervision as well as for

providing necessary information regarding the project and for her support and constructive

feedback in completing the project.

I would also like to thank Dr. Jagdev Singh Rana, Director, GTB-IMT, Dakha for his

valuable support for completion of my project. I would also like to express my gratitude

towards my parents & friends for their kind co-operation and encouragement which help me

in completion of this project.

I would also like to thank each and every member of the College, friends and family who

have directly or indirectly helped me to complete this project.

INDERPREET KAUR

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CONTENTS

Chapter Title
no.
1. Introduction
2. Review of literature
3. Research methodology
4. Results and Discussion
5. Summary
6. Bibliography
7. Appendix

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CHAPTER -1

INTRODUCTION

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INTRODUCTION

Management’s basic job is the effective utilization of human resources for achievements
of organizational objectives. The personnel management is concerned with organizing
human resources in such a way to get maximum output to the enterprise and to develop
the talent of people at work to the fullest satisfaction. Motivation implies that one person,
in organization context a manager, includes another, say an employee, to engage in action
by ensuring that a channel to satisfy those needs and aspirations becomes available to the
person. In addition to this, the strong needs in a direction that is satisfying to the latent
needs in employees and harness them in a manner that would be functional for the
organization.

Employee motivation is one of the major issues faced by every organization. It is the
major task of every manager to motivate his subordinates or to create the ‘will to work’
among the subordinates. It should also be remembered that a worker may be immensely
capable of doing some work; nothing can be achieved if he is not willing to work. A
manager has to make appropriate use of motivation to enthuse the employees to follow
them. Hence this studies also focusing on the employee motivation among the employees
of Vasu Knitwears.
The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation has been done
by using the statistical tools and data’s are presented through tables and charts.

The concept of motivation

The word motivation has been derived from motive which means any idea, need or
emotion that prompts a man in to action. Whatever may be the behavior of man, there is
some stimulus behind it .Stimulus is dependent upon the motive of the person concerned.
Motive can be known by studying his needs and desires.

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There is no universal theory that can explain the factors influencing motives which
control mans behavior at any particular point of time. In general, the different motives
operate at different times among different people and influence their behaviors. The
process of motivation studies the motives of individuals which cause different type of
behavior.

Definition of Motivation.
According to Edwin B Flippo, “Motivation is the process of attempting to influence
others to do their work through the possibility of gain or reward.

Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to give
their loyalty to the group, to carry out properly the purpose of the organization. The
following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with
opportunities to fulfill their physiological and psychological needs. The workers will
cooperate voluntarily with the management and will contribute their maximum
towards the goals of the enterprise.
2. Workers will tend to be as efficient as possible by improving upon their skills and
knowledge so that they are able to contribute to the progress of the organization. This
will also result in increased productivity.
3. The rates of labor’s turnover and absenteeism among the workers will be low.
4. There will be good human relations in the organization as friction among the workers
themselves and between the workers and the management will decrease.
5. The number of complaints and grievances will come down. Accident will also be low.
6. There will be increase in the quantity and quality of products. Wastage and scrap will
be less. Better quality of products will also increase the public image of the business.

Motivation Process.
1. Identification of need

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2. Tension
3. Course of action
4. Result –Positive/Negative
5. Feed back

Theories of Motivation.
Understanding what motivated employees and how they were motivated was the focus of
many researchers following the publication of the Hawthorne study results (Terpstra,
1979). Six major approaches that have led to our understanding of motivation are
Mcclelland’s Achievement Need Theory, Behavior Modification theory; Abraham H
Mallows need hierarchy or Deficient theory of motivation. J.S. Adam’s Equity Theory,
Vrooms Expectation Theory, Two factor Theory.

McClelland’s Achievement Need Theory.

According to McClelland’s there are three types of needs;

Need for Achievement (n Ach);

This need is the strongest and lasting motivating factor. Particularly in case of persons
who satisfy the other needs. They are constantly pre occupied with a desire for
improvement and lack for situation in which successful outcomes are directly correlated
with their efforts. They set more difficult but achievable goals for themselves because
success with easily achievable goals hardly provides a sense of achievement.

Need for Power (n Pow)

It is the desire to control the behavior of the other people and to manipulate the
surroundings. Power motivations positive applications results in domestic leadership
style, it negative application tends autocratic style.

Need for affiliation (n Aff)

It is the related to social needs and creates friendship. This results in formation of
informal groups or social circle.

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Behavioral Modification Theory;
According to this theory people behavior is the outcome of favorable and unfavorable
past circumstances. This theory is based on learning theory. Skinner conducted his
researches among rats and school c dren. He found that stimulus for desirable behavior
could be strengthened by rewarding it at the earliest. In the industrial situation, this
relevance of this theory may be found in the installation of financial and non financial
incentives.

More immediate is the reward and stimulation or it motivates it. Withdrawal of reward
incase of low standard work may also produce the desired result. However, researches
show that it is generally more effective to reward desired behavior than to punish
undesired behavior.

Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

The intellectual basis for most of motivation thinking has been provided by behavioral
scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of
Motivation”. Although Maslow himself did not apply his theory to industrial situation, it
has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s
theory to interpret specific problems in personnel administration and industrial relations.

The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of
five categories. The lowest level needs are physiological and the highest levels are the
self actualization needs. Maslow starts with the formation that man is a wanting animal
with a hierarchy of needs of which some are lower ins scale and some are in a higher
scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher
needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a
motivator. This resembles the standard economic theory of diminishing returns. The
hierarchy of needs at work in the individual is today a routine tool of personnel trade and
when these needs are active, they act as powerful conditioners of behavior- as
Motivators.

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Hierarchy of needs; the main needs of men are five. They are physiological needs, safety
needs, social needs, ego needs and self actualization needs, as shown in order of their
importance.

Self-
Actualization
Ego Needs

Social Needs

Safety Needs

Physiological Needs
Fig (1)

The above five basic needs are regarded as striving needs which make a person do things.
The first model indicates the ranking of different needs. The second is more helpful in
indicating how the satisfaction of the higher needs is based on the satisfaction of lower
needs. It also shows how the number of person who has experienced the fulfillment of the
higher needs gradually tapers off.

Physiological or Body Needs: - The individual move up the ladder responding first to
the physiological needs for nourishment, clothing and shelter. These physical needs must
be equated with pay rate, pay practices and to an extent with physical condition of the
job.

Safety: - The next in order of needs is safety needs, the need to be free from danger,
either from other people or from environment. The individual want to assured, once his
bodily needs are satisfied, that they are secure and will continue to be satisfied for
foreseeable feature. The safety needs may take the form of job security, security against
disease, misfortune, old age etc as also against industrial injury. Such needs are generally

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met by safety laws, measure of social security, protective labor laws and collective
agreements.

Social needs: - Going up the scale of needs the individual feels the desire to work in a
cohesive group and develop a sense of belonging and identification with a group. He
feels the need to love and be loved and the need to belong and be identified with a group.
In a large organization it is not easy to build up social relations. However close
relationship can be built up with at least some fellow workers. Every employee wants too
feel that he is wanted or accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: - These needs are reflected in our desire for status and
recognition, respect and prestige in the work group or work place such as is conferred by
the recognition of ones merit by promotion, by participation in management and by
fulfillment of workers urge for self expression. Some of the needs relate to ones esteem

e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this
means praise for a job but more important it means a feeling by employee that at all times
he has the respect of his supervisor as a person and as a contributor to the organizational
goals.

Self realization or Actualization needs: - This upper level need is one which when
satisfied provide insights to support future research regarding strategic guidance for
organization that are both providing and using reward/recognition programs makes the
employee give up the dependence on others or on the environment. He becomes growth
oriented, self oriented, directed, detached and creative. This need reflects a state defined
in terms of the extent to which an individual attains his personnel goal. This is the need
which totally lies within oneself and there is no demand from any external situation or
person.

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J.S Adams Equity Theory
Employee compares her/his job inputs outcome ratio with that of reference. If the
employee perceives inequity, she/he will act to correct the inequity: lower productivity,
reduced quality, increased absenteeism, voluntary resignation.

Vrooms Expectation Theory

Vroom’s theory is based on the belief that employee effort will lead to performance and
performance will lead to rewards (Vroom, 1964). Reward may be either positive or
negative. The more positive the reward the more likely the employee will be highly
motivated. Conversely, the more negative the reward the less likely the employee will be
motivated.

Two Factor Theory

Douglas McGregor introduced the theory with the help of two views; X assumptions are
conservative in style Assumptions are modern in style.

X Theory
 Individuals inherently dislike work.
 People must be coerced or controlled to do work to achieve the objectives.
 People prefer to be directed

Y Theory
 People view work as being as natural as play and rest
 People will exercise self direction and control towards achieving objectives they
are committed to
 People learn to accept and seek responsibility.

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Types of Motivation.
Intrinsic motivation occurs when people are internally motivated to do something
because it either brings them pleasure, they think it is important, or they feel that what
they are learning is morally significant.
Extrinsic motivation comes into play when a student is compelled to do something or act
a certain way because of factors external to him or her (like money or good grades)

Incentives
An incentive is something which stimulates a person towards some goal. It activates
human needs and creates the desire to work. Thus, an incentive is a means of motivation.
In organizations, increase in incentive leads to better performance and vice versa.

Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fully
satisfied. If one need is satisfied, the other need need arises. In order to motivate the
employees, the management should try to satisfy their needs. For this purpose, both
financial and non financial incentives may be used by the management to motivate the
workers. Financial incentives or motivators are those which are associated with money.
They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non
financial motivators are those which are not associated with monetary rewards. They
include intangible incentives like ego-satisfaction, self-actualization and responsibility.

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INCENTIVES

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

- Bonus - Group recognition
- Medical reimbursement - Job security
- Insurance - Praise
- Housing facility - Knowledge of result
- Retirement benefits. - Workers participation.
- Suggestion system.
-Opportunities for growth

Motivation is the key to performance improvement

There is an old saying you can take a horse to the water but you cannot force it to drink; it
will drink only if it's thirsty - so with people. They will do what they want to do or
otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory
tower' they must be motivated or driven to it, either by themselves or through external
stimulus.

Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated,
for motivation is a skill which can and must be learnt. This is essential for any business to
survive and succeed.

Performance is considered to be a function of ability and motivation, thus:

 Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a
slow and long process. On the other hand motivation can be improved quickly. There are

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many options and an uninitiated manager may not even know where to start. As a
guideline, there are broadly seven strategies for motivation.

There are broadly seven strategies for motivation.

 Positive reinforcement / high expectations

 Effective discipline and punishment
 Treating people fairly
 Satisfying employees needs
 Setting work related goals
 Restructuring jobs
 Base rewards on job performance

Essentially, there is a gap between an individual’s actual state and some desired state and
the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and
manipulate this gap.

Employee motivation is a critical aspect at the workplace which leads to the performance
of the department and even the company. Motivating your employees needs to be a
regular routine.

There are companies that sadly fail to understand the importance of employee motivation.
Research shows that many companies have disengaged employees with low
motivation; only 13% of employees are engaged at work (Gallup).

In this article, we look into why employee motivation is important in any businesses or
companies.

“An employee’s motivation is a direct result of the sum of interactions with his or her
manager.”

– Bob Nelson

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Importance of Employee Motivation

There are several reasons why employee motivation is important. Mainly because it
allows management to meet the company’s goals. Without a motivated workplace,
companies could be placed in a very risky position.

Motivated employees can lead to increased productivity and allow an organisation to

achieve higher levels of output. Imagine having an employee who is not motivated at
work. They will probably use the time at their desk surfing the internet for personal
pleasure or even looking for another job. This is a waste of your time and resources.

Note that this is based on one employee. Try picturing the majority of your employees
doing the same thing. This is not a position anybody wants to be in.

Improve your employee engagement in less than two minutes

Get started for free today.

Benefits of Motivated Employees

Employee motivation is highly important for every company due to the benefits that it
brings to the company. Benefits include:

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Increased employee commitment

When employees are motivated to work, they will generally put their best effort in the
tasks that are assigned to them.

Improved employee satisfaction

Employee satisfaction is important for every company because this can lead towards a
positive growth for the company.

Ongoing employee development

Motivation can facilitate a worker reaching his/her personal goals, and can facilitate the
self-development of an individual. Once that worker meets some initial goals, they realise
the clear link between effort and results, which will further motivate them to continue at a
high level.

Improved employee efficiency

An employee’s efficiency level is not only based on their abilities or qualifications. For
the company to get the very best results, an employee needs to have a good balance
between the ability to perform the task given and willingness to want to perform the task.
This balance can lead to an increase of productivity and an improvement in efficiency.

How to Increase Employee Motivation

Here are three immediate actionable tips to increase employee motivation in your
workplace.

Improve communication

The easiest way to increase employee motivation is by having positive communication at

the workplace. Not relying only on emails but by making sure they talk to their
employees in person and even on a personal level, if possible.

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Try setting aside some time each day to talk with employees or you can join them during
coffee breaks instead of sitting at your desk. By doing so, you actually make employees
feel as though you are part of the team; a leader instead of just the boss. Experts agree
that team communication is super valuable.

Employees also want to see the company that they are working for succeed. Many have
excellent ideas, ranging from money saving to operational improvements. Management
must make an effort to take some time to ask and listen to suggestions. Nothing is more
worthwhile than feeling valued.

Value individual contributions

Management should ensure their employees on how their individual efforts and
contribution plays an important part of the company’s overall goals and direction.
Employees will take pride and be engaged in their work if they are aware how their
efforts create an impact the organisation; regardless of how big or small their
contributions are.

Management does not have to reward their employees with gifts every single time they
did a good job at a task. At times, a simple “Thank You” or “Great job” will suffice.
These meaningful words acknowledge effort, build loyalty and encourage people to work
even harder.

“Employees who believe that management is concerned about them as a whole person –
not just an employee – are more productive, more satisfied, more fulfilled. Satisfied
employees mean satisfied customers, which leads to profitability.”

– Anne M. Mulcahy

Positive workplace environment

Sometimes, the employees lack motivation because their workplace does not have a
positive work environment. To fix this, management could sent out surveys and get
feedback from employees in order to solve the issues that they may face.

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Management could also post a positive quote or picture by the copier, coffee machine or
somewhere else that is visible and that receives high foot traffic so that others can see.
Flora and fauna also helps create a serene workplace environment for your employees, so
why not add a couple of plants around the office.

Management could also find creative ways in which to consistently keep their employees
motivated as much as possible. You can read our post on how to motivate your
employees in 12 easy steps to help you with your company’s employee motivation. 

In Summary

A positive workplace is the basic element that will get your company to the top. We
understand that it may be time consuming and difficult to encourage employee
motivation at the workplace.

However, in order to achieve a high level of employee productivity, management needs

to encourage a positive workplace environment.

Ensure that your employees feel that their work and efforts is an important contribution to
the company’s success. Remember to always keep an ‘open-door’ policy and have an
approachable management team.

SIX STRATEGIES TO MAINTAIN EMPLOYEE MOTIVATION

We can all recognize highly motivated and engaged employees when we see them.
They're more productive, they don't hold back, and they go the extra mile. But why?

The simple answer is because they want to. They’re inspired by their work, they believe
in their organisation and they feel connected to what it’s trying to achieve.

Imagine working in an environment where everyone felt inspired and loved what they did
every day. It almost sounds too good to be true, but high-functioning teams do exist:
organisations such as Google, Atlassian and Microsoft show us it can be done. These
teams share a common denominator: their leadership constantly motivates and inspires
employees.

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As a leader, how do you help create an environment where people feel engaged and
motivated? Here are six strategies to help drive engagement and inspire your employees.

1. Set goals to create meaning

Goal-setting gives employees meaning in their day-to-day roles: employees who are
brought along on the goal-setting journey are 3.6 times more likely to be engaged than
those who are not. To motivate employees, you should:

 Establish what’s expected of them

 Help them visualize what success in their role looks like

 Explain how their contribution makes a difference to the business

Creating the connection between your people’s objectives and the goals of the
organisation is particularly important. For example, if your organization’s mission is
‘Awesome customer service’ how is this value reflected for an employee working in the
finance department?

Recognizing that each team member has different sources of motivation, then linking
these back to the overall goals of your organisation is key. In fact, surveys have shown
that 55% of employees – regardless of age, sex, region or tenure – would be more
motivated if they believed they were doing meaningful work.  One-third said they would
take more pride in their work and be willing to work extra hours to get the job done.

2. Celebrate milestones big and small

It’s not just the big wins that should be acknowledged: setting and celebrating mini-
milestones keeps employees motivated in their day-to-day roles.

In addition to yearly or quarterly goals, set goals to track what your people are achieving
on a weekly or monthly basis. These don’t have to be performance-driven or KPI-
focused. They can be social or cultural, or they can focus on personal development – for
example, setting a goal for dealing with challenging stakeholders.

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Celebrating milestones is also about understanding the challenges your people are facing.
When a mini-milestone isn’t met, take the opportunity to see what’s blocking your team’s
progress, how it can be overcome, and whether the end-goal needs to be re-assessed.  

3. Provide meaningful feedback

Praise is always welcome, but becomes far more meaningful when it is linked to concrete
examples. “Great presentation, well done,” is nice feedback to receive, but “Great
presentation, your explanation of how this impacts our customer base will help us
improve customer loyalty,” pinpoints exactly how someone’s contribution benefits the
company. Giving specific, targeted feedback tells your team that you’re paying attention.

The same goes for providing constructive feedback on areas of improvement: keep this
feedback personalized and actionable. Consider the golden ratio of 5:1 –  if you deliver
five positive takeaways to one negative piece of feedback, people won’t feel
overwhelmed with criticism. The goal should be to help your people grow and develop,
so providing ongoing, timely feedback is crucial.

4. Empower problem solving and learning

Create space for your people to solve their own problems. You can provide support and
guidance, but it’s important to let employees lead with their own ideas and solutions.
That way, they’ll know their skills and perspectives are valued. Of the 560 employees
surveyed in Deloitte’s Talent 2020 report 42% of respondents looking for a new role
believed their current job did not make good use of their skills and abilities. Nurturing a
culture where problem solving and learning is encouraged means:

 Listening to your team’s ideas

 Embracing their unique skills

 Encouraging self-directed learning
 Allowing them to take ownership of their work
 Creating a safe space where failure is framed as a learning opportunity

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5. Follow through on promises

Keep employees motivated by establishing an atmosphere of trust and consistency that’s

sustained from the top-down. Be mindful of the promises you make: these can have a
direct impact on employee engagement because as a manager, you represent the
organisation. Often, employees don’t distinguish between the promises made by a
manager and those made by the company, which means losing trust in a manager can
mean losing trust in the whole organisation.

Going back on a promise violates an employee’s psychological contract: this is the

unwritten – but no less real – set of expectations of the employment relationship. This
implicit contract exists as a two-way exchange: in return for hard work an employee gets
the promotion, learning opportunities, conference trips, or opportunity to participate in
the interesting project. If an employee’s hard work is met without the promised reward,
it’s not just motivation that suffers. It can also lead to feelings of resentment and betrayal,
which inevitably leads to increased employee turnover.  

6. Experiment and learn

There is no magical, one-size-fits-all formula for keeping employees motivated.

Maintaining motivation in your people is an ongoing task filled with opportunities to
experiment and learn what works (and what doesn’t work) for your team. These are just a
few approaches to keep in mind as you look for better ways to keep your employees
happy, engaged and energized.

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Employee Motivation is crucial to your organization. It is the root from which stems both
the progress and the downfall of your company.

Employee Motivation can be defined as the attitude employees have towards their work.
It is the desire and energy that makes people continually interested and committed to a
job. It is what drives them, pushes them or “motivates” them to achieve or even show up
at work every day.

The Importance of Employee Motivation

Employee motivation is important to your company. Motivated employees are dedicated,

work harder and therefore, produce more. In other words, employee motivation improves
the quality of work.

It goes without saying that no company, small or large, can win over the long run without
energized employees who believe in the mission and understand how to achieve it. – Jack
Welch
Without a motivated workplace, a company can face major losses.

An employee who does not feel motivated won’t be able to perform well. He wouldn’t
want to give his best and work hard to achieve his goals.

Motivated employees help achieve business goals. They also improve the overall
productivity of the organization.

What Drives Employee Motivation?

In some ways, employee motivation affects employee engagement. An engaged

employee is emotionally committed to the company. This commitment tends to influence
his behavior towards the organization. And this attitude impacts his motivation to work.

To explain this, Gallup did a research and found some disturbing results. It found that
only 15% of employees worldwide feel engaged in their jobs. That’s right. ONLY 15%.

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What drives motivation for this 15%? And what about the rest of the 85% of the
workforce? Why aren’t they motivated to work?

Business Dictionary says motivation results from the interaction of both conscious and
unconscious factors.

Some of these factors of work motivation are–

Reward value of the goal. A meaningful reward at the end of their efforts is a great way
to keep employees motivated. A reward should have a feel-good-factor attached to it.
Thus, they feel motivated to push harder, work efficiently and produce better results.

They have leaders whom they can trust. Leaders who value them and treat them with
the same respect as they would to a senior employee. Leaders who believe in their
capabilities & include them in important decision-making processes.

Professional advancement is another important motivation at work. Employees are

highly motivated to work if it means a career growth. Leaders who provide employees
with opportunities to develop their career have better-motivated employees.

Happiness is probably the biggest fuel to employee motivation. An author on Forbes

said, “your motivation to achieve is ultimately based on earning a living that brings you
tremendous joy and satisfaction.”

Motivational Theories

Encyclopedia defines motivation as the “forces acting on or within a person that cause the
arousal, direction, and persistence of goal-directed, voluntary effort. Motivation
theory is thus concerned with the processes that explain why and how human behavior is
activated.”

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Maslow’s Theory of Needs

With the Hierarchy of Needs, Maslow highlighted that humans are motivated by

needs. He classified the needs into a pyramid of five levels as per their importance and
priority. He said when one need gets satisfied, it ceases to be a motivating factor. Once
this happens, the next set of needs in the hierarchy order takes its place.

He placed the needs into five categories – physiological, safety, social/ belongingness,
self-esteem, and self-actualisation.

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Chapter-2

REVIEW OF
LITERATURE

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REVIEW OF LITERATURE

Kumar S.R, (2007) investigated that the issue of employee motivation and Motivation is
one that has become a central concern of management and leadership in modern business.
The writer points out that there has been an increased realization in theory that employees
are motivated by much more than salary and that in order to get the most from an
employee there are many theories and practical Motivational aspects that need to be
considered. The writer concludes that the various theories and concepts of employee
Motivation have led management to reassess styles of leadership. These changes in
leadership styles can be seen to be directly and indirectly linked to the cognizance of
theories and concepts of employee Motivation in the contemporary business world. 

Topper (2004) concluded that times of economic constraint posed double trouble for
administrators: not only do they face enormous financial pressures, but they also must
find ways to maintain employee motivation and reduce the low morale which follows the
financial circumstances.  While it’s always important to show your appreciation for the
contributions that your employees make, in difficult financial times it is absolutely
crucial that you find many ways to do so. Employee Motivation is not always maintained
through the traditional mechanisms that many managers and employees believe are
effective. Research has found that monetary rewards do not produce long-term
performance and productivity results.  In fact, some studies have found that reward
programs that only emphasize cash incentives, actually “de-motivate” staff by shifting the
goal from a sense of accomplishment and contribution, to attaining the carrot of financial 
reward. Some of the best ways to enhance employee Motivation is to focus on the
employee’s feelings of value and connection to the overall mission of the organization. 
The following is a list of some ideas to help you to get started. 

Nohria et. al (2004) studied that motivating employees begins with recognizing that to
do their best work, people must be in an environment that meets their basic emotional
drives to acquire, bond, comprehend, and defend. So say Nohria and Groysberg, of
Harvard Business School, and Lee, of the Center for Research on Corporate Performance.

28
Using the results of surveys they conducted with employees at a wide range of
Fortune 500 and other companies, they developed a model for how to increase
workplace Motivation dramatically. The authors identify the organizational levers that
companies and frontline managers have at their disposal as they try to meet workers’
deep needs. Reward systems that truly value good performance fulfill the drive to
acquire. The drive to bond is best met by a culture that promotes collaboration and
openness. Jobs that are designed to be meaningful and challenging meet the need to
comprehend. Processes for performance management and resource allocation that are
fair, trustworthy, and transparent address the drive to defend.

Bedeian, (2003) examined that this paper discusses how there are many trends when it
comes to employee Motivation and compensation, because big business has determined
that money is not the only thing that employees want. It proposes a study to examine the
hypothesis that employers can motivate their employees in many different ways through
the study of personalities, career anchors and what specifically motivates individuals.
"Originally, it was just the corporate world that was looking at employees in ways other
than just how much money they were getting paid across the board, but the trend is also
spreading over to the sales industry and other industries as well. It is important to look at
these compensation trends and how they are being used for the outside sales force today,
as well as to recommend a strategy that is designed to ensure that the reward system for
employees stays in alignment with the mission of the sales industry as it evolves through
time. That mission has generally been to produce high-quality goods and services, have
professional sales people, and provide excellent customer service, and these things cannot
take place as easily if the employees are not motivated properly and compensated
accordingly. "

Chesney, (2002) examined that this thesis involves looking into 3 different but inter-
related issues- organizational activities, external consequences and employee Motivation.
And so, we collated data using the secondary as well as the primary sources of data. Our
secondary data includes a review of the literature which is to enlighten us on what has
been studied about our topic while the primary data encompasses gathering data by
constructing a questionnaire, conducting interviews, and also organising focus groups; all

29
of these to aid giving answer(s) to our research question. FINDINGS: From the research
we conducted as well as the analysis we made, we were able to get a proof that there is a
strong link between an organization’s activities, the external consequences of such
activities as well as how the relationship between these two affects employee Motivation.
We have been able to establish the fact that employees also look outside their
organization for incentives that could enable them to perform their duties properly.

30
Chapter-3

RESEARCH
METHODOLOGY

31
RESEARCH METHODOLOGY

Research is a systematic method of finding solutions to problems. It is essentially an

investigation, a recording and an analysis of evidence for the purpose of gaining
knowledge. According to Clifford woody, “research comprises of defining and redefining
problem, formulating hypothesis or suggested solutions, collecting, organizing and
evaluating data, reaching conclusions, testing conclusions to determine whether they fit
the formulated hypothesis”

RESEARCH PROBLEM

The research problem here in this study is associated with the motivation of employees of
VASU KNITWEARS. There are a variety of factors that can influence a person’s level of
motivation; some of these factors include

1. The level of pay and benefits,

2. The perceived fairness of promotion system within a company,

3. Quality of the working conditions,

4. Leadership and social relationships,

5. Employee recognition

6. Job security

7. career development opportunities etc.

Motivated employees are a great asset to any organisation. It is because the motivation
and Job satisfaction is clearly linked. Hence this study is focusing on the employee
motivation in the organisation. The research problem is formulated as follows:

“What are the factors which help to motivate the employees?

32
Sampling Design.
A sample design is a finite plan for obtaining a sample from a given population. Simple
random sampling is used for this study.

Universe.
The universe chooses for the research study is the employees of Vasu Knitwears.

Sample Size
Number of the sampling units selected from the population is called the size of the
sample. Sample of 50 respondents were obtained from the population.

Sampling Procedure.
The procedure adopted in the present study is probability sampling, which is also known
as chance sampling. Under this sampling design, every item of the frame has an equal
chance of inclusion in the sample.

Methods of Data Collection.

The data’s were collected through Primary and secondary sources.

Primary Sources.
Primary data are in the form of “raw material” to which statistical methods are applied
for the purpose of analysis and interpretations.
The primary sources are discussion with employees, data’s collected through
questionnaire.

Secondary Sources.
Secondary data’s are in the form of finished products as they have already been treated
statistically in some form or other.

33
The secondary data mainly consists of data and information collected from records,
company websites and also discussion with the management of the organization.
Secondary data was also collected from journals, magazines and books.

34
Nature of Research.
Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to create a
causal relationship, where one variable affects another. In other words, descriptive
research can be said to have a low requirement for internal validity.

Questionnaire.
A well defined questionnaire that is used effectively can gather information on both
overall performance of the test system as well as information on specific components of
the system. A defeated questionnaire was carefully prepared and specially numbered. The
questions were arranged in proper order, in accordance with the relevance.

Nature of Questions Asked.

The questionnaire consists of open ended, dichotomous, rating and ranking questions.

Pre-testing
A pre-testing of questionnaire was conducted with 10 questionnaires, which were
distributed and all of them were collected back as completed questionnaire. On the basis
of doubts raised by the respondents the questionnaire was redialed to its present form.

Sample
A finite subset of population, selected from it with the objective of investigating its
properties called a sample. A sample is a representative part of the population. A sample
of 50 respondents in total has been randomly selected. The response to various elements
under each questions were totaled for the purpose of various statistical testing.

35
Variables of the Study.
The direct variable of the study is the employee motivation
Indirect variables are the incentives, interpersonal relations, career development
opportunities and performance appraisal system.

Presentation of Data.
The data are presented through charts and tables.

Tools and Techniques for Analysis.

Correlation is used to test the hypothesis and draw inferences.

OBJECTIVES OF THE STUDY

Primary objective
1. To study the important factors which are needed to motivate the employees.

Secondary Objective.

1. To study the effect of monetary and non-monetary benefits provided by the

organization on the employee’s performance.

2. To study the effect of job promotions on employees.

3. To learn the employee’s satisfaction on the interpersonal relationship exists in the

organization.

4. To provide the practical suggestion for the improvement of organization’s

performance.

36
LIMITATIONS OF THE STUDY

The limitations of the study are the following

 The data was collected through questionnaire. The responds from the respondents
may not be accurate.

 The sample taken for the study was only 50 and the results drawn may not be
accurate.

 Since the organization has strict control, it acts as another barrier for getting data.

 Another difficulty was very limited time-span of the project.

 Lack of experience of Researcher.

37
Chapter-4

RESULTS
AND
DISCUSSION

38
ANALYSIS AND INTERPRETATION OF DATA

DESCRIPTIVE STATISTICS
1 Response about the support from the HR department
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly satisfied 0 0
Total 50 100
(Table 1)

70
58
60

50

40 36
Series1
30

20

10 6
0 0
0
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied

(Chart 4.1)

INTERPRETATION
The table shows that 58% of the respondents are satisfied with the support they are
getting from the HR department.

39
2 Management is interested in motivating the employees

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 27 54
2 Agree 20 40
3 Neutral 3 6
4 Disagree 0 0
5 Strongly Disagree 0 0
Total 50 100
(Table 2)

Management is interested in motivating the

employees

60 54
50
40
40

30 Series1
20

10 3
0 0
0
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 2)

INTERPRETATION
The table shows that 54% of the respondents are strongly agreeing that the management
is interested in motivating the employees.

3 The type of incentives motivates you more

40
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Financial Incentives 15 30
2 Non financial Incentives 9 18
3 Both 26 52
Total 50 100
(Table 3)

The type of incentives motivates you more

30%
Financial Incentives
Non Financial Incentives
52%
Both
18%

(Chart 3)

INTERPRETATION
The table shows that 52% of the respondents are expressing that both financial and non
financial incentives will equally motivate them.

4 Satisfaction with the present incentives scheme

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE

41
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly satisfied 0 0
Total 50 100
(Table 4)

Satisfaction with the present incentives provided by

the organization

70%
58%
60%
50%
40% 36%

30%
20%
10% 6%
0% 0%
0%
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied

(Chart 4)

INTERPRETATION
The table shows that 58% of the respondents are satisfied with the present incentive
scheme of the organization.

5. The company is eagerness in recognizing and acknowledging employee’s

work

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 18 54
2 Agree 29 58

42
3 Neutral 3 6
4 Disagree 0 0
5 Strongly Disagree 0 0
Total 50 100
(Table 5)

Eagerness of the company in acknowledging the

work of employees

70%
58%
60%
50%
40% 36%

30%
20%
10% 6%
0% 0%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 5)

INTERPRETATION
From the study, 58% of employees agreed that the company is eager in recognizing and
acknowledging their work, 36% strongly agreed and only 6% showed neutral response.

43
6.1 Periodical increase in salary

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 12 24
2 Agree 23 46
3 Neutral 3 6
4 Disagree 9 18
5 Strongly Disagree 3 6
Total 50 100
(Table6)

Periodical increase in salary

50% 46%
45%
40%
35%
30%
24%
25% Series1
18%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 6)

INTERPRETATION
The table shows 46% of employees agree that there is a periodical increase in the salary.

6.2 Job Security existing in the company.

44
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 15 30
2 Agree 18 36
3 Neutral 11 22
4 Disagree 3 6
5 Strongly Disagree 3 6
Total 50 100
(Table 7)

Job security exist in the company

40% 36%
35%
30%
30%
25% 22%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 7)

INTERPRETATION
The table shows 35% of employees agree with good job security exist in the company.

45
6.3 Good relations with the co-workers.

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 15 30
2 Agree 27 54
3 Neutral 8 16
4 Disagree 0 0
5 Strongly Disagree 0 0
Total 50 100
(Table 8)

Good relations with co-workers

60% 54%

50%

40%
30%
30%

20% 16%

10%
0% 0%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 8)

INTERPRETATION
The table shows 54% of the respondents agree that they have good relations with co-
worker.

6.4 Effective performance appraisal system.

46
SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 10 20
2 Agree 23 46
3 Neutral 8 16
4 Disagree 6 12
5 Strongly Disagree 3 6
Total 50 100
(Table 9)

Effective performance appraisal system.

50% 46%
45%
40%
35%
30%
25% 20%
20% 16%
15% 12%
10% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 9)

INTERPRETATION
The table shows 46% of the respondents agree to effective performance appraisal system
existing in the company.

6.5 Effective promotional opportunities in present job,

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE

47
1 Strongly Agree 9 18
2 Agree 26 52
3 Neutral 9 18
4 Disagree 3 6
5 Strongly Disagree 3 6
Total 50 100
(Table 10)

Effective promotional opportunities in present job

60%
52%
50%

40%

30%
18% 18%
20%

10% 6% 6%

0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Table 10)

INTERPRETATION
The table shows 52% of the respondents agree with effective promotional opportunities
in their present job.

6.6 Good safety measures existing in the organization.

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 15 30
2 Agree 23 46
3 Neutral 3 6

48
4 Disagree 6 12
5 Strongly Disagree 3 6
Total 50 100
(Table 11)

Good safety measures existing in the organization.

50% 46%
45%
40%
35%
30%
30%
25%
20%
15% 12%
10% 6% 6%
5%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 11)

INTERPRETATION
The table shows 46% of the respondents agree that there is a good safety measure
existing in the company.

6.7 Performance appraisal activities are helpful to get motivated.

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 9 18
2 Agree 23 46
3 Neutral 6 12
4 Disagree 3 3
5 Strongly Disagree 9 18
Total 50 100

49
(Table 12)

Performance appraisal activities are helpful to get motivated

50% 46%
45%
40%
35%
30%
25%
20% 18% 18%
15% 12%
10% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 12)

INTERPRETATION
The table shows 46% of the respondents agree that the performance appraisal activities
are helpful to get motivated.

6.8 Support from the co-worker is helpful to get motivated

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 12 20
2 Agree 29 46
3 Neutral 0 0
4 Disagree 6 12
5 Strongly Disagree 3 6
Total 50 100
(Table 13)

50
Support from the co-worker is helpful to get motivated

70%
58%
60%

50%

40%

30% 24%
20%
12%
10% 6%
0%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 13)

INTERPRETATION
The table shows 58% of the respondents agree that the support from the co-worker is
helpful to get motivated.

6.9 Career development opportunities are helpful to get motivated

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Strongly Agree 10 20
2 Agree 26 52
3 Neutral 2 4
4 Disagree 4 8
5 Strongly Disagree 8 16
Total 50 100
(Table No.14)

51
60%
52%
50%

40%

30%
20%
20% 16%

10% 8%
4%

0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree

(Chart 14)

INTERPRETATION
The table shows 52% of the respondents agree that the career development opportunities
are helpful to get motivated.

7 Factors which motivates you the most.

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Salary increase 21 42
2 Promotion 15 30
3 Leave 3 6
4 Motivational talk 5 10
5 Recognition 6 12
Total 50 100
(Table 15)

52
12% Salary increase
10%
42% Promotion
Leave
6%
Motivational talk
30% Recognition

(Chart 15)

INTERPRETATION

The table shows that the 42% of the respondent is responding that increase in salary will
motivate them the most.

8 Incentives and other benefits will influence your performance

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Influence 32 64
2 Does not influence 12 24
3 No opinion 6 12
Total 50 100
(Table 16)

53
12%

24% Influence
Does not influence
No opinion
64%

(Chart 16)

INTERPRETATION
The table shows 64% of the respondents responded that incentives and other benefits will
influence their performance

9 Management involves you in decision making which are connected to your

department.

SL NO NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Yes 47 94
2 No 0 0
3 Occasionally 3 6
Total 50 100
(Table 17)

54
0% 6%

94%

Yes No Occasionally

(Chart 17)

INTERPRETATION
The table shows 94% of the respondents agree that they the Management involve them in
decision making which are connected to your department.

55
DISCUSSION

The findings of the study are follows

 The Vasu Knitwears has a well defined organization structure.

 There is a harmonious relationship is exist in the organization between employees
and management.
 The employees are really motivated by the management.
 The employees are satisfied with the present incentive plan of the company.
 Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.
 The study reveals that there is a good relationship exists among employees.
 Majority of the employees agreed that there job security to their present job.
 The company is providing good safety measures for ensuring the employees
safety.
 From the study it is clear that most of employees agrees to the fact that
performance appraisal activities and support from the coworkers in helpful to get
motivated.
 The study reveals that increase in the salary will motivates the employees more.
 The incentives and other benefits will influence the performance of the
employees.

56
CHAPTER – 5

SUMMARY

57
SUMMARY

The suggestions for the findings from the study are follows

 Most of the employees agree that the performance appraisal activities are helpful
to get motivated, so the company should try to improve performance appraisal
system, so that they can improve their performance.

 Non financial incentive plans should also be implemented; it can improve the
productivity level of the employees.

 Organization should give importance to communication between employees and

gain co-ordination through it.

 Skills of the employees should be appreciated.

 Better carrier development opportunities should be given to the employees for

their improvement.

 If the centralized system of management is changed to a decentralized one, then

there would be active and committed participation of staff for the success of the
organization

 The study concludes that, the motivational program procedure in VASU

KNITWEARS is found effective but not highly effective. The study on employee
motivation highlighted so many factors which will help to motivate the
employees. The study was conducted among 50 employees and collected
information through structured questionnaire. The study helped to findings which
were related with employee motivational programs which are provided in the
organization.

58
 The performance appraisal activities really play a major role in motivating the
employees of the organization. It is a major factor that makes an employee feels
good in his work and results in his satisfaction too. The organization can still
concentrate on specific areas which are evolved from this study in order to make
the motivational programs more effective. Only if the employees are properly
motivated- they work well and only if they work well the organization is going to
benefit out it. Steps should be taken to improve the motivational programs
procedure in the future. The suggestions of this report may help in this direction.

59
BIBLIOGRAPHY

Magazines :

1. Economic time.

2. Business world magazine.

3. India- today magazine.

60
ANNEXURE
Name:
Age:
Token no.:
Sex: M/F
Department:
Contact No.:
Address:

 Are you satisfied with your salary?

Yes ( ) No ( )

 Do you get your salary on time?

Yes ( ) No ( )
Sometimes ( ) Timely ( )

 Are you availing with the transport facility?

Yes ( ) No ( )
Sometimes ( )

 Do you get proper medical facility when needed?

Yes ( ) No ( )
Sometimes ( )

 Are you happy with your mill canteen?

Yes ( ) No ( )
Food is not good ( ) Food is not served on time ( )

61
 Are you satisfied with colony facility in the mill?
Yes ( ) No ( )
To some extent ( )

 Are you satisfied with your working hours?

Yes ( ) No ( )

 Does your team help in your work?

Yes ( ) No ( )

 Does your seniors and co-workers behave properly with you?

Yes ( ) No ( )
Sometimes ( )

 Are you satisfied with promotion policy in the mill?

Yes ( ) No ( )
To some extent ( )

 Do you have right to express your views independently?

Yes ( ) No ( )
To some extent ( )

 Do you get any reward or incentives for the extra work you have done?
Yes ( ) No ( )
Sometimes ( )

 Do you have good relations between employer and employee?

Yes ( ) No ( )

62
 Are you satisfied with discipline on the mill?
Yes ( ) No ( )
To some extent ( )

 Do you get supportive work enviornment in the mill?

Yes ( ) No ( )
To some extent ( )

 Does the organization do something to improve your skills and abilities?

Yes ( ) No ( )
To some extent ( )

 Why do you think to work here?

Near to home ( ) Good enviornment ( )
Good salary ( )

 Do you want any change in the work?

Yes ( ) No ( )

 Are you satisfied with the leave arrangements in the mill?

Yes ( ) No ( )

 Are you satisfied with the training provided to you to perform your work?
Yes ( ) No ( )

63