Master of Business Administration (International Business) : A Project Report ON

A PROJECT REPORT
ON
FINANCIAL & FRINGE BENEFITS IN MOTIVATING EMPLOYEES
Work Carried out for
VKC LTD, CALICUT
Submitted by
JEBIN JAMES
(Reg. No:17382024)
In the partial fulfilment of the requirements for the award of the degree of
Master of Business Administration (International Business)
under the guidance of
Dr. YARLAGADDA SRINIVASULU

Associate Professor
DEPARTMENT OF INTERNATIONAL BUSINESS

SCHOOL OF MANAGEMENT
PONDICHERRY UNIVERSITY
KALAPET, PUDUCHERRY-605014
MARCH - APRIL 2019
DEPARTMENT OF INTERNATIONAL BUSINESS
SCHOOLOF MANAGEMENT
PONDICHERRY UNIVERSITY
CERTIFICATE
This is to certify that Mr. JEBIN JAMES (Reg. No. 17382024) is a
bonafide student of the Department of International Business, Pondicherry
University. The project report entitled “FINANCIAL & FRINGE BENEFITS IN
MOTIVATING EMPLOYEES OF VKC LTD” is done by him in partial
fulfilment of the requirements for the award of the Masters of Business
Administration (International Business).
Dr. Yarlagadda Srinivasulu Dr. Bhushan. D .Sudhakar

Project Guide Head of the Department
DECLARATION
I, JEBIN JAMES, the student Department of International Business,
Pondicherry University, hereby declare that this project report entitled
“FINANCIAL & FRINGE BENEFITS IN MOTIVATING EMPLOYEES OF
VKC LTD” is an authentic and original work done by me under the supervision
and guidance of Dr. Y Srinivasulu (Department of International Business) in
partial fulfilment of the requirements for the award of Masters of Business
Administration (International Business).
I also declare that this report has not been submitted by me fully or partially
for the award of any other Degree or Diploma or any other recognition earlier.
Place: Puducherry JEBIN JAMES

Date: Reg. No: 17382024
ACKNOWLEDGEMENT
I extend my deep gratitude to Dr. Bhushan D Sudhakar, HOD Department
of International Business, for giving me an opportunity and needed facilities to fulfil
this project work.
I proudly utilize this privilege to express my heart-felt thanks and sincere
gratitude to my inspiring guide Dr. Y Srinivasulu, Associate Professor, Department of
International Business for his kind supervision, valuable guidance and constant
encouragement bringing out this report in time.
Besides I would like to extend my sincere gratitude to all faculty members
of Department of International Business for their inspiration, guidance and suggestions.
It is with great respect, I express my sincere gratitude to the managers of
“VKC LTD, CALICUT” for spending their valuable time to co-operate with my
project work. And also, to the Employees of VKC, who spend their valuable time to
provide their responses. I am also thankful to my beloved parents and friends for their
sincere assistance and encouragement during the project work.
Place: Puducherry JEBIN JAMES
Date: Reg. No: 17382024

CONTENTS
Chapter Title Page No.

Executive summary 1
Chapter 1 Introduction 3
Literature Review 5
Chapter 2 Research Methodology 13
Objectives of the Study 13

Hypothesis of the Study 15
Statement of Problem 15
Significance of the Study 16
Scope of Study 16
Limitations 17
Chapter 3 Industry Profile 19

Company profile 23
Chapter 4 Data Analysis and Interpretation 25

Chapter 5 Findings 67
Suggestions 68
Conclusion 69
Bibliography 70
Appendix 71
LIST OF TABLES
Table Name Page
No.
4.1 Gender 26
4.2 Age 27
4.3 Educational qualification 28
4.4 Previous Experience of the Respondents 29
4.5 Experience in VKC LTD 30
4.6 Monetary Incentives Answer My Needs 31
4.7 Role of Incentives in Performance 32
4.8 The Role of Incentives in Increasing the Level of Competency 33
4.9 The Idea of Incentives is Motivating in Coordination with The Clients 34
4.10 Satisfaction of Employees 35
4.11 The Importance of Incentives in Performing Day to Day Tasks 36
4.12 Interest of Management in Motivating the Employees 37
4.13 Present Incentives Scheme 38
4.14 Eagerness of Organization for Recognizing Employees Performance 39
4.15 Satisfaction Towards the Periodical Increase of Salary 40
4.16 Existence of Job Security 41
4.17 Interpersonal Relationship with The Co-Workers 42
4.18 Motivation Through Effective Performance Appraisal 43
4.19 Effective Promotional Opportunities 44
4.20 Ratings of Safety Measure Exist in The Organization 45
4.21 Non-Monetary Incentives Contribute in Achieving Organizational Goals 46
4.22 Career Development Opportunities Helpful in Motivating the Employees 47
4.23 Performance Related Incentives 48
4.24 Management Acceptance of Employee Suggestion 49
4.25 Efficiency of Grievance Handling System 50
LIST OF FIGURES
Fig. Name Page

No.
4.1 Gender 26
4.2 Age 27
4.3 Educational qualification 28
4.4 Previous Experience of the Respondents 29
4.5 Experience in VKC LTD 30
4.6 Monetary Incentives Answer My Needs 31
4.7 Role of Incentives in Performance 32
4.8 The Role of Incentives in Increasing the Level of Competency 33
4.9 The Idea of Incentives is Motivating in Coordination with The Clients 34
4.10 Satisfaction of Employees 35
4.11 The Importance of Incentives in Performing Day to Day Tasks 36
4.12 Interest of Management in Motivating the Employees 37
4.13 Present Incentives Scheme 38
4.14 Eagerness of Organization for Recognizing Employees Performance 39
4.15 Satisfaction Towards the Periodical Increase of Salary 40
4.16 Existence of Job Security 41
4.17 Interpersonal Relationship with The Co-Workers 42
4.18 Motivation Through Effective Performance Appraisal 43
4.19 Effective Promotional Opportunities 44
4.20 Ratings of Safety Measure Exist in The Organization 45
4.21 Non-Monetary Incentives Contribute in Achieving Organizational Goals 46
4.22 Career Development Opportunities Helpful in Motivating the Employees 47
4.23 Performance Related Incentives 48
4.24 Management Acceptance of Employee Suggestion 49
4.25 Efficiency of Grievance Handling System 50
EXECUTIVE SUMMERY
The project titled “FINANCIAL & FRINGE BENEFITS IN MOTIVATING
EMPLOYEES OF VKC LTD” is conducted at VKC Ltd, Calicut. VKC Limited is a medium
typed company innovation results specific organization headquarters is in Calicut.
This study was done to find out the factors which will motivate the employees. The study
undertakes various efforts to analyses all of them in great details. The researcher in this project at
the outset gives the clear idea of the entire department existing in the company. From the study,
the researcher was able to find some of the important factors which motivate the employees.
Factors like financial incentives and Non-financial inventive, performance appraisal system, good
relationship with co-workers, promotional opportunities in the present job, employee participation
in decision making are very much effect the level employee motivation.
1
CHAPTER 1
INTRODUCTION
2
INTRODUCTION
Performance of the employees is the one of the main problems of every industries. This is
the biggest task of the manager to motivating his juniors otherwise to make them as ‘determination
to labour”. It besides be consider that a working person may be massively proficient for doing
some kind of work; if he is not willing to work, then he can’t achieve anything. Hence this study
is mainly conducting to recognize about the worker performance of the industry. Using appropriate
method of encouragement by the manager will correctly motivate the employees. The information
necessary for the training was collected through conducted interview and distributed
questionnaires towards the employees of the company. Statistical tool was used for the analysis
and interpretation and tables and charts are used for data presentation The main purpose of the
management is the maximum consumption of human resources for the achievement of the
organisational goals. The personnel management mainly considering to organizing the human
resources to accomplish highest level of output, increasing the number of talented employees and
to fulfil the employee’s satisfaction. Performance shows that both persons in the organization
includes a manager and an employee, they were engaging in a process by making the way to fulfil
the wants and, objectives which is obtainable to the person. Moreover, the biggest needs in the
way which is sustaining the concealed requirements in workforces and attaches them in a way
which should be useful for the enterprises.
This project entitled as “Financial & Fringe Benefits in Motivating Employees” was done
to find out the factors which will motivate the employees. The study undertakes various efforts to
analyses all of them in great details. The researcher in this project at the outset gives the clear idea
of the entire department existing in the company. From the study, the researcher was able to find
some of the important factors which motivate the employees. Factors like financial incentives and
Non-financial inventive, performance appraisal system, good relationship with co-workers,
promotional opportunities in the present job, employee participation in decision making are very
much effect the level employee motivation. It is also clear from the study that the company is so
eager in motivating their employees and their present effort for it so far effective. The human
resources can play an important role in the realization of the objectives.
3
LITERATURE REVIEW
 Motivation will be a standout amongst the greater part essential variables for at whatever
association. As stated by Thompson And McHugh (2002), it may be a standout amongst
the five Components that focus those presences from claiming any organization, similarly
as they set inspiration on a rise to balance for men, money, machines, and spirit. Figuring
out And Comprehension the factors that rouse workers is a key need, since the execution
about whatever association relies on the accessibility of a fulfilled and Roused workforce.
 Moreover, motivation might impact managers‟ viability as, as stated by Analoui (1999-
2007), inspiration may be a standout amongst the parameters from claiming manageress
viability. Reliable for the past opinion, gage and Berliner (1992) think about inspiration
Similarly as those motor and the guiding wheel of a car, as they accept that inspiration
generates those vitality and controls those conduct technique of whatever persnickety.
 Because, on we uncover and see the thing that motivates an employee, we will at that point
have the capacity with recognize the right catch to press on make him fill in harder, the
right levers will drag should make him progress as much behaviour, and the right
remunerates that might a chance to be used to regulate as much attitudes (Huczynski,
2001).
 Luthans focuses crazy that the key on understanding the procedure about inspiration lies
in the importance of, and relationship between, needs, drives, And incentives. Therefore,
inspiration as stated by as much perspective of see may be an “process that begins for a
physiological or mental insufficiency alternately have that activates conduct technique or
A drive that is meant In An objective alternately motivation. ” (1995: 141).
 Other analysts view inspiration as an inside state that Urges individuals to carry on over A
certain possibility to get to request with fulfil particular wanted objectives (Spector, 1996).
Moreover, the term is used to express the availability with expand one’s exertions around
a particular assignment in place with get particular incentives (Molander, 1996). Jones
(1955) cited clinched alongside (Steers et al. , 1996: 8) offered a thorough meaning for
inspiration at he characterized it Concerning illustration “how conduct technique gets
started, will be energized, will be sustained, is directed, is stopped, And the thing that sort
of subject responses need aid introduce in the living being same time constantly on this
may be setting off ahead. ”. In spite of those past definitions might appear to be with vary,
the all concurrence may be that, inspiration Similarly as A changing procedure that begins
with human necessities which, over turn, settle on people enactment on a sure path to
accomplish the authoritative objectives and objectives, And Consequently fulfil their
4
needs. Moreover, there appears on make a stowed away assumption between scientists
regarding those principle aspects of the inspiration phenomenon, likewise there need aid
three regular denominators which describe the wonder.
 Researchers And professional’s consideration regarding cultivating, increasing, and
administering worth of effort inspiration. Inspiration Look into need an in-length history
from claiming acknowledging representative motives and necessities (Alderfer, 1969;
Maslow, 1954; McClelland, 1961). Enthusiasm toward these territories topped in the 1970s
and early 1980s, and the A fifteen quite some time need seen little experimental or
hypothetical examination. Those larger part from claiming worth of effort with respect to
motives and necessities in the 1990s tumbles under three areas: an examination of the
employment qualities that inspire individuals, scrutinize that analyses have for
achievement, and Examine on the Protestant worth of effort ethic.
 Worker execution will be every now and again portrayed as A joint capacity from claiming
capacity and motivation, and a standout amongst the elementary assignments confronting
an administrator may be inspiring workers will perform of the best for their capacity
(Moorhead & Griffin, 1998). Pinder (1998) depicts fill in inspiration Likewise those
situated for inward And outside strengths that start work-related behaviour, And figure out
its form, direction, intensity, and span. Worth of effort inspiration may be A middle range
idea that bargains best for occasions And phenomena identified with people over A fill in
setting. The definition distinguishes those impact of both Ecological strengths (e. G. ,
authoritative prize systems, those nature of the worth of effort constantly performed) And
constrains intrinsic in the man (e. G. , distinctive needs and motives) on work-related self-
destructive considerations and conduct.
 A key characteristic of the definition may be that its perspectives fill in inspiration
concerning illustration an invisible, internal, speculative develop (Pinder, 1998). We can't
really view worth of effort inspiration or could we measure it straightforwardly. The paper
contributes hypothetically Toward giving A rich depiction about a significant number of
distinctive factors that help fill in inspiration.
 As stated by Lockley (2012) advertising preparing and improvement projects that viably
contributes to particular and expert development for people will be another powerful
Worker inspiration method. During those same time, Lockley (2012) warns that with the
end goal motivational parts of preparing and improvement activities with a chance to be
increased, ideally, they requirement with make concocted and executed by an outsider for
pertinent competency And experience.
5
 Elective working examples for example, such that job-rotating, job-sharing, and adaptable
attempting need been marked Concerning illustration compelling motivational devices
Toward Llopis (2012). Moreover, Llopis (2012) contends that motivational parts from
claiming elective attempting designs alongside its other reductions would continuously
acknowledged Eventually Tom's perusing expanding numbers from claiming
organisations, however, during those same time; Numerous associations need aid exited
behind starting with benefiting from such chances.
 An intriguing viewpoint in regards to the issue need been recommended Eventually Tom's
perusing Wylie (2004), as stated by which parts about administration fundamentally ought
further to bolster have the ability will support those level of their own inspiration toward
large amounts so as to captivate to powerful inspiration for their subordinates. Accordingly,
Wylie (2004) prescribes chiefs to embrace a proactive methodology As far as taking part
clinched alongside self-motivation polishes.
 And, Wylie (2004) prescribes concentrating ahead particular varieties about immaterial
holding motivational instruments for example, such that celebrations about birthdays And
other imperative dates with the support of entire group. As stated by Thomas (2009) those
fundamental tests of inspiration On workplaces is distinguishing what motivates each
distinct Worker taking under account as much or her distinctive contrasts. Over different
words, distinctive contrasts bring been specified Toward Thomas (2009) as the real
hindrance to management over taking part for representative inspiration to a compelling
way.
 Lockley (2012), on the other hand, addresses those same issue centering once culturally
diverse contrasts between workers specifically. Namely, society might be clarified
Concerning illustration knowledge, example of behaviour, values, standards And
conventions imparted Eventually Tom's perusing parts of a particular assembly (Kreitner
And Cassidy, 2012), and accordingly, culturally diverse contrasts is observed with a chance
to be A real hindrance in the method for effective representative inspiration.
 This purpose need been demonstrated Toward Lockley (2012) by demanding that certain
polishes for example, such that taking part Previously, valuable contentions And dialogues
over work environment might demonstrate will be profoundly motivational to the delegates
from claiming Western culture, while the same set for polishes camwood demonstrate to
be counter-productive to representatives from Asian nations because of limitless culturally
diverse contrasts.
6
 Llopis (2012) draws thoughtfulness regarding the expanding pertinence of the work-life
equalization issue to cutting edge workers And anxieties its negative sway on the level for
representative inspiration. Specifically, Llopis (2012) reasons that unless workers
accomplish a sufficient level for work-life harmony in particular level, administration
financing on the level of Worker inspiration could a chance to be squandered.
 This viewpoint is based on Hierarchy of Needs theoretical framework proposed by
Abraham Maslow (1943), according to which there is a certain hierarchy for individual
needs, and more basic human needs need to be satisfied in order for the next level needs to
serve as motivators.
 According to Yavuz (2004) job related non-monetary incentives like jobs with variety of
tasks, responsibilities, autonomy, flexible working hours, participation in decision making,
development opportunities etc have the potential to motivate employees.
 Famous Maslow(1943) theory also gives indication about the need of non-monetary
rewards in organization to satisfy the employees.
 Lazear (1986) also positively suggest that by adding financial rewards to the compensation
of employees for the sake of motivation can attract more geared workers to the
organization. Lazear (2000) also described that introduction of monetary rewards could
gain extra efforts of the employee to that extent where the marginal value added is equal
to the marginal cost paid for the additional work.
7
CHAPTER 2
RESEARCH METHDOLOGY
8
RESEARCH METHDOLOGY
Methodology is an essential aspect of any project or research. It enables the researcher look
at the problem in a systematically, meaningful and orderly way. Methodology comprises the
source of data, selection of data, design and techniques used for analysing the data.
OBJECTIVES OF THE STUDY

Primary objective
To study the impact of financial and fringe benefits on employee motivation in VKC Ltd.
Secondary Objectives
• To study the effect of monetary and non-monetary benefits provided by the organization
on the employee’s performance
• To find out the opinion of the employees on the monetary and non-monetary benefits.
• To study the important factors which play a major role in employee motivation.
• To study the impact of motivation on the employee performance of the employees of VKC
ltd.
• To provide suggestion to the organization for improving the benefits to enhance the
employee motivation
SAMPLE SIZE : 150
METHOD OF SAMPLING : Convenience sampling
SAMPLING UNIT : Employees of VKC Ltd, Calicut
AREA OF STUDY : Calicut
RESEARCH APPROACH : Survey Method
SURVEY : Questionnaire
TYPE OF QUESTIONS : Structured
PERIOD OF STUDY : 20 Days
9
RESEARCH DESIGN
According to Claire Sellitz, “A research design is the arrangement of conditions for

collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.”
Research design used in this study is descriptive in nature, i.e. to obtain information
concerning the current status of the phenomena and to describe "what exists" with respect
to variables or conditions in a situation.
SOURCES OF DATA
1. PRIMARY DATA
 Employees of VKC Ltd.
2. SECONDARY DATA
 Company website
 Brochures
 Magazines
 Journals
 Reports
 Text Books
TOOLS OF DATA COLLECTION
1. QUESTIONNAIRE
Structured questionnaire was used to collect primary data from respondents.

The questionnaire is circulated among respondents directly.
2. DIRECT PERSONAL INTERVIEW
This method is used to collect data from the employees of VKC regarding the firm
and the subject of topic.
10
TOOLS OF DATA ANALYSIS AND PRESENTATION
 Percentage analysis
 Simple average
 Pearson Correlation
 Tables
 Pie diagrams
 Bar diagrams
PLAN OF ANALYSIS
The purpose of data analysis an interpretation phrase is to transform the data collected into
credible evidence about the development of intervention and its performance. This process usually
includes following steps:
 Organising the data for analysis (data preparation)

 Describing the data
 Interpreting the data (assessing the findings against the adopted evaluation criteria)
The data collected from various sources will be tabulated and the represented using the
percentage method. Graphical tools like bar diagrams, pie charts etc., will be used to illustrate the
tabulated data pictorially. Inferences and interpretation of the data will be done on the basis of
tabulated data.
THEORETICAL BACKGROUND
The main purpose of the management is the maximum consumption of human resources
for the achievement of the organisational goals. The personnel management mainly considering to
organizing the human resources to accomplish highest level of output, increasing the number of
talented employees and to fulfil the employee’s satisfaction. Performance shows that both persons
in the organization includes a manager and an employee, they were engaging in a process by
making the way to fulfil the wants and, objectives which is obtainable to the person. Moreover,
the biggest needs in the way which is sustaining the concealed requirements in workforces and
attaches them in a way which should be useful for the enterprises.
11
Performance of the employees is the one of the main problems of every industries. This is
the biggest task of the manager to motivating his juniors otherwise to make them as ‘determination
to labour”. It besides be consider that a working person may be massively proficient for doing
some kind of work; if he is not willing to work, then he can’t achieve anything. Hence this study
is mainly conducting to recognize about the worker performance of the industry. Using appropriate
method of encouragement by the manager will correctly motivate the employees. The information
necessary for the training was collected through conducted interview and distributed
questionnaires towards the employees of the company. Statistical tool was used for the analysis
and interpretation and tables and charts are used for data presentation.
BASIC CONCEPTS
 INCENTIVES, REWARDS AND RECOGNITION
The “incentive”, “reward” and “recognition” need aid those three things which is
interconnectedness and comparing in the setting from claiming execution of the representatives.
This will be tough on draw a line the middle of them. Those principle class may be those
“incentive” which alludes all the of the majority basic pay –for-performance arranging providing
for recompense incentives when a specialist need fulfil specific management-set objectives ,like a
specified offers target. Which will be mostly conveyed under two dissections: fiscal incentives
And non-monetary incentives. A fiscal incentive intends giving remunerates As far as cash for
example, such that commissions, bonuses and so onwards during this approach, an arrangement
of stock and observation of all instrumentation may be enhancing. Non-monetary alternately non-
cash incentives not issuing immediate instalment for money, which is treating a Worker for non-
financial similar to promotions, retirement reductions. A few cases for this sort of incentives are;
inspiring those workers Toward provided for that them with self-sufficiency to their particular
occupation And support to choice making, allocating testing duties, expanding the attempting
environment, recognizing useful fill in through little gifts, letterpress about appreciation, plagues,
tickets should restaurant providing for exactly administrations for the employees, directing social
exercises in the fill in place, and so forth.
The fundamental distinction the middle of motivation and prize is, motivator expects on
energize future And rouse sure behaviour, prize fancied self-destructive considerations and
conduct may be certain support. Sure, support is those transform of fortifying a conduct toward
contingently showing something pleasurable. Distinguishment incorporates fiscal Also non-
monetary remunerates and which alludes on empowering Also acknowledging parts on expansion
12
their self-destructive considerations and conduct and enhance their execution. It ensures after-the
reality fortifying to particular approaches from claiming execution alternately satisfaction and
underlines the qualities of the association. Other than which aides will make a sensible progressive
part over an association. Cases of distinguishment would swaying those parts giving work to fiscal
Also non -monetary profits and so forth.
In the last examination both remunerates and distinguishment need aid the approaches on
apply action, which cam wood be analysed under those gigantic classification of “incentives”.
Accordingly, full about this study, the expression “incentive” will be used to motivate
representatives, distributing reward and distinguishment ideas. The primary purpose to this subject
must make “Do people in general associations truly needs incentives, other than issuing payment
Also privileges of the state funded employees?” recompense is the fiscal profits which providing
for of the workers Also which dependent upon on their meet’s expectations. Entitlements are the
border profits which incorporates paid vacation, wellbeing insurance, and retirement profits and
so on.
On account about open representatives clinched alongside Turkey and their payment levels
are bring down over those private parts. Otherwise, state funded workers will delight in their
occupation security and border profits. In the state funded sectors, there may be no association
between those levels for execution And compensation they were getting. In the different words, in
exchange to fiscal incentives Also border benefits, what is expecting starting with people in
general workers is mostly Understanding the necessities from claiming their Everyday
employments. People in general workers need aid all the more guaranteed with their pay and
reductions thusly they won't reveal to that’s significantly from claiming their exertion on the fill
in. On the contrary, in the private sector, whether a Worker will be not finishing a great part handy
in as much fill in afterward it will seriously impact as much profession.
Those subject sentence dependent upon incentives will go ahead this side of the point. They
will assistance with sway positive practices alternately objectives which would not underpin via
the existing payment strategy. These sorts for practices And objectives cam wood be decrease
those operating costs, fathoming the operational problems, making handy suggestions, expanding
those fulfilment of the members, regulating those damage, serving those companion groups,
agreeing the standards that would existing in the attempting surroundings . Along these lines which
will be exceptionally imperative basically for people in general sector, some approaches about
payment will sway the attempting transform of the representatives And will settling on most
extreme exertion which ought to make more than those relied upon execution.
13
• TYPES OF NON-MONETARY INCENTIVES
Non-monetary incentives are the non- financial method of payment. Mostly the private
sectors are providing this for the encouragement of the employee’s performance. Which is a main
tool using most of the sectors for the satisfaction of the employees, employee satisfaction is a main
reason for the working pattern that they were adopting.
Non-monetary incentives are mainly classified as different types:
PROMOTION: Representatives working in the associations to An more time of time dependably

search for upper work responsibilities. The majority of the workers needs distinguishment in the
manifestation advancement to their begun and Johnson had proceeded victory and dedication of
the association. Since there are lesser openings similarly as particular case moves higher on the
ladder, those oversaw economy ought to will arrangement those advancement programme
previously, such an approach that those upper positions appear to be worth yearning and
achievable of the workers.
RECOGNITION PROGRAMME; There are programmes plan to honour individual employees’

contribution and recognize the excellent performance. This programmes re organized in the most
companies. Many people instead of getting promotions leave the organizations because of limited
recognition of their hard work and performance. These programmes can be either formal or
informal programmes.
FRINGE BENEFITS: Most of the organizations use fringe reimbursements for rewarding the
employees. These are work reductions of the compensation and compensation paid of the staff.
This incorporates restorative benefits, retirement benefits, extra security and benefit offering.
TRAVELLING EXPENCE ACCOUNTS: The organization covering the employee’s expense

will have to devise the system that is fool proof for any kind of business reimbursement only. The
travelling expense could be divided in to local travel expense and upcountry travel expense.
PERK: Perks are the special divisions of incentive available to employees with some special status
or expertise in the company, There were number of perks, which consider part of the compensation
plan by the company. They include the provision for a car, housing, driver, gardener, club
membership and educational opportunities. Perks are divided as status perks, financial perks and
personal growth perks.
14
• USE OF NON-MONETARY INCENTIVES
Various studies and different authors were supported the non-monetary incentives are
having relation with the enactment of the employees. Janet Wiscombe (2002) states that the
recognition and praise are a main tool for the working process of the employees, and which is a
true fact also. In the opinion of her, non-monetary incentives not only be cost effective, but they
can also be improving their working effort , which also will increase the productivity, using safety
methods ,increasing the product quality, and providing customer satisfaction. Wiscombe asked a
question that in what way to preserve and increase worker’s confidence while recollecting the
expenses and for that question non- monetary benefits is the answer. Bob Nelson (2001) also be
supported that the non-monetary compensation is an important tool for increasing the satisfaction
of the employees towards the sector and which will help to improve the performance them. He
explains that the noncash compensation will lower the stress, absenteeism, turn over and increase
self-esteem, output, effectiveness, income and turnover. Based on his study, which was conducted
in 34 organizations from 1999 to 2000. .
In the study 90.5% of managers are supporting the non- monetary benefits these all have
established the status and helpfulness of non-monetary incentives in the enactment of the
employees. In other words, Nelson said that the monetary benefits having some more drawbacks.
Compensation is the payment of money to the employees based on their performance. He states
that monetary incentives have more rights on the employees working functions. One of the
drawbacks is reflected in reducing the teamwork among the employees and they were mainly
concentrating on individual profit.
Instead of all these opinions assisting the expenditure of non-monetary incentives in worker
performance, there is a chance of failure in the non- monetary incentives. Utmost of the workers
are thinking that the money is the main thing which can be fulfil their needs and wants and makes
their dreams comes true so they were mostly concentrating on money requirements. These types
of thoughts underestimating the power of non- monetary incentives. Some of the employees are
resisting to conducting the non -monetary benefit process because they were thinking that which
will decrease the monetary incentives. Paying good amount of salary will makes satisfaction to the
employees because through that they can achieve their interest. Other than this , considering the
public sector employees in Bangalore they are mostly concentrating on the monetary benefits
because they get more satisfaction from the monetary benefits based on their works other than the
non -monetary benefits .
15
If the wages and salary is satisfied by the employees then they will be ready to depend on
non- monetary benefits .In this case the employees will not feel that they were underpaid. Instead
of the continuous payment of the non-monetary benefits will shows the worth of the company.
However, in case of some type of employee’s monetary benefits will not satisfy them to increase
the performance in such cases they will only satisfy while getting non-monetary benefits rather
than the monetary benefits.
MONETARY AND NON-MONETARY FACTORS
The factors which are provided by the sectors to improving the performance of the
employees are mainly classified in to two—monetary factors and non-monetary factors.
Monetary Factors:
i. Salary or wages
ii. Bonus
iii. Financial incentives
iv. Promotion (monetary part)
v. Sharing of profit
vi. Stock options
Non-monetary Factors:
i. Appreciation and recognition

ii. Job enrichment
iii. Status
iv. Working life balance
v. Working life condition
vi. Job security
vii. Delegation
FINANCIAL FACTORS
Financial factors are extrinsic factors, which follows:
 Salary or wages:
These are the main factors in the organisations for the employee’s performance. which
should be already fixed and paid on the time.
16
 Bonus
Bonus is the payment which is given to works as a share of the organizations profit in the
particular year. The profit is expected to be made due to contribution of employer and hard work
of the worker. The bonus is paid according to the performance of the employees based on certain
criteria which may include their eligibility, performance standard, time span etc.
 Financial incentives:
An incentive is a very important component of a pay structure. It is given addition to the

regular wages. Incentive attracts the employees and motivates them to perform better .It also
motivate the employees to improve his efficiency and productivity of the organization.
 Promotion (monetary part):
Promotion is a method of moving an employee to the upper level of the hierarchy of the
organisation and getting of more responsible works and based on these responsibilities industry
will provide more salary including with some benefits
 Profit sharing:
Profit sharing is a method of distributing a percentage of amounts from the organisational

profit. Which will increase the employee satisfaction level .Organizations using this method as a
psychological movement.
 Stock option:
The method of getting a preferential based share to the employees from the financial benefits
of the organizations.
NON-MONETARY INCENTIVES
Non-monetary factors are intrinsic factors, such as :
 Status
Organizations are providing titled job to the employees which will shows the designation and
improving the status.
 Appreciation and recognition:
According to the appropriate performance of the employees the companies should appreciate
them, it will increase the satisfaction of employees towards the work
17
 Work-life balance:
Employees having two main segments in there process which include work and life if they are
giving more importance to these to and making it as a balanced manner, these types of employees
are highly motivated
 Delegation:
Delegation is the method of the authority to proving commitment and dedication .which will
increase the employee satisfaction, and shows more faith on the sectors.
 Working conditions:
Good working condition will positively affect the performance of the employees .The healthy
condition includes good ventilation, adequate lightening, canteen facilities etc.
 Job enrichment:
In this the employees are getting more responsible job and challenging task this type of job
will make more satisfaction and accomplishment to the employees
 Job security:
If an employee should not take as a temporary basis, which will increase their
responsibilities by themselves. Job security is a main thing which will make duty base.
Non-monetary compensations are the attractive methods of the employees through social
and psychological level to complete the work in best way. Money is a main attractive item for the
workers but they will not do anything only for the money; they are using these incentives for the
satisfaction of social and psychological level. The incentives contain job security, recognition,
management participation, interest of the juniors, job satisfaction, delegation of authority and the
responsibility, promotion, facilities for training welfare of labour and measures for social security;
these non-monetary compensations increase the labour salary increase interest towards the
industries. Non-monetary incentives are to be collective.
Non-financial incentives
 Individual
• Status
• Promotion
• Responsibility
18
• Pleasant and interesting job of Recognition of work
• Job security
 Group
• Social importance of work
• Team Spirit
• Competition
• Informal Group.
 Institutional
• Human relations in industry
• Communication
• Worker's participation in management
• Morale Building
• Discipline
STATEMENT OF PROBLEM
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 any organization.
SIGNIFICANCE OF THE STUDY

This study is also significant because it focuses on how to motivate public employees in a
weak national economy and where there is no incentive to drive them to do more than what is
expected. In terms of pay, there is almost nothing to drive public employees to be more motivated,
not only because in public sector there are relatively lower pays, but also pay is not a function of
performance. That is, there is no performance related pay in public sector such as cash bonus,
commission, monetary reward etc. except for some extreme cases. So, this study will contribute
to exploration of alternative ways in answering the question of how to motivate public employees
where there is a weak national economy and there is no performance related pay. Non-monetary
incentives offer many advantages to organizations.
19
NEED OF THE STUDY
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 any organization.
LIMITATIONS OF THE STUDY
 Response to the questionnaire was as per the respondent understanding, which may differ
from respondent to respondent.
 Some of the employees refused to answer the questionnaire as they feared that the
management might act on time.
 The survey was done during the working hours.
 Due to the shift arrangement it was difficult to collect data from most of the employees.
 Shortage of time is one of the restrictions.
 The study is based on sampling method, so sampling errors bound to occur.
20
CHAPTER 3
INDUSTRY AND COMPANY

PROFILE
21
INDUSTRY PROFILE
History of Footwear:
Spanish cave drawings from more than 15000 years ago show humans with animal skins
or furs wrapped around their feet. The body of a well preserved “ice-man” nearly 5000 years old
wears leather foot stuffed with straw. Shoes, in some form or another, have been around for a very
long time. The evolution of foot coverings, from the sandal to present-day athletic shoes that are
marvels of engineering, continues even today as we find new materials with which to cover our
feet.
We are, in fact still wearing sandals- the oldest crafted foot covering known to us. Moccasins
are still readily available in the form of the loafer. In fact, many of the shoes we wear today can
be traced back to another era. The Cuban heel may have been named for the dance craze of the
1920s, but the shape can be seen long before that time. Soles, which are one of the most
recognizable features of footwear in the 1970s and 1990s, were handed down to us from 16th
century choppiness. Then, high soles were a necessity to keep the feet off of the dirty streets.
Today they are worn strictly for fashion’s sake.
If one can deduce that basic shoe shapes have evolved only so much, it is necessary to
discover why this has happened. It is surely not due to a lack of imagination- the colours and
materials of shoes today demonstrate that. Looking at shoes from different parts of the world, one
can see undeniable similarities. While the venetians were wearing the choppiness, the Japanese
balanced on high-soled wooden shoes called get. Though the shape is slightly different, the idea
remains the same. The venetians had no contacts with the Japanese, so it is not a case of imitation.
Even the mystical Chinese practice of foot binding has been copied in our culture. Some European
women and men of the past bound their feet with tape and squashed them into too-tight shoes. In
fact, a survey from the early 1990s reported that 88% of American wear shoes that are too small!
As one examines footwear history, both in the west and in other parts of the world, the
similarities are apparent. Though the shoemakers of the past never would have thought to pair a
sandal with a platform sole, our shoe fashions of today are, for the most part, modernized
adaptations of past styles.
Performance of Indian Footwear Industry
The foot wear industry is a significant segment of the leather industry in India. India ranks
second among the footwear producing countries next to the China.
In 1999, the global import of footwear in terms of value was around US$43278 million
accounting a share of 63.42% in the total global import of leather and leather products out of this
22
import of leather footwear alone accounted for us$26379 million and non-leather foot wear
US$16899million.
India’s exports of leather footwear touched US$331 million in 1999-2000, recording an
increase of 3.29% over the preceding year. India thus holds a share of 1.25% in the global import
of leather footwear. The major markets were the UK, USA, France, Italy, Russia, etc.
In 1999-2000, export of leather footwear from India contributes 21% share of its total
export of leather and its products. Nearly 33 million pairs of various types of leather footwear were
exported during the year. It includes dress shoes, casuals, sport shoes, etc.
Indian Footwear Components Industry
The footwear component industry is a segment of leather industry in India. The footwear
components which are exported from India are leather shoe upper and leather unit soles. The
estimated annual production capacity of leather shoe upper’s is 112 million pairs. The major
production centres are Chennai, Ranipet, Agra, Tamil Nadu, etc.
The component industry has enormous opportunities for growth to cater to increasing
production of footwear of various type, both for export and domestic market.
Nearly 75% of total export of footwear component is from the southern region followed
by northern region with a share of 13%.
Nearly 83% of the India’s export of footwear component is from the UK, Germany, Italy,
USA, France and Portugal.
COMPANY PROFILE
a. Background and inception of the company:
Name of the company : VKC GROUP OF COMPANY

Constitution : small scale industry
Date of establishment : 1984
Sales headquarters : Calicut
Incorporation : 1984
Contacts phone no : 0495-2442225
Authorized capital : Rs.40 lakh
Land and building : 4.5 acres and 1.75 acres
Financial year turnover : Rs.700 million
23
“VKC group of companies are the leading footwear manufacture especially in southern
region of India. The group established on (August17) 1984 with a nominal capital and few
employees. In 1984 the founder of the group Mr. V.K.C. Mammed Koya started a Hawai Sheet
manufacturing unit with his two brothers. Later on, Hawai straps were also inducted to the
production line and in 1986 VKC group launched the first product with its own brand name in the
market viz. VKC Hawai with an initial production of 600 pairs per day. By 1989 the production
increased to 5000 pairs a day and by 1996 it jumped to 17000 pairs.
In between the founder initiated the floating of the first RPVC footwear manufacturing
unit in the Malabar Area of Kerala state with few of his friends. This product also got very good
acceptance in the market. The success of the first unit and the RPVC unit gave a signal to the
business community and the vast potential was seen by the various industrialists. This resulted in
a rapid change in the footwear industry itself. Within a few years the number of Rubber and RPVC
unit grew to more than 80 in this area.
In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin
PVC. This resulted in a big change and the multinational brands felt competitions from the local
brands. In 1998 the group started the first Micro Cellular PVC footwear in Kerala with imported
plant and machinery. “Quality at low price” made the VKC groups products popular in the market
day by day. It also expanded its market to other southern states.
In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit in
the South India. In 2003 the group ventured the first Injected EVA manufacturing unit in South –
Central India. In 2006 the group started backward integration to produce EVA compound for
Injection and started the first EVA compounding plant in the South –Central India. The unit went
in 2007 the group started manufacturing of PU DIP footwear.
During this period new bloods with technical, commercial and practical knowledge were
inducted and now the group consists of 20 working Directors and 60 shareholders spread over 19
various units. And have annual group turnover of Rs.700 million. More than 1000 employees are
working in these units.
The company had achieved a prominent position in the footwear market of India. The
main markets, which are concentrated by the company, are Kerala, Tamil Nadu and Karnataka.
The good quality and variety in models of VKC products help the companies to face the market
competition. The company has been able to maintain the quality of the products by adopting
foreign technologies. The group is now looking for further avenues in the field of footwear to
stretch their hands.
24
The Head Quarter of VKC group is in CALICUT .And the main plants of VKC group
of companies are situated in Kerala and Tamil Nadu. The following are the associate companies
of VKC group.
1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.
2. M/s. VEEKESY ELASTOMERS PVT.LTD.
3. M/s. VEEKESY POLYMERS PVT.LTD.
4. M/s. SANDLON TECHNOLOGIES PVT.LTD.
5. M/s. FORTUNE ELASTOMERS PVT.LTD.
6. M/s. CALTECH POLYMERS PVT.LTD.
7. M/s. EMERALD PLASTOMERS PVT.LTD
8. M/s. SLIPONS INDIA PVT.LTD
9. M/s. DIADORA SHOES PVTLTD.
10. M/s. DIMESCO FOOTCARE INDIA PVT LTD.
11. M/s. VEEKESY PLASTOMERS (INDIA) PVT.LTD.
12. M/s. KOVAI FOOTWEARS PVT.LTD.
13. M/s. FERRARI SHOES (INDIA) PVT.LTD
14. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD
15. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD
16. M/s. MORBIDO VINYL PVT.LTD.
17. M/s. SMARTAK FOOTCARE PVT. LTD.
18. M/s. VEEKESY SANDALS (INDIA) PVT. LTD.
Veekesy Rubber Industry
Veekesy rubber industry pvt ltd is the registered private limited company situated at
Kolathara in Kozhikode district. The objective of the company is to manufacture the high-quality
footwear. It got its certificate of registration on 1-1-. 1984 The installed production capacity at the
initial period is 21, 60, 000 pairs.
All affairs and day-to-day business administration of the firm is vested in the hands of
Boards of Director. They are in charge of various activities like Production, Finance & Marketing.
The board is assisted by qualified administrative staffs.
Veekesy rubber industry private limited is a leading rubber manufacturer in south India.
The company’s mission is to maintain and achieve customer satisfaction through providing quality
products at reasonable price. In order to satisfy customer needs first the company is providing
footwear which offers better style, comfort, elegance, finish, colours and durability.
25
The product “VKC” has a high brand value in the minds of the peoples of Kerala because
of the quality and the affordable price of the product. The management gives high priority to the
quality of the product. The company assures the quality of the product through the continuous
quality checking in each and every stages of the production process.
Veekesy rubber industry private limited synonymous with quality footwear is today busy
stepping from a splendid present into a glorious future, it is energetically in the move to scale
never heights in footwear designing and manufacturing.
b. Nature of business
The business carried by VKC is production of footwear. VKC mainly manufacturing high
quality footwear as per the requirement of customers. The company faces many competitors for
the kind of manufacturing. “Consistent quality at affordable price” made the VKC group products
popular in the market day by day. The success in Kerala market gave morale boost to the group to
market their product in the other southern states.
c. Vision, mission and quality policy
Vision:
“We will be the most preferred brand by continually enhancing customer experience. We will
build an Institution which empowered the best people do collaborate in an environmentally and
socially responsible manner.”
Mission:
 To achieve international levels of excellence in technology and quality.
 To maintain and achieve customer satisfaction through providing quality products at
reasonable price.
 To continuously grow in our business and became a significant player in the world market.
Quality policy:
In order to satisfy customer needs first the company is providing footwear which offer
better style, comfort, elegance, finish, colours and durability. Quality performance
demonstrated is the result of optimization of design, effective process control in manufacturing
together with testing and approval process in the environment of Quality management system.
d. Product profile:
VKC Rubber industry pvt. ltd producing high quality plastic footwear from 100% virgin
rubbers. The company’s VKC Rubber industry pvt. ltd is producing high quality plastic footwear
26
from quality plastic footwear from 100% virgin micro cellular rubbers. The company’s
manufacturing facilities includes modern equipment and machineries imported from Taiwan, first
of its kind in south including rotary injection modelling machines for improved product quality.
The company has to face stiff competition as there is lots of plastic footwear manufacturing in
Kerala.
e. Area of operation:
Veekesy Rubber industry pvt ltd has operating the business in south India and it has a long
tradition of maintaining the highest quality standards, right from the selection of raw materials to
processing and packaging of the end product.
f. Ownership pattern:
Veekesy Rubber industry pvt ltd is a private limited company.
g. Competitors’ information:
 Paragon Rubber Industries BANGALORE, India

 Haritha Hawai Kerala, India
 Odessey rubber industries, Kerala
 Hawalker rubber industries, Kerala
 Witco India ltd karalla,
h. Infrastructural facilities
i. Security checks:
Any material official/otherwise that is being brought in taken must have appropriate
documentation. Regular security checks are conducted to prevent unauthorized material leaving
entering the organization. Employees required to leave the factory on official/personal work during
working hours are to be submit an authorized gate pass to the security.
ii. Medical facilities:
The medical centre is staffed by a resident Doctor and trained attendants and supported by
efficient Ambulance service.
iii. Canteen Facilities
VKC has got a good canteen facility for the employees at project area also.
i. Work flow mode:
Process flow diagram for manufacturing of Hawai sheets, chappals and straps.
27
Raw Materials
Mixing with Chemicals in mixing mill
Keep for Maturation
Mixing in mixing mill with blowing agent & Vulcanizing Agent
Vulcanization in Hydraulic Press
Hawai sheets & straps
Cutting & Drilling
Assembling & Packing
Hawai Sheets Hawai Chappals Hawai Straps
j. Future growth and prospects:
 To attain market leadership.

 Introduction of new trade schemes to increase sales.
 Aggressive advertisement and publicity as part of sales promotion.
 Reduction in distribution expenses.
 Cost-reduction in all areas.
 Instant decision making in certain procurement activities.
 Timely introduction and implementation of market driven decisions.
 Ensuring effective internal control
28
CHAPTER 4
DATA ANALYSIS AND

INTERPRETATION
29
1. Gender
Table 4.1
Gender No: of Respondents Percentage
Male 105 70
Female 45 30
Total 150 100
Figure 4.1
30
70
Male Female
Inference:
The table shows that 70% of the respondents are male and remaining 30% of the
respondents are female.
30
2. Age
Table 4.2
Age No: of Respondents Percentage
20 - 30 69 46
31 - 40 39 26
41 - 50 27 18
Above 50 15 10
Total 150 100
Figure 4.2
10
18
46
26
20 - 30 31 - 40 41 - 50 Above 50
Inference:
The table shows that 46% of the respondents are of the age group 20-30, 26% of the
respondents are of 31-40, 18% of respondents belongs to the group of 41-50, and 10% are of age
greater than 51 years.
31
3. Educational qualification
Table 4.3
Education No: of Respondents Percentage
Matriculation 21 14
HSE 44 29
Graduation 54 36
Post-Graduation 31 21
Total 150 100
Figure 4.3
14
21
29
36
Matriculation Plus Two Graduation Post-Graduation
Inference:
The table shows that 14% of the respondents have matriculation education, 29% have
Higher Secondary Education, 36% are graduates and remaining 21% are of Post Graduates.
32
4. Previous Experience of The Respondents
Table 4.4
Previous Experience No: of Respondents Percentage
0-1 69 46
2-5 48 32
6-10 24 16
Above 11 9 6
Total 150 100
Figure 4.4
6
16
46
32
0-1 02-May 06-Oct Above 11
Inference:
The table shows that 46% of respondents are fresher, 32% of respondents have 2 to 5 years
of experience, 16% of respondents have experience of 6 to 10 years, and 6% of respondents have
experience of more than 11 years.
33
5. Experience in VKC PVT LTD.
Table 4.5
Particulars No: of Respondents Percentage
0-1 69 46
2-5 27 18
6-10 45 30
Above 11 9 6
Total 60 100
Figure 4.5
30 46
18
0-1 02-May 06-Oct Above 11
Inference:
The table shows that 46% of respondents are fresher, 18% of respondents have 2 to 5 years
of experience in VKC, 30% of respondents have experience of 6 to 10 years, and 6% of
respondent’s experience is more than 11 years.
34
6. Monetary Incentives Answer My Needs
Table 4.6
Yes 90 60
No 60 40
Total 150 100
Figure 4.6
40
60
Yes No
Inference:
The chart shows that 60% of the respondents are strongly agreeing that the monetary
incentives answer their needs. So, we can infer that monetary incentives help to satisfy the needs
of the employees.
35
7. Role of Incentives in Performance
Table 4.7
Strongly Agree 86 57
Agree 45 30
Neutral 10 7
Disagree 9 6
Strongly disagree 0 0
Total 150 100
Figure 4.7
60
7
30 57
Strongly Agree Agree Neutral Disagree Strongly disagree
Inference:
The table shows that 57% of the respondents are strongly agreeing and 30% respondents
agreeing that the incentives play a major role in performance. So, we can infer that the incentives
play a major role in performance.
36
8. The Role of Incentives in Increasing the Level of Competency
Table 4.8
Particulars No. of Respondents Percentage
Often 60 40
Sometime 44 29
Rarely 31 21
Never 15 10
Total 150 100
Figure 4.8
70
60
60
50
44
40
31
30
20 15
10
0
Often Sometime Rarely Never
Inference:
The chart shows that 69% employees agree that the incentives have a major role in increasing
the competencies. So, we can infer that incentives have a major role in increasing the
competencies.
37
9. The Idea of Incentives is Motivating in Coordination with The Clients.
Table 4.9
Agree 45 30
Neutral 15 10
Disagree 0 0
Strongly Disagree 0 0
Total 60 100
Figure 4.9
100
90
90
80
70
60
50 45
40
30
20 15
10
0 0
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Inference:
The graph shows that 60% of the respondents are strongly agreeing that the incentives play a
major role in increasing my level of competency. So that we can infer that the idea of incentives
is motivating the employees in coordinating with the clients.
38
10. Satisfaction of Employees
Table 4.10
No. of Respondents Percentage
To a great extent 69 46
To some extent 54 36
Neutral 18 12
Not at all 3 6
Total 150 100
Figure 4.10
80
69
70
60
54
50
40
30
18
20
10
3
0
To a great extent To some extent Neutral Not at all
Inference:
The above chart shows that almost 82% of the employees responded that incentives are
important in obtaining the employee loyalty. So, we can infer that incentives are important in
obtaining the employee loyalty.
39
11. The Importance of Incentives in Performing Day to Day Tasks
Table 4.11
Agree 70 47
Neutral 20 13
Disagree 18 12
Total 150 100
Figure 4.11
80
70
70
60
50
42
40
30
20
18
20
10
0
0
Inference:
The table and chart show that almost 75% of the respondents are agreeing So we can infer that
incentives are important in day to day activities in the organization.
40
12. Interest of Management in Motivating the Employees
Table 4.12
Yes 84 56
No 66 44
Total 150 100
Figure 4.12
90 84
80
70 66
60
50
40
30
20
10
0
Yes No
Inference:
The table shows that 56% of the respondents are responded positively regarding the interest
of management in motivating the employees in the organization. So, we can infer that management
shows a good interest in motivating the employees.
41
13. Present Incentives Scheme.
Table 4.13
Yes 87 58
No 63 42
Total 150 100
Figure 4.13
100
90 87
80
70 63
60
50
40
30
20
10
0
Yes No
Inference:
The chart shows that 58% of the respondents are satisfied with the present incentive schemes
of the organization and42% of employees are not satisfied. So, we can infer that majority of the
people are satisfied with the present incentive schemes.
42
14. Eagerness of Organization for Recognizing Employees Performance.
Table 4.14
Agree 87 58
Neutral 3 2
Disagree 0 0
Total 150 100
Figure 4.14
100
90 87
80
70
60
60
50
40
30
20
10 3
0 0
0
Inference:
The above chart shows that 98% of the respondents agree that Company shows eagerness in
recognizing and acknowledging employee’s work, while none disagree with it.
43
15. Satisfaction Towards the Periodical Increase of Salary.
Table 4.15
Highly Satisfied 45 30
Satisfied 60 40
Neutral 9 6
Dissatisfied 36 24
Highly Dissatisfied 0 0
Total 60 100
Figure 4.15
70
60
60
50 45
40 36
30
20
9
10
0
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Inference:
The above chart shows that 30% of the employees are highly satisfied and 40% of the
employees are satisfied with the periodical increase of their salary. So, we can infer that the
company’s salary increment is satisfactory.
44
16. Existence of Job Security.
Table 4.16
Satisfied 63 42
Neutral 30 20
Dissatisfied 18 12
Total 60 100
Figure 4.16
70
63
60
50
39
40
30
30
20 18
10
0
0
Inference:
The table and shows that 42% of the respondents are agree that Job securities exist in company
is satisfactory, while 12% disagree with it. So, we can infer that job security existed in the
organization are satisfactory.
45
17. Interpersonal Relationship with The Co-Workers.
Table 4.17
Very good 51 34
Good 75 50
Average 18 12
Poor 6 4
Very poor 0 0
Total 150 100
Figure 4.17
80 75
70
60
51
50
40
30
18
20
10 6
0
0
Very good Good Average Poor Very poor
Inference:
The chart shows that almost 84% of the respondents have a good relationship with the co-
workers.so we can infer that organization maintained good employee employer relationship.
46
18. Motivation Through Effective Performance Appraisal
Table 4.18
Neutral 27 18
Not at all 24 16
Total 150 100
Figure 4.18
70
60
60
50
39
40
30 27
24
20
10
0
Inference:
66% of the employees responded positively regarding the motivation which is provided by the
organization through performance appraisal. So, we can infer that organization is providing better
motivation through effective performance appraisal.
47
19. Effective Promotional Opportunities.
Table 4.19
Excellent 30 20
Very Good 84 56
Good 18 12
Average 9 6
Below Average 9 6
Total 150 100
Figure 4.19
90 84
80
70
60
50
40
30
30
18
20
9 9
10
0
Excellent Very Good Good Average Below Average
Inference:
The table shows that 56% of the employees responded positively regarding the Effective
promotional opportunities are there in present job, in work place, while 12% disagree with it.
48
20. Ratings of Safety Measure Exist in The Organization.
Table 4.20
Very good 39 26
Good 75 50
Average 18 12
Poor 9 6
Very Poor 9 6
Total 150 100
Figure 4.20
80 75
70
60
50
39
40
30
18
20
9 9
10
0
Very good Good Average Poor Very Poor
Inference:
The above chart shows that almost 88% of the employees opined positively regarding the safety
measures existed in the organization. So, we can infer that the organization is providing good
safety measures to their employees.
49
21. Non-Monetary Incentives Contribute in Achieving Organizational Goals.
Table 4.21
Agree 63 42
Neutral 31 21
Disagree 18 12
Total 150 100
Figure 4.21
70
63
60
50
40 38
31
30
20 18
10
0
0
Inference:
The chart shows that 42% of the respondents are agree that Non-monetary incentives
contribute in achieving organizational goals, while 18% disagree with it.
50
22. Career Development Opportunities Helpful in Motivating the Employees.
Table 4.22
Neutral 18 12
Not at all 9 6
Total 150 100
Figure 4.22
120
100 96
80
60
40
27
18
20
9
0
Inference:
The above chart shows that almost 82% of the respondents are opined positively that Career
Development opportunities are helpful to get motivated, while 18% disagree with it.
51
23. Performance Related Incentives.
Table 4.23
Satisfied 66 44
Neutral 15 10
Dissatisfied 18 12
Total 150 100
Figure 4.23
70 66
60
50
39
40
30
20 18
15
12
10
0
Inference:
The above chart shows that 26% of the employees are highly satisfied and 44% employees
are satisfied with the performance related incentives provided by the organization. So, we can infer
that performance related incentives are satisfactory.
52
24. Management Acceptance of Employee Suggestion.
Table 4.24
Often 66 44
Sometimes 66 44
Rare 11 7
Never 7 5
Total 150 100
Figure 4.24
70 66 66
60
50
40
30
20
11
10 7
0
Often Sometimes Rare Never
Inference:
The above chart shows that almost 88% of the employees opined positively regarding the
acceptance of employee’s suggestion and 5% opined negatively. So, we can infer that
management always trying to accept the suggestions of employees while decision making.
53
25. Efficiency of Grievance Handling System.
Table 4.25
Particular No. of Respondents Percentage
High 36 24
Medium 87 58
Law 27 18
Total 150 100
Figure 4.25
100
90 87
80
70
60
50
40 36
30 27
20
10
0
High Medium Law
Inference:
The above chart shows that almost 82% of the employees opined positively regarding the
grievance handling system in the organization. So, we can infer that organizations grievance
handling system is good.
54
CHAPTER 5
CONCLUSION
55
FINDINGS
After studying Monetary and Non-monetary factors needed to motivate employees in VKC Pvt.
Ltd. It was found that,
 Majority of the employees in the organization are satisfied with their job
 The employees are really motivated by the management.
 The employees are satisfied with the present incentive plan of the company.
 There exists a good relationship between employees
 The role of incentives plays a major role in increasing the level of competency.
 The company is providing good safety measures for ensuring the employees safety.
 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
 This study shows that 70% of the respondents are strongly agreeing that the incentives play
a major role in performance.
 This study shows that 56% of the respondents are strongly agreeing that the management
is interested in motivating the employees.
 This study shows that 88% of the employees are satisfied with the job securities
 This study shows that 40% of the respondents agree Effective performance system
motivates in work place, while 22% disagree with it.
 Almost 70% of the employees are satisfied with the periodical increase in the salary.
 Most of the employees are satisfied with the career development opportunities provided by
the organization.
 Almost all the employees opine positively regarding the employee participation in decision
making
 The study shows that 44% of the respondents are agree that the Incentives and other
benefits will influence your performance, while none disagree with it.
 The study shows that 48% of the respondents are agree that Working along with the
boss/senior officer motivates your performance while 16% disagree with it.
 The study shows that 44% of the respondents agree that incentives and other benefits will
influence your performance, while 10% disagree with it.
 The organization is good in grievance handling but need improvement.
56
SUGGESTIONS
 The regular meetings to be conducted with the employees giving them enough information,
as well as proving their credibility and improving it through honesty and good morals.
 The new ideas should be encouraged and getting the employees to be involved in solving
the organizational problems.
 Most of the employees agree that the performance activities are helpful to get motivated,
so the company should try to improve performance 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 career 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
57
CONCLUSION
The study concludes that, the performance program procedure is found effective but not
highly effective. The study on employee performance highlighted so many factors which will help
to motivate the employees. The study was conducted among 150 employees and collected
information through structured questionnaire. The study helped to findings which were related
with employee performance programs which are provided in the organization.
The performance 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 performance 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 performance al programs procedure in the future. The
suggestions of this report may help in this direction.
58
BIBLIOGRAPHY
Books
1. Bruno S. Frey, Margit Osterloh, Successful Management by Motivation.
2. CH Cho, DM Patten – Accounting, organization and society, 2007-Elsevier
Journals
1. InkeMathauer and Ingo Imhoff, Health worker motivation in Africa: the role of non-
financial incentives and human resource management tools
2. SH Appelbaum, R Kamal- Journal of Management
3. BS Frey, R Jegen- Journal of Economic Survey
4. RG Fryer- The Quarterly Journal of Economics, 2011
Websites
1. economictimes.indiatimes.com
2. www.managementstudyguide.com/motivation_incentives.html
3. www.academia.edu/.../A_STUDY_ON_USE_OF_NON_MONETARY_INCENTIVES...
59
ANNEXURE I
QUESTIONNAIRE
1. What is your gender? Male Female Transgender
2. What is your age? 20-30 31-40 41-50 50 Above
3. Educational qualification Matriculation HSE Graduation Post-Graduation

4. Previous Experience 0-1 year 2-5 years 6-10 years Above 11 years
5. Experience in VKC 0-1 year 2-5 years 6-10 years Above 11 years
6. Do monetary incentives answer your needs? Yes No
7. Do you agree that Incentives play a major role in motivation?
8. Does incentives playing a major role in increasing the level of competency?
Often Sometimes Rarely Never
9. Do you agree that the idea of incentives will motivate the employees in coordinating with the clients?
10. Do the incentives obtained are satisfactory to improve employee loyalty?
To A Great Extent To Some Extent Neutral Not At All
11. The incentives are important In performing the routinely tasks and even the new activities. What is your opinion
about this?
12. Does Management is interested in motivating the employees?
Yes No
13. Do the Employees agree with minimum present incentives scheme of an organization?
Yes No
14. Does the Company show eagerness in recognizing and acknowledging employee’s work?
Yes No
15. Are the employees satisfied with the periodical increase in salary?
16. Are the employees satisfied with the job securities?
17. How is your interpersonal relationship with the co-workers?
Very Good Good Average Poor Very Poor
18. Does the effective performance management system motivate the employees?
19. What is your opinion about Effective promotional opportunities which are existed in the current job?
20. How will you rate the safety measure exist in the organization?
Very Good Good Average Poor Very Poor
21. Do you agree that Non-monetary incentives contribution will help in achieving organizational goals?
22. Are career development opportunities helpful in motivating the employees?
60
23. Are the employees satisfied with performance related incentives?
24. Is employee participation involved in decision making?
Yes No
25. Does management accept your suggestions?
Often Sometimes Rarely Never
26. Does Grievance handling system exist?
Yes No
27. How will you rate the efficiency of grievance handling system?
High Medium Low
28. How will you rate the working environment?
29. Do you think present policies, rules and procedures are helpful in smooth working condition?
Yes No
30. Any Suggestions?
………………………………………………………………………………………………………………………
……………………………………………………………………………………………………………………….
THANK YOU
61

Master of Business Administration (International Business) : A Project Report ON

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Master of Business Administration (International Business) : A Project Report ON

Caricato da

Copyright:

Formati disponibili

A PROJECT REPORT

VKC LTD, CALICUT

Dr. YARLAGADDA SRINIVASULU

DEPARTMENT OF INTERNATIONAL BUSINESS

This is to certify that Mr. JEBIN JAMES (Reg. No. 17382024) is a

bonafide student of the Department of International Business, Pondicherry

University. The project report entitled “FINANCIAL & FRINGE BENEFITS IN

MOTIVATING EMPLOYEES OF VKC LTD” is done by him in partial

fulfilment of the requirements for the award of the Masters of Business

Administration (International Business).

Dr. Yarlagadda Srinivasulu Dr. Bhushan. D .Sudhakar

I, JEBIN JAMES, the student Department of International Business,

Pondicherry University, hereby declare that this project report entitled

“FINANCIAL & FRINGE BENEFITS IN MOTIVATING EMPLOYEES OF

and guidance of Dr. Y Srinivasulu (Department of International Business) in

partial fulfilment of the requirements for the award of Masters of Business

Administration (International Business).

Place: Puducherry JEBIN JAMES

I extend my deep gratitude to Dr. Bhushan D Sudhakar, HOD Department

of International Business, for giving me an opportunity and needed facilities to fulfil

this project work.

I proudly utilize this privilege to express my heart-felt thanks and sincere

gratitude to my inspiring guide Dr. Y Srinivasulu, Associate Professor, Department of

encouragement bringing out this report in time.

Besides I would like to extend my sincere gratitude to all faculty members

of Department of International Business for their inspiration, guidance and suggestions.

It is with great respect, I express my sincere gratitude to the managers of

sincere assistance and encouragement during the project work.

Place: Puducherry JEBIN JAMES

Date: Reg. No: 17382024

Chapter Title Page No.

Objectives of the Study 13

Chapter 3 Industry Profile 19

Chapter 4 Data Analysis and Interpretation 25

Fig. Name Page

The project titled “FINANCIAL & FRINGE BENEFITS IN MOTIVATING

typed company innovation results specific organization headquarters is in Calicut.

OBJECTIVES OF THE STUDY

SAMPLE SIZE : 150

METHOD OF SAMPLING : Convenience sampling

SAMPLING UNIT : Employees of VKC Ltd, Calicut

AREA OF STUDY : Calicut

RESEARCH APPROACH : Survey Method

TYPE OF QUESTIONS : Structured

PERIOD OF STUDY : 20 Days

According to Claire Sellitz, “A research design is the arrangement of conditions for

TOOLS OF DATA COLLECTION

Structured questionnaire was used to collect primary data from respondents.

2. DIRECT PERSONAL INTERVIEW

 Organising the data for analysis (data preparation)

 INCENTIVES, REWARDS AND RECOGNITION

Non-monetary incentives are mainly classified as different types:

PROMOTION: Representatives working in the associations to An more time of time dependably

RECOGNITION PROGRAMME; There are programmes plan to honour individual employees’

TRAVELLING EXPENCE ACCOUNTS: The organization covering the employee’s expense

MONETARY AND NON-MONETARY FACTORS

i. Appreciation and recognition

Financial factors are extrinsic factors, which follows:

An incentive is a very important component of a pay structure. It is given addition to the

 Promotion (monetary part):

Profit sharing is a method of distributing a percentage of amounts from the organisational

Non-monetary factors are intrinsic factors, such as :