Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
(KMB-405)
ON
Session 2019-2020
Department of Management Studies
faculty Dr. Neeta Bhatla from Babu Banarasi Das Northern India Institute of
Technology, Lucknow for all the timely help and support rendered. But for her
constant motivation, encouragement and adept guidance during the entire course of
research, my endeavor would not have culminated in fruition. The sincerity and
dedication put in by her for the sake of my Thesis is remarkable. I would like to thank
her for the opportunity I was given to conduct my Research and further my thesis
dissertation under her guidance. I am grateful to Prof. (Dr.) M. K. Rastogi, the Head
Lucknow for sparing his valuable time for me on different occasions. I really
appreciate all the bank employees who provided the requisite data for my research
work. It was their cooperation and input that made this research possible. I express my
gratitude to all the library staff of Babu Banarasi Das Northern India Institute of
family and friends. They were always there for me with their wise counsel and
sympathetic ear. I could not have done any of this without you all. Thank you once
again.
BABLI KUMARI
Roll No. 1805670009
MBA 4TH SEMESTER
BBD NIIT, LUCKNOW
PREFACE
Research Report is an important a part of the Management studies. It gives the student
culture observed by the industries and thereby assisting the scholars to bridge gap
among the theories explained within the eBook and their realistic implementations.
can recognize the actual world in which he has to paintings in future. The theories
greatly decorate our knowledge and provide possibilities to blend theoretical with the
sensible expertise where researcher receives familiar with certain factor of research. I
feel proud to get myself to do research at topic “A Study on promotion and rewards
This basis for this research originally stemmed from my passion for developing better
methods of data storage and preservation. As the world moves further into the digital
age, generating vast amounts of data and born digital content, there will be a greater
need to access legacy materials created with outdated technology. How will we access
this content? It is my passion to not only find out, but to develop tools to break down
In truth, I could not have achieved my current level of success without a strong
support group. First of all, my parents, who supported me with love and
patient advice and guidance throughout the research process. Thank you all for your
unwavering support.
TABLE OF CONTENT
Certificate i
Acknowledgement ii
Preface iii
1. Introduction 1
2. Review of Literature 25
3. Company profile 39
5. Research Methodology 56
7. Findings 73
8. Conclusion 76
11. Bibliography 82
12. Annexure 84
CHAPTER 1
INTRODUCTION
1
INTRODUCTION
Good remuneration has been found over the years to be one of the policies the
organization can adopt to increase their workers performance and thereby increase the
organizations productivity. Also, with the present global economic trend, most
employers of labour have realized the fact that for their organizations to compete
favorably, the performance of their employees goes a long way in determining the
success of the organization. On the other hand, performance of the employees in any
organization is vital not only for the growth of the organization but also for the
growth of the individual employee. An organization must know who are its
outstanding workers, those who need additional training and those not contributing to
the efficiency and welfare of the company or organization. Also, performance on the
job can be assessed at all levels of employment such as: personal decisions relating to
promotion, job rotation, job enrichment etc. And, in some ways, such assessment are
based on objective and systematic criteria, which includes factors relevant to the
person‟s ability to perform on the job. Hence, the overall purpose of performance
task or job assigned to him or her. And based on this information, decisions will be
2
o cope with the changing situations an organization makes adjustments in the existing
Scott and Clothier “A promotion is the transfer of an employee to a job which pays
better job-better in terms of greater responsibility, prestige or status, greater skill and
responsibilities, status and with increased income. The employee being promoted, the
those of his earlier job. Promotion is an employee's reward for good performance or
ensures that the person is able to handle theadded responsibilities by screening the
employee with interviews and tests and giving them training oron-the-job experience.
benefits.
following purposes.
employee satisfaction.
3
2. To develop competitive spirit and inculcate the zeal in the employees to acquire
5. To promote a feeling of content with the existing conditions of the company and a
sense ofbelongingness.
areas.
Promotion:
must be based on consistent, fair and clear cut policy. The National Institute of
lines:
Drawing up an organization chart to make clear to all the ladder promotion. Where
there is a job analysis and a planned wage policy, such chart is quite easy to prepare.
making the promotion system clear to all concerned who may initiate and handle
cases of promotion. Though departmental heads may initiate promotion, the final
approval must lie with the top management, after the personnel department has been
asked to check from its knowledge whether any repercussion is likely to result from
4
All promotions should be for a trail period to ascertain whether the promoted person
is found capable of handling the job or not. Normally, during this period, he draws the
pay of the higher post, but it should be clearly understood that if “he does not make
the grade” he will be reverted to his former post and former pay scale..
made.
aptitude as measured from educational, training and past employment record. It helps
determining merit criteria objectively is the main obstacle to its becoming the sole
organization. It isrelatively easy to measure the length of service and judge the
seniority. It minimizes the scope for grievances and conflicts regarding promotion.
At the same time it results inemployee turnover and it kills the zeal and interest to
seniority. Hencea combination of both seniority and merit can be considered the basis
5
Promotion Policy
Every organization need to specify clearly its promotion policy based on its corporate
policy.
The policy should contain clear cut norms and criteria for promoting an employee.
The policy should be fair and impartial and should be applied uniformly to all
favoritism etc. Promotion systems necessitate a twofold balance between the choice of
the individual most suited to fulfill the job role and thus contribute effectively to the
The reward system is a group of neural structures responsible for incentive salience
(i.e., motivation and "wanting", desire, or craving for a reward), associative learning
particularly ones which involve pleasure as a core component (e.g., joy, euphoria and
ecstasy). Reward is the attractive and motivational property of a stimulus that induces
neuroscience noted, "any stimulus, object, event, activity, or situation that has the
Good remuneration has been found over the years to be one of the policies the
organization can adopt to increase their workers performance and thereby increase the
organizations productivity. Also, with the present global economic trend, most
6
employers of labour have realized the fact that for their organizations to compete
favorably, the performance of their employees goes a long way in determining the
success of the organization. On the other hand, performance of the employees in any
organization is vital not only for the growth of the organization but also for the
growth of the individual employee. An organization must know who are its
outstanding workers, those who need additional training and those not contributing to
the efficiency and welfare of the company or organization. Also, performance on the
job can be assessed at all levels of employment such as: personal decisions relating to
promotion, job rotation, job enrichment etc. And, in some ways, such assessment are
based on objective and systematic criteria, which includes factors relevant to the
person‟s ability to perform on the job. Hence, the overall purpose of performance
task or job assigned to him or her. And based on this information, decisions will be
o cope with the changing situations an organization makes adjustments in the existing
Scott and Clothier “A promotion is the transfer of an employee to a job which pays
7
According to Pigors and Charles “ Promotion is advancement of an employee to a
better job-better in terms of greater responsibility, prestige or status, greater skill and
responsibilities, status and with increased income. The employee being promoted, the
those of his earlier job. Promotion is an employee's reward for good performance or
ensures that the person is able to handle the added responsibilities by screening the
employee with interviews and tests and giving them training or on-the-job experience.
benefits.
following purposes.
employee satisfaction.
2. To develop competitive spirit and inculcate the zeal in the employees to acquire
5. To promote a feeling of content with the existing conditions of the company and a
sense of belongingness.
8
6. To promote interest in training, development programmes and in team development
areas.
Promotion:
must be based on consistent, fair and clear cut policy. The National Institute of
lines:
Drawing up an organization chart to make clear to all the ladder promotion. Where
there is a job analysis and a planned wage policy, such chart is quite easy to prepare.
making the promotion system clear to all concerned who may initiate and handle
cases of promotion. Though departmental heads may initiate promotion, the final
approval must lie with the top management, after the personnel department has been
asked to check from its knowledge whether any repercussion is likely to result from
All promotions should be for a trail period to ascertain whether the promoted person
is found capable of handling the job or not. Normally, during this period, he draws the
pay of the higher post, but it should be clearly understood that if “he does not make
the grade” he will be reverted to his former post and former pay scale..
9
Bases for Promotion
made.
aptitude as measured from educational, training and past employment record. It helps
determining merit criteria objectively is the main obstacle to its becoming the sole
organization. It is relatively easy to measure the length of service and judge the
seniority. It minimizes the scope for grievances and conflicts regarding promotion.
At the same time it results in employee turnover and it kills the zeal and interest to
seniority. Hence a combination of both seniority and merit can be considered the basis
Promotion Policy
Every organization need to specify clearly its promotion policy based on its corporate
policy.
The policy should contain clear cut norms and criteria for promoting an employee.
The policy should be fair and impartial and should be applied uniformly to all
10
favoritism etc. Promotion systems necessitate a twofold balance between the choice of
the individual most suited to fulfill the job role and thus contribute effectively to the
1. 2 Reward System
“fat pay package quicker promotion and incentives are not enough anymore.
A reward „or „incentive can be anything that attracts a worker‟s attention and
rewards or prizes
On the hand French says the incentive system has a limited meaning that excludes
beyond acceptable stands. It is related with wage payment plans which tie wages
or both criteria.
The use of incentives assumes that people‟s actions are related to their skills and
abilities to achieve important longer run goals. Even though many organization by
11
Jack Zigon defines rewards as “something that increase frequency of an employee
elements. Mixed elements can provide the diversity needed to match the needs
of individual employees.
2. The timing, accuracy and frequency of incentives are the very basis of a
redirection.
These features are contingencies, which affect the suitability and design of
Individual
Work situation
Incentive plan
12
TYPES OF REWARDS
There are a number of ways to classify rewards. Three of the more typical
dichotomies are: Intrinsic versus extrinsic rewards, financial versus non financial
1. Intrinsic versus extrinsic rewards: The satisfactions one gets from the job itself
are its intrinsic rewards. These satisfactions are self initiated rewards, such as having
pride in one‟s work, having a feeling of accomplishment, or being part of a team. The
techniques of flex time, job enrichment, shorter work weeks, and job rotation, can
offer intrinsic rewards by providing interesting and challenging jobs and allowing the
On the other hand extrinsic rewards include money, promotions, and fringe benefits.
Their common thread is that extrinsic rewards are external to the job and come from
job, we would label such rewards as intrinsic. If the employee receives a salary
extrinsic.
While we have stressed the role of extrinsic rewards in motivation, we should point
2. Financial versus Non financial rewards: Rewards may or may not enhance the
employees financial well being. If they do they can do this directly through wages,
bonuses, profit sharing, and the like, or indirectly through supportive benefits such as
pension plans, paid vacations, paid sick leaves and purchase discounts.
13
Non financial rewards are potentially at the disposal of the organization. They do not
increase the employee‟s financial position, instead of making the employees life better
off the job, non financial rewards emphasize making life on the job more attractive.
The old saying “one man‟s food is another man‟s poison” applies to the entire subject
of rewards, but specifically to the area of non financial rewards. What one employee
views as something I‟ve always wanted, another finds superfluous. Therefore care
must be taken in providing the right non financial reward for each person, yet where
selection has been done assiduously, the benefits to the organization should be
impressive.
Some workers are very status conscious. An attractive office, a carpeted floor, a large
executive desk, or a private bathroom may be just the office furnishing that stimulates
an employee towered top impressive job title, their own business cards, their own
secretary, or a well located parking space with their name clearly painted underneath
3. Performance based versus membership based rewards: The rewards that the
membership criteria. While the managers in most organizations will vigorously argue
that their reward system pays off for performance, you should recognize that this is
almost invariably not the case. Few organizations actually rewards employees based
Performance based rewards are exemplified by the use of commission, piecework pay
plans, incentive systems, group bonuses, or other forms of merit pay plans. On the
other hand, membership based rewards include cost of living increases, profit sharing,
benefits, and salary increases attributable to labor market conditions, seniority or time
14
in rank, credentials (such as a college degree or a graduate diploma), or future
potential (the recent M.B.A. from a prestigious university). The demarcation between
the two is not always obvious. For instance company paid membership in a country
membership or performance. If they are available to say all middle and upper level
executives, then they are membership base. However, if they are made available
entitlement, which of course implies they can also be taken away, we should treat
them as performance based rewards for those who might deem them attractive.
For practical purposes, we need to break membership based rewards into two groups.
One group is made up of benefits and services that go to all employees regardless of
their performance level. All nurses at certain hospital, for instance, get ten days, sick
leave, $ 200000 worth of life insurance, paid hospitalization coverage, and a host of
barely acceptable one. Because benefits and services are explicitly acknowledged to
be allocated on the basis of membership, we will call them explicit membership based
rewards. All the other membership based rewards will be thrown into the second
group which we will call implied. You may wonder why the need to differentiate two
groups?
We have separated the membership based rewards into two groups to clarify what is
often confusing in practice. Most organizations treat benefits and services as the only
membership based rewards. All other rewards are traditionally treated as performance
15
practice, a lot of lip service is given to the value a good job performance, but the
In summary, you should recognize that there are performance based rewards; there are
explicit membership based rewards, which we call benefits and services; and there are
implied membership based rewards. Practicing managers often call the latter group
Importance
for example, can have a very different meaning to different people. It may represent
basic security and love, power, a measure of one‟s achievements or merely means to a
comfortable life style. To some employees 1000/- Rs – a –month raise would be very
important. Other employees, in the same job and at the same salary level might far
utility. One hundred and fifty employees were asked to rank their performance for
rewards. It was found that the employees in general, rated extra vacation as most
preferred, followed by pay, a pension increase, paid family insurance, early retirement
and work schedule rearrangements, in decreasing order. But this ranking varied
among different employee groups. For instance, the preference for insurance plan
decreased with age, while desire for more pension benefits increases. Married
employees also valued insurance plan more than single employees, and this
Research indicates that the preference for rewards will be significantly affected by
age, marital status and number of children the employee has. Young unmarried person
desire more time off the job and young married men rated more vacation lower than
16
family health coverage, or that older employees seek increased retirement benefits
rewards satisfying their individual needs. Therefore a good reward system should be
One effort to broaden the idea of individualizing rewards has been labeled „cafeteria
allocated- all employees get the same package which best satisfies his or her current
told what their total compensation is, and they can choose a mix salary, life insurance,
customize their own compensation package. This method involves little in additional
direct costs, it makes clear to employees how much the organization is actually
spending to compensate them and it ensure that the money will be spent only on the
rewards the employees want. On the negative side, there is the tendency for
employees to think in short- range rather than long- range terms. Most organizations
that have instituted a cafeteria plan actually provides all employees with minimum
insurance and pension benefits and let each employees select additional rewards to
17
Equitable Distribution
manner. This means fairness among the organization‟s employee and fairness
relative to what people get for doing a similar job in another organization. Equity
theory has been proposed to explain what happens when individuals perceive an
imbalance between what they put into job and what they get out of it elative to
peers. Employees perceive what they get from a job situation in relation to what
they must put into. They also compare their input-outcome ratio with the input-
outcome ratio of their peers. If a person‟s ratio and that of others are perceived to
be equal, a state of equity is said to exist. If they are unequal, in-equality exists.
That is, the individual views herself or himself as under rewarded or over
rewarded. Equity theory argues that when an inequality is seen as aversive, the
variable in equity theory. The three referent categories have been classified as
“other”, “system” and “self”. The “other” category includes other individual with
union contract, employees can compare their pay relatively to that of others.
The “system” category considers organizational pay policies and procedures and
18
pay policies. Organization precedents in terms of allocation of pay would be a
The “self” category refers to input – outcome ratios unique to the individual that
differ from the individual‟s current input – outcome ratio. This category is
influenced by such criteria as past jobs or commitments that must be met in terms
of family role.
6. Visibility
A reward that is not visible to the employee may fail to get the desired motivating
effect from employee. On the hand, a truly visible reward gets the attention not
only of employees but also their peers. This latter quality means visible rewards
In what ways can managers increase the visibility of rewards? Possibilities include
well- publicized bonuses, allocating annual salary increases in a lump sum rather
than spreading them out over the entire year, and eliminating the secrecy
them both impressive in size and highly visible. Probably the most widely
19
discussed and contra versial approach to increasing the visibility of rewards is to
managers because even most carefully derived pay schedule and differentials may
pay contributes to dissatisfaction with pay, and secrecy regarding pay contributes
to this misperception.
their salaries with those of everyone else and the inevitability of human error
perceived if not real inequalities. Whether it is true or not, almost everyone thinks
him or her worth more than the next person. On the other hand, an open pay
and hence it should increase the trust individuals have in the organization
Flexibility
An effective reward is one that has the flexibility to vary with changes in
everyone in the organization. The annual performance bonus, for instant, offers
20
depending on some measure of performance. Additionally, it can be given
motivation, yet some rewards diminish in importance when used over time. As a case
in point praise is a flexible reward in that its amount can be varied in allocation to and
Low Cost
The final quality of an effective reward is low cost. Rewards are not free goods, and
the organization must consider the costs along with the benefits from any rewards. A
high-cost reward simply cannot be given out as often, and when it is, it reduces
organizational effectiveness as a result of its cost. All other factors equal, the lowest-
Summary
A careful review of the above criteria which identified for effective rewards brings
Because no reward is perfect, managers must carefully assess what they expect from
potential. Each organization is unique, so the rewards that work in one may be
ineffective in another. Similarly jobs within each organization differ, and the rewards
21
Designing a Reward Program
support
reward program must identify company or group goals to be reached and the
behaviors or performance that will contribute to this. While this may seem obvious,
business goal, a bonus system rewarding individuals who improve their productivity
by themselves or at the expense of another does not make sense. Likewise, if quality
is an important issue for an entrepreneur, the reward system that he or she designs
should not emphasize rewarding the quality of work accomplished by a business unit.
Properly measuring performance ensures the program pays off in terms of business
goals. Since rewards have a real cost in terms of time or money, small business
owners need to confirm that performance has actually improved before rewarding it.
Once again, the measures need to relate to a small business‟ goals. As Linda
22
Most reward programs use multiple measures which can include such variables as
rewards to the end result for the company. Perfect attendance might a different reward
than saving the company $10,000 through improved contract negotiation. It is also
important to consider
clearly spelled out for every employee. Motivation depends on the individual‟ s
ability to understand what is being asked of her. Once this has been done, reinforce
the original communication with regular meetings or memos promoting the program.
Keep your communication simple but frequent to ensure staffs are kept abreast of
REWARD
Although these terms are often used interchangeably reward and promotion
nature or otherwise have a cost to the company. While previously considered the
domain of large companies, small businesses have also begun employing them as a
tool to lure top employees in a competitive job market as well as to increase employee
performance.
As notes, although employee promotion programs are often combined with reward
programs they retain a different purpose altogether. Promotion program are generally
23
not monetary in nature though they may have a cost to the company. Sue Glasscock
and Kimberly Gram in productivity Today differentiate the terms by noting that
physical benefit. Although many element of designing and maintaining reward and
promotion systems are the same, it is useful to keep this difference in mind,
especially for small business owners interested in motivating staffs while keeping
costs low
24
CHAPTER 2
LITERATURE
REVIEW
25
LITERATURE REVIEW
between employee commitment and performance of the organization. The reward and
promotion programs serve as the most contingent factor in keeping employees„ self
esteem high and passionate. Oosthuizen (2001) stated that it is among the function of
performance at job is the result of ability and motivation. Ability formulated through
education, equipment, training, experience, ease in task and two types of capacities
i.e. mental and physical. The performance evaluation and rewards are the factors that
to Wilson (1994), the process of performance management is one among the key
elements of total reward system. Entwistle (1987) is of the view that if an employee
their employees to work according to the rules and regulations, as well as, job
requirements that comply with full standards. The investigations that have been
motivated employees serve as the competitive advantage for any company because
financial, economical and human resources, human resources are more vital that can
(2003) argued that prosperity and survival of the organizations is determined through
26
the human resources how they are treated. Most of organizations have gained the
immense progress by fully complying with their business strategy through a well
balanced reward and promotion programs for employee. Deeprose (1994) argued that
organization keeps its employees motivated and in what way they evaluate the
employees forms an integral part of any organizational strategy and how they deal
with their human capital (Drucker as cited in Meyer & Kirsten, 2005). Today where
every organization has to meet its obligations; the performance of employees has a
environment, low or courageless employees can not practice their skills, abilities,
innovation and full commitment to the extent an organization needs. Freedman (1978)
is of the view that when effective rewards and promotion are implemented within an
to excel in their performance. Employees take promotion as their feelings of value and
state of satisfaction and happiness is achieved by the employees only when they
maximally put their abilities in performing the activities and functions at work. In this
way motivated employees are retained with the organizations thus reducing extra
costs of hiring. Flynn (1998) argued that rewards and promotion programs keep high
spirits among employees, boosts up their morale and create a linkage between
performance and motivation of the employees. The basic purpose of reward program
27
is to define a system to pay and communicate it to the employees so that they can link
3), is a pleasurable positive emotional state as a result of work appraisal from one„s
job experiences. The rewards include the financial rewards, pay and benefits,
promotions and incentives that satisfy employees to some extent but for committed
committed. Baron (1983) argued that when we recognize and acknowledge the
very high. Recognition today is highest need according to most of the experts whereas
a reward which includes all the monetary and compensative benefits cannot be the
sole motivator for employees„ motivation program. Employees are motivated fully
when their needs are met. The level of motivation of employees increases when
employees get an unexpected increase in promotion, praise and pay (La Motta, 1995).
for accomplishment of company„s goals, business plans, high efficiency, growth and
performance. Motivation is also required when the organizational workforce has not a
good relationship pattern. Employees„ relation with employees and with supervisor is
a key ingredient of the inner strength of the organization. The ability of supervisors to
2004). The study relates how the impact of incentives, promotion and rewards
programs drives employee motivation. Rewards play a vital role in determining the
motivation. Lawler (2003) argued that there are two factors which determine how
much a reward is attractive, first is the amount of reward which is given and the
28
second is the weightage an individual gives to a certain reward. Deeprose (1994, p. 3)
is of the view that ―Good managers recognize people by doing things that
skills make employee more loyal to their work and become a source of pertinent
workability for the employee. Bull (2005) posits a view that when employees
exercise their skills and abilities, they experience greater levels of job satisfaction.
Incentives, promotion and rewards are the key parameters of today„s motivation
programs according to most of the organizations as these bind the success factor with
the employees„ performance. Robbins (2001) asserts that promotions create the
social standing. Similarly, the recognition which is a central point towards employee
companies which discriminates companies from the others is recognition that is the
most important factor of their reward system. Wilson (1994) stated that the
conditional recognition is that type of promotion which one has to earn by his own
Employees are definitely closer to their organization as their job can become the
major satisfaction in their life after having a proper promotion and rewards at their
job. Rewards enhance the level of productivity and performance at job whether it„s a
first time performance or repeated activity at the job in a progressive way. Research
29
motivation which provides suggestion for designing five important human resource
compensation systems, managerial styles and training. Ali and Ahmed (2009)
recognition respectively, also motivation and satisfaction. The study revealed that if
corresponding change in work motivation and satisfaction. The pay package is one of
the most obvious and visible expressions of employment relationship, it is main issue
individual work and performance employing organization itself‖ Hege Wisch and
Ganguli O, N, (1967), in his study found "pay and allowances as the most important
that the demands for money was significantly influenced by the quality of
quality of organizational culture. Findings such as those suggest that satisfaction, task
individual perceives that the ratio of his outcomes to input and the ratio of relevant
others outcome to input are unequal" Rowlinson (1988) one of the American vice
presidents whose company observed and concluded that recognition speaks to the
employee receiving it and awards and only one aspect of it. The symbolism, meaning
and intrinsic value attached to the reward are equally important. Although the gold
plated carriage clock, watch all engraved tinkered in recognition of long service is
probably most prominent form of recognition award in U.K. Judy L. Agnew and
30
William K. Redmon, (1992), indicates that the organization may have the latest
technology, well -thought out strategic plans, detailed job descriptions and
comprehensive training programmes, but unless the people are rewarded for their
or the rules that govern their behaviour have little impact". Pay and allowances as the
Williams and Fred Luthans (1992) stated that, "the choice of reward interacting with
feed back had a positive impact on task performance". Simon (1992) after thorough
study suggested that employees should be given cash bonuses and prizes for meeting
sales targets, customer services and cleanest store. For special yearly competition
when only few people gain prizes should be precious and can range from holiday
voucher, a set of 2 tickets for an all expense paid trip to Hollywood. One example is
promotion program they had turnover rates around 30 per cent per year. That rate has
reduced to just 18 per cent (Human Resources 2005) predominantly due to the
company focusing on its culture and its people. The liveyourlife incentive program is
a major part of the people retention initiative. By offering experiential benefits as part
be known as an innovative, progressive and fun law firm. The SBI approached
liveyourlife to customize a team based experiential reward program for a project that
remote regional areas. Liveyourlife customized a specific team based reward program
including the development of specific team experiences for branches in regional areas.
The customized liveyourlife team based reward program was delivered with great
success.
31
Organizations in today„s environment seek to determine the reasonable balance
between employee commitment and performance of the organization. The reward and
promotion programs serve as the most contingent factor in keeping employees„ self
Oosthuizen (2001) stated that it is among the function of managers to motivate the
efficiency.
La Motta (1995) is of the view that performance at job is the result of ability and
ease in task and two types of capacities i.e. mental and physical. The performance
evaluation and rewards are the factors that proved to be the bonding agents of the
to the rules and regulations, as well as, job requirements that comply with full
standards. The investigations that have been conducted to find the relationship
employees Ciscel, 1974). (The highly motivated employees serve as the competitive
advantage for any company because their performance leads an organization to well
human resources are more vital that can provide a company competitive edge as
compared to others.
32
According to Andrew (2004), commitment of all employees is based on rewards and
promotion.
Lawler (2003) argued that prosperity and survival of the organizations is determined
through the human resources how they are treated. Most of organizations have gained
the immense progress by fully complying with their business strategy through a well
Deeprose (1994) argued that the motivation of employees and their productivity can
based on how an organization keeps its employees motivated and in what way they
Drucker as cited in Meyer & Kirsten, 2005) Today where every organization has
to meet its obligations; the performance of employees has a very crucial impact on
employees can not practice their skills, abilities, innovation and full commitment to
Freedman (1978) is of the view that when effective rewards and promotion are
Csikszentmihalyi (1990) posits a view that the state of satisfaction and happiness is
achieved by the employees only when they maximally put their abilities in performing
33
the activities and functions at work. In this way motivated employees are retained
Flynn (1998) argued that rewards and promotion programs keep high spirits among
employees, boosts up their morale and create a linkage between performance and
system to pay and communicate it to the employees so that they can link their reward
to their performance which ultimately leads to employee„s job satisfaction. Where job
positive emotional state as a result of work appraisal from one„s job experiences. The
rewards include the financial rewards, pay and benefits, promotions and incentives
that satisfy employees to some extent but for committed employees, recognition must
Baron (1983) argued that when we recognize and acknowledge the employees in
terms of their identification, their working capacity and performance is very high.
Recognition today is highest need according to most of the experts whereas a reward
which includes all the monetary and compensative benefits cannot be the sole
motivator for employees„ motivation program. Employees are motivated fully when
their needs are met. The level of motivation of employees increases when employees
get an unexpected increase in promotion, praise and pay (La Motta, 1995).
for accomplishment of company„s goals, business plans, high efficiency, growth and
performance. Motivation is also required when the organizational workforce has not a
good relationship pattern. Employees„ relation with employees and with supervisor is
a key ingredient of the inner strength of the organization. The ability of supervisors to
34
provide strong leadership has an effect on job satisfaction of employees (Morris,
2004).
The study relates how the impact of incentives, promotion and rewards programs
drives employee motivation. Rewards play a vital role in determining the significant
Lawler (2003) argued that there are two factors which determine how much a reward
is attractive, first is the amount of reward which is given and the second is the
doing things that acknowledge their accomplishments and they reward people by
ability and skills make employee more loyal to their work and become a source of
Bull (2005) posits a view that when employees experience success in mentally
challenging occupations which allows them to exercise their skills and abilities, they
experience greater levels of job satisfaction. Incentives, promotion and rewards are
organizations as these bind the success factor with the employees„ performance.
Robbins (2001) asserts that promotions create the opportunity for personal growth,
companies from the others is recognition that is the most important factor of their
reward system.
35
Wilson (1994) stated that the conditional recognition is that type of promotion which
one has to earn by his own efforts and which is gained by some sense of achievement
of an action or result.
Employees are definitely closer to their organization as their job can become the
major satisfaction in their life after having a proper promotion and rewards at their
job. Rewards enhance the level of productivity and performance at job whether it„s a
first time performance or repeated activity at the job in a progressive way. Research
creative work.
Ali and Ahmed (2009) confirmed that there is a statistically significant relationship
between reward and recognition respectively, also motivation and satisfaction. The
then there would be a corresponding change in work motivation and satisfaction. The
pay package is one of the most obvious and visible expressions of employment
Hege Wisch and Ganguli O, N, (1967), in his study found "pay and allowances as
Singh ET. (1977) in a study of organizational culture and its impact on managerial
remuneration concluded that the demands for money was significantly influenced by
36
the quality of organizational culture and that it can substantially be reduced by
improving the quality of organizational culture. Findings such as those suggest that
satisfaction, task involvement, demand for money and commitment are largely
that the ratio of his outcomes to input and the ratio of relevant others outcome to input
are unequal" Rowlinson (1988) one of the American vice presidents whose company
observed and concluded that recognition speaks to the employee receiving it and
awards and only one aspect of it. The symbolism, meaning and intrinsic value
attached to the reward are equally important. Although the gold plated carriage clock,
watch all engraved tinkered in recognition of long service is probably most prominent
form of recognition award in U.K. Judy L. Agnew and William K. Redmon, (1992),
indicates that the organization may have the latest technology, well -thought out
strategic plans, detailed job descriptions and comprehensive training programmes, but
unless the people are rewarded for their performance related behaviours, the "up-
front" variable (technology, plans and so on) or the rules that govern their behaviour
have little impact". Pay and allowances as the most important factor causing
Steve Williams and Fred Luthans (1992) stated that, "the choice of reward
Simon (1992) after thorough study suggested that employees should be given cash
bonuses and prizes for meeting sales targets, customer services and cleanest store. For
special yearly competition when only few people gain prizes should be precious and
can range from holiday voucher, a set of 2 tickets for an all expense paid trip to
37
liveyourlife reward and promotion program they had turnover rates around 30 per
cent per year. That rate has reduced to just 18 per cent (Human Resources 2005)
predominantly due to the company focusing on its culture and its people. The
fun law firm. The SBI approached live your life to customize a team based
experiential reward program for a project that involved employees in every branch of
the Company across Australia, including remote regional areas. Live your life
specific team experiences for branches in regional areas. The customized live your
life team based reward program was delivered with great success.
38
CHAPTER 3
COMPANY
PROFIE
39
COMPANY PROFILE
Type Public
BSE: 500112
LSE: SBID
40
Bank of Bombay (1840-1921)
(Chairman)
(March 2018)
Website sbi.co.in
41
The State Bank of India (SBI) is an Indian multinational, public Sector banking
500 list of the world's biggest corporations of 2018. It is the largest bank in India with
a 23% market share in assets, besides a share of one-fourth of the total loan and
deposits market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank
of India, making it the oldest commercial bank in the Indian subcontinent. The Bank
of Madras merged into the other two "presidency banks" in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955. The Government of India took control of the
Imperial Bank of India in 1955, with Reserve Bank of India (India's central bank)
taking a 60% stake, renaming it the State Bank of India. In 2008, the government took
Founded in 1806, State Bank of India (SBI) is an Indian multinational, public sector
bank descends from Bank of Calcutta making it the oldest commercial bank of the
subcontinent.
The merger of Bank of Madras with two presidency banks of British India, the Bank
of Bombay and the Bank of Calcutta leading to the formation of the Imperial Bank of
India which eventually became State Bank of India when Reserve Bank of India
(RBI)holding 60% stake renamed it to State Bank of India. Later in 2008, the
government took over the stakes held by RBI taking full control over the Public
Sector Bank.
42
Segmentation, targeting, positioning in the Marketing strategy of State Bank of
India –
psychographic variables like people from Rural, Urban and Metropolitan who are
psychography includes people who trusted banking system and frequently used bank
It targets students, the lower class who are deprived of banking services, the tech-
Positioned as peoples most trusted bank, it has high accessibility with over 25,000
branches, it finds relevance to young customers with its value-added services like net
solutions.”
43
Tagline –
“With you all the way, Pure Banking Nothing Else, The Nation‟s banks on us.”
Ranked 216th on the Fortune Global 500 list of the world‟s biggest corporations 2017,
SBI is India‟s largest bank with a 23% market share of assets and a quarter of the
SBI over the years has attained the leadership status in digital banking space by
offering a pool of seamless and secured services like, SBI YONO- an omnichannel
banking and lifestyle platform which has close to 10 million downloads already for
which SBI has Tied up Reliance JIO, State Bank Buddy- a wallet service, State Bank
With the set up 60 digital branches referred to as sbi INTOUCH, the bank aims to
offer advanced services like instant loan approvals, access to the latest mutual funds,
Equipped with the latest technology these creates an instant connection with the
and share the document using touch screen controls ensuring the bank doesn‟t lose a
potential customer. Thus these digital branches provide SBI an edge over its
competitors and aim to help SBI expand its reach with increasing profitability.
44
Distribution in the Marketing strategy of SBI –
SBI has a large footprint over 25,000 domestic branches (including extension
counters) and 59,000+ ATM‟s after its merger with Bhartiya Mahila Bank and its five
associate Banks on 1st April 2017. The overseas operations of the bank are spread
over its 195 international offices with branches spread across 36 countries.
A Fortune 500 company, with a balance sheet size of over Rs. 30 lakh crore SBI
entered into the league of top 50 global banks. Ranked 35th in the Brand Equity‟s
Most Trusted Brand survey of 2015 SBI is the only bank to be featured in the Nielsen
SBI also stands at 381st on Forbes 2000 World‟s Best Employers of 2018 and 489th on
immense opportunity to the players which has stagnated or has been marred by Non
Performing Assets in recent years. Governments push by infusing in funds into the
public sector banks has given the industry some breathing space which has been
struggling in recent years. SBI seems to have already taken a head start in Digital
Banking when it comes to its competitors with its bouquet of Digital services.
ICICI Bank
Allahabad Bank
45
HDFC Bank
Bank Of Baroda
Axis Bank
The banking industry in the recent past has been in a turnaround phase where PSU‟s,
Private Banks are fighting neck to neck in order to re-establish itself in the
competitive market. Private Banks like ICICI Bank, AXIS Bank, HDFC revenue and
profitability has seen the rise by 3rd party products whereas PSUs revenue and
profitability has been more driven by retail lending and CASA share.
Market share for SBI customers Saving Bank and Current Account Deposits as of
March 2018 stood at 26.55% and 16.83% respectively. Market share for home loans
stood at 13% and 67.65% share in Government business showing its dominance in the
Government sector. Market share for customers using the Debit card for the bank is as
high as 30.5% and a share of 31.79% for customers opening PM Jan Dhan Accounts.
Customers of SBI includes farmers and workers in rural, students, early jobbers, both
Customers of SBI doesn‟t cant be put in a specific income group bracket and thus
ranges from lower class looking to open zero balance account for government benefits
transfer through Direct Benefit transfers to high-class individuals seeking loans for
their business.
46
Marketing mix of State bank of India
State Bank of India is a public corporation owned by the government of India. This
multinational company deals exclusively in the financial and banking sector. SBI was
founded in the year 1806 and at present, its headquarters is in the city of Mumbai. In
terms of assets, it is the largest and in terms of ancestry the oldest banking empire in
India. In the Indian subcontinent, State Bank of India is spread over 17,000 branches
and 190 offices in foreign. Arundhati Bhattacharya is the present Chairman of State
Bank of India.
State Bank of India offers its corporate and retail customers numerous range
Cards – The products under this category include Travelling cards, Debit
47
General insurance – According to a new scheme launched by the prime
minister every citizen who will open his account henceforth is liable for
Mortgage loans
Wealth management
Asset management
Private equity
Savings security
Corporate banking
The place is the most important factor for SBI because many of the top government
organizations deal with SBI as their bank. This creates large number of transactions
touching all parts of India. In India, State Bank of India provides its customers
services through a set-up of various branches. It has 14 regional hubs and 57 offices in
zones that are located throughout India at all the important cities. 66% of its branches
are located in rural areas whereas the rest 34% are located in urban areas.
48
In international arena, the bank has nearly 190 overseas offices that extend over
nearly thirty-four countries in cities like Dhaka, Tehran, Moscow, London, Maldives,
Dubai, New York and many others. State Bank of India has opened various ATMs
and branches for the convenience of its customers. The places are chosen with great
Banking facilities are handled very easily over there by efficient staff and personnel‟s.
State Bank of India has opened nearly 43,515 ATMs in India. These distribution
channels are equipped with latest infrastructure, technology and modern facilities.
ATM and the branches are installed at places that are convenient to both the banker
and the customer. The concept of internet banking through their residence and offices
State Bank of India offers a variety of financial services to its honored customers. It
has a very clear-cut pricing policy. It works in a competitive marketplace and so it has
a policy that includes creativeness at each level. Hence it can be said that State bank
uses competitive pricing. Also remember that the pricing of SBI is determined by
The bank‟s value added strategies are made keeping in mind and examining the
customer‟s mindset and economic changes happening in the market. State Bank of
India‟s pricing policy is very customer friendly. It gives many opportunities to the
customers via its flexible policies like operating the home loan account in either
current account mode or savings account mode. 75% of their funds are accessible at
49
The pricing policies and decisions are based on the rate of interest that is regulated by
the Reserve bank of India. The risk on loan has to be kept in mind also. Liability and
In order to promote its services and banking facilities proper strategies are
implemented. Promotions through the Visual and print media through hoardings,
emphasizes on the modernization of the banks, its branches and its various facilities.
Special mention is given in the ads to the impeccable services provided by the bank.
The advantage of each product is emphasized so that the clients become impressed
Under the promotional strategy, ads have been created with famous personalities
depicting trust as trust and State Bank of India go hand in hand. People from State
Bank of India visit various campus and take part in road shows. The bank also
provides incentives to its staff so that better work environment is established. The
50
SWOT analysis of SBI
SBI has its roots since 1806 which was later transformed under various names,
finally SBI Was established after the act in parliament on May 1955. In the year
1959 SBI took over 8 state owned banks and since then it started to grow up
SBI is the largest bank in India in terms of market share, revenue and assets.
As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres
The bank has its presence in 32 countries engaging currency trade all over the world
The bank has a merged with State Bank of Saurashtra, State bank of Indore and the
SBI has recently changed its vision and mission statements showing a sign of
51
Weaknesses in the SWOT analysis of SBI
Employees show reluctance to solve issues quickly due to higher job security and
SBI has the largest number of employees in banking sector, hence the bank spends a
In spite of modernization, the bank still carries the perception of traditional bank to
SBI fails to attract salary accounts of corporate and many government sector
employees salary accounts are also shifted to private bank for ease of operationsunlike
before
SBI‟s merger with five more banks namely State Bank of Hyderebad, State bank of
Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank
Mergers will result in expansion of market share to defend its number one position
SBI is planning to expand and invest in international operations due to good inflow of
Since the bank is yet to modernize few of its banking operations, there is a better
Young and talented pool of graduates and B schools are in rise to open new horizon to
52
Threats in the SWOT analysis of SBI
Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the
year FY2011.
This shows the reduce in market share to its close competitor ICICI Other private
FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service Other government banks like PNB, Andhra, Allahabad bank and Indian bank
are showing Customer prefer to switch to private banks and financial service
providers for loans and mortgages, as SBI involves stringent verification procedures
53
CHAPTER-4
OBJECTIVES
OF THE STUDY
54
OBJECTIVE OF THE STUDY
55
CHAPTER-5
RESEARCH
METHODOLOGY
56
RESEARCH METHODOLOGY
Research is a common parlance which refers to search for knowledge. It is a
general and overall questions of a study and scientific technique, which provide
precise tools, specific procedures, and technical rather philosophical means for getting
and ordering the data prior to their logical analysis and manipulating different type of
RESEARCH DESIGN
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. In fact, the research design is the conceptual structure within which
DESCRIPTIVE RESEARCH:
The research undertaken was a descriptive research as it was concerned with specific
b. DATA SOURCE
There were two types of data sources used in this research. These were
57
PRIMARY DATA
Primary data is the data collected for the first time from the source and never have
been used earlier. The data can be collected through interviews, observations and
questionnaires.
SECONDARY DATA
Secondary data is the data collected from already been use or published information
like journals, diaries, books, etc .In this research project, secondary source used were
c. SAMPLE DESIGN
refers to the rules and procedures by which some elements of the population are
included in the sample. Some common sampling methods are simple random
SBI in Lucknow.
e. SAMPLE TYPE
Lucknow. An effort was made to select respondents evenly. The survey was
58
g. SAMPLE UNIT: Employees of SBI Lucknow
used to collect the data and data will be analyzed with the help of percentage
TOOLS OF PRESENTATION:
It means what all tools are used to present the data in a meaningful way so that it
becomes easily understandable. In this research tables and graphs were used for
59
CHAPTER-6
DATA ANALYES AND
INTERPRETATION
60
DATA ANALYSIS & INTERPRETATION
No of respondents % of respondents
Strongly Agree 40 40%
Agree 34 34%
Neither agree nor disagree 10 10%
Disagree 8 8%
Strongly disagree 8 8%
Total 100 100%
8%
8%
40% Strongly Agree
10%
Agree
Neither agree nor disagree
34% Disagree
Strongly disagree
% respondents neither agree nor disagree,8% disagree and 8% strongly disagree that
61
2. Is the reward system of your Company being followed genuinely?
No of respondents % of respondents
Strongly Agree 32 32%
Agree 48 48%
Neither agree nor disagree 12 12%
Disagree 4 4%
Strongly Disagree 4 4%
Total 100 100%
4% 4%
respondents neither agree nor disagree,4% disagree and 4% strongly disagree that
62
3. Do you think recognition of work is important for work place?
No of respondents % of respondents
Strongly Agree 26 26%
Agree 54 54%
Neither agree nor disagree 12 12%
Disagree 6 6%
Strongly Disagree 2 2%
Total 100 100%
2%
6%
12% 26%
Strongly Agree
Agree
Neitheer agree nor disagre
Disagree
54%
Strongly Disagree
respondents neither agree nor disagree,6% disagree and 2% strongly disagree that
63
4. Do you think recognition provided by your Company is satisfactory?
No of respondents % of respondents
Strongly Agree 30 30%
Agree 48 48%
Neither Agree nor disagree 12 12%
Disagree 6 6%
strongly disagree 4 4%
Total 100 100%
6% 4%
12% 30%
Strongly Agree
Agree
Neither Agree nor disagree
Disagree
48%
strongly disagree
% respondents neither agree nor disagree,6% disagree and 4% strongly disagree that
64
5. Do you think promotion increase the job liability and creditability?
No of respondents % of respondents
Strongly agree 30 30%
Agree 36 36%
Neither agree nor disagree 24 24%
Disagree 6 6%
Strongly disagree 4 4%
Total 100 100%
6% 4%
30%
Strongly agree
24%
Agree
Neither agree nor disagree
Disagree
36%
Strongly disagree
65
6. Do you think delay of promotion demotivate you?
No of respondents % of respondents
Strongly Agree 31 31%
Agree 39 39%
Neither Agree nor
Disagree 12 12%
disagree 10 10%
Strongly disagree 8 8%
Total 100 100%
8%
10% 31%
Strongly Agree
12%
Agree
Neither Agree nor Disagree
disgree
39%
Strongly disagree
66
7. Do you think existing promotion policy of your Company need to be
modified?
No of respondents % of respondents
Strongly Agree 24 24%
Agree 46 46%
Neither agree nor disagree 12 12%
Disagree 9 9%
Strongly Disagree 9 9%
Total 100 100%
9%
9% 24%
Strongly Agree
12%
Agree
Neither agree nor disagree
Disagree
46%
Strongly Disagree
67
8. Are you aware of various reward provided by the Company?
No of respondents % of respondents
Strongly Agree 22 22%
Agree 38 38%
Neither Agree nor disagree 26 26%
Disagree 10 10%
Strongly Disagree 4 4%
Total 100 100%
10% 4%
22%
Strongly Agree
26% Agree
Neither Agree nor disagree
38% Disagree
Strongly Disagree
68
9. Do you think the promotion policy in your Company is transparent to all
employees?
No of respondents % of respondents
strongly agree 20 20%
Agree 40 40%
neither agree nor disagree 25 25%
Disagree 10 10%
Strongly Disagree 5 5%
Total 100 100%
5%
10% 20%
strongly agree
25% Agree
neither agree nor disagree
40% Disagree
Strongly Disagree
69
10. Do you perform better if you are reward with verbal recognition
No of respondents % of respondents
Strongly Agree 35 35%
Agree 30 30%
Neither agree nor disagree 20 20%
Disagree 10 10%
strongly disagree 5 5%
Total 100 100%
5%
10%
35%
Strongly Agree
20% Agree
Neither agree nor disagree
Disagree
30%
strongly disagree
70
11. Does tangible recognition motivates you?
No of respondents % of respondents
Strongly agree 40 40%
Agree 35 35%
Neither Agree nor disagree 10 10%
Disagree 9 9%
Strongly disagree 6 6%
Total 100 100%
6%
9%
10% 40% Strongly agree
Agree
Neither Agree nor disgree
35% Disagree
Strongly disagree
71
12. Do you think financial rewards are more motivating than non financial
rewards?
No of respondents % of respondents
Strongly Agree 24 24%
Agree 36 36%
Neither agree nor disagree 16 16%
Disagree 14 14%
Strongly disagree 10 10%
Total 100 100%
10%
24%
14% Strongly Agree
Agree
16% Neither agree nor disagree
36% Disagree
Strongly disagree
72
CHAPTER-7
FINDINGS
73
FINDINGS
40 % respondents strongly agree, 34 % respondents agree, 10 % respondents
neither agree nor disagree,10% disagree and 8% strongly disagree that delay
of promotion demotivate.
neither agree nor disagree,9% disagree and 9% strongly disagree that existing
neither agree nor disagree,10% disagree and 4% strongly disagree that they are
74
40 % respondents strongly agree, 35 % respondents agree, 10 % respondents
neither agree nor disagree,9% disagree and 6% strongly disagree that tangible
recognition motivates.
neither agree nor disagree,14% disagree and 10% strongly disagree that
75
CHAPTER-8
CONCLUSION
76
CONCLUSION
As per the analysis and findings, it can be concluding that the Promotion Policy of
the organization is effective. The employees are overall satisfied with the Promotion
joining but also updating knowledge of existing employees in term of better career
growth through giving incentives for higher education and training and development
77
CHAPTER-9
RECOMMENDATIONS
78
RECOMMENDATIONS
well as to give them environment for continuous learning process so that they
succession. People like to know that they have scope for career movement.
To give opportunity for higher studies. So, they can hike their salary, career
Mentoring and handholding all fresh entrants from day one are important
tasks; during this period, they should be familiarized with the culture, vision
and mission of the company. It is at this time that new entrants experiment
with different options. Hence they should be exposed to the best values the
organization.
79
CHAPTER-10
LIMITATIONS
80
LIMITATIONS
Scope of the study is confined to the areas of SBI & that too with limited
Thus the researcher has to clear all the doubt about the questionnaire that
Some executive might have not answered the questions currently because of
the busy schedule. They tend to hurry up the talk, which inhibits proper
collection of data.
The higher level executives were unavailable for response as they have a very
busy schedule.
81
BIBLIOGRAPHY
82
BIBLIOGRAPHY
Brandi, JoAnna. "9 Ways to Keep Employees Engaged." Entrepreneur. 12 April
2005.
Grimaldi, Lisa. "Study proves recognition pays off." Meetings & Conventions. August
2005.
Odell, Patricia. "Live from the Mo Show: Non-Cash Awards More Effective." Promo.
28 September 2005.
Parker, Owen, and Liz Wright. "Pay and Employee Commitment: The Missing Link."
Ivey Business Journal. January 2001.
Ventrice, Cindy. "Make Their Day! Employee Recognition That Works." Berrett-
Koehler Publishers. April 2003.
83
ANNEXURE
84
Questionnaire
For each of the statement below, please indicate the extent of your agreement and
disagreement by placing a tick in the appropriate box.
Statements Scale
1-Strongly Agree, 2-Agree, 3-Neutral,
4-Disagree, 5-Strongly Disagree.
85
7. Do you think existing promotion policy of your 1 2 3 4 5
Company need to be modified
Q.10. Do you perform better if you are reward with verbal recognition?
a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree
a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree
Q.12. Do you think financial rewards are more motivating than non financial
rewards?
a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree
86