“A STUDY ON EFFECTIVENESS OF MOTIVATION ON EMPLOYEE

PRODUCTIVITY IN SUD-CHEMIE, EDAYAR”

Submitted by
MAHINSHA A.A
(Reg. No: 150021237236)

Under the guidance of

Mrs. AMRITHA M.S
(Assistant Professor, Department of Management Studies)

Submitted in partial fulfilment of the requirements for awarding the degree of

BACHELOR OF BUSINESS ADMINISTRATION
Of Mahatma Gandhi University, Kottayam

2015-2018

SNGIST ARTS AND SCIENCE COLLEGE

Manakkapady, Karumallur P.O, N. Paravur
(Affiliated to MG University, Kottayam)

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 SNGIST ARTS AND SCIENCE COLLEGE, Manakkapady
Karumallur P.O, N. Paravur
(Affiliated to MG University, Kottayam)
…………………………………………………………………………………………
……………

CERTIFICATE

This is to certify that this Project Report entitled – A STUDY ON

EFFECTIVENESS OF MOTIVATION ON EMPLOYEE PRODUCTIVITY IN
SUD-CHEMIE, EDAYAR submitted by Mr. MAHINSHA A.A in partial
fulfillment of the requirement for the award of the degree of Bachelor of Business
Administration of Mahatma Gandhi University during 2015-2018, is a
bonafiderecord of work done by him/her under my supervision and guidance. This
certificate is not issued to endorsetheopinion and results expressed in this report.

Faculty Guide: Mrs: AMRITHA M.S

Asst. Prof. Department of Management Studies

Dr. BINDI.K.R Dr. M.G. RAMESH BABU

HODof Management Studies Principal

Name & Signature of External Examiner

Date:

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 DECLARATION

I MAHINSHA A.A, hereby declare that the project report entitled “A

STUDY ON EFFECTIVENESS OF MOTIVATION ON EMPLOYEE
PRODUCTIVITY IN SUD-CHEMIE, EDAYAR” in partial fulfillment of the
requirements for awarding the degree of Bachelor of Business Administration is a
record of original work done during academic year 2015-2018 and also declare this
project has not been submitted to any other university/institution for the award of
degree or diploma.

Place: Manakkapady MAHINSHA A.A

Date: (150021237236)

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 ACKNOWLEDGEMENTS

First, I would like to acknowledge my profound sense of gratitude to God

Almighty for giving me the opportunity, strength and ability to successfully complete
the study and prepare this report on time.

Without the support, patience and guidance of the following people, my

project would not have been completed. It is to them; I owe my deepest gratitude.

I express my heartfelt thanks to Dr.M.G. RAMESHBABU, Principal

(SNGIST Arts & Science College, N. Paravur) and Dr.BINDI K.R (Head -
Department of Management Studies), SNGIST ASC, N. Paravur.

I acknowledge my sincere gratitude to my project guide, Mrs.AMRITHA

M.S, Faculty, Department of Management Studies SNGIST ASC, for the valuable
help and guidance she has rendered to me and for the strenuous and continuous effort
she has put in by being with me during every stage of the project work. I also take
privilege to extend my hearty thanks to the entire faculty members of the Department
of Management Studies for their solid support and blessings.

I would also like to express my sincere gratitude Mr. ANAND A.S,assistant

manager (HR&IR)for their valuable support and for providing an excellent
environment and infrastructure facilities. I am extremely thankful for their
encouragement and cooperation throughout the completion of this project.

Last but not the least, I express my heartfelt thanks to family and friends for
their constant encouragement and efforts to keep my spirits up.

MAHINSHA A.A

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CHAPTER TITTLE PAGE
S NO
NO
1 INTRODUCTION 10-17

2 COMPANY PROFILE & INDUSTRY 18-52

PROFILE

3 REVIEW OF LITERATURE 53-77

4 DATA ANALYSIS AND 78-100

INTERPRETATION

5 FINDINGS SUGGESTIONS & 101-104

CONCLUSION

BIBLIOGRAPHY 105-106

APPENDIX 107-110

LIST OF CONTENTS

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 LIST OF TABLE

TABLE TITTLE PAGE

NO NO
4.1 Table showing Promotional Opportunities 79
4.2 Table showing Growth Opportunities 80
4.3 Table showing Recognition 81
4.4 Table showing Responsibility 82
4.5 Table showing Achievement 83
4.6 Table showing Leave 84
4.7 Table showing Salary Increase 85
4.8 Table showing Reward System 86
4.9 Table showing Status 87
4.10 Table showing Incentive 88
4.11 Table showing Motivational talk 89
4.12 Table showing Learning Opportunities 90
4.13 Table showing Job Security 91
4.14 Table showing Physical working Condition 92
4.15 Table showing Quality of Super vision 93
4.16 Table showing Top Management Interested in 94
Motivating the employees
4.17 Table showing The different motivation methods 95
used by the management
4.18 Table showing Contribute of employees to achieve 96
organizational goals
4.19 Table showing Inspiration getting from the 97
management
4.20 Table showing Relation between Motivation of 98
Worker’s on productivity
4.21 Table showing Incentives which motivate the 99
employees
4.22 Table showing Motivating techniques help you do 100
to the best in you

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7
 LIST OF GRAPH

TABLE TITTLE PAGE

NO NO
4.1 Graph showing Promotional Opportunities 79
4.2 Graph showing Growth Opportunities 80
4.3 Graph showing Recognition 81
4.4 Graph showing Responsibility 82
4.5 Graph showing Achievement 83
4.6 Graph showing Leave 84
4.7 Graph showing Salary Increase 85
4.8 Graph showing Reward System 86
4.9 Graph showing Status 87
4.10 Graph showing Incentive 88
4.11 Graph showing Motivational talk 89
4.12 Graph showing Learning Opportunities 90
4.13 Graph showing Job Security 91
4.14 Graph showing Physical working Condition 92
4.15 Graph showing Quality of Super vision 93
4.16 Graph showing Top Management Interested in 94
Motivating the employees
4.17 Graph showing The different motivation methods 95
used by the management
4.18 Graph showing Contribute of employees to 96
achieve organizational goals
4.19 Graph showing Inspiration getting from the 97
management
4.20 Graph showing Relationship between Motivation 98
of Worker’s on productivity
4.21 Graph showing Incentives which motivate the 99
employees
4.22 Graph showing Motivating techniques help you 100
do to the best in you

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9
CHAPTER-I
INTRODUCTION

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 INTRODUCTION
There is probably no concept more important than motivation, in the
study of employee's behavior in any organization. A manager may consider
motivation as an inducement given to the employees to ginger them to work more. By
this measure, organization goals & objectives are achieved. On the other hand,
employees usually associate motivation with some monetary values. Motivation is a
pervasive function that cuts across all aspect of employee's development. It is often
discussed by people in any organization Management cannot operate in isolation of
their employees because they are human beings & not machines or tools which are
utilize recklessly or in a rough manner.
In today's economy, employers have gone beyond being just employers
because of their interest in the management of employee productivity. Motivation is
an internal or external driving force that produces the willingness to perform an act to
a conclusive end. This first aspect of motivation we choose to describe as internal
motivation because is applied by the organization. This is because employees are
motivated to identify with or organization in order to satisfy their varied & variegates
needs and desire. One of the biggest managers in the organization one is how best to
get employees committed to their work &put in their best towards the
accomplishment of organization objectives, The motivation of employees depends on
the strength of their motives, need, want desire or inputs within the individual & these
determine human behavior. There for motivation is the process of as rousing behavior
sustaining behavior progress &channeling behavior in to a specific curse of action.
These motives induce employee to the act. Motivation therefore is the inner state that
energies people channel & sustain human behavior.
Employee motivation is one of the policies of manager to increase
effectual job management amongst employees in organization. A Motivated employee
is responsive of the define goals & objective he/she must achieve therefore in the
direction. Rather ford reported that motivation formulates an organization more
successful because provoked employees are constantly looking for improved practices
to a work. So it is essential for organization to persuade motivation for their employee
to do their best work even in strenuous circumstance is one of the employees most
stable & greasy challenge and this can be made possible through motivation them.

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 In today economy, employers have gone beyond being just employers
because of their interest in the management of employee's productivity. Most business
personal has realized more than ever before that their organizational set goals &
objectives cannot be achieved. This is the reason for much concerned with
encouraging workers or employees to attain to the best of their ability. Human
resource, both in private or public sector are most assets essential in any given
organization hence must be handled with care. Motivation of the employee is the areas
management should concern in other to ensure the realization of the planned goals &
objectives of their organization. People got to work in organization not for the sake of
work itself but with the aim of achieving their individual objective. It then follows
that the key of motivation is the satisfaction of needs. A worker will be motivation if
the feels his organization is helping him to satisfy needs to a reasonable extent in view
of the fact that needs are sophisticated in nature, there has been a growing importance
to understand these needs by some Behavioral scientists. Thus we have a lot of
motivational theories like those propounded by Abraham, Maslow, Vroom, and
Fredrick, Herzberg to mention but a few.
The need of people are in a continuum: sometime it could be intrinsic
or extrinsic an individual's need, at any particular time depends on the value he placed
on it at that time & most times it goes hand in hand with societal value so, different
people would want and need different thing situation and at different time.
Management is best understood from a resource base perspective. All organization
used for base kinds of input or resources from environment, humans finance, material
and information resources to achieve the organizational functions or activities,
planning and decision making, organizing leading and controlling. There is a range of
motivational techniques that can be used to improve productivity, reduce workforce,
stress and increase self-confidence. Some manager believes that they can achieve
result from teams by using coercing method.
However this factor can indeed produce result, the effect will probably be
much more short time and will mean that staffs are force on achieving business
objectives but rather on simply keeping their jobs.

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STATEMENT OF THE PROBLEM
Motivation is about giving your staff the right mixture of guidance,
direction, Resources and rewards so that they are inspired and keen to work in the
way that you want them to. So, a large portion behind these difficulties can easily be
solved by imparting proper motivation. In the fierce era of competition, organizations
nowadays are more emphasizing on the management of Human Resources. A
manager capable of managing his employee effectively is a successful one.
Motivational tools are the most effective in this context. We always have to keep in
mind that employees are not motivated solely by money and employee behavior is
linked to their attitudes.
The general problem in organizational set up is low salaries, irregular
promotional structure and lack of recognition of workers achievements. All these tend
to dampen workers morale consequently affecting their productivity. The aim of this
study therefore is to find out the type of incentives package that need to be given to
workers and that the workers if given the right incentives other than money can put in
their best to contribute the productivity and growth of the organization and ultimately
achieve corporate objective.

OBJECTIVES OF THE STUDY

1. To identify the factors of employee motivation.

2. To access the level of employee motivation.
3. To assess the performance level.

RESEARCH METHODOLOGY

RESEARCH DESIGN
The research design is a comprehensive master plan of the research
study to be undertaken. Simply stated, it is the framework, a blueprint for the research
study, which the research guides the collection and analysis of data. The research
design followed for this research study is descriptive research design we find a
solution to an existing problems. The problem of the study is effectiveness of
employee productivity employee’s productivity in Sud-Chemie India pvt LTD.

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SAMPLING UNIT
The elementary units or the group of elementary units which form the
basis of a sampling process are called sampling units. Sampling units are the items of
the population which are considered for the selection of a sample. In this study on
effectiveness of employee productivity with special reference to Sud-Chemie India
pvt LTD a sample of 60 respondents is taken for the study. Each respondent can be
considered as sampling unit.

POPULATION
A population is the aggregate of all the units under study in any field of
enquiry. Population represents the total number of staff in Sud-Chemie India pvt
LTD. The population of Sud-Chemie India pvt ltd is 170

SAMPLING SIZE
The number of sampling units selected from the population to form a
sample is called the size of the sample. The whole of the population cannot be studied
in a single project. Only the 60 representative should be taken. The sample size of the
study is 60.

SAMPLING METHODS
In this project non probability sampling techniques are used. This
method is also called convenience sampling. Here, the sampling units are chosen on
the basis of the convenience of the investigator.

1. Convenience sampling
A convenient sample is obtained by selecting a convenience population
convenience sampling is the cheapest and simplest method. It does not require a list of
population and statistical experience. This method is called convenience sampling.
Here, the sampling units are chosen on the basis of the convenience of the
investigator. The investigator selects samples from the population truly on his
convenience.

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2. Non- probability sampling
Non probability sampling is that sampling procedure which does not
afford any basis for estimating the probability for each item to be including in the
sample. In non-probability sampling generally the person selecting the sample
purposively selects a sample which is suitable for his study. Deliberate sampling,
judgment sampling, quota sampling etc., are non-probability sampling. In a non-
probability sampling, personal element has a great chance of entering into the
selection of the sample. Therefore there is scope for bias in the selection of the
sample. If the investigator is impartial unbiased and experienced, the results obtained
from such sample will be better.

DATA COLLECTION METHODS

Data are collected from primary and secondary sources. Primary data
is first-hand information; it is collected from the original source. Secondary data is
obtained from published records.

a) PRIMARY DATA
A survey is conducted for getting primary data by using well prepared
questionnaire method. Questionnaire is the main source of primary data. Then the
questionnaire is distributed among the respondents in Sud-Chemie pvt LTD.

b) SECONDARY DATA
The main source of secondary data is taken from company profile,
magazines, internet, library, and websites. The data is suitable adequate for the
purpose of study

TOOLS USED IN THIS STUDY

In this investigation questionnaire has been taken as the main tool for
collecting data. The data is collected using percentage analysis method.

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PERCENTAGE METHOD

In this study we used percentage test method used. The following is the formula
Percentage of Respondents = No of Respondents * 100
Total No of Respondents

SCOPE OF THE STUDY

The findings from this study will help to highlight those areas where
there are Problems among staff and thus will be of great benefit to the management
and policy makers. The result of this study would hopefully be signification in the
sense that it would enable both the management and the labour union better to
understand how the various incentive packages could be harnessed to inspire staff to
increase and sustain productivity. The relationship between the organization and its
employee is governed by what motivated them to work and fulfillments they derive
from it. The manager needs to understand how to elicit the co-operation of staff and
direct their performance to achieving the goals & objectives or the organization.
The findings from this study would help to further highlight the likely
problems of frustrations and how motivation can be used to either reduce or eliminate
these problems amongst staff of the organization. The results from this study will help
to highlight the concept of group dynamics and staff behaviour to work. Through such
understanding the administrative scope of the chief executive official could be
broadened and over haul their orientation to administration in terms of result by fully
utilizing the human resources potentials available.

LIMITATION OF THE STUDY

1. Time constraints: Due to the short time given for the study the researcher
could not get all the required information needed for the study.
2. Attitude of respondents: Some of the respondents were unwilling to co-
operate with the researcher because they felt, they have nothing to benefit
from the study both financially and otherwise. Besides they were afraid of
losing their jobs, if all information needed are released to the researcher.

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3. Difficulty: Some staff, especially, some contract staff, had difficulty in
reading and understanding the questions posed in the questionnaire.
4. Some of the respondents were not ready to respond for a questionnaire
survey.

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 CHAPTER-II
INDUSTRY AND COMPANY PROFILE

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 INDUSTRY PROFILE

The global chemical industry forms the fabric of the modern world. It
converts basic raw materials into more than 70,000 different products, not only for
industry, but also for all the consumer goods that people rely on in their daily life.
The modern chemical industry is divided into four broad categories, comprising basic
chemicals, life sciences, specialty chemicals and consumer products. Its outstanding
success is largely due to unceasing scientific and technological breakthroughs and
advances, which have led to the development of new products and processes.
In the chemical industry and the industrial research, catalysis plays an
important role. The different catalysts are in constant development to fulfill
economic, political and environmental demands. When using a catalyst, it is possible
to replace a polluting chemical reaction with a more environmental friendly
alternative. Today, and in the future this can be vital for the chemical industry. In
addition, it’s important for a company/researcher to pay attention to the market
development. If not a company’s catalyst is continually improved, another company
can make progress in research on that particular catalyst and gain market share. For a
company, a new and improved catalyst can be a huge advantage for a competitive
manufacturing cost. It’s extremely expensive for a company to shut down the plant
because of an error in the catalyst, so the correct selection of a catalyst or a new
improvement can be the key to industrial success.
To achieve the best understanding and development of a catalyst it is
important that different special fields work together. These fields can be: organic
chemistry, analytic chemistry, inorganic chemistry, chemical engineers and surface
chemistry. The economics must also be taken into account. One of the issues that
must be consider is if the company should use money on doing the catalyst- research
themselves or buy the technology from someone else. As the analytical tools are
becoming more advanced, the catalysts used in the industry are improving. Some of
the large chemical processes that use catalysis today are the production of methanol
and ammonia. Both methanol and ammonia synthesis take advantage of the water-
gas shift reaction and heterogeneous catalysis, while other chemical industries use

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homogenous catalysis. If the catalyst exists in the same phase as the reactants, it is
said to be homogenous; otherwise it is heterogeneous.

HISTORY
Humans have known about catalysis for many centuries, even though
they knew nothing about the chemical process that was involved. The making of
soap, the fermentation of wine to vinegar, and the leavening of bread are all
processes involving catalysis. One of the first formal experiments on catalysis
occurred in 1812. Russian chemist Gottlieb Sigismund Constantine Kirchhof (1764–
1833) studied the behavior of starch in boiling water. Under most circumstances,
Kirchhof found, no change occurred when starch was simply boiled in water. But
adding just a few drops of concentrated sulphuric acid to the boiling water had a
profound effect on the starch. In very little time, the starch broke down to form the
simple sugar known as glucose. When Kirchhof found that the sulphuric acid
remained unchanged at the completion of the experiment, he concluded that it had
simply played a helping role in the conversion of starch to sugar.
The name catalysis was actually proposed in 1835 by Swedish chemist
JönsJakob Berzelius (1779–1848). The word comes from two Greek terms, kata (for
"down") and Iyien (for "loosen"). Berzelius used the term to emphasize that the
process loosens the bonds by which chemical compounds are held together. The first
time a catalyst was used in the industry was in 1746 by J. Roebuck in the
manufacture of lead chamber sulfuric acid. Since then catalysts have been in used in
a large portion of the chemical industry. In the start only pure components were used
as catalysts, but after the year 1900 multi-component catalysts were studied and are
now commonly used catalysts in the industry today

CATALYSIS
Catalysis is the change in rate of a reaction due to the participation of a
substance called a catalyst. Unlike other reagents that participate in the chemical
reaction, a catalyst is not consumed by the reaction itself. A catalyst may participate
in multiple chemical transformations. Catalysts that speed the reaction are called
positive catalysts. Substances that slow a catalyst's effect in a chemical reaction are

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called Inhibitors. Substances that increase the activity of catalysts are called
promoters, and substances that deactivate catalysts are called catalytic poisons.
Catalytic reactions have a lower rate-limiting activation than the
corresponding unanalyzed reaction, resulting in higher reaction rate at the same
temperature. However, the mechanistic explanation of catalysis is complex. Catalysts
may affect the reaction environmentally favorable or bind to the reagents to polarize
bonds, e.g. Acid catalysts for reaction of carbonyl compounds, or form specific
intermediates that are not produced naturally, such as osmate esters in osmium
tetroxide catalyzed dihydroxylation of alkenes, or cause lysis of reagents to reactive
forms, such as atomic hydrogen in catalytic Hydrogenation.
Kinetically, catalytic reactions are typical chemical reactions; i.e. the
reaction rate depends on the frequency of contact of the reactants in the rate-
determining step. Usually, the catalyst participates in this slowest step, and rates are
limited by amount of catalyst and its "activity". In heterogeneous catalysis, the
diffusion of reagents to the surface and diffusion of products from the surface can be
rate determining. Although catalysts are not consumed by the reaction itself, they
may be inhibited, deactivated, or destroyed by secondary processes. In heterogeneous
catalysis, typical secondary processes include coking where the catalyst becomes
covered by polymeric side products. Additionally, heterogeneous catalysts can
dissolve into the solution in a solid–liquid system or evaporate in a solid–gas system.
Catalysis is the single most important interdisciplinary technology in
the chemical industry. More than 85 % of all today’s chemical products are produced
using catalytic processes. However, the importance of catalytic processes is not
limited to the chemical industry. They also play a central role during the processing
of raw materials in refineries, during the production of energy e.g. in fuel cells and
batteries, as well as in terms of climate and environmental protection.

INDUSTRIAL APPLICATIONS
Today catalysts are used in untold numbers of industrial processes. For
example, the commercially important gas ammonia is produced by combining
nitrogen gas and hydrogen gas at a high temperature and pressure in the presence of a
catalyst such as powdered iron. In the absence of the catalyst, the reaction between

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nitrogen and hydrogen would, for all practical purposes, not occur. In its presence, the
reaction occurs quickly enough to produce ammonia gas in large quantities.
Catalysts are the workhorses of chemical transformations in the industry.
Approximately 85–90 % of the products of chemical industry are made in catalytic
processes. Catalysts are indispensable in

 Production of transportation fuels in one of the approximately 440 oil

refineries all over the world.
 Production of bulk and fine chemicals in all branches of chemical industry.
 Prevention of pollution by avoiding formation of waste (unwanted
byproducts).
 Abatement of pollution in end-of-pipe solutions (automotive and industrial
exhaust).
A catalyst offers an alternative, energetically favorable mechanism to
the non-catalytic reaction, thus enabling processes to be carried out under industrially
feasible conditions of pressure and temperature. A catalyst accelerates a chemical
reaction. It does so by forming bonds with the reacting molecules, and by allowing
these to react to a product, which detaches from the catalyst, and leaves it unaltered
such that it is available for the next reaction. In fact, we can describe the catalytic
reaction as a cyclic event in which the catalyst participates and is recovered in its
original form at the end of the cycle

1. AMMONIA PRODUCTION

Ammonia is used mostly to produce fertilizer. It is also used as refrigerant in

large-scale refrigeration equipment and in the production of detergents. Ammonia is
produced in a process known as the Haber process, in which nitrogen and hydrogen
react in the presence of an iron catalyst to form ammonia. The hydrogen is formed by
reacting natural gas and steam at high temperatures and the nitrogen is supplied from
the air. Other gases (such as water and carbon dioxide) are removed from the gas
stream and the nitrogen and hydrogen passed over an iron catalyst at high
temperature and pressure to form the ammonia.

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 2. AUTOMOTIVE

The catalysts (Catalytic Converter) remove harmful nitrous gases and

carbon particles from the engines exhaust gas, greatly reducing pollution, and
allowing them to meet the high environmental standards of the future. Automobile
catalyst is divided into Three Way Catalyst (TWC) for gasoline fueled cars and
oxidation catalyst for diesel cars. TWC is named from the meaning of „simultaneous
reaction with 3 harmful elements‟ and the three harmful substances are CO, HC and
NOx. These three substances have their unique harmful characteristics; CO
Phagocytises hemoglobin carrying oxygen in blood, HC causes hallucination similar
to bond, and NOx causes dyspnoea by stimulating the mucous membrane of the
respiratory system. Therefore TWC is necessary for automobiles not to discharge
harmful exhaust.

3. INDUSTRIAL PRODUCTION OF HYDROGEN

In oil refineries, large amounts of hydrogen are used in the conversion of

crude oil into end products such as gasoline, jet fuel, and diesel. This is why oil
refineries often have a separate hydrogen plant. Catalysts help to make hydrogen
from natural gas and oil.
In refineries across the world, "on-purpose" hydrogen capacity is increasing as site
hydrogen demand reaches limits, due to tighter fuel specifications, the processing of
heavier and sourer crudes, increasing need for lighter crude oil products and strong
demand for chemical intermediates.
Catalysts are used for hydrogen production via steam reforming, and are used for
hydrogen production using a range of feedstock’s, from natural gas and refinery off-
gas to LPG and naphtha’s.
Hydrogen is mainly used for the conversion of heavy petroleum fractions into lighter
ones via the process of hydro-cracking and other petroleum fractions
(dehydrocyclization and the aromatization process). It is also required for cleaning
fossil fuels via hydrodesulphurization. Hydrogenous mainly used for the production of
ammonia via process. In this case, the hydrogen is produced in situ. Ammonia is the
major component of most fertilizers.

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 4. OIL REFINERIES

When a refinery treats oil in the production of transportation fuels, numerous

toxic and environmentally damaging impurities are removed. Catalysts are used for
the production of diesel with ultra-low Sulphur content. They are also used to make
befouls, for instance, by converting biomass such as woodchips and household waste
into diesel.
The oil we used to make “Petrol” (gasoline, or motor spirit) and other products, start
out as raw black petroleum. It cannot be used as it is, straight from underground. It
must be changed into the specific chemicals that people use. This process of
changing petroleum into useful products is called Refining. The modern oil refinery
is a large and complicated factory. Automatic control of the various stages is efficient
and safe. Teams of workers are needed to keep the refinery machinery “running”
smoothly.

5. SULPHURIC ACID

Catalyst is used to produce sulphuric acid. Sulphuric acid is the chemical

product most widely produced and sold in the world. Most of it is used in the
manufacture of fertilizer. Sulphur is present as an impurity in many raw materials.
When producing oil, steel, and other metals, this sulphur is released as sulphur
dioxide in various exhaust gases, this sulphur dioxide is converted into sulphuric
acid, which transforms it into a saleable product.

GLOBAL SCENARIO

1. BASF (CHEMICAL COMPANY)

BASF SE is the largest diversified chemical company in the world and is

headquartered in Ludwigshafen, Germany. The BASF Group comprises subsidiaries
and joint ventures in more than 80 countries and operates six integrated production
sites in Europe, Asia, Australia, America and Africa.

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 2. JOHNSON MATTHEY

Johnson Matthey is a British multinational chemicals and metals

company headquartered in London, United Founded almost 200 years ago Technology
leadership forms the basis of our strategy to deliver superior long term growth

3. HALDOR TOPSOE

(We are known for our commitment to catalysis – a commitment we

share with our clients.) Founded in 1940 on the brink of the Second World War, Dr.
HaldorTopsoe started the company based on a commitment to heterogeneous
catalysis. The company is governed by the notion that only through fundamental
science can we continue to offer our clients the best, and the past 60 years offer an on-
going tale of improving catalysis.

INDIAN SCENARIO

1. PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL)

Government of India Undertaking having ISO 9001:2008 Certification
is a Pioneer Consultancy and Engineering Organization in India with experience of
over 40 years in Planning, Design, Engineering, Procurement, Project Management,
Construction & Commissioning of Fertilizer Project and Allied Chemical Plants in
India and abroad.
PDIL manufactures and supplies a wide range of proven catalysts
developed entirely on its own technical know-how. These catalysts are performing
excellently in almost all fertilizer plants in India. PDIL catalysts have also been
exported to European and Middle Eastern Countries.
PDIL came into existence in 1950s and most of the fertilizer plants in India
have utilized the expertise and experience of PDIL. PDIL not only engineers the
plant for its clients but also execute projects to revamp, modernize and enhance
capacities of these plants from time to time, besides advising on operational and
technical difficulties faced by them. Over the last six decades, PDIL has rendered the

25
entire gamut of engineering, project management, construction and commissioning
supervision of Greenfield and expansion of 25 ammonia and 38 urea fertilizer plants.
PDIL has conducted feasibility studies, demand assessment studies, environmental
impact assessment studies, etc for various clients. PDIL is also an approved third
party inspection agency for Indian Oil Corporation, Hindustan Petroleum
Corporation Limited, Bharat Petroleum Corporation Limited and BHEL among
others.

PESTEL ANALYSIS

I. POLITICAL FACTORS

 Change in policies according to the changes in the government.

 Since the company highly depends on export, the revenue is subjected to

international trade policies.

 The government policies and regulations relating the company’s client

industries can affect the future of the business with these customers.

II. ECONOMIC FACTORS

The economic boom in India, particularly the last one decade has
played a significant role in deciding the success of the company. The company gets
more than 70% of its income from export and thus a major portion of their revenue is
subjected to the market fluctuations that are inflation and deflation. Businesses are
dependent on each other for their survival and help themselves flourish naturally.

26
III. SOCIAL FACTORS
In India the whole country and its people are poised for a giant leap
towards growth and prosperity. The company is taking more interest in Corporate
Social Responsibility these days and steps have been taken to further the same.
Employment for ex-service men, using treated sewage, pollution checking camps,
energy saving and conservation of natural resources through environment
management etc. are possessed by the company.

IV. TECHNOLOGICAL FACTORS

The company uses eco-friendly technologies for production, with
minimal harm to the environment. The company is really conscious in using the
latest technologies in every field as possible. SCIL also uses latest information
technology software in its administrative section to ease the work.

V. ENVIRONMENT FACTORS
The company is eco-friendly in almost all its activities, products and
services besides providing safe and healthy working conditions to all its employees.
Proper disposal of chemicals waste and other wastes is also a major concern for
which the company has put up chemical storage facilities and disposal units. The
company is also taking good interest in cleaning projects and activities in and around
the area.

VI. LEAGAL FACTORS

About 15 acts and 19 rules govern chemicals in India. These can be
classified into the following groups.
 Import and Export.
 Manufacturing of chemicals.
 Consumers interest in using chemicals.
 Protection of human health and environment.
Regulations have been framed for each of these groups. However the
environment protection act of 1956 serves as an umbrella to link regulations without
interfering with the autonomy of other rules. Various ministries and regulatory
agencies are responsible for implementing the laws. The Indian government is also

27
proposing to adopt the Globally Harmonized System (GHS) of classification and
labeling of chemicals.

Drawbacks of Indian Regulatory System

 No single nodal agency or ministry ensures proper implementation of the
existing regulations.
 There is little primary or secondary research carried on the effect of chemicals
on the environment and human safety.

There is little effort to collect data of accidents during manufacture, transportation or

use of chemicals.

28
 COMPANY PROFILE

INTRODUCTION
Sud-Chemie India pvt ltd is engaged in the manufacture of catalysts
for various applications. Catalyst is a chemical substance used for increasing or
decreasing the rate of chemical reaction and this process is known as Catalysis. The
catalyst may participate in multiple chemical transformations. Catalysts that speed
the reaction are called positive catalysts. Catalysts that slow down the reaction are
called negative catalysts or inhibitors.
The main activities of Sud-Chemie India pvt ltd are manufacturing,
sales and technical services related to catalysts for various applications in fertilizers,
petroleum and petrochemical industries. The company has two manufacturing units
in India, one in Cochin and the other in Baroda (Gujarat). The Cochin plant is
situated on the banks of river Periyar, opposite to FACT, Udyogmandal Division and
the locality is known as Binanipuram which is part of Edayar Industrial Development
Area. The main products are C12 series of high temperature shift catalysts, C18
series of low temperature shift catalysts, C7 series of sulphur absorbents and
Vanadium Pent Oxide catalyst for Sulphuric acid manufacture.

ORIGIN
The company was founded by Sri Fazal H. Lalljee and Sri Altaf H.
Lalljee and was registered in 1969 as Catalysts and Chemicals India (West Asia) Pvt.
Ltd. The name was first changed to United Catalysts India Ltd. and then to Sud-
Chemie India Ltd., consequent to change in name of the parent company.
Manufacturing operations at Cochin unit has started in 1970. Baroda unit was started
in 1978. The company has been catering to the Syngas catalyst requirements of
almost all the fertilizer manufacturing companies in India and is market leaders for
Syngas catalysts in India. Refineries and Petrochemical industries are also using our
catalysts. With the introduction of Midrex catalysts they started meeting the
requirements of Sponge Iron Plants also. Now they have started feeding to the highly
competitive automobile sector also with our Catalytic Converters for two and three
wheelers as OEM suppliers.

29
 GUIDED BY THE GROUP VISION
Sud-Chemie India is guided by the vision and mission of Sud-Chemie
AG, Germany the parent company. Sud-Chemie is a highly-innovative, listed,
specialty Chemicals Company head quartered in Munich. With its two divisions of
Adsorbents and catalysts, the Sud-Chemie Group, which has around 4,800
employees, generates total sales of approx. 1 billion Euros. Sud-Chemie holds an
extremely strong position on global markets, almost 80 percent of group sales being
realized with customers outside Germany. It systematically exploits the potential
offered by fast-growing regions, notably in Southeast Asia and the Middle East.

STRATEGY
Sud-Chemie continuously pursues its goal of sustained organic growth
coupled with a significant improvement in profitability. Based on organic growth
alone, the Group is aiming to reach sales of over 1.2 billion Euros and above average
increasing EBITDA and EBIT margins. Sud-Chemie’s strategy for realizing these
financial targets resets on the four pillars of technology and innovation, customer
loyalty and orientation, process optimization and also portfolio and investment
management.

BOARD OF DIRECTORS: SUD-CHEMIE INDIA

 Mr. Stefan ChristofJohannesHeuser – Chairman

 Dr. Deepak Rasiklal Parikh – Director
 Mr. HolgerDierssen – Director
 Mrs. Arshia A. Lalljee – Managing Director
 Mr. Iskander A. Lalljee – Jt. Managing Director
 Mrs. Hamida A. Lalljee – Director

30
 CULTURE AND VALUES
 To conduct the business with integrity.
 To act with honesty and trust towards business partners, employee and
community; to treat everyone with dignity, respect and fairness.
 To respect the laws of the country and observe them in letter and spirit; to take
pride in paying taxes.
 To satisfy customers requirements by providing them good quality products
and services.
 To work with suppliers towards improvement of their products.
 To respect nature and adopt least polluting processes and practices; to use
minimum resources.
 To recognize that every employee has talent and potential; to provide
opportunity for every individual to develop.
 To implement safe work practices; to avoid causing harm to the community.

MISSION
“The Sud-Chemie group constantly endeavors to achieve customer
satisfaction by supplying quality products and services. It has been in this field for
almost four decades. Most of the customers have been with this organization all these
years. The company is proud that it could cater to its customers varied requirements
arising from time to time”.
Sud-Chemie’s products ensure sparing use of energy and water as
natural resources, enhancing the quality of life for both humans and the environment.
Adsorbents guarantee customized products with optimal properties in the sectors of
beverages, consumer goods, packaging and foundries. Sud-Chemie’s catalysts are
essential for efficient chemical and petrochemical processes and offer optimal
solutions in the areas of hydrogen production and emission control.

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 SPAN OF CONTROL
Sud-Chemie India has got two marketing offices located at Delhi and
Mumbai. Exports are mainly handled through Mumbai & Cochin. Imports for Cochin
units are directly managed and requirement of Baroda unit is managed through
Mumbai Office. Purchases are handled at Cochin, Mumbai and Baroda Offices.
Accounting is done at all offices and Corporate Finance and Corporate HRD matters
are handled at Cochin. Corporate Secretarial matters are also handled from Cochin.
R&D works are mainly concentrated at Cochin; however certain works are
undependably handled at Baroda also. Managing Director and Joint Managing
Directors are stationed at corporate office at Delhi. Factory related matters are
handled at Cochin and Baroda for the respective manufacturing units.

COCHIN UNIT
This unit was started in 1970. Almost 25-30% of entire production of
Sud-Chemie India is carried out through Cochin unit. This unit is equipped with
sophisticated machineries and a well setup quality assurance laboratory. Cochin unit
of Sud-Chemie has a total number of 153 employees. Production process is
continuous throughout the year. Supervisors and unskilled labours works in three
shifts, 8am to 4pm, 4pm to 12am and 12am to 8am. For the managers and executives
the office time is between 9 am to 5.45 pm.

GROWTH PATH
The organization was started in 1969 with one catalyst, i.e. High
temperature shift catalyst for ammonia industry and now, supplying more than 76
products, covering complete chemicals, refinery, petrochemicals and automotive
industries. Introduction of these new innovative products, not only increased the
sales turnover of the company, but also saved huge foreign exchange to the country.
Now all these products are very well accepted not only in India, but also all over the
world.
The growth can be felt while looking at the phenomenal growth of
sales turn over during the last ten years. During 1995-96 the turnover was 18.2 crores
and 2005-06 it isRs.132Crores which is 600% growth in the last ten years. It is many

32
folds higher than the average industry growth. Last year’s turnover was about 560
Crores.

AWARDS
Sud-Chemie India has received a number of awards and recognition’s
for its manufacturing capabilities and export performance.

 Received ICMA Award in 1989 for outstanding role in developing Encilite-2

a high tech catalyst along with NCL and playing crucial role in the
development of Albane technology successfully commercialized by Hindustan
Polymers.
 Received ICMA Award in 1990 for exporting Knowledge based high tech
products in competition with world’s renowned companies.
 Received from CHEMEXCIL certificate of Merit for outstanding export
performance during 1992-93
 Cochin unit was awarded first place in safety publications by the factories and
Boilers department of India

QUALITY CERTIFICATIONS

 R&D division of the company was certified ISO 9001 on 27.07.1999.

 Cochin unit got its ISO 9001 certification on 18.06.1996.
 Baroda unit got its ISO 9001 certification on 04.04.1997.
 Cochin unit and R&D division has been certified ISO 14001 on 08.08.2000.
 Now all have been certified ISO 9001:2000 and ISO 14001 standard.
 The company received OSHAS 18001 Certification on 19th September

BUSINESS PERFORMANCES
The organization was started in 1969 with one catalyst, i.e. High
temperature shift catalyst for ammonia industry and now, supplying more than 76
products, covering complete chemicals, refinery, petrochemicals and automotive
industries. Introduction of these new innovative products, not only increased the

33
sales turnover of the company, but also saved huge foreign exchange to the country.
Now all these products are very well accepted not only in India, but also all over the
world.
The following table shows the sales turnover of the company for the past 3 years:

Year Sales turnover

2014-2015 708 crores

2015-2016 699 crores

2016-2017 560 crores

Table showing sales turnover of Sud-Chemie for the past 3 years

PRODUCT PROFILE
Sud-Chemie India manufactures a wide range of catalysts for varied
applications in Fertilizer Industries, Refineries, Petrochemical Industries, Sponge Iron
Industries and now for emission control in automobiles and stationary engines. Our
products are the result of many years research and development work. The company
continuously keeps on working for improving the quality of our products. As a result
the activity levels, efficiency and life of the products have improved considerably
over the years. Qualities of the products are continuously evaluated at the high tech
laboratories of Sud-Chemie group so as to ensure that their products are of
international standards.
They sell their products in the domestic market as well
as export to various countries including Europe, America, Iran, Libya, Japan and
Indonesia. In fact, almost 50% of our turnover is from export. Our entry into the highly
competitive automobile catalytic converter market and capturing of a sizeable share in
the two wheeler catcon market in a very short span of three years is indicative of our
high caliber and capability. And during this period itself we could make an entry into
the European catalytic converter market (for cars).

OUR MAIN PRODUCTS

34
 SL.NO Real name Brand name Type Application/process Shape
of catalyst
1 High SHIFTMA C12 Carbon monoxide TABLET
Temperature X 120 conversion
shift
contrast
2 Low SHIFTMA C18 Low Temperature TABLET
Temperature X 120 shift carbon dioxide
shift conversion
contrast
3 Sulphuric SULPHUR C116 For the Ribbed
Acid MAX manufacture of ring
Catalysts Sulphuric Acid by extrudate
Contract process
Showing the Main Products

ORGANISATIONAL STRUCTURE
The basic structure of Sud-Chemie India pvt ltd involves issues such as
how the work of the organization should be assigned among various positions,
departments etc and also to accomplished the total organization objectives.
Authority arises because of official positions of a person, his personal
competence etc. it is the relationship between two individuals i.e., superior and
subordinate. The flow of this authority is known as top bottom authority. The real
authority vests at the top level in the authority. The four basic structure forms are the
functional structure, divisional structure, matrix structure and network structure.

1) FUNCTIONAL STRUCTURE
Functional structure is the structure that groups people on the basis of
their common experience and expertise or because they use the same resources.

35
 2) DIVISIONAL STRUCTURE
Divisional structure is that structure in which functions are grouped according the
specific demands of products, markets or customers.

3) MATRIX STRUCTURE
Matrix structure is that structure that creates dual lines of authority and
combines functional and product departments.

4) NETWORK STRUCTURE
It is the structure which is the cluster of different organizations whose
activities are coordinated by contracts and agreements rather than formal hierarchy of
authority. Sud-Chemie India pvt ltd has a functional structure. It is highly
characterized by routine operating tasks, much formalized rules and regulations, tasks
that are grouped into functional departments, centralized authority and narrow span of
control of decision making that follows the chain of command. Then top level
managers make all decisions and the lower level.

DEPARTMENTS OF THE ORGANISATION

Organization structure is a pattern of relationship among various components or parts
of the organization. The basic structure involves such issues as how the work of the
organization will be divided and assigned among various positions, groups,
departments etc. and also to accomplish the total organization objectives which will
be achieved. The various departments in Sud-Chemie India pvt ltd are as follows:

1. Production Department
2. Maintenance Department
3. Purchase Department
4. Finance and Accounts Department
5. Human Resource Department
6. Information Technology Department
7. Quality Assurance Department
8. Research and Development Department

36
1. PRODUCTION DEPARTMENT
The production department controls all the production related activities
of the company. The manufacturing activities of the company are continued round the
clock in the year. This department maintains close contact with all departments.
Immediately on getting a new order the same is reviewed by CEO and manager
production and based on that production is scheduled to meet the delivery
requirements. The production manager is responsible for smooth functioning of the
production department and he reviews the actual and planned production on a daily
basis. If any deviations are noticed appropriate corrective actions are take.

Structure of Production department

Production chief manager

Production manager

Production Production
Production
Executives Executives
Executives

Workers Workers
Workers

2. MAINTENANCE DEPARTMENT

The maintenance department of Sud-Chemie is responsible for:

 Preventive maintenance.

37
  Handling breakdown issues.
 Ensure smooth production.
 Ensure availability of spares.
 Safety precautions.
 Statutory and legal requirements.

Structure of Maintenance department

Maintenance Chief Manager

Maintenance Manager

Maintenance Executives

Workers Workers Workers

3. SALES AND DESPATCH

Main activities of this department are to collect sales order from sales
offices situated at Mumbai and Delhi. 80% of the total turnover of Sud-Chemie is
through export sales and we can say that Sud-Chemie is one of the major contributors

38
among those who bring foreign currency into our nation. The dispatch officer verifies
the purchase order, its terms and conditions of payment, delivery etc. and prepares a
summary report on the quantities ordered. This summary report is forwarded to the
production department through the head of the department to make available the
product right at the time of delivery schedule.
Every day a contract meeting is convened with the production department and
discusses the scheduled dispatches and also discuss the possibility of delay, if any,
expected due to any technical reasons. He fixes the transporter and prepare the
documents to be accompanied with the invoices.
He will be having a thorough knowledge and all the documents to be supported for a
dispatch. He makes follow up with the customer for the timely payment of the
invoice. In the case of a purchase order received from a customer is supported by
letter of Credit opened by them, special care is taken to ensure that all the formalities
and requirements of the L.C. are met with before and after dispatch of the
consignment. Usually sales invoices based on L.C. are discounted with their banker
immediately after dispatch.
He is also in charge of the ware house functions and proper up-keep of products
stored in the ware house. Proper verification of stocks in ware house is one of the
important activities performed by him.

Structure of Dispatch department

Manager

39
Assistant Manager, Dispatch Dept.
 Workmen Workmen

4. ACCOUNTS & FINANCE DEPARTMENT

Chief designation is the Head of the department. He is responsible for

arrangement of funds, proper utilization of it, and fixation of credit limit to customers,
fixation of credit limit from suppliers. He is the chief official in reporting all the
major finance related activities to the managing director. The following are the sub
departments which are directly controlled by him.

Structure of Finance Department

Senior General Manager

Chief Manager

40

Senior Manager
 Manager

Account executives

Functions of Accounts and Finance Department

The functions of the Accounts & Finance department relate to the following:
 Export and import.
 Domestic production and sales.
 Fund management.
 Investments.
 Statutory departments liaising (with sales tax authorities, central excise RBI,
etc.)
 Group reporting (monthly & yearly).
 Audit function (Internal audit, tax audit, department audit, group audit).

5. HUMAN RESOURCE DEPARTMENT

41
 Structure of HR Department

Deputy General Manager

Assistant Manager

HR Executives

FUNCTIONS OF HR MANAGER

1) Recruitment - One of the important functions of HR manager is the

recruitment. The company’s sales is growing at a percentage of 25%, due to
this business improvement, work load also increase when it happens employees
will directly inform the manager about this so that the manager can take
necessary actions. Also when the company management decides on any future
expansion plans then these plans will be communicated to the head of the
departments.
2) General Office Administration - General Office administration includes all the
necessary actions needed for the smooth functioning of an office
3) Attendance Assessment - HR manager assess the attendance status of all
employees. For this the executives will assist him.
4) Leave Applications - Regarding leave applications the primary aim of the
manager is to ensure adequate manpower for every day so that the firm will
function smoothly. Avoid manpower shortage due to cumulative leave
application for same period.
5) Government Relations – HR Manager act as the communicator for the
organization to the Government.
6) Union Relations - Trade unions are common in industrial organizations. HR
manager is responsible for maintaining the relationship with the trade unions.

42
 7) Handling Employee Related Problems - If the employees have any problem (in
workplace) they will report to HR manager. It is the responsibility of the HR
manager to listen to their complaints and take necessary actions.
8) Ensuring Adequate Facilities - Like canteen, office, Furniture etc.
9) Maintaining The Papers - Papers regarding land, vehicles etc. which are owned
by the company. He has to ensure the payment of tax, insurance etc. pertaining
to those assets.

6. WAGES AND SALARY ADMINISTRATION

The wage and salary of the employees are administered by the HR
department with the help of Finance department. The HR manager decides the wages
and salaries of each employees of the company after a discussion with the Vice
President, Edayar. The Finance department maintains the records of salaries and wages
of each employee.
The salaries are paid to the office staff of the organization based on
their attendance. Their salary is paid through the bank. SCIL have a multiple banking
arrangement for salary payment. Salary cut-offs on the basis of attendance of the
employees are there in SCIL. An attendance bonus is provided on the other hand i.e.
12 days extra salary. The various banks associated with the SCIL are:
 Federal Bank
 SBI
 HDFC
The wages are paid to both the lower level employees (monthly) and the contract
workers on a daily basis in the form of cheque. The HR manager is accountable for the
salary and wage administration in SCIL, Edayar.

7. IT DEPARTMENT

43
 1) SCIL Network (WAN)
Sud-Chemie India pvt ltd has its offices in Delhi, Mumbai, Cochin,
Baroda and these are connected using VPN (Virtual Private Network). Sud-Chemie
uses the networking services of 2 companies, Tata and Reliance. There are about 210
systems supported by the network including desktops and laptops. There are 10
servers. At its Cochin unit, the Admin Block, R&D and QA departments are Wi-Fi
enabled.

2) SCIL Network Security

There are both wired and wireless networks at SCIL, wired for daily
use and wireless for portable use. The network is MAC filter and password protected.
The Guest Network is a highly secured wireless network and is password protected.
There are 3 levels of security-at the user level (password security), system level
(Symantec security) and Network level (firewall security).The company provides
secure limited access to the internet.

3) Data Storage and Backup

At Sud-Chemie, data is stored in centralized locations. Each user has 2
locations for storing data in the server. Storage quota is allocated for each user. There
are also common folders for sharing data between users.

Structure of IT Department

IT Senior Manager

IT Executives

Structure of IT Department

8. PURCHASE DEPARTMENT
44
 Purchase department personnel are responsible for the purchase of raw
material, office stationeries, spares for office and machineries etc. Purchase
department is linked with all the other departments. Whenever they require any
commodity, they will inform the purchase department and request them to take
necessary actions. Purchase department is responsible for the selection of vendors,
inviting quotations, tenders etc.

Normally the items which have to be purchased are:

 Raw material
 Spares
 Fuels
 Office Stationery
 Lab Equipment
 Machinery
 Gift and special items (as per the request of HR Dept)

Out of these the most important one is the raw material. Raw materials
are essential for continuing the production. Normally the marketing department will be
forecasting the future sales based on the previous year sales. From this forecast it is
possible to find out the yearly and monthly production requirement. According to this
requirement production department will be scheduling the production and required raw
material estimate will be given to the purchase department. Raw material procurement
has a very important impact in the profitability of the firm, since it has a significant
share in total cost also optimum level of raw material should be maintained to avoid
the problem of over stocking and under stocking. Over stocking of raw material will
result idle investment of money (dead money) which is not appreciated.

45
 Structure of purchase department

Purchase Manager

Purchase Executive

Store Executive

Workmen

9. QUALITY ASSURANCE DEPARTMENT

This department plays an imperative role in the organization as it
ensures the quality of the products manufactured by the production department. The
term Quality Assurance is different from that of the term quality control. In fact
Quality Assurance is the broader activity which involves quality control within it. It is
said so because Quality Assurance is done right from the procurement of the raw
materials and at each stages of production. This is done in order to detect the
problems if any occurred at any stages of production and to take immediate action
against it so as to produce the required product with the specifications by making
necessary adjustments in the production process. The Quality control is done at each
stages of production to ensure whether the products are up to the standard norms set
by the ISO. This will help the organization to enhance the product and thereby
achieves customer satisfaction.

Structure of QA department

Dy. General Manager

46
 Executives

Workmen

10. RESEARCH AND DEVELOPMENT DEPARTMENT

Sud-Chemie’s Strategic Research and Development revolves entirely around
industrial biotechnology. Focus is on progress and innovation based on the
sustainable use of renewable resources. Sud-Chemie’s Strategic Research and
Development has set itself this goal – efficient and sparing use of natural resources in
order to create more quality of life for humans and the environment. We see
sustainability as all-embracing – ecological, economical and social. Our scientists
make use of both their biotechnological expertise and the many years of experience
gained in the course of our classic catalyst and absorbent activities. Based on this
extensive technology portfolio, we can offer our customers one-stop system solutions
for sustainable resources.”

Functions of Research and Development Department

 Improvement of existing catalysts.
 Development of new catalysts.
 Technology Absorption
 Investigation and Review of catalyst performances and failures.
 Investigation and Review of catalyst performances and failures.

Structure of R&D Department

Head R&D

47

Manager
 Manager

R&D Pilot plant executives

Manager

SWOT ANALYSIS
SWOT analysis is conducted in order to find out the Strengths, Weakness,
Opportunity and Threat of the organization. The SWOT analysis of Sud-Chemie India
pvt ltd is as follows:

1. STRENGTHS

 ESTABLISHED AROUND THE WORLD

Sud-Chemie is a highly innovative, listed specialty chemicals enterprise

headquartered in Munich, Germany. Operating on a world wide scale, its core
competency focuses on now how in the sector of chemistry and physics for surfaces
comprising finest-grained inorganic matter. With more than seventy sales and
production companies worldwide, Sud-Chemie seeks to expand the leading positions
held in many markets. For many years, more than 75% of Group sales have been
realized with customers outside Germany. It systematically exploits the potential
offered by fast growing regions, notably in Southeast Asia and the Middle East. Since
Sud-Chemie India is a part of this massive worldwide setup, it enjoys the benefits
from it.

48
  IMPROVED INNOVATIVE ABILITY

The most important lever for Sud-Chemie’s internal growth and profitability
is a high level of innovative ability. The growths targets cannot be realized unless
succeed in translating technological leadership into new, superior and above all,
marketable solutions for the customers. To ensure that in its own specific areas of
activity Sud-Chemie remains on the leading edge of technological progress in the
long term and is able to expand its technology platform, internal research and
development processes were optimized from time to time.

 CONSISTENT CUSTOMER ORIENTATION

It is the customer who ultimately decides on a company’s growth and
its success. The aim is to bind customers in the long term based on outstanding
performance. Enhanced key account management activities have expanded the scope
of co-operation with major customers. As a result of the trend towards global
concentration, an increasingly large proportion of sales accrue from globally-active
enterprises holding strong market positions. Marketing activities have therefore been
geared more intensively towards these key customers.

 RESEARCH AND DEVELOPMENT

Sud-Chemie India started its R&D activities along with the

commencement of manufacturing operations in 1970. Because catalyst technology is
highly research oriented and have to keep pace with the developments worldwide.
During these years Sud-Chemie were not confined to improvements in conventional
catalysts as well. Today Sud-Chemie has to its credit, the honor of developing more
than 20 catalysts, all of which are performing successfully in India and abroad. The
latest from Sud-Chemie is Ultra Deep Hydro Desulphurization Catalysts for treating
Diesel which can reduce Sulphur to less than 50 ppm from 2500 ppm. A number of
catalysts developed are import substitution ones. R & D Division is supported by a
well-equipped Pilot Plant. From lab scale to Commercial Scale is achieved here. After
perfecting technology for commercial production it is passed on to the manufacturing
units.

49
  CERTIFIED COMPANY

All international certifications obtained by the company are solid proof

for the commitment to quality. They work with properly laid out systems and
procedures. There are well laid out procedures and work instructions so that nothing
is left to chance.

 R & D division of the company was certified ISO 9001 on 27/07/1999

 Cochin unit got its ISO 9002 certification on 18/06/1996
 Baroda Unit got its ISO 9002 certification on 04/04/1997.
 Cochin unit and R & D division has been certified ISO 14001 on 08/08/2000
Now all have been certified ISO 9001:2000 and ISO 14001 standard.

WEAKNESSES

 LABOUR ISSUES

The world has changed but Kerala has not, as far as the industrial
relations scenario in the state is concerned. Sweeping changes have taken place in the
world and the rest of the country, but we try to revisit our old values, beliefs and
practices and attempt to re-examine and possibility reposition ourselves in the world.
A detailed study conducted in the state reveals that the total number of man days lost
on account of strikes in Kerala shot up from 539,138 in 1997 to around 3.25 million
in 2005. Likewise, the man days lost on account of lockouts also went up from
418,035 to 1.85 million and man days lost due to layoffs also drastically went up from
1.38 million to 5.68 million. In line with this trend Edayar Unit had its share of
strikes/lock out in 1973 (14 days), 1975 (45 days), 1989 (40 days), 1998 (105days),
2003 (210 days) and 2004 (7 days). The need of the hour is for all stakeholders – the
government, managements, trade unions and the labour department to jointly plan and
execute certain identification common points of interest and concern.

OPPORTUNITIES

50
  BETTER USE OF NATURAL RESOURCES

Mankind is currently facing great challenges. We are consuming raw

materials at an increasing rate. Now arise the questions- How can natural resources be
utilized more effectively? How can we secure our energy in fuel needs, as oil become
more and more scare? What can we do to compact global warming? The answers to
these questions can only be found with the help of innovative solutions provided by
the chemical industry.

 NEW MARKETS

A good source of renewable transportation fuels and lubricants is non-

edible and used vegetable oils. Though vegetable oils can be directly used in diesel
engines, their high viscosity (often > times that of diesel) and low pour points prevent
their direct use. They can, however, be Trans – esterifies with lower alcohols,
typically methanol, into the fatty acid esters (FAME, fatty acid methyl ester) and used
as diesel substitutes. Already, more than 6 Million of biodiesel is produced globally
today, much of it in Europe, principally Germany. The major source of bio – diesel is
Rapeseed oil in Europe, while it is Soya bean oil in U.S.A. the Trans- etherification
reaction is catalyzed both by bases and acids. Catalyst industry has a future market in
the case of vegetable oils refining.

 GTL TECHNOLOGY
Worldwide demand for clean, reliable and affordable energy has never
been greater. New technologies are needed to produce more oil and natural gas from
remote or “stranded” locations. Gas to Liquids (GTL) conversion is an umbrella term
for a group of technologies that can create liquid hydrocarbon fuels from a variety of
feedstock’s. The conversion of natural gas into liquid fuels is an attractive option to
commercialize abundant gas reserves.

 GTL, with virtually unlimited markets, offers a new way to unlock large gas
reserves,
 Complementary to other traditional technologies such as Liquefied Natural
Gas (LNG) and pipelines. GTL has the potential to convert a significant

51
 percentage of the world’s estimated proved and potential gas reserves which
today holds little or no economic value. In essence, GTL uses catalytic
reactions to synthesize complex hydrocarbons from carbon monoxide and
hydrogen. So in short the GTL is an area where catalyst producers can look
ahead.

 ENVIRONMENTAL REGULATIONS

In the future, however, as environmental regulations abound and

refining processes become more sophisticated, there is room for new generations of
catalysts that may make the business more attractive for its participants.

 THREATS

The total sales of catalyst for oil refining industry come close to total
catalyst usage because very few oil companies make their own catalysts. The growth
rate in oil refining catalysts tends to track economic activity, so it is low; 1 or 2% at
best. “The business is growing at the rate of energy usage or slightly above because of
the need for more sophisticated processing”, says Rick Penning, assistant to the senior
vice president at catalyst technology supplier UOP and head of its catalysts business
task force.
Because the emphasis for refineries continues to be on cost reduction,
there is tremendous pressure to lower catalyst costs, to the detriment of catalyst
makers. Even though oil prices have corrected themselves in the past year, leading to
oil industry announcements of record profits, cost pressure remains. Therefore,
catalyst suppliers “have to always deliver better performance but at the same or a very
competitive cost”. However, if oil companies can extract value in the performance of
advanced catalysts, they are willing to pay a premium. A sophisticated new catalyst
that improves crude oil conversion just 1% will generate millions of dollars of
additional revenue that will justify its cost.

52
CHAPTER III
LITERATURE REVIEW

53
MEANING AND DEFINITION OF MOTIVATION
Motivation is an important factor which encourages persons to give
their best performance and help in reaching enterprise goals. A strong positive
motivation will enable the increased output of employee but a negative motivation
will reduce their performance.
According to Likert, "it is the core of management which shows that every human
being gives him a sense of worth in face-to-face group which are most important to
him. A supervisor should strive to treat individuals with dignity and recognition of
their personal worth."
Berelson and Steiner: "A motive is an inner state that energizes, activates, or moves
and directs or channels behaviour goals."

IMPORTANCE OF MOTIVATION
Management tries to utilize all the sources of production in a best
possible manner. This can be achieved only when employees co-operate in this task.
Efforts should be made to motivate employees for contributing their maximum. The
efforts of management will not bear fruit if the employees are not encouraged to work
more. The motivated employees become an asset to organization. The following is the
importance of motivation.
 High performance: Motivated employees will put maximum effort for
achieving organizational goals. The untapped reservoir, physical and mental
abilities are tapped to the maximum. Better performance will also result in
higher productivity. The cost of production can also be brought down if
productivity is raised. The employees should be offered more incentives for
increasing their performance. Motivation will act as a stimulant for improving
the performance of employees.
 Low employee Turnover and absenteeism: when the employees are not
satisfied with their job then they will leave it whenever they get and
alternative offer. The dissatisfaction among employees also increases
absenteeism. The employment training of now employees is satisfied with
their jobs and they are well motivated by offering them financial and non-
financial incentives then they will not leave the job. The rate of absenteeism
will also be low because they will try to increase their output

54
  Better organizational image: Those enterprises which offer better monetary
and non-monetary facilities to their employees have a better image among
them. Such concerns are Successful in attracting better qualified and
experienced persons. Since there is a better manpower to development
program, the employee will like to join such organizations motivational efforts
will simplify personnel function also.
 Better industrial relation: A good motivational system creates job
satisfaction among employees. The employment will offer them better service
conditions and various other incentives. There will be an atmosphere of
confidence among employers and employees. There will be no reason for
conflict and cordial relations among both sides will create a health
atmosphere. So motivation among employees will lead to better industrial
relations.
 Acceptability to change: The changing social and industrial situations will
require changes and improvements in the working of enterprises. There will be
need to introduce new and better methods of work from time to time
Generally, employees resist changes for fear of an adverse effect on their
employment. When the employees are given various opportunities of
development then they can easily adapt to new situations.

TYPES OF MOTIVATION
When a manager wants to get more work from his subordinates then he
will have to motivate them for improving their performance. They will either be
offered incentive for more work, or may be in the space of rewards, better reports,
recognition etc. Or he may install fear in them or use force for getting desired work.
The following are the types of motivation.
a. Positive motivation or incentive motivation
Itis based on reward. The workers are offered incentives for achieving
the desired goals. The incentives may be in the shape of more pay, promotion,
recognition of work, etc. The employees are offered the incentives and try to improve
their performance willingly. According to PeterDruker, the real and positive
motivators are responsible for placement, high standard of performance information

55
adequate for Self-control and the participation of the worker as a responsible citizen
in the plant community positive motivation is achieved by the co-operation of
employees and they have a reeling of happiness.

b. Negative motivation
It is negative or rear motivation is based on Force or fear. rear causes
employee to act in a certain way in case. they do not act accordingly they may be
punished do not willingly co-operate, rather they want to avoid the punishment.
Through employees work up-level where punishment is avoided but this type of
motivation causes anger and frustration.

Techniques to increase motivation

Every management cries to select certain motivational techniques
which can be employed for improving performance of its employees. The techniques
may be Suitably employed in one concern, other may be useful in another Concern
and so on. Motivational techniques may be classified into two categories i.e., financial
and non-financial. Both the categories of motivators are discussed as under.

A. Financial Motivators
Financial motivators may be in the form of more wages and salaries,
bonuses, profit-sharing, leave with pay, medical reimbursements, and company paid
insurance or any of the other things that may be given to employees for performance.
The economists and most managers consider money and financial incentives as
important motivators. Behavioral scientist, on the other hand, tends to place them low
neither view probably right.
Money is the most important to people who are young and are raising
their Families then to those who have aligned at stages when money needs are less.
Money needs go on changing from time to time. He may like to have a comfortable
house later on for some person money remain to be a motivator and for others it
organization and not primarily to motivate them. To attract persons an organization
will have to offer better wages.

56
 B. Non-Financial motivation
The motivators are in the nature of better status, recognition
participation security etc. Some of these motivators are discussed here.
i) Recognition: Every person wants his work to be recognized by his
Superiors. When he knows that his performance is known to his boss then
he will try to improve it more and more. The recognition may be in the
form of a word of praise, a pat on the back. a word of praise, a letter of
appreciation entry in annual confidential report etc. There may also be
awards, certificates, plaque etc. The recognition may be for better output,
saving the lime, improving quality of products etc. This type of
recognition will act as motivator. If the performance of person is not
recognized and everybody treated on the same footing, then good persons
will not like to put their best efforts.
ii) Participation: Participation has considered a good technique for
motivation. It implies physical and mental involvement of people-making
process. It satisfies ego and self-esteem of persons. They important when
asked to make suggestions in their held of activity. They will face and their
possible solutions. Participation results in motivation and knowledge
valuable for the enterprises Success. Participation gives a sense of
affiliation and accomplishment. It certainly acts as motivator.
iii) Status: It refers to a social status of person and it satisfies egoistic needs.
A management may create some status symbols in the organization. This
can be done by way of giving various facilities to the persons. These may
be superior furniture, carpets on the floor attachment of peons; personal
assistant etc. to get these facilities a person will have to show a certain
amount of performance. When a person achieves certain facilities then he
tries to get better status by working more. In this way needs act as
motivator.
iv) competition: in some organization's competitions is used as a motivator.
Various persons are given certain objectives and everybody tries to
achieve those head of others. There may be praises, appreciation letters,
and financial incentives to those who reach the goal first. The competitions
encourage persons to improve their performance.

57
 v) Job Enrichment: Job enrichment has been recognized as an important
motivator by various researches. The job is made more important and
challenging for the workers may be given wide latitude in deciding about
their work methods. It brings more job satisfaction and high morale. So it
is a recognized device motivation. Theories of motivation From the very
initial stages, when human organization was established, people had tried
to and out the answer to one question: what motivates people maximum?
The advocates of scientific management and the classical theorists through
those men were primarily interested in satisfying their basic needs of food,
shelter, security etc. and therefore, wanted to maximize economic gain.
They attempted to link performance and productivity with monetary
rewards and the various incentive schemes. It is due to this reason that
F.W TAYLOR gave the concept or SCIENTIFIC MANAGEMENT and
the different piece system for motivating the workers.
There are basically two types or theories which relate Io and define the
motivational process. These arc the (i) CONTENT THEORIES, which attempt to
determine and Specify the drives and needs that motivate people to work and, (ii)
PROCESS THEORIES. Which attempt to identify the variables that go into
motivation and their relationship with each other. In the content theories the most
important theories are given by Maslow, Herzberg Me Gregor, Alderfer. In the
process theories we include the theories given by vroom and porter and Lawler. The
major ingredients of these theories are explained as follow.

1. MASLOW'S NEED HIERARCHY THEORY

Probably the most widely known theory of individual need and
motivation comes from Abraham Maslow who was clinical psycho gist in USA,
Maslow. He suggested that every at a particular moment is usually determined by his
strongest need. According to psychologists', human needs have a certain priority. As
the more basic needs are Satisfied the individual seek to satisfy the higher needs. If
the more basic needs are not satisfied. Efforts to satisfy the higher needs will be
postponed. Maslow started that people have Nye basic levels or needs which they lend
to satisfy in a hierarchical Fusion. He proposed that human needs can be arranged in a

58
particular order from the lowest level need to the highest level need. This hierarchy of
human needs is shown in the following figure.

N n
on eeds
eeds
Nee ds
Needs
Actical
ua liza ti
E st eem
Safety
Social
Se lf- g
P hysiolo

1. PHYSIOLOGICAL NEEDS
The physiological needs take at the first or starting step for motivation
theory because these are the strongest in it until they are reasonably satisfied. there are
basic body needs comprising of hunger, thirst, shelter, clothing and other necessities
of life human beings first try to acquire this basic necessities of life only they when
did you move to the second level of needs.

2. SAFETY NEEDS
In the hierarchy or need the second need are safety and security needs.
Once a reasonable level or physiological needs is satisfied the human being tends to
satisfy the second level or human beings tend to satisfy the second level of needs
which are security and stability. The satisfy and security needs dwell upon economic
and Job security, security or Source of income, provision For old age, insurance
against risk, medical insuranc3e and other protective measures to safeguard the
satisfaction of physiological needs in the future which may be unpredictable.

59
 3. SOCIAL NEEDS
Once the second level is satisfied, human beings strive to satisfy their
social needs, Man is a social animal. He wants to belong to a social group where his
emotional needs rot love, affection, warmth and friendship are satisfied. Social needs
can be satisfied by being in the company of friends, relatives or group Such as work
groups or voluntary groups

4. ESTEEM NEEDS
Forth in the hierarchy of needs are ego or self-esteem needs which are
concerned with self-respect, self-confidence recognition appreciation applause, power
and control. These needs give the individuals a sense of self-worth and ego
satisfaction.

5. Self-Actualization Needs
At the top of the hierarchy is the need for self-actualization or the need
to fulfill what a person considers to be the mission in his life. After all his other needs
are fulfilled, a man has the desire for personal achievement. He wants to do something
which is challenging and since this challenge give him enough push and initiative to
work, it is beneficial to him and the society.
Thus, Maslow suggested the following points:
i) There are five levels of needs.
ii) All these needs are arranged in a hierarchy.
iii) A satisfied need is no longer a need. Once a need or a certain order of need
is satisfied it ceases to be a motivating factor.
Maslow theory has been widely appreciated
 It helps the managers in understanding how to motivate the employees.

 This theory is very simple common and easily understandable.

 Inter-personal and infra personal behaviour

 research have proved that there is lack of hierarchical structure of needs as

suggested by Maslow, though every individual has some ordering for his need

60
 satisfaction some people may be deprived of their lower level needs but may
strive for self-actualization needs. The example of MAHATHMA GANDHI is
one of the most important. There are always some people ion whom, the need.
 Another problem is that there is a lack of direct cause and effect relationship
between need and behavior one particular need may cause different type of
behavior in different person. On the other hand, as a particular individual need
hierarchy is not as Simple as it appears to be.
 Need and satisfaction of needs is a psychological feeling. Sometimes even the
person may not be aware about his own needs. How can the managers come to
know about these needs?
 Some people say that hierarchy of need simply does not exist. At individual
motivated by self-actualization needs cannot afford to forget his food. But this
criticism is solved by Maslow by Saying that needs are interdependent and
over lapping.
 Another problem with this theory is the operationalization of some of his
concepts which makes it difficult for the researchers to test his theory for
instance, how does one measure Self-actualization.

2. ALDERFER’S ERG THEORY

The ERG need theory developed by Alderfer condenses the five needs given by
Maslow into three needs. The ERG Word is derived tom the first letters of each of
these levels of needs. These three needs are:

 Existence Needs: Thee existence needs combine the physiological and safety
needs of material incentives. These needs include the basic survival needs of
human beings, needs for physical and psychological safety from threats to
people's existence and wellbeing.
 Relatedness needs:-The relatedness needs. Include Maslow's social and
esteem needs which are derived from other care about. These needs are
satisfied by personal relationship and social interactions.
 Growth Needs:-These needs are similar to Maslow`s self-actualization needs.
This need involves persons making creative efforts to achieve full potential in
the existing environment. These needs will be satisfied only if an individual

61
 involves himself in the activities or the organization and searches rot new
challenges and opportunities.

Advantages of ERG Theory

i) Alderfer's ERG theory is more consistent with our knowledge of
individual difference among people. Every individual will have different
importance for different group of needs depending upon his education,
family background and cultural will environment. A very qualified person
will value the growth needs more than the social needs or even the
existence needs. On the hand, a person who belongs to a very poor family
will rule the existence needs more important.
ii) ERG Theory takes the strong points of the earlier content theories but it is
less restrictive and limiting as compared to the others.

Limitations of ERG Theory

i) The ERG Theory does not offer clear cut guidelines. This theory says that
an individual can satisfy any of the three needs first. But how will we
determine which of the three needs is more important i1 that person.
ii) This Theory is a new concept as compared to the Maslow's theory.
Alderfer`s research has indicated some degree of support for the theories
but get it is too early to pass judgment on the overall validity of the theory.

3. HERZBERG'S MOTIVATION-HYGIENE THEORY

Fredrick Herzberg and his associates developed the MOTIVATION
HYGIENE THEORY, commonly known as the two factor theory, in the late 1950’s
and early 1960's. Herzberg and his associates conducted a research based on the
interview of 200 engineers and accountants who looked for 11 different firms in
Pittsburgh area, USA. The purpose of the research was to find out as to what variables
are Perceived to be desirable goals to achieve and conversely, undesirable condition
to avoid. During the course of the interviews, these men were asked to describe a few
previous job experience in which they fell exceptionally good" or exceptionally bad"
about jobs. They were jobs. They were also asked to rate the degree of which their
feelings were influenced for better or worse by each experience which they described.

62
Based upon the answers received from these 200people, Herzberg concluded that
there are certain factors that tend to be consistently related to job satisfaction and on
the other hand, there are some factors, which are consistently related to job
dissatisfaction. The last of job condition, he referred to as MAINTENANCE OR
HYGIENE factors and the first job condition as motivational factors. The
motivational factors are intrinsic in nature and the hygiene factors are described are
intrinsic in nature and the hygiene Factors are extrinsic in nature. These two factors
are described in detail as follows.

a. Hygiene Factors
Hygiene factors or the Maintenance Factors do not Motivate People,
they Simply prevent dissatisfaction and maintain status QUO. Such factors do not
produce positive result but prevent negative result. If these Factors are not there it will
lead to job dissatisfaction. These are not motivators, as they maintain a zero level of
motivation or in other words, these factors do not provide any satisfaction but
eliminate dissatisfaction. According to Herzberg there are ten maintenance or hygiene
factors.
1. Company policy & Administration Technical
2. supervision
3. Inter-personal relations with supervisor
4. Inter-personal relations with peers
5. Inter-personal relations with subordinates
6. Salary
7. Job security
8. Personal Life
9. Working conditions
10. Status
The word hygiene is taken From the medical science, where it means
taking preventions to maintain your health but not necessarily improve it. Similarly,
hygiene factors in this theory prevent damage to efficiency but do not encourage grow
Se are also called dissatisfies.

63
 b. Motivational Factors
These factors are intrinsic in nature and are related to the job. The
motivational factors have a positive effect on job satisfaction and often result in an
increase in total output. Thus, these factors have a positive influence on morale,
satisfaction, efficiency and productivity. Herzberg concluded that Six factors motivate
the employees:
1. Achievement

2. Advancement

3. Possibility of growth

4. Recognition

5. Work itself

6. Responsibility
Any increase in these factors will improve the level of satisfaction,
thus, these factors can be used for motivating the employees. Based on his research,
and Herzberg stated that managers have hitherto been very much concerned with
hygiene factors. As a result they have not been able to obtain the desired behavior
from the employees. In order to increase the motivation, it is necessary to pay
attention to the motivational factors.
He further concluded that today's motivational factors are tomorrow's
hygiene factors. Because once a need is satisfied, it stops influencing the behavior.
Further, one persons' hygiene may be another person's motivator, because motivation
is also influenced by the personality characteristic individuals Critical analysis of the
theory Herzberg's theory is appreciated on the ground that it provides an insight into
the task of motivation by drawing attention to the job factors which are often
overlooked. It shows the value of job enrichment in motivation. Thus, Herzberg's
theory has Solved the problems of managers who are wondering why their policies
failed to motivate the employees adequately.
However, this theory has also not gone unchallenged. It has been criticized on the
following grounds:
 Not Conclusive- Herzberg study was limited to the engineers and accountants.
The critics say that this theory is not conclusive because the professionals e

64
 the white collar workers may like responsibility and challenging jobs. But the
general workers are motivated by pay and other benefits. The effect of hygiene
and motivational factors may totally be reserve on some other categories of
people.
 Methodology- another criticism of this theory is directed at the method at the
method of research and data collection. The interviewers were asked lo report
exceptionally good or exceptionally bad job experience. This methodology is
defective because such information will always be subjective and biased.
 Job Enrichment- is theory has given to much emphasis on job enrichment and
has totally ignored job satisfaction of the workers. He didn't attach much
importance to pay status or inter personal relationship which is generally held
as great motivators.

4. MCGREGOR’S THEORY X and THEOREY Y

Douglas McGregor introduced these two theories I.e., Theory x and
theory based on two distinct views of human beings, He proposed, at opposite
extremes, two pairs of assumptions about human beings which he thought were
implied by the actions by the actions of the managers. Theory X deals with one
extreme, based on one manager. Theory x deals with one extreme, based on one set
assumptions and theory Y, deals with another extreme based on any research, but
according to McGregor, these are intuitive deduction.
Theory x this theory is based on the traditional approach to human
behavior. The assumptions generally, held by the managers in this theory are:
 The average human beings inherently dislike work and will try to avoid it
whenever possible.
 As the employee are lazy, they must be controlled, coerced, threatened with
punishment to achieve goals, to which they are indifferent.
 Average employees will try to avoid responsibility and seek formal directions
whenever possible, because they have relatively little ambition.
 Most workers place security above all other factors associated with work.
These assumptions l human nature are negative in their approach
managers who advocate these views reel that extreme control is most appropriate For
dealing with irresponsible and immature employees. This is an autocratic style or

65
leadership based on the 1radicional theory of what workers are like and what workers
are like and what management must do to motivate them. Workers have to be
persuaded and pushed into performance. Theory Y. this approach assumes that
management by direction and control is a questionable method for motivating Such
people whose physiological and social needs have been satisfied and whose social
esteem and self-actualizations needs are becoming more important. For such people,
theory Y, Seems to be applicable, which is the contrast of theory, makes the following
assumptions about people
 The average human being does not inherently dislike work. He can
view work as natural or enjoyable as rest or play.
 Employees will exercise self-direction and self-control in the
attainment of the objectives to which they are committed.
 Given proper working conditions, average person can learn to accept
and even to seek responsibility. Commitment to objective is a function
of the rewards associated with their achievement.
 All the people are capable of making innovate & creative decisions and
the decision making is not the sole province of the people in
management positions. This theory has assumed a new approach in
management. It emphasizes on cooperation between management and
employees. McGregor himself holds that the assumptions of theory Y
are more valid then theory X. thus, delegation of authority, job
enlargement, management by objectives and participate management
techniques are great motivators for the employee.

APPLICABILITY OF THEORYX AND THEORY Y

Theory X and Y represent two extremes. No person can belong to
these two extreme situations. Each person possesses the traits of Theory X and Y,
though the degrees may be different under different situation. Though, no
generalization can be made, Still it appears that theory X is more applicable to
unskilled and uneducated lower class workers who work for the satisfaction of their
physiological needs only. Theory Y appears to be applicable to the educated, skilled
and professional employees
Who understand their responsibilities and do not need any direction
and control however, there can be exceptions. A lower level employee may be more

66
responsible and mature than a well-qualified high level employee. Still these theories
are very important tools in understanding the behavior of human and in designing the
motivational schemes. The management should use a combination of both the theories
to motivate different employees.

5. THEORY Z
William Ouchi proposed theory Z in early 8Ys. The letter Z does not
stand for anything. It is just to denote the state of affairs in organization and human
behavior as has been done in case of theories X and Y. Ouchi came out with this
theory after making a comparative Study of American and Japanese management
practices. It is an integrative model, containing the best both American and Japanese
practices. It takes into account the strengths of Japanese Management. e.g. social
cohesion, job security, concern of employees, as well as American Management e.g.
speedily decision making, risk skills individual autonomy, innovation and creativity
Theory Z is a mixed US-Japanese Management System for modern Organizations.

FEATURES OF THEORY Z
Theory Z as proposed by William Ouchi has the Following characteristics:

1. Trust
Trust and openness are the building blocks of Theory Z. The
organization must work toward trust, integrity and openness. In Such atmosphere, the
chances of conflict are reduced to the minimum. Trust, according to Ouchi, means
trust between employees, supervisors, work groups, management, unions and
government.

2. Organization-Employee Relationship
Theory Z Suggests strong linkages between employees and the
organization. It argues for the employment for people in the organization. To ensure
stability of employment managers must make certain conscious decisions when there
is a situation of layoff. For example, it should be followed and instead, the
owners/shareholders may be asked to bear the losses for a short while. To prevent
employees from reaching a 'plateau' promotion may be slowed down. Instead of

67
vertical progression, horizontal progression may be encouraged at various levels
Career path for employees must be laid down clearly so that employees aware of what
They can achieve and to what extent they can grow within the organization, over a
period of time.

3. Employee Participation
Participation here does not mean that employees should participate In
all organizational decision. There can be s situation were management may arrive at a
decision without consulting employees. A decision where employees are invited to
suggest but the Anal green Signal given by the management. But all decisions where
employees are affected must be subjected to a participate exercise, where employees
and management sit together, exchange views, take down notes and arrive at decisions
jointly. The basic objective of employee`s involvement is to give recognition to their
Suggestion, problems and ideas in a genuine manner.

4. Structure less Organization

Ouchi proposed a structure less organization run, not on the basis of
Formal relationship specialization of tasks and position but on the basis of team work
and understanding organization, emphasis must be on team work and operation, on
sharing of information, resources and plans at various levels without any Actions. To
promote a System Thinking among employees, they must be asked to take turn in
various levels, to find out how their work affects others. It also makes employees
relies the meaning of word such as reconciliation, adjustment give and take in an
organization.

5. Holistic concern for employees

To obtain commitment from employees, leaders must be prepared to
invest their time and energies in developing employee's skills, in sharing their ideas
openly and frankly. In braking the class barriers, in creating opportunities for
employees to realize their potential the basic objective must be to work cooperatively,
willing and enthusiastically the attempt must be to create a healthy work climate
where employees do not see any conflict between their personal goals organizational
goals.

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 Indian companies have started experimenting with the ideas of theory
Z in recent times, notably in companies like MarutiUdyog Limited and Bharat Heavy
Electronics Limited (BHEL). In these companies, the work place is designed to the
Japanese pattern by having a common canteen, a common uniform for both the
officers and the workers etc. Other ideas of Ouchy such as lifelong employment
imbibing a common work culture, participative decision making, structure less
organization, owners bearing temporary losses in order in provide a cushion for
employees may be difficult to implement in Indian Companies because of several
complication problems. The differences in culture, caste. Language, religion etc. often
come in the way of transforming the theory into concrete action plans.

6. VROOM’S EXPECTANCY THEORY

Victor Vroom made an important contribution to the understanding of
the concept or motivation and the decision processes that people use to determine how
much effort they will expend on their Jobs. Criticizing Herzberg's two factors theory,
he said that a person’s that motivation towards an action at any time would be
determined by an individual`s perception chat a certain type or action at any time
would led to a specific outcome and his personal is preference for this outcome. This
model is based on the belief that motivation is determine by the nature of the rewards
people expect to gel as a result or their job performance. Because man is a rational
human being he will try Io maximize the perceived value of such rewards. People will
be highly motivated if they are made to believe that if they behave in a particular way,
they will receive variables in vroom's model given in the form of an equation. Since
the model is a multiplier, all the three variable must have high positive value to imply
motivated performance choices. If any of the variables is zero, the probability of
motivated performance tends to be zero.

MOTIVATION= VALENCE 8* EXPETANCY *

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INSTRUMENTALITY
These entire three variables are explained as follows:

1. Valence.
Valance means the attraction (or repulsion) of an outcome to the
individual. Whenever an individual has preference for a reward valance is the strength
of that preference. The valence is something Subjective and varies from person to
person. Valance is deemed to be positive rot an individual if he prefers attaining the
outcome to not attaining it. Valance is zero, if the individual towards the outcome and
the valence will be negative if the individual prefers not attaining the outcome to
attaining it. In simple words we can say that the worker must value the reward as
desired and satisfactory. It is not the actual value of the reward, but the perceived
value or the reward in the mind of the worker which is important. For example, a
person who is more interested in getting recognition for the hard work will not have
any valance for cash reward.

2. Expectancy.
It is also referred to as the effort-performance probably. It refers to the
extent to which the person believes his effort will lead to the first level outcome i.e.,
completion of the task. Expectancy is the probability that a particulate action will lead
to the outcome, if is the perception in the mind of the individual of the like hood that a
particular action or behavior will lead to a certain outcome. Since it is an association
between effort and performance. It’s value can range between 0 and I. If the
individual feels that the probability of achieving an outcome is zero, he will not even
try. On the other hand, it probability is higher; he will put more effort to achieve the
desired outcome.

3. Instrumentality
(Performance-Reward Probability). Instrumentality refers to the
probabilities attached by the individual to each possible performance-outcome
alternative just as the individual previously assigned probabilities to various levels of
effort leading to different levels of performance (expectancy). In simple words,
instrumentality refers Io the belief and expectation of a person that his performance

70
will lead to a particular desired reward. For example, if an individual wants a
promotion and feels hat superior performance is very important in receiving the
promotion. Superior performance (First level outcome) will be instrumentally also
varies between0 to 1 as it is also probability of achieving the desired outcome.
As the relationship Suggests,(motivation-VXEXI) motivation force
will be highest when all the three factors are high and the force will be reduced when
any one or more of valence, expectancy or instrumentality approaches zero. Vroom's
model can also be depicted graphically as given in the figure.
The management must recognize and determine the situation as if
exists and take steps to improve up on these factors for modification of behaviour, so
that highest value can be achieved individually. Management for example, can deal
with the different situation in the following way.

a. Low effort – performance Expectancy

Reason Steps to be taken

Lake of necessary & training, so that Management should provide
the workers do not know that their opportunities for training to Improves
extra efforts will lead to better kills in order to improve effort
performance performance relationship

b. Low performance – Reward Instrumentality Relationship

Reason Steps to be taken

Reward policy may be inconsistent and Management should be re-evaluated
may depend upon factors other than the appraisal techniques and
performance which the worker may not formulate policies’ that strengthen
be aware of or may not consider fair his relationship was just and
equitable

71
 c. Low reward – valance

Reason Steps to be taken

The reward may not be desirable for the Management must investigate the
some workers. May find monetary desirability of the rewards which are
rewards desirable while some others may given on the basis of performance.
value recognition more.

Advantages
Vroom’s theory has become very popular and it has provided an alternative to content
theories, which according to him, were inadequate explanation of the complex process of
work motivation. The plus points of this theory are:

1. The expectancy model is highly useful in understanding organizational

behavior. It can improve the relationship between the individual and the
organizational goals. These models reveal that individual behavior is oriented.
2. The expectancy theory is a cognitive theory. This values human dignity.
Individuals are considered rational human beings who can anticipate their
future on the basis of their beliefs and expectations.
3. This theory helps the managers in looking beyond what Maslow and Herzberg
implied. According to him motivation does not mean satisfying the unsatisfied
needs. The managers must make it possible for an employee to See that effort
can result in appropriate need satisfying rewards. This level of expectations
will improve the motivation to work.

Despite these plus points, there are some drawbacks of Vroom's expectancy
model as given below:
(i) Vroom theory is difficult to research and apply in practice. This is evident
by the fact that have been a very few research Studies designed
specifically to test Vroom's theory.
(ii) This theory assumes man to a rational human being who makes all the
decision consciously. But there are numerous instances where decisions

72
 are taken with no conscious though. This is particularly true for routine
jobs.
(iii) Although, it is an important theory of motivation but it is quite complex.
Many managers, in actual organizational situations, do not have the time
or Sources to use a complex system on the job.
To conclude, we can say that from the theoretical point of view, this model is a step in
the right direction, but from practical point of view, it does not help the manager in
solving the complex motivational problem.

7. PORTER AND LAWLER MODEL OF MOTIVATION

Lyman Porter and Edward Lawler up with a comprehensive theory of
motivation, combining the various aspects that we have so Far been discussing and
using to additional variables in model. Though built in large par1 on Vroom's
expectancy model, porter and Lawler's model is a more complete model of
motivation. This model has been practically applied also in their study of managers.
This is a multi-variety model which explains the relationship that exists between job
attitudes and job performance. This model is based on four basic assumptions about
human behavior:
I. As mentioned above, it is a multi-variety model. According to this model
individual behavior is determined by a combination of factors in the individual
and in the environment.
II. Individuals are assumed to be rational human being who makes conscious
decisions about their behavior in the organizations.
III. Individuals have different needs, Desires and goals.
IV. On the basis of their expectations, individuals decide between alternate
behaviour’s and such decided behaviour will lead to desired outcome.
Such various element of this model are explained in the following figure.
The various elements of this model are as follows:
i) Effort- Effort refers to the amount or energy which a person exerts on a
job.

73
ii) Value or Reward- First of all people try b figure out whether rewards that
are likely be received from doing a job will be attractive to them. This is
referred to as valence in Vroom's theory A Person who is looking for more
money. For him for example, extra vacation time may not be attractive or
valet, then the individual will Put extra efforts to perform the job,
otherwise he will lower his effort.
iii) Perceived Effort Reward Probability- In addition, before people put
forth any effort, they Will also try to assess the probability of a certain
level of effort leading to a desire level of performance and the possibility
of that performance leading to certain kinds of rewards. Based on the
valence of the reward and the effort rewards probability, people can decide
to put in certain level of work effort.
iv) Performance- Effort leads to performance. The expected level of
performance will depend upon the amount of effort, the abilities and traits
of the individual and his role perceptions. Abilities include knowledge,
skills and intellectual capacity to perform the job. Traits which are
important for many jobs are endurance, perseverance, and goal
directedness. Thus abilities and traits will moderate the effort performance
relationship. In addition, people performing the jobs should have accurate
role perception which refers to the way in which people define their jobs.
People may perceive their roles differently. Only those, who they put Forth
the requisite effort.
v) Rewards- performance leads to certain outcomes in the shapes of two
types of rewards namely extrinsic rewards and intrinsic rewards.
vi) Extrinsic rewards are the external rewards given by others in the
organization in the form of many, recognition or praise Intrinsic rewards
are internal feeling of job, self-esteem and sense of competence that
individuals feel when they do go a good job.
vii) Satisfaction- Satisfaction will result from both extrinsic and intrinsic
rewards. However, For being satisfied, an individual will compare his
actual reward with the perceived reward if actual reward meet or exceed
perceived equitable reward, the individual will feel satisfied and if these
are less than the equitable rewards, the individual will feel dissatisfied.

74
SIGNIFICANCE OF THE POR'I`ER AND LAWLER MODEL
Porter and Lawler model is a departure from the traditional analysis of
satisfaction and performance relationship. In practice, we And that motivation is not a
simple cause and effect relationship, rather it is a complex phenomenon. This model
is of great significance to managers since it sensitizes them to focus their attention on
the following points to keep their employees motivated.
1. Match the abilities and traits of individuals to the requirements of the job by
putting the right person on the right job.
2. He should carefully explain to the subordinates their roles or what they Must
do to be rewarded. Then he must sure that they understand it.
3. prescribe in concrete terms the actual performance level expected of the
individuals and these levels should be made attainable.
4. To achieve and maintain motivation, the appropriate reward must be
associated with successful performance.
5. Make sure that the rewards dispensed are employees. Thus, he should value by
the employees. Thus, he should find out what rewards are attractive to the
employee and see if such rewards can be given to him.
Porter and Lawler model has definitely made a significant contribution
to the better understanding of work motivation and the relationship between
performance and satisfaction. But even then to date it has not made impact on the
actual practice of Human Resource Management.

9. MCCLELLAND NEED THEORY OF MOTIVATION

Another appreciable contribution to concept of motivation McClelland’s Need
Theory. According to McClelland’s there three major motives or needs in work place,
which motivate the people. These are:
a. The Need for Achievement. Some people have high achievement motivation.
They want to excel to achieve standards and Strive succeed. Such people
should be given task and powers enabling them to utilize their potential
effectively. Opportunities would help them to stream for higher achievement.
b. The Need for Power. The need for power is concerned with influencing
others and winnings arguments. People with high need for power derive

75
 satisfaction from being in position of influencing and control. To motivate
such people positions of power and authority should be given to them.
c. The Need for Affliction. Some people need and Desire friendly and close
interpersonal relationships.
According to this theory, every person has three types of need maybe
in varying degrees. The motivator should use motivated to the extent to which each
person needs it. Each person has physiological and satisfy needs also. This must also
be satisfied.

Limitations
It is suffers from the following limitations:
 Need and satisfaction of deeds is a psychology thing. Sometimes even the
person may not be aware of his own needs. In such case, it will be difficult for
the manager to understand the employee’s needs.
 There is no directive cause and effect relationship between need and behavior.
One particular need main course different types of behavior in different
positions. On the other hand a particular individual behavior may be the result
of different needs.
 The physiology KL and satisfied needs are more important as compared to
McClelland’s needs.

10. REINFORCEMENT THEORY OF MOTIVATION

Reinforcement theory is a counter point to the goal setting theory.
These theories are at odds philosophically. Reinforcement theories believe that
behavior of people is environmentally caused. They argue that one need not be
concerned with internal cognitive events, what control behavior reinforce any
consequence that, when immediately following a response, increases the probability
that the behavior will be repeated.
Strictly speaking, Reinforcement theory is not a theory of motivation.
However, it provides a powerful means of analysis of what control behavior.
Reinforcement is important influence behavior. However, onl5 a few scholars are
prepared to argue that it is the only influence. The behaviors one engages in at work

76
and the amount of effort one allocates to each task are affected by the consequences
that follow from one’s behavior.

11. GOAL SETTING THEORY

Edwin Locke proposed that intention to work toward a goal is a major
source of work motivation. Goal tells an employee what needs to be done and how
much effort to be put in. specific goal increase. Performance, Difficult goals when
accepted, result in higher performance than do easy goal. Moreover, feedback leads to
higher performance than does non-feedback.
Goal setting theory emphasis the following points:
1. If factors such as ability and acceptance of the goal are held constant, it can be
Stated that more difficult goal, the higher the level of performance.
2. Feedback helps to identify what they have done and what they want to do.
3. Feedback is not equally potent. Self-generated feedback-where the employee
is able to monitor his or her own progress-has proved to be a more powerful
motivator than externally generated feedback.
4. A major advantage of participation may be increasing acceptance of the goal
itself a desirable one to word which to work.
5. There are four factors which influence the goal-performance relationship.
 Goal Commitment
 Self-Efficacy
 Task characteristics
 National Culture

77
 CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION

78
 1. Promotional opportunities.
Table: 4.1

Sl. Responses Number of Percentage

No respondents (%)
1 High 33 55
2 Moderate 18 18
3 Low 9 15
Total 60 100

percentage(%)

15%
30%
high
moderate
low

55%

Chart: 4.1

INTERPRETATION:

55% of employee’s opinion that the promotional opportunities available in SUD-

CHEMIE are high. 30% of employees feel moderate. While 15% of employees have
an opinion that promotional opportunities were low. Thus it is clear from the chart
and diagram that the employees are highly satisfied with the promotional
opportunities.

2. Personal growth opportunities

Table: 4.2

79
 Sl. Responses Number of Percentage
No respondents (%)
1 High 30 50
2 Moderate 30 50
3 Low 0 0
Total 60 100

percentage(%)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
high
moderate
low

Chart: 4.2

INTERPRETATION:

An equal amount of 50% for high and moderate each is the option level from the
employees regarding personal growth. The employees opine that there is personal
growth and opportunities in the organization.

3. Recognition
Table: 4.3

Sl. Responses Number of Percentage

No respondents (%)
1 High 30 50

80
 2 Moderate 30 50
3 Low 0 0
Total 60 100

percentage(%)

50
45
40
35
30
25
20
15
10
5
0
high
moderate
low

Chart: 4.3

INTERPRETATION:

An equal amount of 50% of high and moderate each is the option level from the
employees regarding recognition. The employees opine that there is recognition with
the organization.

4. Responsibility:

Table: 4.4

Sl. Responses Number of Percentage

No respondents (%)
1 High 45 75
2 Moderate 15 25
3 Low 0 0

81
 Total 60 100

Percentage(%)

35

65

HIGH MODERATE LOW

Chart: 4.4

INTERPRETATION:

25% employees feel moderately responsible where as a majority of 75% employees

feel highly responsible. The table and diagram clearly shows that majority of
employee feels high level of responsibility.

5. Achievement:
Table: 4.5

Sl. Responses Number of Percentage

No respondents (%)
1 High 39 65
2 Moderate 21 35
3 Low 0 0
Total 60 100

82
 Percentage(%)

35%
HIGH
MODERATE
LOW
65%

Chart: 4.5

INTERPRETATION:

65% of employees opine that they experience high level of achievements. The
remaining 35% employee feels moderate level of achievement. So from the table and
chart shown clearly evidence that the employees experience high level of
achievement.

6. Leave:
Table: 4.6

Sl. Responses Number of Percentage

No respondents (%)
1 High 30 50
2 Moderate 24 40
3 Low 6 10
Total 60 100

83
 Percentage(%)

50

40

high moderate low

Chart: 4.6

INTERPRETATION:

10% employees have opinion regarding the leave factor. 50% employees have opinion
while 40% employees have a moderate opinion in this regard. Thus from the chart and
graph it is clear that the employees have a high and moderate opinion regarding the
leave factor.

7. Salary increase:

Table: 4.7

Sl. Responses Number of Percentage

No respondents (%)
1 High 36 60
2 Moderate 24 40
3 Low 0 0
Total 60 100

84
 percentage(%)

moderate
40%

high
60%

high moderate low

Chart: 4.8

INTERPRETATION:

40% employees are selected moderate opinion towards salary increase while the rest
60% employees selected high opinion towards it. The chart and graph clearly shows
that the employees are highly in favor of salary increase.

8. Reward system:
Table: 4.8

Sl. Responses Number of Percentage

No respondents (%)
1 High 30 50
2 Moderate 27 45
3 Low 3 5
Total 60 100

85
 Percentage(%)

low
5%

high
high moderate
moderate 50% low
45%

Chart: 4.8

Interpretation:

Maximum employees support the reward system. Employer is considering the values
of employees. A 5% of employees opine it is a low system of reward. It shows the
employees are satisfied with reward system.

9. Status:
Table: 4.9

Sl. Responses Number of Percentage

No respondents (%)
1 High 33 55
2 Moderate 24 40
3 Low 3 5
Total 60 100

86
 Percentage(%)

low low; 5

Percentage
moderate moderate; 40

high high; 55

0 10 20 30 40 50 60

Chart: 4.9

INTERPRETATION:
55% of people have high opinion towards the factor, status while the rest 40%
employees have opinion have moderate. Here 5% employees have low opinion. The
chart exhibits that the majority of employees have moderate option towards status.

10. Incentive:

Sl. Responses Number of Percentage

No respondents (%)
1 High 30 50
2 Moderate 27 45
3 Low 3 5
Total 60 100
Table: 4.10

87
 Percentage(%)

5%

High
Moderate
Low
50%
45%

Chart: 4.10

INTERPRETATION:

50% of employees have satisfaction on their salary. Here 45% of employees have a
moderate opinion on this. And 5% of the employees opine that it is low. Thus it is
evident from the chart and graph that the majority of employees have moderate
opinion towards status.

11. Motivational talk:

Sl. Responses Number of Percentage

No respondents (%)
1 High 18 30
2 Moderate 33 55
3 Low 9 15
Total 60 100
Table: 4.11

88
 Percentage(%)

60

50

40

55
30

20 30

15
10

0
high moderate low

Chart: 4.11

INTERPRETATION:

The motivational talks of superiors are voted 55% moderate and a 30% of employees
opine that it is high. And the employees who opine it is low are 15%. For the chart
and graph it is evident that majority of employees have moderate opinion towards
motivational talks.

12.Learning opportunities:

Sl. Responses Number of Percentage

No respondents (%)
1 High 39 65
2 Moderate 21 35
3 Low 0 0
Total 60 100
Table: 4.12

89
 Percentage%

MODERATE
35%

HIGH
65%

Chart: 4.11

INTERPRETATION:
35% of employees have a moderate opinion regarding the learning opportunities
available to them. 65% employees have high opinion in this regard. Hence it is clear
from the chart and diagram that the employees have moderate response towards the
learning opportunities available to them.

13.Job security:

Sl. Responses Number of Percentage

No respondents (%)
1 High 39 65
2 Moderate 21 35
3 Low 0 0
Total 60 100
Table: 4.13

90
 Percentage%

MODERATE
35%

HIGH
65%

Chart: 4.13

INTERPRETATION:

35% employees have moderate opinion regarding the job security. 65% employees
have high opinion regarding this. Thus the chart and graph clearly shows that the
employees feel highly secured with job.

14. Physical working condition:

Table: 4.14

Sl. Responses Number of Percentage

No respondents (%)
1 High 36 60
2 Moderate 24 40
3 Low 0 0
Total 60 100

91
 Percentage(%)

60

40

Hi gh M o d er a t e Low

Chart: 4.14

INTERPRETATION:

Working condition of the company is voted 60% of employees as satisfied and other
40% voted it is moderate. From the graph we can conclude that the employees are
highly satisfied with their physical working condition.

15.Quality of supervision:

Sl. Responses Number of Percentage

No respondents (%)
1 High 33 55
2 Moderate 27 45
3 Low 0 0
Total 60 100
Table: 4.15

92
 Percentage

High
Moderate
45% Low

55%

Chart: 4.15

INTERPRETATION:

Quality of supervision is totally showing a good hike. 55% employees opine it is a

very good level. And other 45% shows it is moderate. Considering all votes the
company is having a good level of supervision.

16. Top management interested in motivating the employee

Sl. Responses Number of Percentage

No respondents (%)
1 High 48 80
2 Moderate 12 20
3 Low 0 0
Total 60 100
Table: 4.16

93
 Percentage

20%

High
Moderate
Low

80%

Chart: 4.16

INTERPRETATION:

80% of the employees voted that the management have initiative to motivate
employees and the other employees are saying that it is moderate by 20%. From the
chart shows top management interested in motivating the employees.

17. The different motivation methods used by the management

Sl. Responses Number of Percentage

No respondents (%)
1 Positive working 27 45
environment
2 Good incentive system 12 20
3 Award recognition 18 30
4 Encourage to recognition 3 5
5 others 0 0
Total 60 100
Table: 4.17

94
 Percentage(%)

Positive working environment

30 Good incentive system
45 Award recognition
Encourage to recognition
others

20

Chart: 4.17

INTERPRETATION:

Positive working environment is liked by employees by 45%. Incentive system has an

impact of 20% and award recognition have 30%votes. It means management use best
motivation method is positive working environment to employees.

18. Contribute of employees to achieve organizational goals

Sl. Responses Number of Percentage

No respondents (%)
1 Very much 48 80
2 Moderate 12 20
3 Not at all 0 0
Total 60 100
Table: 4.18

95
 80

80

70

60

50

40

30 20

20

10 0

0
Very much Moderate Not at all

Chart: 4.18

INTERPRETATION:

The company helps employees to achieve organizational goals. 80% of employees

have an opinion that company helps employees in attaining goals and 20% of
employees as moderate. The majority of employees believes that their work contribute
towards achieving organizational goals.

19. Inspiration getting from the management

Sl. Responses Number of Percentage

No respondents (%)
1 Very much 36 60
2 Moderate 24 40
3 Not at all 0 0
Total 60 100
Table: 4.19

96
 100
90
80
70
60
50
40
30
20
10
0
Very much Moderate Not at all

Chart: 4.19

INTERPRETATION:

Team inspired working may lead to high performance. In this company 60% of
employees are having great inspiration and other 40% have voted moderate. Hence
we can infer that their team inspires them to do the best work.

20. Relation between motivation of worker’s on productivity

Sl. Responses Number of Percentage

No respondents (%)
1 Strongly agree 48 80
2 agree 9 15
3 Disagree 3 5
Total 60 100
Table: 4.20

97
 5

15

80

Strongly agree agree Disagree

Chart: 4.20

INTERPRETATION:

Motivation factors are approved a by employees by 80% and the strongly agree in
this. Here 15% of employees have agreed and here are some employees who have an
opinion of disagreement by 5%. From the chart shows the employees motivation
factor contribute to works productivity.

21. Incentives which motivate the employees

Table: 4.21

Sl. No Responses Number of Percentage

respondents (%)
1 Incentives award 21 35
2 promotion 18 30
3 Appreciation letters 21 35
Total 60 100

98
 Percentage

36

35 35 35

34

33

32

31

30 30

29

28

27
Incentives award promotion Appreciation letters

Chart: 4.21

INTERPRETATION:

Incentive is a tool for motivation of employees. It is being using for a long time. Here
in this company incentives have 35% of employees. Promotion is liked by 30% and
appreciation letter by 35% of employees

22. Motivating techniques help you do to the best in you

Sl. Responses Number of Percentage

No respondents (%)
1 Agree 45 75
2 neutral 12 20
3 Disagree 3 5
Total 60 100
Table: 4.22

99
 Percentage

80
75
70

60

50

40

30

20 20

10
5
0
0.5 1 1.5 2 2.5 3 3.5

Chart: 4.22

INTERPRETATION:

75% of employees have agreed that they have been upgraded by motivation
techniques used my management. 20% employees have a neutral opinion and 5%
disagree. The employees are agreeing with that the motivation technique help you do
the best in you.

100
 CHAPTER-V
FINDINGS, SUGGESTIONS &
CONCLUSIONS

101
 FINDINGS
 There is a significant impact of employee motivation in the organization.
 Promotional opportunities in the organization have impact on employee
motivation.
 Personal recognition for employees generates motivation.
 Sense of responsibility is a factor for employee motivation.
 Personal achievements contribute to motivational factors.
 Leave salary increase and incentive contribute to employee motivation.
 Status is also a factor of motivation to employees.
 The company policy motivates the employees to perform well.
 The company's physical working condition also helps the employees to
perform well.
 Job security is a factor of motivation.
 The study was started and carried out on the premise that salary or financial
incentive being the right of the worker is taken for granted and that certain
other factor would be needed to adequately motivate or satisfy the workers.
Such factors include job security reorganization etc.
 Since the total of motivational and hygienic factors is high it can be concluded
that the level of motivation in Sud-Chemie is high.
 Supervisor guidance and its relevance provide help to the employees to perform
well.
 Job initiative adds to the employee’s performance.
 Performance of the employees contributes in achieving the organizational goal.
 Team inspiration encourages the employees to perform better.
 Motivational factors contribute towards the productivity.

102
 SUGGESTIONS

 Company should provide more promotional opportunities to employees.

 Try to increase the personal growth opportunities of employees

 Company can increase the leave available to employees.

 Company can improve their reward system.

 Company can provide more learning opportunity to employees.

 The company should provide better physical working conditions.

 Try to build up better relationship with co-workers

103
 CONCLUSION

In the course of the study, various relevant literatures to the

concept of impact of the employee motivation and impact on employee performance.
There for, based on the researches finding it was discovered the organization has
shifted from the old practices of placing more emphasis in high productivity and
profit maximization at the expense of customer’s satisfaction but value for their
money if they most survive. it is by so doing that the survival and both of the
organization guarantied Furthermore, organization that intend to grow must attain
maintain a high level of employee motivation on the organization

Management to make re-establish confidence in the new

administrative system. As to restore or raise the moral of the employee. The level of
commitment required of the workers calls for more incentives and other motivational
solution

104
BIBLIOGRAPHY

105
Books

1. Organisational Behaviour: shashi k Guptha, Rosy Joshy

(KALLYANI PUBLISHERS 2011)
2. Organizational Behaviour (15th edition): Stephen p.Robbinson, Timothy A.
Judge, Neharika vohra
3. Human Resource Management: Shashi k Guptha
(KALYANI PUBLISHERS 2014)

Website

1. https://www.sud-chemie-india.com

2. www.businessballs.com

3. http://en.wikipedia.org

4. http://www.google.co.in

5. http://www.wikihow.com/Motivate-Your-Employee

6. http://www.yourarticlelubrary.com

106
APPENDIX

107
 QUESTIONNAIRE
Topic: Study on the effect of motivation on employee productivity

Dear sir,

I am Mahinsha A.A doing BBA 6 th semester. As part of our curriculum, I have

undertaken project work in “Study on the effect of motivation on employee
productivity”. Kindly give your responses to below questions and help me in
successful completion of my study.

Name:

Gender: Male Female

Age:

No of year experience:

Working department:

 Rate the level of motivational factors

Factors High Moderate Low

1 Promotional opportunities
2 Personal growth opportunities
3 Recognition
4 Responsibility
5 Achievement
6 Leave
7 Salary increase
8 Reward system

108
 9 Status
10 Incentive
11 Motivational talk
12 Learning opportunities
13 Job security
14 Physical working condition
15 Quality of supervision

16. ‘Top management interested in motivating the employees’?

Agree Neutral Disagree

17. What are the different motivation methods used by the management?

Positive working environment Good incentive system

Award recognition Encourage to self-direction

Others

18. Do your work contribute to achieving organizational goals?

Very much Moderate Not at all

19. Does your team inspire you to do your best work?

Very much Moderate Not at all

20. Do you think that motivation factors contribute to words productivity?

Strongly Agree Agree Disagree

21. Which type of incentives motivates you more?

Incentives award Promotion Appreciation letters

22. Do you agree that the motivating techniques help you to do the best in you?

Agree Neutral Disagree

109