Organizational Behaviour A Study On Employee Motivation

ORGANIZATIONAL BEHAVIOUR A STUDY ON EMPLOYEE MOTIVATION
A STUDY ON EMPLOYEE MOTIVATION

CHAPTER-1 1.1 INTRODUCTION
The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special reference
to Hewitt Associates; Gurgaon is mainly conducted to identify the factors which
will motivate the employees and the organizational functions in Hewitt Associate
s, Gurgaon. Management’s basic job is the effective utilization of human resources
for achievements of organizational objectives. The personnel management is conc
erned with organizing human resources in such a way to get maximum output to the
enterprise and to develop the talent of people at work to the fullest satisfact
ion. Motivation implies that one person, in organization context a manager, incl
udes another, say an employee, to engage in action by ensuring that a channel to
satisfy those needs and aspirations becomes available to the person. In additio
n to this, the strong needs in a direction that is satisfying to the latent need
s in employees and harness them in a manner that would be functional for the org
anization. Employee motivation is one of the major issues faced by every organiz
ation. It is the major task of every manager to motivate his subordinates or to
create the ‘will to work’ among the subordinates. It should also be remembered that
a worker may be immensely capable of doing some work; nothing can be achieved if
he is not willing to work. A manager has to make appropriate use of motivation
to enthuse the employees to follow them. Hence this studies also focusing on the
employee motivation among the employees of Hewitt Associates. The data needed f
or the study has been collected from the employees through questionnaires and th
rough direct interviews. Analysis and interpretation has been done by using the
statistical tools and data’s are presented through tables and charts.
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1.2 RESEARCH PROBLEM
The research problem here in this study is associated with the motivation of emp
loyees of HEWITT ASSOSIATES, GURGAON. There are a variety of factors that can in
fluence a person’s level of motivation; some of these factors include
1. The level of pay and benefits, 2. The perceived fairness of promotion system
within a company, 3. Quality of the working conditions, 4. Leadership and social
relationships, 5. Employee recognition
6. Job security
7. Career development opportunities etc.
Motivated employees are a great asset to any organisation. It is because the mot
ivation and Job satisfaction is clearly linked. Hence this study is focusing on
the employee motivation in the
organisation. The research problem is formulated as follows:
“What are the factors which help to motivate the employees?
1.3 SIGNIFICANCE OF THE STUDY
The study is intended to evaluate motivation of employees in the organization. A
good motivational program procedure is essential to achieve goal of the organiz
ation. If efficient motivational programmes of employees are made not only in th
is particular organization but also any other organization; the organizations ca
n achieve the efficiency also to develop a good organizational culture. Motivati
on has variety of effects. These effects may be seen in the context of an indivi
dual’s physical and mental health, productivity, absenteeism and turnover. Employe
e delight has to be managed in more than one way. This helps in retaining and nu
rturing the true believers “who can deliver value to the organization. Proliferati
ng and nurturing the number of “true believers” is the challenge for future and pres
ent HR managers. 3
This means innovation and creativity. It also means a change in the gear for HR
polices and practices. The faster the organizations nurture their employees, the
more successful they will be. The challenge before HR managers today is to deli
ght their employees and nurture their creativity to keep them a bloom. This stud
y helps the researcher to realize the importance of effective employee motivatio
n. This research study examines types and levels of employee motivational progra
mmes and also discusses management ideas that can be utilized to innovate employ
ee motivation. It helps to provide insights to support future research regarding
strategic guidance for organizations that are both providing and using reward/r
ecognition programs.
1.4 OBJECTIVES OF THE STUDY
1.4.1 Primary objective
1. To study the important factors which are needed to motivate the employees.
1.4.2 Secondary Objective.
1. To study the effect of monetary and non-monetary benefits provided by the org
anization on the employee’s performance. 2. To study the effect of job promotions
on employees. 3. To learn the employee’s satisfaction on the interpersonal relatio
nship exists in the organization. 4. To provide the practical suggestion for the
improvement of organization’s performance.
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1.5 RESEARCH METHODOLOGY.
Research is a systematic method of finding solutions to problems. It is essentia
lly an investigation, a recording and an analysis of evidence for the purpose of
gaining knowledge. According to Clifford woody, “research comprises of defining a
nd redefining problem, formulating hypothesis or suggested solutions, collecting
, organizing and evaluating data, reaching conclusions, testing conclusions to d
etermine whether they fit the formulated hypothesis” 1.5.1 Sampling Design. A samp
le design is a finite plan for obtaining a sample from a given population. Simpl
e random sampling is used for this study. 1.5.2 Universe. The universe chooses f
or the research study is the employees of Hewitt Associates. 1.5.3 Sample Size.
Number of the sampling units selected from the population is called the size of
the sample. Sample of 50 respondents were obtained from the population. 1.5.4 Sa
mpling Procedure. The procedure adopted in the present study is probability samp
ling, which is also known as chance sampling. Under this sampling design, every
item of the frame has an equal chance of inclusion in the sample. 1.5.5 Methods
of Data Collection. The data’s were collected through Primary and secondary source
s. 1.5.5.1 Primary Sources. Primary data are in the form of “raw material” to which
statistical methods are applied for the purpose of analysis and interpretations.
The primary sources are discussion with employees, data’s collected through quest
ionnaire. 5
1.5.5.2 Secondary Sources. Secondary data’s are in the form of finished products a
s they have already been treated statistically in some form or other. The second
ary data mainly consists of data and information collected from records, company
websites and also discussion with the management of the organization. Secondary
data was also collected from journals, magazines and books. 1.5.6 Nature of Res
earch. Descriptive research, also known as statistical research, describes data
and characteristics about the population or phenomenon being studied. Descriptiv
e research answers the questions who, what, where, when and how. Although the da
ta description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a
causal relationship, where one variable affects another. In other words, descrip
tive research can be said to have a low requirement for internal validity. 1.5.7
Questionnaire. A well defined questionnaire that is used effectively can gather
information on both overall performance of the test system as well as informati
on on specific components of the system. A defeated questionnaire was carefully
prepared and specially numbered. The questions were arranged in proper order, in
accordance with the relevance. 1.5.8 Nature of Questions Asked. The questionnai
re consists of open ended, dichotomous, rating and ranking questions. 1.5.9 Pre-
testing A pre-testing of questionnaire was conducted with 10 questionnaires, whi
ch were distributed and all of them were collected back as completed questionnai
re. On the basis of doubts raised by the respondents the questionnaire was redes
igned to its present form.
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1.5.10 Sample A finite subset of population, selected from it with the objective
of investigating its properties called a sample. A sample is a representative p
art of the population. A sample of 50 respondents in total has been randomly sel
ected. The response to various elements under each questions were totaled for th
e purpose of various statistical testing. 1.5.11. Variables of the Study. The di
rect variable of the study is the employee motivation Indirect variables are the
incentives, interpersonal relations, career development opportunities and perfo
rmance appraisal system. 1.5.12. Presentation of Data. The data are presented th
rough charts and tables. 1.5.13. Tools and Techniques for Analysis. Correlation
is used to test the hypothesis and draw inferences.
CHAPTER 2
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2. LITERATURE REVIEW
Rensis Likerthas called motivation as the core of management. Motivation is the
core of management. Motivation is an effective instrument in the hands of the ma
nagement in inspiring the work force .It is the major task of every manager to m
otivate his subordinate or to create the will to work among the subordinates .It
should also be remembered that the worker may be immensely capable of doing som
e work, nothing can be achieved if he is not willing to work .creation of a will
to work is motivation in simple but true sense of term. Motivation is an import
ant function which every manager performs for actuating the people to work for a
ccomplishment of objectives of the organization .Issuance of well conceived inst
ructions and orders does not mean that they will be followed .A manager has to m
ake appropriate use of motivation to enthuse the employees to follow them. Effec
tive motivation succeeds not only in having an order accepted but also in gainin
g a determination to see that it is executed efficiently and effectively. In ord
er to motivate workers to work for the organizational goals, the managers must d
etermine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction .If the management
is successful in doing so; it will also be successful in increasing the willingn
ess of the workers to work. This will increase efficiency and effectiveness of t
he organization .There will be better utilization of resources and workers abili
ties and capacities.
2.1 The concept of motivation
The word motivation has been derived from motive which means any idea, need or e
motion that prompts a man in to action. Whatever may be the behavior of man, the
re is some stimulus behind it .Stimulus is dependent upon the motive of the pers
on concerned. Motive can be known by studying his needs and desires. There is no
universal theory that can explain the factors influencing motives which control
mans behavior at any particular point of time. In general, the different motive
s operate at 8
different times among different people and influence their behaviors. The proces
s of motivation studies the motives of individuals which cause different type of
behavior.
2.2 Definition of Motivation.
What is motivation? It is defined as the processes that account for an individua
l’s intensity, direction and persistence of effort towards attaining a goal. The t
hree key elements in the definition are intensity, direction and persistence. In
tensity is concerned with how hard a person tries. This is the element most of u
s focus on when we talk about motivation. However, high intensity is unlikely to
lead to favourable job performance outcomes unless the effort is channelled in
a direction that benefits the organization. Therefore, we have to consider the q
uality of effort as well as its intensity. Effort that is directed towards, and
consistent with, the organization’s goals is the kind of effort that we should be
seeking. Finally, motivation has a persistence dimension. This is a measure of h
ow long a person can maintain effort. Motivated individuals stay with a task lon
g enough to achieve their goal.
2.3 Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively,
to give their loyalty to the group, to carry out properly the purpose of the or
ganization. The following results may be expected if the employees are properly
motivated. 1. The workforce will be better satisfied if the management provides
them with opportunities to fulfill their physiological and psychological needs.
The workers will cooperate voluntarily with the management and will contribute t
heir maximum towards the goals of the enterprise.
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2. Workers will tend to be as efficient as possible by improving upon their skil
ls and knowledge so that they are able to contribute to the progress of the orga
nization. This will also result in increased productivity. 3. The rates of labor’s
turnover and absenteeism among the workers will be low. 4. There will be good h
uman relations in the organization as friction among the workers themselves and
between the workers and the management will decrease. 5. The number of complaint
s and grievances will come down. Accident will also be low. 6. There will be inc
rease in the quantity and quality of products. Wastage and scrap will be less. B
etter quality of products will also increase the public image of the business.
2.4 Motivation Process.
1. Identification of need 2. Tension 3. Course of action 4. Result –Positive/Negat
ive 5. Feed back
2.5 Theories of Motivation.
Understanding what motivated employees and how they were motivated was the focus
of many researchers following the publication of the Hawthorne study results (T
erpstra, 1979). The major approaches that have led to our understanding of motiv
ation are Mcclelland’s Achievement Need Theory, Behavior Modification theory; Abra
ham H Mallows need hierarchy or Deficient theory of motivation, ERG theory of mo
tivation, Herzberg’s motivation-hygiene theory, J.S. Adam’s Equity Theory, Vrooms Ex
pectation Theory, Two factor Theory. 2.5.1 McClelland’s Achievement Need Theory.
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In his acquired-needs theory, David McClelland proposed that an individual s spe
cific needs are acquired over time and are shaped by one s life experiences. Mos
t of these needs can be classed as either achievement, affiliation, or power. A
person s motivation and effectiveness in certain job functions are influenced by
these three needs. McClelland s theory sometimes is referred to as the three ne
ed theory or as the learned needs theory. Achievement People with a high need fo
r achievement (nAch) seek to excel and thus tend to avoid both low-risk and high
-risk situations. Achievers avoid low-risk situations because the easily attaine
d success is not a genuine achievement. In high-risk projects, achievers see the
outcome as one of chance rather than one s own effort. High nAch individuals pr
efer work that has a moderate probability of success, ideally a 50% chance. Achi
evers need regular feedback in order to monitor the progress of their achievemen
ts. They prefer either to work alone or with other high achievers. Affiliation T
hose with a high need for affiliation (nAff) need harmonious relationships with
other people and need to feel accepted by other people. They tend to conform to
the norms of their work group. High nAff individuals prefer work that provides s
ignificant personal interaction. They perform well in customer service and clien
t interaction situations. Power A person s need for power (nPow) can be one of t
wo types - personal and institutional. Those who need personal power want to dir
ect others, and this need often is perceived as undesirable. Persons who need in
stitutional power (also known as social power) want to organize the efforts of o
thers to further the goals of the organization. Managers with a high need for in
stitutional power tend to be more effective than those with a high need for pers
onal power. Thematic Apperception Test McClelland used the Thematic Apperception
Test (TAT) as a tool to measure the individual needs of different people. The T
AT is a test of imagination that presents the subject with a series of ambiguous
pictures, and the subject is asked to develop a spontaneous story for each pict
ure. The assumption is that the subject will project his or her own needs into t
he story. Psychologists have developed fairly reliable scoring techniques for th
e Thematic Apperception Test. The test determines the individual s score for eac
h of the needs of achievement, affiliation, and power. This score can be used to
suggest the types of jobs for which the person might be well suited.
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Implications for Management People with different needs are motivated differentl
y.
•
• •
High need for achievement - High achievers should be given challenging projects
with reachable goals. They should be provided frequent feedback. While money is
not an important motivator, it is an effective form of feedback. High need for a
ffiliation - Employees with a high affiliation need perform best in a cooperativ
e environment. High need for power - Management should provide power seekers the
opportunity to manage others.
Note that McClelland s theory allows for the shaping of a person s needs; traini
ng programs can be used to modify one s need profile.
2.5.2 Behavioral Modification Theory; According to this theory people behavior i
s the outcome of favorable and unfavorable past circumstances. This theory is ba
sed on learning theory. Skinner conducted his researches among rats and school c
hildren. He found that stimulus for desirable behavior could be strengthened by
rewarding it at the earliest. In the industrial situation, this relevance of thi
s theory may be found in the installation of financial and non financial incenti
ves. More immediate is the reward and stimulation or it motivates it. Withdrawal
of reward incase of low standard work may also produce the desired result. Howe
ver, researches show that it is generally more effective to reward desired behav
ior than to punish undesired behavior.
2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.
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The intellectual basis for most of motivation thinking has been provided by beha
vioral scientists, A.H Maslow and Frederick Heizberg, whose published works are
the “Bible of Motivation”. Although Maslow himself did not apply his theory to indus
trial situation, it has wide impact for beyond academic circles. Douglous Mac Gr
egor has used Maslow’s theory to interpret specific problems in personnel administ
ration and industrial relations. The crux of Maslow’s theory is that human needs a
re arranged in hierarchy composed of five categories. The lowest level needs are
physiological and the highest levels are the self actualization needs. Maslow s
tarts with the formation that man is a wanting animal with a hierarchy of needs
of which some are lower ins scale and some are in a higher scale or system of va
lues. As the lower needs are satisfied, higher needs emerge. Higher needs cannot
be satisfied unless lower needs are fulfilled. A satisfied need is not a motiva
tor. This resembles the standard economic theory of diminishing returns. The hie
rarchy of needs at work in the individual is today a routine tool of personnel t
rade and when these needs are active, they act as powerful conditioners of behav
ior- as Motivators. Hierarchy of needs; the main needs of men are five. They are
physiological needs, safety needs, social needs, ego needs and self actualizati
on needs, as shown in order of their importance.
SelfActualization Ego Needs Social Needs Safety Needs
The above five basic needs are regarded as striving needs which make a person do
things. The first model indicates the ranking of different needs. The second is
more helpful in Physiological Needs indicating how the satisfaction of the high
er needs is based on the satisfaction of lower
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needs. It also shows how the number of person who has experienced the fulfillmen
t of the higher needs gradually tapers off. Physiological or Body Needs: - The i
ndividual move up the ladder responding first to the physiological needs for nou
rishment, clothing and shelter. These physical needs must be equated with pay ra
te, pay practices and to an extent with physical condition of the job. Safety: -
The next in order of needs is safety needs, the need to be free from danger, ei
ther from other people or from environment. The individual want to assured, once
his bodily needs are satisfied, that they are secure and will continue to be sa
tisfied for foreseeable feature. The safety needs may take the form of job secur
ity, security against disease, misfortune, old age etc as also against industria
l injury. Such needs are generally met by safety laws, measure of social securit
y, protective labor laws and collective agreements. Social needs: - Going up the
scale of needs the individual feels the desire to work in a cohesive group and
develop a sense of belonging and identification with a group. He feels the need
to love and be loved and the need to belong and be identified with a group. In a
large organization it is not easy to build up social relations. However close r
elationship can be built up with at least some fellow workers. Every employee wa
nts too feel that he is wanted or accepted and that he is not an alien facing a
hostile group. Ego or Esteem Needs: - These needs are reflected in our desire fo
r status and recognition, respect and prestige in the work group or work place s
uch as is conferred by the recognition of ones merit by promotion, by participat
ion in management and by fulfillment of workers urge for self expression. Some o
f the needs relate to ones esteem e.g.; need for achievement, self confidence, k
nowledge, competence etc. On the job, this means praise for a job but more impor
tant it means a feeling by employee that at all times he has the respect of his
supervisor as a person and as a contributor to the organizational goals.
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Self realization or Actualization needs: - This upper level need is one which wh
en satisfied provide insights to support future research regarding strategic gui
dance for organization that are both providing and using reward/recognition prog
rams makes the employee give up the dependence on others or on the environment.
He becomes growth oriented, self oriented, directed, detached and creative. This
need reflects a state defined in terms of the extent to which an individual att
ains his personnel goal. This is the need which totally lies within oneself and
there is no demand from any external situation or person. Implications for Manag
ement If Maslow s theory holds, there are some important implications for manage
ment. There are opportunities to motivate employees through management style, jo
b design, company events, and compensation packages, some examples of which foll
ow:
• • • • •
Physiological needs: Provide lunch breaks, rest breaks, and wages that are suffi
cient to purchase the essentials of life. Safety Needs: Provide a safe working e
nvironment, retirement benefits, and job security. Social Needs: Create a sense
of community via team-based projects and social events. Esteem Needs: Recognize
achievements to make employees feel appreciated and valued. Offer job titles tha
t convey the importance of the position. Self-Actualization: Provide employees a
challenge and the opportunity to reach their full career potential.
However, not all people are driven by the same needs - at any time different peo
ple may be motivated by entirely different factors. It is important to understan
d the needs being pursued by each employee. To motivate an employee, the manager
must be able to recognize the needs level at which the employee is operating, a
nd use those needs as levers of motivation.
Limitations of Maslow s Hierarchy While Maslow s hierarchy makes sense from an i
ntuitive standpoint, there is little evidence to support its hierarchical aspect
. In fact, there is evidence that contradicts the order of needs specified by th
e model. For example, some cultures appear to place social needs before any 15
others. Maslow s hierarchy also has difficulty explaining cases such as the "sta
rving artist" in which a person neglects lower needs in pursuit of higher ones.
Finally, there is little evidence to suggest that people are motivated to satisf
y only one need level at a time, except in situations where there is a conflict
between needs. Even though Maslow s hierarchy lacks scientific support, it is qu
ite well-known and is the first theory of motivation to which many people they a
re exposed. To address some of the issues of Maslow s theory, Clayton Alderfer d
eveloped the ERG theory, a needs-based model that is more consistent with empiri
cal findings. 2.5.4 ERG Theory of Motivation
To bring Maslow’s need hierarchy theory of motivation in synchronization with empi
rical research, Clayton Alderfer redefined it in his own terms. His rework is ca
lled as ERG theory of motivation. He recategorized Maslow’s hierarchy of needs int
o three simpler and broader classes of needs:
• •
Existence needs- These include need for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs. Relatedness nee
ds- These include the aspiration individual’s have for maintaining significant int
erpersonal relationships (be it with family, peers or superiors), getting public
fame and recognition. Maslow’s social needs and external component of esteem need
s fall under this class of need. Growth needs- These include need for self-devel
opment and personal growth and advancement. Maslow’s self-actualization needs and
intrinsic component of esteem needs fall under this category of need.
•
The significance of the three classes of needs may vary for each individual. Imp
lications of the ERG Theory 16
Managers must understand that an employee has various needs that must be satisfi
ed at the same time. According to the ERG theory, if the manager concentrates so
lely on one need at a time, this will not effectively motivate the employee. Als
o, the frustration- regression aspect of ERG Theory has an added effect on workp
lace motivation. For instance- if an employee is not provided with growth and ad
vancement opportunities in an organization, he might revert to the relatedness n
eed such as socializing needs and to meet those socializing needs, if the enviro
nment or circumstances do not permit, he might revert to the need for money to f
ulfill those socializing needs. The sooner the manager realizes and discovers th
is, the more immediate steps they will take to fulfil those needs which are frus
trated until such time that the employee can again pursue growth.
2.5.5 Herzberg s Motivation-Hygiene Theory
The studies included interviews in which employees where asked what pleased and
displeased them about their work. Herzberg found that the factors causing job sa
tisfaction (and presumably motivation) were different from those causing job dis
satisfaction. He developed the motivation-hygiene theory to explain these result
s. He called the satisfiers motivators and the dissatisfiers hygiene factors, us
ing the term "hygiene" in the sense that they are considered maintenance factors
that are necessary to avoid dissatisfaction but that by themselves do not provi
de satisfaction.
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The following table presents the top six factors causing dissatisfaction and the
top six factors causing satisfaction, listed in the order of higher to lower im
portance. Factors Affecting Job Attitudes Leading to Dissatisfaction
• • • • • •
Leading to Satisfaction
• • • • • •
Company policy Supervision Relationship w/Boss Work conditions Salary Relationsh
ip w/Peers
Achievement Recognition Work itself Responsibility Advancement Growth
Herzberg reasoned that because the factors causing satisfaction are different fr
om those causing dissatisfaction, the two feelings cannot simply be treated as o
pposites of one another. The opposite of satisfaction is not dissatisfaction, bu
t rather, no satisfaction. Similarly, the opposite of dissatisfaction is no diss
atisfaction. While at first glance this distinction between the two opposites ma
y sound like a play on words, Herzberg argued that there are two distinct human
needs portrayed. First, there are physiological needs that can be fulfilled by m
oney, for example, to purchase food and shelter. Second, there is the psychologi
cal need to achieve and grow, and this need is fulfilled by activities that caus
e one to grow. From the above table of results, one observes that the factors th
at determine whether there is dissatisfaction or no dissatisfaction are not part
of the work itself, but rather, are external factors. Herzberg often referred t
o these hygiene factors as "KITA" factors, where KITA is an acronym for Kick In
The A..., the process of providing incentives or a threat of punishment to cause
someone to do something. Herzberg argues that these provide only short-run succ
ess because the motivator factors that determine whether there is satisfaction o
r no satisfaction are intrinsic to the job itself, and do not result from carrot
and stick incentives. Implications for Management If the motivation-hygiene the
ory holds, management not only must provide hygiene factors to avoid employee di
ssatisfaction, but also must provide factors intrinsic to the work itself in ord
er for employees to be satisfied with their jobs. Herzberg argued that job enric
hment is required for intrinsic motivation, and that it is a continuous manageme
nt process. According to Herzberg:
•
The job should have sufficient challenge to utilize the full ability of the empl
oyee.
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• •
Employees who demonstrate increasing levels of ability should be given increasin
g levels of responsibility. If a job cannot be designed to use an employee s ful
l abilities, then the firm should consider automating the task or replacing the
employee with one who has a lower level of skill. If a person cannot be fully ut
ilized, then there will be a motivation problem.
Critics of Herzberg s theory argue that the two-factor result is observed becaus
e it is natural for people to take credit for satisfaction and to blame dissatis
faction on external factors. Furthermore, job satisfaction does not necessarily
imply a high level of motivation or productivity. Herzberg s theory has been bro
adly read and despite its weaknesses its enduring value is that it recognizes th
at true motivation comes from within a person and not from KITA factors.
2.5.6 J.S Adams Equity Theory Employee compares her/his job inputs outcome ratio
with that of reference. If the employee perceives inequity, she/he will act to
correct the inequity: lower productivity, reduced quality, increased absenteeism
, voluntary resignation.
2.5.7 Vrooms Expectation Theory Vroom’s theory is based on the belief that employe
e effort will lead to performance and performance will lead to rewards (Vroom, 1
964). Reward may be either positive or negative. The more positive the reward th
e more likely the employee will be highly motivated. Conversely, the more negati
ve the reward the less likely the employee will be motivated. 2.5.8 Two Factor T
heory . THEORY X AND THEORY Y
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Douglas McGregor proposed two distinct views of human beings Theory X and Theory
Y. The theories basically represent two sets of assumptions about human nature
and human behaviour that are relevant to the practice of management. Theory X re
presents a negative view of human nature that assumes individuals generally disl
ike work, are irresponsible, and require close supervision to do their jobs. The
ory Y denotes a positive view of human nature and assumes individuals are genera
lly industrious, creative, and able to assume responsibility and exercise self-c
ontrol in their jobs. One would expect, then, that managers holding assumptions
about human nature that are consistent with Theory X might exhibit a managerial
style that is quite different than managers who hold assumptions consistent with
Theory Y. McGregor argued that the conventional approach to managing was based
on three major propositions, which he called Theory X: 1. Management is responsi
ble for organizing the elements of productive enterprisemoney, materials, equipm
ent, and people-in the interests of economic ends. 2. With respect to people, th
is is a process of directing their efforts, motivating them, controlling their a
ctions, and modifying their behavior to fit the needs of the organization. 3. Wi
thout this active intervention by management, people would be passive-even resis
tant-to organizational needs. They must therefore be persuaded, rewarded, punish
ed, and controlled. Their activities must be directed. Management s task was thu
s simply getting things done through other people. According to McGregor, these
tenets of management are based on less explicit assumptions about human nature.
The first of these assumptions is that individuals do not like to work and will
avoid it if possible. A further assumption is that human beings do not want resp
onsibility and desire explicit direction. Additionally, individuals are assumed
to put their individual concerns above that of the organization for which they w
ork and to resist change, valuing security more than other considerations at wor
k. Finally, human beings are assumed to be easily manipulated and controlled. Mc
Gregor contended that both the classical and human relations approaches to manag
ement depended this same set of assumptions. He called the first style of manage
ment "hard" and identified its methods as close supervision, tight controls, and
coercion. The hard style of management led to restriction of output, mutual dis
trust, unionism, and even sabotage. McGregor called the second style of manageme
nt "soft" and identified its methods as permissiveness and need satisfaction. Mc
Gregor suggested that the soft style of management often led to managers failur
e to perform their managerial role. He also pointed out that employees often tak
e advantage of an overly permissive manager by demanding more but performing at
lower levels.
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McGregor drew upon the work of Abraham Maslow (1908-1970) to explain why Theory
X assumptions led to ineffective management. Maslow had proposed that man s need
s are arranged in levels, with physical and safety needs at the bottom of the ne
eds hierarchy and social, ego, and self-actualization needs at upper levels of t
he hierarchy. Maslow s basic point was that once a need is met, it no longer mot
ivates behavior; thus, only unmet needs are motivational. McGregor argued that m
ost employees already had their physical and safety needs met and that the motiv
ational emphasis had shifted to the social, ego, and selfactualization needs. Th
erefore, management had to provide opportunities for these upperlevel needs to b
e met in the workplace, or employees would not be satisfied or motivated in thei
r jobs. Such opportunities could be provided by allowing employees to participat
e in decision making, by redesigning jobs to make them more challenging, or by e
mphasizing good work group relations, among other things. According to McGregor,
neither the hard style of management based on the classical school nor the soft
style of management inspired by the human relations movement were sufficient to
motivate employees. Thus, he proposed a different set of assumptions about huma
n nature as it pertains to the workplace.
McGregor put forth these assumptions, which he believed could lead to more effec
tive management of people in the organization, under the rubric of Theory Y. The
major propositions of Theory Y include the following: 1. Management is responsi
ble for organizing the elements of productive enterprisemoney, materials, equipm
ent, and people in the interests of economic ends. 2. People are not by nature p
assive or resistant to organizational needs. They have become so as a result of
experience in organizations. 3. The motivation, potential for development, capac
ity for assuming responsibility, and readiness to direct behavior toward organiz
ational goals are all present in peoplemanagement does not put them there. It is
a responsibility of management to make it possible for people to recognize and
develop these human characteristics for themselves. 4. The essential task of man
agement is to arrange organizational conditions and methods of operation so that
people can achieve their own goals by directing their efforts toward organizati
onal objectives. Thus, Theory Y has at its core the assumption that the physical
and mental effort involved in individuals will actually seek it out under the p
roper conditions. Theory Y also assumes that the ability to be innovative and cr
eative exists among a large, rather than a small segment of work is natural and
that individuals actively seek to engage in work. It also assumes that close sup
ervision and the threat of punishment are not the only means or even the best me
ans for inducing employees to exert productive effort. Instead, if given the opp
ortunity, employees will display self-motivation to put forth the effort necessa
ry to achieve the organization s goals. Thus, avoiding responsibility is not an
inherent quality of human 21
nature; the population. Finally, it assumes that rather than valuing security ab
ove all other rewards associated with work, individuals desire rewards that sati
sfy their self-esteem and self-actualization needs. THEORY X AND THEORY Y IN THE
TWENTY-FIRST CENTURY McGregor s work on Theory X and Theory Y has had a signifi
cant impact on management thought and practice in the years since he first artic
ulated the concepts. In terms of the study of management, McGregor s concepts ar
e included in the overwhelming majority of basic management textbooks, and they
are still routinely presented to students of management. Most textbooks discuss
Theory X and Theory Y within the context of motivation theory; others place Theo
ry X and Theory Y within the history of the organizational humanism movement. Th
eory X and Theory Y are often studied as a prelude to developing greater underst
anding of more recent management concepts, such as job enrichment, the job-chara
cteristics model, and self-managed work teams. Although the terminology may have
changed since the 1950s, McGregor s ideas have had tremendous influence on the
study of management. In terms of the practice of management, the workplace of th
e early twenty-first century, with its emphasis on self-managed work teams and o
ther forms of worker involvement programs, is generally consistent with the prec
epts of Theory Y.
2.6 Types of Motivation.
Intrinsic motivation occurs when people are internally motivated to do something
because it either brings them pleasure, they think it is important, or they fee
l that what they are learning is morally significant. Extrinsic motivation comes
into play when a student is compelled to do something or act a certain way beca
use of factors external to him or her (like money or good grades)
2.7 Incentives
An incentive is something which stimulates a person towards some goal. It activa
tes human needs and creates the desire to work. Thus, an incentive is a means of
motivation. In organizations, increase in incentive leads to better performance
and vice versa. 2.7.1 Need for Incentives 22
Man is a wanting animal. He continues to want something or other. He is never fu
lly satisfied. If one need is satisfied, the other need need arises. In order to
motivate the employees, the management should try to satisfy their needs. For t
his purpose, both financial and non financial incentives may be used by the mana
gement to motivate the workers. Financial incentives or motivators are those whi
ch are associated with money. They include wages and salaries, fringe benefits,
bonus, retirement benefits etc. Non financial motivators are those which are not
associated with monetary rewards. They include intangible incentives like ego-s
atisfaction, self-actualization and responsibility. INCENTIVES
Financial Incentives Wages and Salaries. Bonus Medical reimbursement Insurance H
ousing facility Retirement benefits.
Non-financial incentives - Competition - Group recognition - Job security - Prai
se - Knowledge of result - Workers participation. - Suggestion system. - Opportu
nities for growth
2.8 Motivation is the key to performance improvement
There is an old saying you can take a horse to the water but you cannot force it
to drink; it will drink only if it s thirsty - so with people. They will do wha
t they want to do or otherwise motivated to do. Whether it is to excel on the wo
rkshop floor or in the ivory tower they must be motivated or driven to it, eit
her by themselves or through external stimulus.
23
Are they born with the self-motivation or drive? Yes and no. If no, they can be
motivated, for motivation is a skill which can and must be learnt. This is essen
tial for any business to survive and succeed. Performance is considered to be a
function of ability and motivation, thus:
•
Job performance =f(ability)(motivation)
Ability in turn depends on education, experience and training and its improvemen
t is a slow and long process. On the other hand motivation can be improved quick
ly. There are many options and an uninitiated manager may not even know where to
start. As a guideline, there are broadly seven strategies for motivation. There
are broadly seven strategies for motivation.
• • • • • • •
Positive reinforcement / high expectations Effective discipline and punishment T
reating people fairly Satisfying employees needs Setting work related goals Rest
ructuring jobs Base rewards on job performance
Essentially, there is a gap between an individual’s actual state and some desired
state and the manager tries to reduce this gap. Motivation is, in effect, a mean
s to reduce and manipulate this gap.
24
CHAPTER-3 3.1 COMPANY PROFILE
Hewitt Associates, based in Lincolnshire, Illinois is a global human resources (
HR) outsourcing and consulting firm delivering a complete range of integrated se
rvices to help companies manage their total HR and employee costs, enhance HR se
rvices, and improve their workforces. History Founded in 1940, The Lincolnshire,
Illinois-based Hewitt Associates, Inc. is a global management consulting firm s
pecializing in the outsourcing of corporate human resources (HR) programs such a
s healthcare benefits, payroll administration, stock options and investment acco
unts, retirement programs, and severance packages. Hewitt represents many Fortun
e 500 companies, administering their investment and benefit programs and offerin
g their clients a host of related services, many of them online. Hewitt not only
pioneered the use of automated benefit programs, but brought the HR industry in
to the Internet age by launching a series of online programs and software packag
es. 25
1940s-70s Edwin "Ted" Hewitt founded Edwin Shields Hewitt and Associates on Octo
ber 1, 1940, as a brokerage house focusing on insurance and personal financial s
ervices. It was a heady time in the United States; population had grown to 132 m
illion, the economy was robust, and President Franklin Delano Roosevelt was reel
ected for a record third term. Unfortunately, the war raging in Europe was about
to bring the United States into what became World War II. During and after the
war, Hewitt s particular expertise became immensely valuable when the government
instituted "pay-as-you-go" income taxes in 1943 and the U.S. cost of living inc
reased more than 25 percent in 1945. Once the war and its rationing ended, Ameri
cans returned to work and the economy recovered. Hewitt s clients, many of whom
had manufactured goods for the war effort, returned to their customary businesse
s and thrived. Hewitt began offering its clients statements to track their emplo
yee benefits and had pioneered the use of specific financial goals for company i
nvestments. Hewitt s programs were the first of their kind to be approved by the
Internal Revenue Service; they were so cutting edge the U.S. Department of Labo
r asked the firm to create forms for the welfare and pension programs of the 195
0s. By the 1960s the Hewitt firm continued to expand its pension and benefit pla
ns, creating more sophisticated programs for its clients. During the decade the
firm revolutionized employee benefit packages once again, as the first company t
o design pension and benefit plans tied to a corporation s revenue and growth pr
ojections. While such a practice became commonplace in the pension and employee
benefits of larger corporations, it was another in Hewitt s growing list of indu
stry firsts. Hewitt was so respected for its work in the field that it was the o
nly company asked by the U.S. government to consult on the Federal Interagency T
ask Force from 1964 to 1968. The Task Force was responsible for the design and i
mplementation of the new Employee Retirement Income Security Act. In the next de
cade Hewitt began offering its clients an increasing number of innovative produc
ts, including its trademarked Benefit Index to track the performance of benefit
programs. The Benefit Index was another industry first and soon became the stand
ard to which all aspired. Hewitt also offered its clients several flexible inves
tment strategies for employee benefit packages, which led to the formation of a
new consulting firm, the Hewitt Investment Group, in 1974. 1980s and 1990s Hewit
t continually sought to better its programs. The company began to conduct in-dep
th surveys to find out which benefit programs worked best and which ones needed
improvement. In the 1980s Hewitt researched numerous issues and began issuing it
s findings industry-wide on subjects such as offering benefits to part-time empl
oyees, full versus partial hospital reimbursement, fluctuating profit-sharing pe
rcentages, mental health 26
benefits, 401(k) programs, and rising health plan deductibles. Another topical i
ssue was computer use for automated benefit calculations. The use of computers h
ad finally begun to take hold in larger businesses, as Hewitt found automated be
nefit programs had increased remarkably from 1986 to 1988. In a survey detailed
in PC Week (November 6, 1989), Hewitt had surveyed 700 companies to find 71 perc
ent had become either fully or partially automated in their administration of be
nefits plans, up from 48 percent two years before. Hewitt responded to the expan
ding use of technology by designing computerized benefit programs and software s
o companies could manage their benefit plans. Hewitt Technologies was created in
1988 to monitor and respond to the industry s rapidly changing technological ne
eds. By the beginning of the 1990s Hewitt had ventured abroad and offered tailor
ed benefit programs to corporations in the United Kingdom. The firm had brought
in more than $250 million in revenues for 1990 and was ranked the fourth largest
benefit management and consulting firm in the world, according to Business Insu
rance magazine. Yet many of Hewitt s clients were feeling the pinch of a struggl
ing economy and inflation. As companies began looking for ways to bolster the bo
ttom line, benefits were often the first place executives looked for a quick fix
. In a time when few received raises and those who did received only cost-of-liv
ing increases, Hewitt started retooling retirement packages and healthcare benef
its to keep its customers from making drastic changes. Of particular interest we
re retirement programs since few seniors could withstand the effects of inflatio
n and soaring healthcare costs. Hewitt also researched other benefit additions s
uch as flextime scheduling, child- and elder-care benefits, and HMOs (health man
agement organizations) versus PPOs (preferred provider organizations). By 1997 m
ore than 100 large companies outsourced their benefit programs to Hewitt, coveri
ng about nine million worldwide employees. Hewitt not only managed these HR serv
ices but provided both the companies and their employees with the opportunity to
view their benefits with ease. The company ran into controversy, however, when
it secured lucrative incentives to open a new benefits management center in Orla
ndo, Florida. Public officials decried the incentives, believing that Hewitt was
favored over other firms that could have offered more jobs and revenue for the
city. Despite the furor, the new office opened in Orlando in 1997, during a fisc
al year (ending in September) in which Hewitt s revenues reached close to $700 m
illion. In 1998 Hewitt partnered with the California-based Financial Engines, an
online investment firm, to offer its clients financial advice over the burgeoni
ng "information superhighway" or Internet. Hewitt clients were among the first t
o view nearly every facet of their company s benefit programs with a few simple
keystrokes, and could seek online investment advice and make changes in real-tim
e. Such advancements, along with being the first HR industry firm to launch a co
rporate web site, landed Hewitt among PC Week s Top Ten Most Technologically Inn
ovative Companies. Hewitt also continued its in-depth surveys, developing the He
alth Value Initiative in 1999 to measure the effectiveness and quality of more t
han 2,000 healthcare programs worldwide. The Initiative s findings led to testim
ony
27
for the government and various agencies in an attempt to reform the U.S. healthc
are industry. As the decade closed, Hewitt was poised for further growth both do
mestically and abroad. Not only was the company broadening the scope of its oper
ations, but it offered clients advanced tools to outdistance their competitors.
Hewitt s HR management services had become known for their cutting-edge technolo
gy and the company s ongoing commitment to offer newer, faster, and more compreh
ensive programs would take it to the top of the industry in the next century. 20
00 Onward By early 2000 Hewitt s expansion moved forward with new offices near H
ouston, Texas, and an increased presence in Asia with a new office in Kuala Lump
ur, Malaysia. The company also announced the merger of its British and Irish ope
rations with the United Kingdom s Bacon & Woodrow, a leading retirement and HR m
anagement consulting firm. Hewitt also unveiled plans for Sageo, a comprehensive
online service where participants could compare, choose, and enroll in benefit
programs. Sageo was designed for retirees and companies with numerous older empl
oyees, to offer this growing population the same benefits provided to Hewitt s 1
50 corporate clients and their 15 million worldwide employees. Hewitt hoped that
Sageo s online format would not only simplify the benefits process but lower em
ployer costs as well. Within a few months of its debut, Sageo had enrolled nearl
y a dozen companies representing 500,000 individuals. However, Sageo never made
money and was dismantled shortly thereafter. In 2001 Hewitt formally announced i
ts intention to become a publicly traded company after nearly six decades as a p
rivate firm. Under the ticker symbol HEW on the New York Stock Exchange, Hewitt
went public on June 27, 2002, with an initial offering of 11 million shares (at
$19 per share). Share prices rose as high as $23 the following day. Hewitt waste
d little time in putting its new funds to work, paying off debt, purchasing Fran
ce s Finance Arbitage, an investment consultancy firm, and spearheading expansio
n plans for the United Kingdom and China. In 2003 Hewitt took over the Cork, Ire
land-based Becketts, a benefits consultancy, and bought the software programs an
d payroll services of Cyborg Worldwide Inc. These moves, along with several othe
rs, prompted the Chicago-based Crain s Chicago Business to name Hewitt one of th
e area s fastest growing public firms, with fiscal revenues topping $1.9 billion
for the year. In 2004 Hewitt announced the purchase/merger of Irvine, Californi
a s Exult Inc., another HR and consulting firm. The deal was valued at close to
$700 million and was expected to bring in combined revenues of more than $3 bill
ion by the following fiscal year. For 2004 Hewitt reached revenues of $2.2 billi
on and the firm sustained its 43rd consecutive year of growth. Employees numbere
d more than 22,000 in nearly three dozen countries (including Brazil, China, Fra
nce, India, Ireland, The Netherlands, Puerto Rico, Singapore, and Switzerland) s
erving more than 18 million employees for its corporate clients. In 28
addition, the company was named one of America s Most Admired Companies in 2004
by Fortune magazine, ranked as one of the 100 Best Places to Work for the fourth
consecutive year by Computer World, and had become the United States largest a
nd the world s second largest benefits outsourcing company, according to Busines
s Insurance magazine. By early 2005 Hewitt clinched several significant business
processing outsourcing (BPO) contracts, signing publisher Thomson Corporation,
Sun Microsystems, hospitality leader Marriott International, beverage giant Peps
iCo Inc., Wachovia Corporation, and others to a roster of more than 2,500 intern
ational clients. As the year came to a close, Hewitt had fallen a bit short of i
ts $3 billion goal, bringing in revenues of $2.8 billion. With analysts believin
g the business outsourcing market would top $33 billion or more in 2006, Hewitt
continued to dominate the U.S. benefits industry and aimed to be the world s top
provider of outsourced business processing. On July 12, 2010, Chicago-based ins
urance broker, Aon Corp., announced that it had agreed to buy Hewitt Associates
for $4.9 billion in cash and stock.[citation needed] On October 14, Aon said 150
0 to 1800 jobs would be cut.[1]
CHAPTER-4 4. ANALYSIS AND INTERPRETATION OF DATA 4.1 DESCRIPTIVE STATISTICS
4.1.1 Response about the support from the HR department
SL NO PARTICULAR 1 2 3 4 5 Highly satisfied 70 Satisfied 60 Neutral Dissatisfied
50 Highly satisfied 36 40 Total
30 20
NUMBER OF RESPONDENTS 18 29 3 0 0 50 (Table 4.1)
6
58
PERCENTAGE 36 58 6 0 0 100
Series1
29
10 0 Highly Satisfied Satisfied
0 Dissatisfied
0 highly Dissatisfied
Netural
(Chart 4.1) INTERPRETATION The table shows that 58% of the respondents are satis
fied with the support they are getting from the HR department.
4.1.2 Management is interested in motivating the employees
SL NO PARTICULAR 1 2 3 4 5 Strongly Agree Agree Neutral Disagree Strongly Disagr
ee Total (Table 4.2) NUMBER OF RESPONDENTS 27 20 3 0 0 50 PERCENTAGE 54 40 6 0 0
100
30
Management is interested in motivating the employees
60 50 40 30 20 10 0 Strongly Agree Agree Netural 3 0 Disagree 0 Strongly Disagre
e 54 40 Series1
(Chart 4.2)
INTERPRETATION The table shows that 54% of the respondents are strongly agreeing
that the management is interested in motivating the employees.
4.1.3 The type of incentives motivates you more
SL NO PARTICULAR 1 2 3 NUMBER OF RESPONDENTS Financial Incentives 15 Non financi
al Incentives 9 Both 26 Total 50 (Table 4.3) PERCENTAGE 30 18 52 100
31
The type of incentives motivates you more
30% Financial Incentives 52% 18% Non Financial Incentives Both
(Chart 4.3)
INTERPRETATION The table shows that 52% of the respondents are expressing that b
oth financial and non financial incentives will equally motivate them.
4.1.4 Satisfaction with the present incentives scheme
SL NO PARTICULAR 1 2 3 4 5 Highly satisfied Satisfied Neutral Dissatisfied Highl
y satisfied Total (Table 4.4) NUMBER OF RESPONDENTS 18 29 3 0 0 50 PERCENTAGE 36
58 6 0 0 100
32
Satisfaction with the present incentives provided by the organization
70% 60% 50% 40% 30% 20% 10% 0% Highly Satisfied Satisfied Netural 6% 0% Dissatis
fied 0% highly Dissatisfied 36% 58%
(Chart 4.4)
INTERPRETATION The table shows that 58% of the respondents are satisfied with th
e present incentive scheme of the organization.
4.1.5
The company is eagerness in recognizing and acknowledging employee’s work
ee Total
NUMBER OF RESPONDENTS 18 29 3 0 0 50 (Table 4.5) PERCENTAGE 54 58 6 0 0 100
33
Eagerness of the company in acknowledging the work of employees
70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Netural 6% 0% Disagree 0% St
rongly Disagree 36% 58%
(Chart 4.5)
INTERPRETATION From the study, 58% of employees agreed that the company is eager
in recognizing and acknowledging their work, 36% strongly agreed and only 6% sh
owed neutral response.
4.1.6.1 Periodical increase in salary
ee Total (Table 4.6) NUMBER OF RESPONDENTS 12 23 3 9 3 50 PERCENTAGE 24 46 6 18
6 100
34
Periodical increase in salary
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 46%
24% 18% 6% 6%
Series1
Strongly Agree
Agree
Netural
Disagree
Strongly Disagree
(Chart 4.6) INTERPRETATION The table shows 46% of employees agree that there is
a periodical increase in the salary.
4.1.6.2 Job Security existing in the company.
6 100
35
Job security exist in the company
40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly Agree Agree Netural Disagree Strongly
Disagree 6% 6% 30% 22% 36%
(Chart 4.7)
INTERPRETATION The table shows 35% of employees agree with good job security exi
st in the company.
4.1.6.3 Good relations with the co-workers.
0 100
36
Good relations with co-workers
60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Netural 0% Disagree 0% Strongly
Disagree 30% 16% 54%
(Chart 4.8) INTERPRETATION The table shows 54% of the respondents agree that the
y have good relations with co-worker.
4.1.6.4 Effective performance appraisal system.
6 100
37
Effective performance appraisal system.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly Agree Agree Netural Disagree
Strongly Disagree 20% 16% 12% 6% 46%
(Chart 4.9) INTERPRETATION The table shows 46% of the respondents agree to effec
tive performance appraisal system existing in the company.
4.1.6.5 Effective promotional opportunities in present job,
6 100
38
Effective promotional opportunities in present job
60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Netural 18% 18% 6% Disagree 6% S
trongly Disagree
52%
(Table 4.10)
INTERPRETATION The table shows 52% of the respondents agree with effective promo
tional opportunities in their present job.
4.1.6.6 Good safety measures existing in the organization.
6 100
39
Good safety measures existing in the organization.
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
46%
30%
12% 6% Strongly Agree Agree Netural Disagree 6% Strongly Disagree
(Chart 4.11)
INTERPRETATION The table shows 46% of the respondents agree that there is a good
safety measure existing in the company.
4.1.6.7 Performance appraisal activities are helpful to get motivated.
18 100
40
Performance appraisal activities are helpful to get motivated
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Strongly Agree Agree Netural Disagree
Strongly Disagree 46%
18% 12% 6%
18%
(Chart 4.12)
INTERPRETATION The table shows 46% of the respondents agree that the performance
appraisal activities are helpful to get motivated.
4.1.6.8 Support from the co-worker is helpful to get motivated
6 100
41
Support from the co-worker is helpful to get motivated
70% 60% 50% 40% 30% 20% 10% 0% Strongly Agree Agree 0% Netural Disagree Strongly
Disagree 24% 12% 6% 58%
(Chart 4.13)
INTERPRETATION The table shows 58% of the respondents agree that the support fro
m the co-worker is helpful to get motivated.
4.1.6.9 Career development opportunities are helpful to get motivated
ee Total (Table No.4.14) NUMBER OF RESPONDENTS 10 26 2 4 8 50 PERCENTAGE 20 52 4
8 16 100
42
60% 52% 50% 40% 30% 20% 10% 0% Strongly Agree Agree Neutral Disagree Strongly Di
sagree 20% 16% 4% 8%
(Chart 4.14) INTERPRETATION The table shows 52% of the respondents agree that th
e career development opportunities are helpful to get motivated.
4.1.7 Factors which motivates you the most.
SL NO PARTICULAR 1 2 3 4 5 Salary increase Promotion Leave Motivational talk Rec
ognition Total (Table 4.15) NUMBER OF RESPONDENTS 21 15 3 5 6 50 PERCENTAGE 42 3
0 6 10 12 100
43
12% 10% 6% 30% 42%
Salary increase Promotion Leave Recognition
Motivational tal
(Chart 4.15)
INTERPRETATION
The table shows that the 42% of the respondent is responding that increase in sa
lary will motivate them the most.
4.1.8 Incentives and other benefits will influence your performance
SL NO PARTICULAR 1 2 3 Influence Does not influence No opinion Total (Table 4.16
) NUMBER OF RESPONDENTS 32 12 6 50 PERCENTAGE 64 24 12 100
44
12% 24% Influence Does not influence 64% No opinion
(Chart 4.16)
INTERPRETATION The table shows 64% of the respondents responded that incentives
and other benefits will influence their performance
4.1.9 Management involves you in decision making which are connected to your dep
artment.
SL NO PARTICULAR 1 2 3 Yes No Occasionally Total (Table 4.17) NUMBER OF RESPONDE
NTS 47 0 3 50 PERCENTAGE 94 0 6 100
45
0%
6%
94%
Yes
No
Occasionally
(Chart 4.17) INTERPRETATION The table shows 94% of the respondents agree that th
ey the Management involve them in decision making which are connected to your de
partment.
CHAPTER-5 5.1 SUMMARY
This document aims at providing employees and management members with the inform
ation that can be beneficial both personally and professionally. Every business
enterprise has multiple objectives including of adequate profit for payment of a
reasonable rate of return to the owners and for investment in business through
satisfaction of customers, maintenance of a contended workforce and creation of
a public image. The basic job of management of any business is the effective uti
lization of available human resources, technological, financial and physical res
ources for the achievement of the business objectives.
46
This project entitled as “Employee motivation” was done to find out the factors whic
h will motivate the employees. The study undertakes various efforts to analyze a
ll of them in great details. The researcher in this project at the outset gives
the clear idea of the entire department existing in the company. From the study,
the researcher was able to find some of the important factors which motivate th
e employees. Factors like financial incentives and non financial inventive, perf
ormance appraisal system, good relationship with co-workers, promotional opportu
nities in the present job, employee participation in decision making are very mu
ch effect the level employee motivation. It is also clear from the study that th
e company is so eager in motivating their employees and their present effort for
it so far effective. The human resources can play an important role in the real
ization of the objectives. Employees work in the organization for the satisfacti
on of their needs. If the human resources are not properly motivated, the manage
ment will not be able to accomplish the desired results. Therefore, human resour
ces should be managed with utmost care to inspire, encourage and impel them to c
ontribute their maximum for the achievement of the business objectives.
5.2 FINDINGS
The findings of the study are follows • • • • • • 47 Hewitt Associates has a well defined o
ganization structure. There is a harmonious relationship is exist in the organiz
ation between employees and management. The employees are really motivated by th
e management. The employees are satisfied with the present incentive plan of the
company. Most of the workers agreed that the company is eager in recognizing an
d acknowledging their work. The study reveals that there is a good relationship
exists among employees.
• • • • •
Majority of the employees agreed that there job security to their present job. T
he company is providing good safety measures for ensuring the employees safety.
From the study it is clear that most of employees agrees to the fact that perfor
mance appraisal activities and support from the coworkers in helpful to get moti
vated. The study reveals that increase in the salary will motivates the employee
s more. The incentives and other benefits will influence the performance of the
employees.
5.3 SUGGESTIONS
The suggestions for the findings from the study are follows • Most of the employee
s agree that the performance appraisal activities are helpful to get motivated,
so the company should try to improve performance appraisal system, so that they
can improve their performance. • Non financial incentive plans should also be impl
emented; it can improve the productivity level of the employees. • Organization sh
ould give importance to communication between employees and gain co-ordination t
hrough it. • 48 Skills of the employees should be appreciated.
•
Better carrier development opportunities should be given to the employees for th
eir improvement.
•
If the centralized system of management is changed to a decentralized one, then
there would be active and committed participation of staff for the success of th
e organization
5.4 LIMITATIONS OF THE STUDY
The limitations of the study are the following • The data was collected through qu
estionnaire. The responds from the respondents may not be accurate. • • • • The sample t
aken for the study was only 50 and the results drawn may not be accurate. Since
the organization has strict control, it acts as another barrier for getting data
. Another difficulty was very limited time-span of the project. Lack of experien
ce of Researcher.
49
5.5 CONCLUSION
The study concludes that, the motivational program procedure in HEWITT ASSOCIATE
S is found effective but not highly effective. The study on employee motivation
highlighted so many factors which will help to motivate the employees. The study
was conducted among 50 employees and collected information through structured q
uestionnaire. The study helped to findings which were related with employee moti
vational programs which are provided in the organization. The performance apprai
sal activities really play a major role in motivating the employees of the organ
ization. It is a major factor that makes an employee feels good in his work and
results in his satisfaction too. The organization can still concentrate on speci
fic areas which are evolved from this study in order to make the motivational pr
ograms more effective. Only 50
if the employees are properly motivated- they work well and only if they work we
ll the organization is going to benefit out it. Steps should be taken to improve
the motivational programs procedure in the future. The suggestions of this repo
rt may help in this direction.
51

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