Employee Motivation

ORGANIZATIONAL BEHAVIOUR
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 Associates, Gurgaon.
Management’s basic job is the effective utilization of human resources for achievements of
organizational objectives. The personnel management is concerned with organizing human
resources in such a way to get maximum output to the enterprise and to develop the talent of
people at work to the fullest satisfaction. Motivation implies that one person, in organization
context a manager, includes another, say an employee, to engage in action by ensuring that a
channel to satisfy those needs and aspirations becomes available to the person. In addition to
this, the strong needs in a direction that is satisfying to the latent needs in employees and
harness them in a manner that would be functional for the organization.
Employee motivation is one of the major issues faced by every organization. It is the major
task of every manager to motivate his subordinates or to create the ‘will to work’ among the
subordinates. It should also be remembered that a worker may be immensely capable of
doing some work; nothing can be achieved if he is not willing to work. A manager has to
make appropriate use of motivation to enthuse the employees to follow them. Hence this
studies also focusing on the employee motivation among the employees of Hewitt
Associates.
The data needed for the study has been collected from the employees through questionnaires
and through direct interviews. Analysis and interpretation has been done by using the
statistical tools and data’s are presented through tables and charts.
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1.2 RESEARCH PROBLEM

The research problem here in this study is associated with the motivation of employees of
HEWITT ASSOSIATES, GURGAON. There are a variety of factors that can influence a
person’s level of motivation; some of these factors include
1. The level of pay and benefits,

2. The perceived fairness of promotion system within a company,
3. Quality of the working conditions,
4. Leadership and social relationships,
5. Employee recognition
6. Job security
7. Career development opportunities etc.
Motivated employees are a great asset to any organisation. It is because the motivation and Job
satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the
organisation. The research problem is formulated as follows:
“What are the factors which help to motivate the employees?
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 organization. If efficient
motivational programmes of employees are made not only in this particular organization but
also any other organization; the organizations can achieve the efficiency also to develop a
good organizational culture.
Motivation has variety of effects. These effects may be seen in the context of an individual’s
physical and mental health, productivity, absenteeism and turnover. Employee delight has to
be managed in more than one way. This helps in retaining and nurturing the true believers
“who can deliver value to the organization. Proliferating and nurturing the number of
“true believers” is the challenge for future and present HR managers.
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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 delight their employees and nurture their
creativity to keep them a bloom.
This study helps the researcher to realize the importance of effective employee motivation.
This research study examines types and levels of employee motivational programmes and
also discusses management ideas that can be utilized to innovate employee motivation. It
helps to provide insights to support future research regarding strategic guidance for
organizations that are both providing and using reward/recognition 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

organization on the employee’s performance.
2. To study the effect of job promotions on employees.
3. To learn the employee’s satisfaction on the interpersonal relationship exists in the

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

performance.
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1.5 RESEARCH METHODOLOGY.

Research is a systematic method of finding solutions to problems. It is essentially an
investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.
According to Clifford woody, “research comprises of defining and redefining problem,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
reaching conclusions, testing conclusions to determine whether they fit the formulated
hypothesis”
1.5.1 Sampling Design.

A sample design is a finite plan for obtaining a sample from a given population. Simple
random sampling is used for this study.
1.5.2 Universe.
The universe chooses for 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 Sampling Procedure.

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

The data’s were collected through Primary and secondary sources.
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 questionnaire.
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1.5.5.2 Secondary Sources.

Secondary data’s are in the form of finished products as they have already been treated
statistically in some form or other.
The secondary data mainly consists of data and information collected from records,
company websites and also discussion with the management of the organization. Secondary
data was also collected from journals, magazines and books.
1.5.6 Nature of Research.

Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to create a causal
relationship, where one variable affects another. In other words, descriptive research can be
said to have a low requirement for internal validity.
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 information on specific components of the system.
A defeated questionnaire was carefully prepared and specially numbered. The questions
were arranged in proper order, in accordance with the relevance.
1.5.8 Nature of Questions Asked.

The questionnaire consists of open ended, dichotomous, rating and ranking questions.
1.5.9 Pre-testing
A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed
and all of them were collected back as completed questionnaire. On the basis of doubts
raised by the respondents the questionnaire was redesigned 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 part of the population. A sample of
50 respondents in total has been randomly selected. The response to various elements under
each questions were totaled for the purpose of various statistical testing.
1.5.11. Variables of the Study.

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

The data are presented through 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 management in
inspiring the work force .It is the major task of every manager to motivate 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 some 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 important function which every manager performs for actuating the people
to work for accomplishment of objectives of the organization .Issuance of well conceived
instructions and orders does not mean that they will be followed .A manager has to make
appropriate use of motivation to enthuse the employees to follow them. Effective motivation
succeeds not only in having an order accepted but also in gaining a determination to see that
it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the managers must
determine 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 willingness of the workers to work. This
will increase efficiency and effectiveness of the organization .There will be better utilization
of resources and workers abilities and capacities.
2.1 The concept of motivation

The word motivation has been derived from motive which means any idea, need or emotion
that prompts a man in to action. Whatever may be the behavior of man, there is some
stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive
can be known by studying his needs and desires.
There is no universal theory that can explain the factors influencing motives which control
mans behavior at any particular point of time. In general, the different motives operate at
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different times among different people and influence their behaviors. The process 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
individual’s intensity, direction and persistence of effort towards attaining
a goal.
The three key elements in the definition are intensity, direction and
persistence.
Intensity is concerned with how hard a person tries. This is the element
most of us 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 quality 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 how
long a person can maintain effort. Motivated individuals stay with a task
long 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 organization. The
following results may be expected if the employees are properly motivated.
1. The workforce will be better satisfied if the management provides them with
opportunities to fulfill their physiological and psychological needs. The workers will
cooperate voluntarily with the management and will contribute their maximum towards
the goals of the enterprise.
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2. Workers will tend to be as efficient as possible by improving upon their skills and
knowledge so that they are able to contribute to the progress of the organization. This
will also result in increased productivity.
3. The rates of labor’s turnover and absenteeism among the workers will be low.
4. There will be good human relations in the organization as friction among the workers
themselves and between the workers and the management will decrease.
5. The number of complaints and grievances will come down. Accident will also be
low.
6. There will be increase in the quantity and quality of products. Wastage and scrap will
be less. Better quality of products will also increase the public image of the business.
2.4 Motivation Process.

1. Identification of need
2. Tension
3. Course of action
4. Result –Positive/Negative
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 (Terpstra, 1979).
The major approaches that have led to our understanding of motivation are Mcclelland’s
Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need
hierarchy or Deficient theory of motivation, ERG theory of motivation, Herzberg’s
motivation-hygiene theory, J.S. Adam’s Equity Theory, Vrooms Expectation 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 specific needs
are acquired over time and are shaped by one's life experiences. Most 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 need theory or as the learned needs theory.
Achievement
People with a high need for 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
attained 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 prefer work
that has a moderate probability of success, ideally a 50% chance. Achievers need regular
feedback in order to monitor the progress of their achievements. They prefer either to work
alone or with other high achievers.
Affiliation
Those 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 significant personal
interaction. They perform well in customer service and client interaction situations.
Power
A person's need for power (nPow) can be one of two types - personal and institutional.
Those who need personal power want to direct others, and this need often is perceived as
undesirable. Persons who need institutional power (also known as social power) want to
organize the efforts of others to further the goals of the organization. Managers with a high
need for institutional power tend to be more effective than those with a high need for
personal power.
Thematic Apperception Test
McClelland used the Thematic Apperception Test (TAT) as a tool to measure the individual
needs of different people. The TAT 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 picture. The assumption is that the subject will project his or her own needs into the
story.
Psychologists have developed fairly reliable scoring techniques for the Thematic
Apperception Test. The test determines the individual's score for each 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 differently.
• 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 affiliation - Employees with a high affiliation need perform best in a
cooperative 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; training programs
can be used to modify one's need profile.
2.5.2 Behavioral Modification Theory;

According to this theory people behavior is the outcome of favorable and unfavorable past
circumstances. This theory is based on learning theory. Skinner conducted his researches
among rats and school children. He found that stimulus for desirable behavior could be
strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this
theory may be found in the installation of financial and non financial incentives.
More immediate is the reward and stimulation or it motivates it. Withdrawal of reward
incase of low standard work may also produce the desired result. However, researches show
that it is generally more effective to reward desired behavior than to punish undesired
behavior.
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 behavioral
scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of
Motivation”. Although Maslow himself did not apply his theory to industrial situation, it has
wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s theory
to interpret specific problems in personnel administration and industrial relations.
The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of
five categories. The lowest level needs are physiological and the highest levels are the self
actualization needs. Maslow starts with the formation that man is a wanting animal with a
hierarchy of needs of which some are lower ins scale and some are in a higher scale or
system of values. As the lower needs are satisfied, higher needs emerge. Higher needs
cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This
resembles the standard economic theory of diminishing returns. The hierarchy of needs at
work in the individual is today a routine tool of personnel trade and when these needs are
active, they act as powerful conditioners of behavior- as Motivators.
Hierarchy of needs; the main needs of men are five. They are physiological needs, safety
needs, social needs, ego needs and self actualization needs, as shown in order of their
importance.
Self-
Actualization
Ego Needs
Social Needs
Safety Needs
The above five basic needs are regarded as striving needs which make a person do things.
Physiological
The first model indicates the ranking of differentNeeds
needs. The second is more helpful in
indicating how the satisfaction of the higher 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 fulfillment of the
higher needs gradually tapers off.
Physiological or Body Needs: - The individual move up the ladder responding first to the
physiological needs for nourishment, clothing and shelter. These physical needs must be
equated with pay rate, pay practices and to an extent with physical condition of the job.
Safety: - The next in order of needs is safety needs, the need to be free from danger, either
from other people or from environment. The individual want to assured, once his bodily
needs are satisfied, that they are secure and will continue to be satisfied for foreseeable
feature. The safety needs may take the form of job security, security against disease,
misfortune, old age etc as also against industrial injury. Such needs are generally met by
safety laws, measure of social security, protective labor laws and collective agreements.
Social needs: - Going up the scale of needs the individual feels the desire to work in a
cohesive group and develop a sense of belonging and identification with a group. He feels
the need to love and be loved and the need to belong and be identified with a group. In a
large organization it is not easy to build up social relations. However close relationship can
be built up with at least some fellow workers. Every employee wants too feel that he is
wanted or accepted and that he is not an alien facing a hostile group.
Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition,
respect and prestige in the work group or work place such as is conferred by the recognition
of ones merit by promotion, by participation in management and by fulfillment of workers
urge for self expression. Some of the needs relate to ones esteem
e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this
means praise for a job but more important it means a feeling by employee that at all times he
has the respect of his supervisor as a person and as a contributor to the organizational goals.
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Self realization or Actualization needs: - This upper level need is one which when
satisfied provide insights to support future research regarding strategic guidance for
organization that are both providing and using reward/recognition programs makes the
employee give up the dependence on others or on the environment. He becomes growth
oriented, self oriented, directed, detached and creative. This need reflects a state defined in
terms of the extent to which an individual attains his personnel goal. This is the need which
totally lies within oneself and there is no demand from any external situation or person.
If Maslow's theory holds, there are some important implications for management. There are
opportunities to motivate employees through management style, job design, company
events, and compensation packages, some examples of which follow:
• Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient
to purchase the essentials of life.
• Safety Needs: Provide a safe working environment, 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 that 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 people may be
motivated by entirely different factors. It is important to understand 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, and use those needs as levers of motivation.
Limitations of Maslow's Hierarchy
While Maslow's hierarchy makes sense from an intuitive standpoint, there is little evidence
to support its hierarchical aspect. In fact, there is evidence that contradicts the order of needs
specified by the model. For example, some cultures appear to place social needs before any
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others. Maslow's hierarchy also has difficulty explaining cases such as the "starving 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 satisfy 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 quite well-known and is the
first theory of motivation to which many people they are exposed. To address some of the
issues of Maslow's theory, Clayton Alderfer developed the ERG theory, a needs-based
model that is more consistent with empirical findings.
2.5.4 ERG Theory of Motivation
To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical

research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory
of motivation. He recategorized Maslow’s hierarchy of needs into 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 needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslow’s social needs and external component of
esteem needs fall under this class of need.
• Growth needs- These include need for self-development 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.
Implications of the ERG Theory
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Managers must understand that an employee has various needs that must be satisfied at the
same time. According to the ERG theory, if the manager concentrates solely on one need at
a time, this will not effectively motivate the employee. Also, the frustration- regression
aspect of ERG Theory has an added effect on workplace motivation. For instance- if an
employee is not provided with growth and advancement opportunities in an organization, he
might revert to the relatedness need such as socializing needs and to meet those socializing
needs, if the environment or circumstances do not permit, he might revert to the need for
money to fulfill those socializing needs. The sooner the manager realizes and discovers this,
the more immediate steps they will take to fulfil those needs which are frustrated 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 satisfaction
(and presumably motivation) were different from those causing job dissatisfaction. He
developed the motivation-hygiene theory to explain these results. He called the satisfiers
motivators and the dissatisfiers hygiene factors, using the term "hygiene" in the sense that
they are considered maintenance factors that are necessary to avoid dissatisfaction but that
by themselves do not provide 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 importance.
Factors Affecting Job Attitudes
Leading to Dissatisfaction Leading to Satisfaction

• Company policy • Achievement
• Supervision • Recognition
• Relationship w/Boss • Work itself
• Work conditions • Responsibility
• Salary • Advancement
• Relationship w/Peers • Growth
Herzberg reasoned that because the factors causing satisfaction are different from those
causing dissatisfaction, the two feelings cannot simply be treated as opposites of one
another. The opposite of satisfaction is not dissatisfaction, but rather, no satisfaction.
Similarly, the opposite of dissatisfaction is no dissatisfaction.
While at first glance this distinction between the two opposites may 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 money, for example, to purchase food and
shelter. Second, there is the psychological need to achieve and grow, and this need is
fulfilled by activities that cause one to grow.
From the above table of results, one observes that the factors that determine whether there is
dissatisfaction or no dissatisfaction are not part of the work itself, but rather, are external
factors. Herzberg often referred to 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 success because the motivator factors that determine whether there is satisfaction
or no satisfaction are intrinsic to the job itself, and do not result from carrot and stick
incentives.
If the motivation-hygiene theory holds, management not only must provide hygiene factors
to avoid employee dissatisfaction, but also must provide factors intrinsic to the work itself in
order for employees to be satisfied with their jobs.
Herzberg argued that job enrichment is required for intrinsic motivation, and that it is a
continuous management process. According to Herzberg:
• The job should have sufficient challenge to utilize the full ability of the employee.
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• Employees who demonstrate increasing levels of ability should be given increasing

levels of responsibility.
• If a job cannot be designed to use an employee's full 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 utilized, then there will be a motivation
problem.
Critics of Herzberg's theory argue that the two-factor result is observed because it is natural
for people to take credit for satisfaction and to blame dissatisfaction on external factors.
Furthermore, job satisfaction does not necessarily imply a high level of motivation or
productivity.
Herzberg's theory has been broadly read and despite its weaknesses its enduring value is that
it recognizes that 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 employee effort will lead to performance and
performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative.
The more positive the reward the more likely the employee will be highly motivated.
Conversely, the more negative the reward the less likely the employee will be motivated.
2.5.8 Two Factor Theory
. 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 represents a negative view of human
nature that assumes individuals generally dislike work, are irresponsible,
and require close supervision to do their jobs. Theory Y denotes a positive
view of human nature and assumes individuals are generally industrious,
creative, and able to assume responsibility and exercise self-control 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 responsible for organizing the elements of productive enterprise-

money, materials, equipment, and people-in the interests of economic ends.
2. With respect to people, this is a process of directing their efforts, motivating them,
controlling their actions, and modifying their behavior to fit the needs of the
organization.
3. Without this active intervention by management, people would be passive-even
resistant-to organizational needs. They must therefore be persuaded, rewarded,
punished, and controlled. Their activities must be directed. Management's task was
thus 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
responsibility and desire explicit direction. Additionally, individuals are assumed to put their
individual concerns above that of the organization for which they work and to resist change,
valuing security more than other considerations at work. Finally, human beings are assumed
to be easily manipulated and controlled. McGregor contended that both the classical and
human relations approaches to management depended this same set of assumptions. He
called the first style of management "hard" and identified its methods as close supervision,
tight controls, and coercion.
The hard style of management led to restriction of output, mutual distrust, unionism, and
even sabotage. McGregor called the second style of management "soft" and identified its
methods as permissiveness and need satisfaction. McGregor suggested that the soft style of
management often led to managers' failure to perform their managerial role. He also pointed
out that employees often take 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 needs are
arranged in levels, with physical and safety needs at the bottom of the needs hierarchy and
social, ego, and self-actualization needs at upper levels of the hierarchy. Maslow's basic
point was that once a need is met, it no longer motivates behavior; thus, only unmet needs
are motivational. McGregor argued that most employees already had their physical and
safety needs met and that the motivational emphasis had shifted to the social, ego, and self-
actualization needs. Therefore, management had to provide opportunities for these upper-
level needs to be met in the workplace, or employees would not be satisfied or motivated in
their jobs.
Such opportunities could be provided by allowing employees to participate in decision

making, by redesigning jobs to make them more challenging, or by emphasizing 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 human nature as it pertains to the workplace.
McGregor put forth these assumptions, which he believed could lead to more effective
management of people in the organization, under the rubric of Theory Y. The major
propositions of Theory Y include the following:
1. Management is responsible for organizing the elements of productive enterprise-

money, materials, equipment, and people in the interests of economic ends.
2. People are not by nature passive or resistant to organizational needs. They have
become so as a result of experience in organizations.
3. The motivation, potential for development, capacity for assuming responsibility, and
readiness to direct behavior toward organizational goals are all present in people-
management 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 management is to arrange organizational conditions and
methods of operation so that people can achieve their own goals by directing their
efforts toward organizational 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 proper conditions. Theory Y also assumes that
the ability to be innovative and creative 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 supervision and the threat of punishment are not the only means or even the best
means for inducing employees to exert productive effort. Instead, if given the opportunity,
employees will display self-motivation to put forth the effort necessary 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 above all other
rewards associated with work, individuals desire rewards that satisfy 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 significant impact on management
thought and practice in the years since he first articulated the concepts. In terms of the study
of management, McGregor's concepts are 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 Theory X and Theory Y within the history of the organizational humanism
movement.
Theory X and Theory Y are often studied as a prelude to developing greater understanding
of more recent management concepts, such as job enrichment, the job-characteristics 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 the early twenty-first century, with
its emphasis on self-managed work teams and other forms of worker involvement programs,
is generally consistent with the precepts 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 feel that what they are
learning is morally significant.
Extrinsic motivation comes into play when a student is compelled to do something or act a
certain way because of factors external to him or her (like money or good grades)
2.7 Incentives
An incentive is something which stimulates a person towards some goal. It activates human
needs and creates the desire to work. Thus, an incentive is a means of motivation. In
organizations, increase in incentive leads to better performance and vice versa.
2.7.1 Need for Incentives
22
Man is a wanting animal. He continues to want something or other. He is never fully

satisfied. If one need is satisfied, the other need need arises. In order to motivate the
employees, the management should try to satisfy their needs. For this purpose, both financial
and non financial incentives may be used by the management to motivate the workers.
Financial incentives or motivators are those which are associated with money. They include
wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators
are those which are not associated with monetary rewards. They include intangible
incentives like ego-satisfaction, self-actualization and responsibility.
INCENTIVES
Financial Incentives Non-financial incentives
- Wages and Salaries. - Competition

- Bonus - Group recognition
- Medical reimbursement - Job security
- Insurance - Praise
- Housing facility - Knowledge of result
- Retirement benefits. - Workers participation.
- Suggestion system.
- Opportunities for growth
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 what they want to do or otherwise
motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they
must be motivated or driven to it, either by themselves or through external stimulus.
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 essential for any business to
survive and succeed.
Performance is considered to be a function of ability and motivation, thus:
• Job performance =f(ability)(motivation)
Ability in turn depends on education, experience and training and its improvement is a slow
and long process. On the other hand motivation can be improved quickly. There are many
options and an uninitiated manager may not even know where to start. As a guideline, there
are broadly seven strategies for motivation.
There are broadly seven strategies for motivation.
• Positive reinforcement / high expectations

• Effective discipline and punishment
• Treating people fairly
• Satisfying employees needs
• Setting work related goals
• Restructuring jobs
• Base rewards on job performance
Essentially, there is a gap between an individual’s actual state and some desired state and the
manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate
this gap.
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 services to help
companies manage their total HR and employee costs, enhance HR services, and improve
their workforces.
History
Founded in 1940, The Lincolnshire, Illinois-based Hewitt Associates, Inc. is a global

management consulting firm specializing in the outsourcing of corporate human resources
(HR) programs such as healthcare benefits, payroll administration, stock options and
investment accounts, retirement programs, and severance packages. Hewitt represents many
Fortune 500 companies, administering their investment and benefit programs and offering
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 into the Internet age by
launching a series of online programs and software packages.
25
1940s-70s
Edwin "Ted" Hewitt founded Edwin Shields Hewitt and Associates on October 1, 1940, as a
brokerage house focusing on insurance and personal financial services. It was a heady time
in the United States; population had grown to 132 million, the economy was robust, and
President Franklin Delano Roosevelt was reelected 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
increased more than 25 percent in 1945. Once the war and its rationing ended, Americans
returned to work and the economy recovered. Hewitt's clients, many of whom had
manufactured goods for the war effort, returned to their customary businesses and thrived.
Hewitt began offering its clients statements to track their employee benefits and had
pioneered the use of specific financial goals for company investments. 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 Labor asked the firm to create forms for the welfare and
pension programs of the 1950s.
By the 1960s the Hewitt firm continued to expand its pension and benefit plans, creating
more sophisticated programs for its clients. During the decade the firm revolutionized
employee benefit packages once again, as the first company to design pension and benefit
plans tied to a corporation's revenue and growth projections. While such a practice became
commonplace in the pension and employee benefits of larger corporations, it was another in
Hewitt's growing list of industry firsts. Hewitt was so respected for its work in the field that
it was the only company asked by the U.S. government to consult on the Federal Interagency
Task Force from 1964 to 1968. The Task Force was responsible for the design and
implementation of the new Employee Retirement Income Security Act.
In the next decade Hewitt began offering its clients an increasing number of innovative
products, including its trademarked Benefit Index to track the performance of benefit
programs. The Benefit Index was another industry first and soon became the standard to
which all aspired. Hewitt also offered its clients several flexible investment strategies for
employee benefit packages, which led to the formation of a new consulting firm, the Hewitt
Investment Group, in 1974.
1980s and 1990s
Hewitt continually sought to better its programs. The company began to conduct in-depth
surveys to find out which benefit programs worked best and which ones needed
improvement. In the 1980s Hewitt researched numerous issues and began issuing its
findings industry-wide on subjects such as offering benefits to part-time employees, full
versus partial hospital reimbursement, fluctuating profit-sharing percentages, mental health
26
benefits, 401(k) programs, and rising health plan deductibles. Another topical issue was
computer use for automated benefit calculations.
The use of computers had finally begun to take hold in larger businesses, as Hewitt found
automated benefit 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
percent had become either fully or partially automated in their administration of benefits
plans, up from 48 percent two years before. Hewitt responded to the expanding use of
technology by designing computerized benefit programs and software so companies could
manage their benefit plans. Hewitt Technologies was created in 1988 to monitor and
respond to the industry's rapidly changing technological needs.
By the beginning of the 1990s Hewitt had ventured abroad and offered tailored 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 Insurance magazine. Yet many of
Hewitt's clients were feeling the pinch of a struggling economy and inflation. As companies
began looking for ways to bolster the bottom 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-living increases, Hewitt started retooling retirement packages and
healthcare benefits to keep its customers from making drastic changes. Of particular interest
were retirement programs since few seniors could withstand the effects of inflation and
soaring healthcare costs. Hewitt also researched other benefit additions such as flextime
scheduling, child- and elder-care benefits, and HMOs (health management organizations)
versus PPOs (preferred provider organizations).
By 1997 more than 100 large companies outsourced their benefit programs to Hewitt,
covering about nine million worldwide employees. Hewitt not only managed these HR
services 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 Orlando, 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 fiscal year (ending in September) in which Hewitt's
revenues reached close to $700 million.
In 1998 Hewitt partnered with the California-based Financial Engines, an online investment
firm, to offer its clients financial advice over the burgeoning "information superhighway" or
Internet. Hewitt clients were among the first to 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-time. Such advancements, along with being the first HR industry firm
to launch a corporate web site, landed Hewitt among PC Week's Top Ten Most
Technologically Innovative Companies. Hewitt also continued its in-depth surveys,
developing the Health Value Initiative in 1999 to measure the effectiveness and quality of
more than 2,000 healthcare programs worldwide. The Initiative's findings led to testimony
27
for the government and various agencies in an attempt to reform the U.S. healthcare
industry.
As the decade closed, Hewitt was poised for further growth both domestically and abroad.
Not only was the company broadening the scope of its operations, but it offered clients
advanced tools to outdistance their competitors. Hewitt's HR management services had
become known for their cutting-edge technology and the company's ongoing commitment to
offer newer, faster, and more comprehensive programs would take it to the top of the
industry in the next century.
2000 Onward
By early 2000 Hewitt's expansion moved forward with new offices near Houston, Texas,
and an increased presence in Asia with a new office in Kuala Lumpur, Malaysia. The
company also announced the merger of its British and Irish operations with the United
Kingdom's Bacon & Woodrow, a leading retirement and HR management 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 employees, to offer this growing population the same
benefits provided to Hewitt's 150 corporate clients and their 15 million worldwide
employees. Hewitt hoped that Sageo's online format would not only simplify the benefits
process but lower employer costs as well. Within a few months of its debut, Sageo had
enrolled nearly a dozen companies representing 500,000 individuals. However, Sageo never
made money and was dismantled shortly thereafter.
In 2001 Hewitt formally announced its intention to become a publicly traded company after
nearly six decades as a private 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 wasted little
time in putting its new funds to work, paying off debt, purchasing France's Finance
Arbitage, an investment consultancy firm, and spearheading expansion plans for the United
Kingdom and China.
In 2003 Hewitt took over the Cork, Ireland-based Becketts, a benefits consultancy, and
bought the software programs and payroll services of Cyborg Worldwide Inc. These moves,
along with several others, prompted the Chicago-based Crain's Chicago Business to name
Hewitt one of the 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, California'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 billion by the following
fiscal year.
For 2004 Hewitt reached revenues of $2.2 billion and the firm sustained its 43rd consecutive
year of growth. Employees numbered more than 22,000 in nearly three dozen countries
(including Brazil, China, France, India, Ireland, The Netherlands, Puerto Rico, Singapore,
and Switzerland) serving 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 and the world's second
largest benefits outsourcing company, according to Business 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 PepsiCo Inc., Wachovia Corporation, and others to a
roster of more than 2,500 international clients. As the year came to a close, Hewitt had fallen
a bit short of its $3 billion goal, bringing in revenues of $2.8 billion. With analysts believing
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 insurance 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 1500 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 NUMBER OF
PARTICULAR
RESPONDENTS PERCENTAGE
1 Highly satisfied 18 36
70
2 Satisfied 29 58
58
3 60
Neutral 3 6
4 Dissatisfied
50 0 0
40 36
Total 50 100 Series1
30 (Table 4.1)
20
10 6
29 0 0
0
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied
(Chart 4.1)
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the support they are getting
from the HR department.
4.1.2 Management is interested in motivating the employees
SL NO NUMBER OF
PARTICULAR
1 Strongly Agree 27 54
2 Agree 20 40
3 Neutral 3 6
4 Disagree 0 0
5 Strongly Disagree 0 0
Total 50 100
(Table 4.2)
30
Management is interested in motivating the

employees
60 54
50
40
40
30 Series1
20
10 3
0 0
0
Strongly Agree Netural Disagree Strongly
Agree Disagree
(Chart 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 NUMBER OF
PARTICULAR
1 Financial Incentives 15 30
2 Non financial Incentives 9 18
3 Both 26 52
Total 50 100
(Table 4.3)
31
The type of incentives motivates you more
30%
Financial Incentives
Non Financial Incentives
52%
Both
18%
(Chart 4.3)
INTERPRETATION
The table shows that 52% of the respondents are expressing that both financial and non
financial incentives will equally motivate them.
4.1.4 Satisfaction with the present incentives scheme
SL NO NUMBER OF
PARTICULAR
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
Total 50 100
(Table 4.4)
32
Satisfaction with the present incentives provided by

the organization
70%
58%
60%
50%
40% 36%
30%
20%
10% 6%
0% 0%
0%
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied
(Chart 4.4)
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the present incentive scheme
of the organization.
4.1.5 The company is eagerness in recognizing and acknowledging

employee’s work
SL NO NUMBER OF
PARTICULAR
2 Agree 29 58
3 Neutral 3 6
4 Disagree 0 0
Total 50 100
(Table 4.5)
33
Eagerness of the company in acknowledging the

work of employees
70%
58%
60%
50%
40% 36%
30%
20%
10% 6%
0% 0%
0%
Agree Disagree
(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% showed neutral response.
4.1.6.1 Periodical increase in salary
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 3 6
4 Disagree 9 18
Total 50 100
(Table 4.6)
34
Periodical increase in salary
50% 46%
45%
40%
35%
30%
24%
25% Series1
18%
20%
15%
10% 6% 6%
5%
0%
Agree 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.
SL NO NUMBER OF
PARTICULAR
2 Agree 18 36
3 Neutral 11 22
4 Disagree 3 6
Total 50 100
(Table 4.7)
35
Job security exist in the company
40% 36%
35%
30%
30%
25% 22%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree
(Chart 4.7)
INTERPRETATION
The table shows 35% of employees agree with good job security exist in the company.
4.1.6.3 Good relations with the co-workers.
SL NO NUMBER OF
PARTICULAR
2 Agree 27 54
3 Neutral 8 16
4 Disagree 0 0
Total 50 100
(Table 4.8)
36
Good relations with co-workers
60% 54%
50%
40%
30%
30%
20% 16%
10%
0% 0%
0%
(Chart 4.8)
INTERPRETATION
The table shows 54% of the respondents agree that they have good relations with co-worker.
4.1.6.4 Effective performance appraisal system.
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 8 16
4 Disagree 6 12
Total 50 100
(Table 4.9)
37
Effective performance appraisal system.
50% 46%
45%
40%
35%
30%
25% 20%
20% 16%
15% 12%
10% 6%
5%
0%
(Chart 4.9)
INTERPRETATION
The table shows 46% of the respondents agree to effective performance appraisal system
existing in the company.
4.1.6.5 Effective promotional opportunities in present job,
SL NO NUMBER OF
PARTICULAR
2 Agree 26 52
3 Neutral 9 18
4 Disagree 3 6
Total 50 100
(Table 4.10)
38
Effective promotional opportunities in present job
60%
52%
50%
40%
30%
18% 18%
20%
10% 6% 6%
0%
Agree Disagree
(Table 4.10)
INTERPRETATION
The table shows 52% of the respondents agree with effective promotional opportunities in
their present job.
4.1.6.6 Good safety measures existing in the organization.
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 3 6
4 Disagree 6 12
Total 50 100
(Table 4.11)
39
Good safety measures existing in the organization.
50% 46%
45%
40%
35%
30%
30%
25%
20%
15% 12%
10% 6% 6%
5%
0%
Agree 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.
SL NO NUMBER OF
PARTICULAR
2 Agree 23 46
3 Neutral 6 12
4 Disagree 3 3
Total 50 100
(Table 4.12)
40
Performance appraisal activities are helpful to get motivated
50% 46%
45%
40%
35%
30%
25%
20% 18% 18%
15% 12%
10% 6%
5%
0%
(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
SL NO NUMBER OF
PARTICULAR
2 Agree 29 46
3 Neutral 0 0
4 Disagree 6 12
Total 50 100
(Table 4.13)
41
Support from the co-worker is helpful to get motivated
70%
58%
60%
50%
40%
30% 24%
20%
12%
10% 6%
0%
0%
(Chart 4.13)
INTERPRETATION
The table shows 58% of the respondents agree that the support from the co-worker is helpful
to get motivated.
4.1.6.9 Career development opportunities are helpful to get motivated
SL NO NUMBER OF
PARTICULAR
2 Agree 26 52
3 Neutral 2 4
4 Disagree 4 8
Total 50 100
(Table No.4.14)
42
60%
52%
50%
40%
30%
20%
20% 16%
10% 8%
4%
0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree
(Chart 4.14)
INTERPRETATION
The table shows 52% of the respondents agree that the career development opportunities are
helpful to get motivated.
4.1.7 Factors which motivates you the most.
SL NO NUMBER OF
PARTICULAR
1 Salary increase 21 42
2 Promotion 15 30
3 Leave 3 6
4 Motivational talk 5 10
5 Recognition 6 12
Total 50 100
(Table 4.15)
43
12% Salary increase

10%
42% Promotion
Leave
6%
Motivational tal
30% Recognition
(Chart 4.15)
INTERPRETATION
The table shows that the 42% of the respondent is responding that increase in salary will
motivate them the most.
4.1.8 Incentives and other benefits will influence your performance
SL NO NUMBER OF
PARTICULAR
1 Influence 32 64
2 Does not influence 12 24
3 No opinion 6 12
Total 50 100
(Table 4.16)
44
12%
24% Influence
Does not influence
No opinion
64%
(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 department.
SL NO NUMBER OF
PARTICULAR
1 Yes 47 94
2 No 0 0
3 Occasionally 3 6
Total 50 100
(Table 4.17)
45
0% 6%
94%
Yes No Occasionally
(Chart 4.17)
INTERPRETATION
The table shows 94% of the respondents agree that they the Management involve them in
decision making which are connected to your department.
CHAPTER-5
5.1 SUMMARY
This document aims at providing employees and management members with the information
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 utilization of available human resources, technological, financial
and physical resources for the achievement of the business objectives.
46
This project entitled as “Employee motivation” was done to find out the factors which will
motivate the employees. The study undertakes various efforts to analyze all of them in great
details. The researcher in this project at the outset gives the clear idea of the entire
department existing in the company. From the study, the researcher was able to find some of
the important factors which motivate the employees. Factors like financial incentives and
non financial inventive, performance appraisal system, good relationship with co-workers,
promotional opportunities in the present job, employee participation in decision making are
very much effect the level employee motivation. It is also clear from the study that the
company is so eager in motivating their employees and their present effort for it so far
effective.
The human resources can play an important role in the realization of the objectives.
Employees work in the organization for the satisfaction of their needs. If the human
resources are not properly motivated, the management will not be able to accomplish the
desired results. Therefore, human resources should be managed with utmost care to inspire,
encourage and impel them to contribute their maximum for the achievement of the business
objectives.
5.2 FINDINGS
The findings of the study are follows
• Hewitt Associates has a well defined organization structure.

• There is a harmonious relationship is exist in the organization between employees
and management.
• The employees are really motivated by the management.
• The employees are satisfied with the present incentive plan of the company.
• Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.
• The study reveals that there is a good relationship exists among employees.
47
• Majority of the employees agreed that there job security to their present job.
• The company is providing good safety measures for ensuring the employees safety.
• From the study it is clear that most of employees agrees to the fact that performance
appraisal activities and support from the coworkers in helpful to get motivated.
• The study reveals that increase in the salary will motivates the employees more.
• The incentives and other benefits will influence the performance of the employees.
5.3 SUGGESTIONS
The suggestions for the findings from the study are follows
• Most of the employees agree that the performance appraisal activities are helpful to
get motivated, so the company should try to improve performance appraisal system,
so that they can improve their performance.
• Non financial incentive plans should also be implemented; it can improve the
productivity level of the employees.
• Organization should give importance to communication between employees and gain

co-ordination through it.
• Skills of the employees should be appreciated.
48
• Better carrier development opportunities should be given to the employees for their
improvement.
• If the centralized system of management is changed to a decentralized one, then

there would be active and committed participation of staff for the success of the
organization
5.4 LIMITATIONS OF THE STUDY

The limitations of the study are the following
• The data was collected through questionnaire. The responds from the respondents
may not be accurate.
• The sample taken for the study was only 50 and the results drawn may not be
accurate.
• Since the organization has strict control, it acts as another barrier for getting data.
• Another difficulty was very limited time-span of the project.
• Lack of experience of Researcher.
49
5.5 CONCLUSION
The study concludes that, the motivational program procedure in HEWITT ASSOCIATES
is found effective but not highly effective. The study on employee motivation highlighted so
many factors which will help to motivate the employees. The study was conducted among
50 employees and collected information through structured questionnaire. The study helped
to findings which were related with employee motivational programs which are provided in
the organization.
The performance appraisal activities really play a major role in motivating the employees of
the organization. It is a major factor that makes an employee feels good in his work and
results in his satisfaction too. The organization can still concentrate on specific areas which
are evolved from this study in order to make the motivational programs more effective. Only
50
if the employees are properly motivated- they work well and only if they work well the
organization is going to benefit out it. Steps should be taken to improve the motivational
programs procedure in the future. The suggestions of this report may help in this direction.
51

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ORGANIZATIONAL BEHAVIOUR

A STUDY ON EMPLOYEE MOTIVATION

The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special

1.2 RESEARCH PROBLEM

1. The level of pay and benefits,

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

1.3 SIGNIFICANCE OF THE STUDY

1.4 OBJECTIVES OF THE STUDY

1.4.1 Primary objective

1.4.2 Secondary Objective.

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

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

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

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

1.5 RESEARCH METHODOLOGY.

1.5.1 Sampling Design.

1.5.3 Sample Size.

1.5.4 Sampling Procedure.

1.5.5 Methods of Data Collection.

1.5.5.1 Primary Sources.

1.5.5.2 Secondary Sources.

1.5.6 Nature of Research.

1.5.8 Nature of Questions Asked.

1.5.11. Variables of the Study.

1.5.12. Presentation of Data.

1.5.13. Tools and Techniques for Analysis.

2.1 The concept of motivation

2.2 Definition of Motivation.

2.3 Significance of Motivation

2.4 Motivation Process.

2.5 Theories of Motivation.

2.5.1 McClelland’s Achievement Need Theory.

Thematic Apperception Test

Implications for Management

People with different needs are motivated differently.

2.5.2 Behavioral Modification Theory;

2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of

Implications for Management

Limitations of Maslow's Hierarchy

2.5.4 ERG Theory of Motivation

To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical

Implications of the ERG Theory

2.5.5 Herzberg's Motivation-Hygiene Theory

Factors Affecting Job Attitudes

Leading to Dissatisfaction Leading to Satisfaction

• Relationship w/Peers • Growth

Implications for Management

• Employees who demonstrate increasing levels of ability should be given increasing

2.5.6 J.S Adams Equity Theory

2.5.7 Vrooms Expectation Theory

2.5.8 Two Factor Theory

. THEORY X AND THEORY Y

Douglas McGregor proposed two distinct views of human beings Theory X

1. Management is responsible for organizing the elements of productive enterprise-

Such opportunities could be provided by allowing employees to participate in decision

1. Management is responsible for organizing the elements of productive enterprise-

THEORY X AND THEORY Y

2.6 Types of Motivation.

2.7.1 Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fully

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

2.8 Motivation is the key to performance