Empl oyee

mot iva t iona l
Issues

SUBMITTED TO:- GROUP NO:- 04
Dr. Mousumi S. Bhattacharya & 1. Bhujanga rao sandeep.B (06)
Dr. Nilanjan Sengupta 2. Govind Maanas.k (09)
3. Trinadh kumar .G
SUBMITTED ON:- 4. K.Anish (12)
22-03-2010 5. Rajender singh (22)
6. Somraj Pattak (27)
7. Vidushi Saxena(34)




ACKNOWLEDGEMENT

This is our humble attempt to preseht gratitude ih
preparihg this report.This proiect would hot have
beeh possible without the dedicatioh ahd
cohtributioh of a humber of ihdividuals.
First ahd foremost, we would like to express our
gratitude to DR. NILAN|AN 5EN GUPTA AND DR.
MOU5AMI 5.BHATTACHARYA for agreeihg to
supervise us durihg the proiect. They helped us ih
every step of the way ahd ehcouraged us to propel
ourselves higher.
Also, we waht to show our gratefulhess to All those
who have showh their cohtihuous ahd cordial
support durihg our proiect.
Fihally, we thahk to IFIM Bschool, Bahgalore for
providihg us with such opportuhities to work ahd
gaih experiehce of the professiohal field ahd
writihg report like this.





MO IVA IO

³ You a e ne e too ol to set anot e goal or to dream a new dream ´
Les brown
One of t e most im ortant factors t at lead one to t eir goals is t e dri e This dri e is known as
moti ation. It is a zest and determination with a kind of e citement that leads one to perse ere to
reach greater heights, in no matter what a enue of their life; be it ± personal or professional. The
dri e ma come from an internal or e ternal source. The indi idual determines this.
DEFI I IO OF MO IVA IO
The definition of motivation is to gi e reason, incenti e, enthusiasm, or interest that causes a
specific action or certain beha ior. Moti ation is present in e ery life function. Simple acts such
as eating are moti ated by hunger. Education is moti ated by desire for knowledge. Moti ators
can be anything from reward to coercion.
From the scientific viewpoint, by most accounts, motivation is defined as an inner state of need
or desire. That state of desire creates a movement or activity towards satisfying that desire.
In my never-ending quest to spread the word about turning ideas into action, I view inspiration as
the state of mind that primes us to come up with great ideas, and motivation as the state of mind
that spurs us to action.
Many contemporary authors have also defined the concept of motivation. Motivation has
been defined as: the psychological process that gives behavior purpose and direction (Kreitner,

1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs
(Buford, Bedeian, & Lindner, 1995); an internal drive to satisfy an unsatisfied need (Higgins,
1994); and the will to achieve (Bedeian, 1993).
Motivation is the activation or energization of goal-oriented behavior.
y Intrinsic
y Extrinsic
From a practical standpoint, we can dig into our motives in order to get better results, and move
ourselves from point A to point B. For example, if you know what motivates you, you can use
those motives to get yourself to do things that you wouldn't do otherwise. These same principles
can be applied to motivating others as well.
Motivational techniques, therefore, are useful to teachers, leaders, parents, employers, and really,
almost anyone. The key is in understanding that you are not motivating someone else. Instead,
you are simply providing a circumstance that triggers that person to be motivation.

I I IC A D EXTRI IC MOTIVATIO
Intrinsic Motivation:-
Intrinsic motivation comes from rewards inherent to a task or activity itself - the enjoyment of a
puzzle or the love of playing. This form of motivation has been studied by social and educational
psychologists since the early 1970s. Research has found that it is usually associated with high
educational achievement and enjoyment by students. Intrinsic motivation has been explained by
Fritz Heider' attributional theory, Bandura's work on self effeciency,and Ryan and Deci's
cognitive evaluation theory. Students are likely to be intrinsically motivated if they:
y attribute their educational results to internal factors that they can control (e.g. the amount
of effort they put in),

y believe they can be effective agents in reaching desired goals (i.e. the results are not
determined by luck),
y are interested in mastering a topic, rather than just rote-learning to achieve good grades.


Extrinsic motivation:-

Extrinsic motivation comes from outside of the performer. Money is the most obvious example,
but coercion and threat of punishment are also common extrinsic motivations.
While competing, the crowd may cheer on the performer, which may motivate him or her to do
well. Trophies are also extrinsic incentives. Competition is in general extrinsic because it
encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the
activity.
Social psychological research has indicated that extrinsic rewards can lead to overjustification
and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect,
children who expected to be (and were) rewarded with a ribbon and a gold star for drawing
pictures spent less time playing with the drawing materials in subsequent observations than
children who were assigned to an unexpected reward condition and to children who received no
extrinsic reward.
Motivation starts with you! As you aspire to be more successful in life, your attiutude towards
yourself and others will play a huge role. Positive people learn how to handle life's challenges
differently and use these opportunities to grow. So can you!
Self Motivation:-
The self-control of motivation is increasingly understood as a subset of emotional intelligence; a
person may be highly intelligent according to a more conservative definition (as measured by
many intelligence test), yet unmotivated to dedicate this intelligence to certain tasks. Yale School

of Management professor Victor Vroom's "expectancy theory" provides an account of when
people will decide whether to exert self control to pursue a particular goal.
Drives and desires can be described as a deficiency or need that activates behaviour that is aimed
at a goal or an incentive. These are thought to originate within the individual and may not require
external stimuli to encourage the behaviour. Basic drives could be sparked by deficiencies such
as hunger, which motivates a person to seek food; whereas more subtle drives might be the
desire for praise and approval, which motivates a person to behave in a manner pleasing to
others.
By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training
animals by giving them treats when they perform a trick correctly. The treat motivates the
animals to perform the trick consistently, even later when the treat is removed from the process.
THEORIES OF MOTIVATIO :-
1. Herzberg's theory of motivators and hygiene factors:-
Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's attitudes
about work. He concluded that such factors as company policy, supervision, interpersonal
relations, working conditions, and salary are hygiene factors rather than motivators. According
to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence
does not motivate or create satisfaction.
In contrast, he determined from the data that the motivators were elements that enriched a
person's job; he found five factors in particular that were strong determiners of job satisfaction:
achievement, recognition, the work itself, responsibility, and advancement. These motivators
(satisfiers) were associated with long-term positive effects in job performance while the hygiene
factors (dissatisfiers) consistently produced only short-term changes in job attitudes and
performance, which quickly fell back to its previous level.



In summary, satisfiers describe a person's relationship with what she or he does, many related to
the tasks being performed. Dissatisfiers, on the other hand, have to do with a person's
relationship to the context or environment in which she or he performs the job. The satisfiers
relate to what a person does while the dissatisfiers relate to the situation in which the person does
what he or she does.
2. Maslow's hierarchy of needs:-
In 1954, Maslow first published Motivation and Personality, which introduced his theory about
how people satisfy various personal needs in the context of their work. He postulated, based on
his observations as a humanistic psychologist, that there is a general pattern of needs recognition
and satisfaction that people follow in generally the same sequence. He also theorized that a
person could not recognize or pursue the next higher need in the hierarchy until her or his
currently recognized need was substantially or completely satisfied, a concept called prepotency.
Maslow's hierarchy of needs is shown in Table 1. It is often illustrated as a pyramid with the
survival need at the broad-based bottom and the self-actualization need at the narrow top.


Table 1
Maslow's hierarchy of needs
Level Type of Need Examples
1 Physiological Thirst, sex, hunger
2 Safety Security, stability, protection
3 Love and
Belongingness
To escape loneliness, love and
be loved, and gain a sense of
belonging
4 Esteem Self-respect, the respect others
5 Self-
actualization
To fulfill one's potentialities


(i) Physiological needs :-
These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,
medicine and education are the basic physiological needs which fall in the primary list of need
satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to
maintain life, no other motivating factors can work.
(ii) Security or Safety needs :-
These are the needs to be free of physical danger and of the fear of losing a job, property, food or
shelter. It also includes protection against any emotional harm.



(iii) Social needs :-
Since people are social beings, they need to belong and be accepted by others. People try to
satisfy their need for affection, acceptance and friendship.
(iv) Esteem needs :-
According to Maslow, once people begin to satisfy their need to belong, they tend to want to be
held in esteem both by themselves and by others. This kind of need produces such satisfaction as
power, prestige status and self-confidence. It includes both internal esteem factors like self-
respect, autonomy and achievements and external esteem factors such as states, recognition and
attention.
(v) Need for self-actualization :-
Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is
capable of becoming, it includes growth, achieving one¶s potential and self-fulfillment. It is to
maximize one¶s potential and to accomplish something.


As each of these needs are substantially satisfied, the next need becomes dominant. From the
standpoint of motivation, the theory would say that although no need is ever fully gratified, a
substantially satisfied need no longer motivates. So if you want to motivate someone, you need

to understand what level of the hierarchy that person is on and focus on satisfying those needs or
needs above that level.
Maslow¶s need theory has received wide recognition, particularly among practicing managers.
This can be attributed to the theory¶s intuitive logic and ease of understanding. However,
research does not validate these theory. Maslow provided no empirical evidence and other
several studies that sought to validate the theory found no support for it.
3. Alderfer¶s ERG theory :-
Clayton Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory
(existence, relatedness and growth).
Physiological and safety , the lower order needs, are placed in the existence category, while love
and self esteem needs are placed in the relatedness category.
The growth category contains our self-actualization and self-esteem needs.
In addition to the differences in categorizing human needs, ERG theory adds a regression
hypothesis to go along with the progression hypothesis originally proposed by Maslow.
Alderfer¶s regression hypothesis helped explain people¶s behavior when frustrated at meting
needs at the next higher level in the hierarchy.
4. McClelland¶s Theory of Needs :-
David McClelland has developed a theory on three types of motivating needs :
1. Need for Power
2. Need for Affiliation
3. Need for Achievement
Basically people for high need for power are inclined towards influence and control. They like to
be at the center and are good orators. They are demanding in nature, forceful in manners and

ambitious in life. They can be motivated to perform if they are given key positions or power
positions.
In the second category are the people who are social in nature. They try to affiliate themselves
with individuals and groups. They are driven by love and faith. They like to build a friendly
environment around themselves. Social recognition and affiliation with others provides them
motivation.
People in the third area are driven by the challenge of success and the fear of failure. Their need
for achievement is moderate and they set for themselves moderately difficult tasks. They are
analytical in nature and take calculated risks. Such people are motivated to perform when they
see atleast some chances of success.
McClelland observed that with the advancement in hierarchy the need for power and
achievement increased rather than Affiliation. He also observed that people who were at the top,
later ceased to be motivated by this drives.
5. ³Theory X and Theory Y´ of Douglas McGregor:-
McGregor, in his book ³The Human side of Enterprise´ states that people inside the organization
can be managed in two ways. The first is basically negative, which falls under the category X
and the other is basically positive, which falls under the category Y. After viewing the way in
which the manager dealt with employees, McGregor concluded that a manager¶s view of the
nature of human beings is based on a certain grouping of assumptions and that he or she tends to
mold his or her behavior towards subordinates according to these assumptions.
Under the assumptions of theory X :
y Employees inherently do not like work and whenever possible, will attempt to avoid it.
y Because employees dislike work, they have to be forced, coerced or threatened with
punishment to achieve goals.
y Employees avoid responsibilities and do not work fill formal directions are issued.

y Most workers place a greater importance on security over all other factors and display
little ambition.
In contrast under the assumptions of theory Y :
y Physical and mental effort at work is as natural as rest or play.
y People do exercise self-control and self-direction and if they are committed to those
goals.
y Average human beings are willing to take responsibility and exercise imagination,
ingenuity and creativity in solving the problems of the organization.
y That the way the things are organized, the average human being¶s brainpower is only
partly used.
On analysis of the assumptions it can be detected that theory X assumes that lower-order needs
dominate individuals and theory Y assumes that higher-order needs dominate individuals. An
organization that is run on Theory X lines tends to be authoritarian in nature, the word
³authoritarian´ suggests such ideas as the ³power to enforce obedience´ and the ³right to
command.´ In contrast Theory Y organizations can be described as ³participative´, where the
aims of the organization and of the individuals in it are integrated; individuals can achieve their
own goals best by directing their efforts towards the success of the organization.
However, this theory has been criticized widely for generalization of work and human behavior.
6. Equity Theory :-
As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the
reward structure as being fair or unfair, relative to the inputs. People have a tendency to use
subjective judgment to balance the outcomes and inputs in the relationship for comparisons
between different individuals. Accordingly :


If people feel that they are not equally rewarded they either reduce the quantity or quality of
work or migrate to some other organization. However, if people perceive that they are rewarded
higher, they may be motivated to work harder.


EMPLOYEE MOTIVATION:-
Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated
employees are needed in our rapidly changing workplaces. Motivated employees help
organizations survive. Motivated employees are more productive. To be effective, managers
need to understand what motivates employees within the context of the roles they perform. Of all
the functions a manager performs, motivating employees is arguably the most complex. This is
due, in part, to the fact that what motivates employees changes constantly (Bowen &

Radhakrishna, 1991). For example, research suggests that as employees' income increases,
money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting
work becomes more of a motivator.
Most companies have it all wrong. They don't have to motivate their employees. They have to
stop demotivating them.
The great majority of employees are quite enthusiastic when they start a new job. But in about 85
percent of companies, our research finds, employees' morale sharply declines after their first six
months²and continues to deteriorate for years afterward. That finding is based on surveys of
about 1.2 million employees at 52 primarily Fortune 1000 companies from 2001 through 2004,
conducted by Sirota Survey Intelligence (Purchase, New York).
The fault lies squarely at the feet of management²both the policies and procedures companies
employ in managing their workforces and in the relationships that individual managers establish
with their direct reports.
Three key goals of people at work
To maintain the enthusiasm employees bring to their jobs initially, management must understand
the three sets of goals that the great majority of workers seek from their work²and then satisfy
those goals:
y Equity: To be respected and to be treated fairly in areas such as pay, benefits, and job
security.
y Achievement: To be proud of one's job, accomplishments, and employer.
y Camaraderie: To have good, productive relationships with fellow employees.
According to various literature on motivation, individuals often have problems consistently
articulating what they want from a job. Therefore, employers have ignored what individuals say
that they want, instead telling employees what they want, based on what managers believe most
people want under the circumstances. Frequently, these decisions have been based on Maslow's
needs hierarchy, including the factor of prepotency. As a person advances through an

organization, his employer supplies or provides opportunities to satisfy needs higher on
Maslow's pyramid.
Frederick has tried to modify Maslow¶s need Hierarchy theory. His theory is also known as two-
factor theory or Hygiene theory. He stated that there are certain satisfiers and dissatisfiers for
employees at work. In- trinsic factors are related to job satisfaction, while extrinsic factors are
associated with dissatisfaction. He devised his theory on the question : ³What do people want
from their jobs ?´ He asked people to describe in detail, such situations when they felt
exceptionally good or exceptionally bad. From the responses that he received, he concluded that
opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job
does not necessarily make the job satisfying. He states that presence of certain factors in the
organization is natural and the presence of the same does not lead to motivation. However, their
nonpresence leads to demotivation. In similar manner there are certain factors, the absence of
which causes no dissatisfaction, but their presence has motivational impact.










Company profile:-
Established on 14
th
august 2000, HDFC STANDARD LIFE INSURANACE CO. LTD. is a joint
venture between Housing Development Finance Corporation Limited(HDFC limited) ± india¶s
leading housing finance institutions, and a group company of the Standard Life Pic, UK. The
company is one of leading private insurance companies, offering a range of individual and group
insurance solutions, in India. Being a joint venture of top financial services groups, HDFC
Standard Life has adequate financial expertise to manage long-term investment safety and
resourcefully.
HDFC¶S Work:-
HDFC Standard Life Insuranace offers a range of individual and group solutions, which was be
easily personalized to specific needs. Its group solutions have been planned to offer complete
flexibility, together with a low charging structure. As of 31 December, 2008, the Company¶s new
business premium income stood at rs 1839.70 Crores; it has covered over 812,811 lives so far.
Product portfolio comprises solutions, which meet various customer need such as
Protections, Pension, Savings, Investment, and Health. Customers have the added advantage of
customizing the Plans, by adding optional benefits called riders, as a normal price. The company
currently has 25 retail and 6 group products in its portfolio, along with five optional rider
benefits catering to the savings, investment, protection and retirement need of customers.
Visions of HDFC:-
µThe most successful and admired lie insurance company, which means that we are the most
trusted company, the easiest to deal with, offer the best value for money, and set the standards in
the industry¶. µThe most obvious choice for all.¶

HDFC Standard Life Insurance Company Ltd. is one of India¶s leading private life
insurance companies, which offers a range of individual and group insuranace solutions. It is a
joint venture between Housing Development Finance Corporation Liimited. India¶s leading
housing finance institions and the standard life Assuarance Company, a leading provider of
financial services from the United Kingdom. Both the promoters are well known for their ethical

Core values:-
y Integrity
y Innovation
y Customer centric
y People care
y Teamwork ³one for all and all for one´
y Joy and simplicity
Motivation in HDFC:-
HDFC Standard Life Insurance is known for its stimulatin environment with high levels
of motivations, empowerment and recognition. They encourage an open and informal culture
that values intergrity, commitment, teamwork and excellence in customers service. They adopt a
policy of strong learning and development initiatives, which promotes day-to-day learning as
well as decision-making. They belive their strength is theirs people, so they endeavour to surpass
their expenditure and give them the best possible work environment and benefits that match the
best in the industry.
Prime aim of the company:-
³The primary aim of our company is to help our fellow citizens secure their lives through
structured financial planning and achive their financial goals at every stange of life´. As a joint
venture of leading financial services groups, HDFC Standard Life has the financial expertise
required to manage long-term investment safely and efficiently.

What motivate the employees?
y The company has a structured performance Management system where every employee
is measured and rewarded on an annual performance Cycle.
y Structured career path where employees have the opportunity to move vertically as well
as horizontally.
y Regular Rewards & Recognition systems in all functions help employees inject higher
adrenaline and continue with superior levels of delivery
y Finally, and the most important of all ± the values at work followed at HDFC Standard
Life help employees work & perform in a high-energy platform.
Empowerment:-
HDFC Standard Life belives in µcustmoer First¶ and this is very important when we deal in the
business of services. Every employee is empowered to take decisions while keeping he intrest of
the customers to the foremost. High leverl of empowerment is back by superior levels of skills
honed by every employee dealing such situations.
Recent changes which affected motivation:-
Very recently the company has introduced µMid-year performance Review that helps the
company and its employees with transparent & value-added feedback mechanism.
Motivation and alignment of company goals:-
Various performance management system and reward & Recognition systems help align
employees in every function to the Macro & Macro of the company.
Employee motivation and development of company:-
Various levels of engagement & motivation tools have helped maintain one of the lowest
level of attrition among industry peers. Employees have grown with the company over the last 9
years and feel highly engaged towards the development of their organization.


Performance appraisal and effectiveness:-
The company follows one of the best performance Appraisal systems across the entire
industry. HDFC attributes the success of their company to their people, who are their most
important asset. They belive employees are a key fact of the company and it is their contribution
that has enabled the company to achieve their current status. Since they deserve the best,
HDFC¶S efforts have been to provide them with the best environment, culture and development
opportunities possible.













Company profile:-
HSBC Bank is a subsidiary of HSBC Holdings plc, a London based banking giant which,
according to the Forbes magazine, is the largest banking group in the world, and the 6th largest
company in the world as of April 2009. HSBC Holdings had been established in Hong Kong in
the year 1990 as the parent company to the Hongkong and Shanghai Banking Corporation
(HSBC). Further, the bank moved its headquarters from Hong Kong to London.

HSBC¶S work:-
Headquartered in London, HSBC is one of the largest banking and
financial services organizations in the world. Their international network comprises around
8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the
Middle East and Africa.

With a loan-deposit ratio of 90%, HSBC Bank is said to be one of
the five British banks that claim to have more deposits than loans. Such a high loan-deposit ratio
of the bank has been able to retain the trust of its investors and customers, keeping them assured
of its financial strengths. The sound financial position of the bank can also be attributed to the
fact that its stocks maintained relatively high price even during the credit crunch phase,
something not commonly seen to have happened to other banks.

They provide a comprehensive range of financial services to more
than 100 million customers worldwide in Personal Financial Services, Commercial Banking,
Global Banking and Markets, Private Banking and other activities.
HSBC¶S Vision:-
HSBC vision is to be the world¶s leading financial service
company. We want HSBC to be the first choice for our customers and for our employees the best
place to bank, and the best place to work. We also believe that we can play a role in helping to an
address the formidable challenges facing society today and by helping to make the world a better
place to live, we will also make our own business more sustainable. At HSBC, our response is
inevitably shaped by the views of our shareholders, our customers, our colleagues and the wider
community; and sustainability is clearly a theme of growing importance to all of these
constituencies. If our owner, customers and staff consider these issue to be important, the clearly
means that our social responsibilities and sustainability must be at the very core of our business;
not just an add-on to it. This is why, our primary objective in our strategic plan states that we
aspire to be one of the world¶s leading brands for customer experience and corporate
responsibility. We believe a company that behave ethically, responsibly and believes in
sustainability will ultimately be more successful than its competitors because it addresses issues
on which its long±term success depends, and thereby gains the confidence of investors,
customers and employees. The companies that will be our sector's leaders in five, 10 and 50
years time already know that a commitment to environmental and social sustainability is not a
secondary issue; it is a defining strategy that will help build financially successful global
companies of the future.
Our goal is not, and never has been, profit at any cost because we
know that tomorrow's success depends on the trust we build today.
We look to address the expectations of our customers,
shareholders, employees and other stakeholders. Our frequently asked question cover a range
of issues including the size of HSBC¶s profits, customer indebtedness and executive pay.
Being one of the world¶s biggest banks means the decisions we
make can have a big impact. We aim to lend and invest responsibly, avoiding projects where the
potential for social and environmental damage outweighs the economic benefits.

Companies like ours must share responsibility for the environment
with governments and citizens for minimizing the damaging effects of human activity ± pollution
of land, water and air and the depletion of resources.
The world is a rich and diverse place. The better our people reflect
this diversity, the better we can anticipate and meet our customers¶ needs.
Involving our employees in the community brings many benefits.
Our employees gain understanding, confidence and self±esteem. Being recognized in the
community also helps HSBC to attract great people.
Education is crucial to the development and prosperity of every
country. By investing in education, we seek to build the confidence and abilities of young people
on whom, as customers or employees, our business and future success will depend

Motivating employees ± HSBC:-

"Motivation is based on giving people an appropriate combination of rewards. "

HSBC often find organizations using their performance appraisal software - and even their 360
degree feedback solutions - as a method of linking pay to performance. HSBC always support
clients in those initiatives. They always caution that it forms one small part of the benefits of
360 and appraisal and needs to be part of a wider initiative if the aim is to improve organizational
performance.
What motivates the employee?
Opportunity to Learn, Develop and Advance as an Employee.

Employees understand they need to grow, learn and develop new skills in order to
advance. The ability to be able to choose their assignments and rise to new challenges
offered by new responsibilities.

Flexible Hours.

Family, children, friends, church, sports, hobbies and other activities all have demands on
today's employees. A flexible schedule or the occasional afternoon off can help
employees meet some of these obligations. By allowing some flexibility in an employees
schedule you can increase their desire and motivation.
Recognition.

In today's high paced work environment it is reported that employees consider
recognition of their work and efforts rare and infrequent. Think about it - What better
way to have an employee continue their good work and success then to offer them praise-
verbal, written or ideally a public announcement.
The Opportunity to Contribute.

- The opportunity to be part of the team.
- To work closely with managers and management.
- To be involved in key decisions.
- To be listened to and heard.
Independence and Autonomy.

Employees want to be able to work independently. They do not want someone constantly
watching over them and questioning their every move. They like to receive their
assignments -preferable with the time frame required for completion and then have the
independence to complete the work given the guidelines and framework you have set on
their own merits.
These benefits can go a long way in creating Employee/Employer loyalty and respect. This
clearly demonstrates there are many points, besides money, to consider when you establish your
management and employee policies.

Recognition and rewards:-
Hard work and contribution in HSBC never go unnoticed.
The size they have grown to and the of people has given rise for a need to introduce awards. At
every step of success there is an award awaiting for the particular employee or team.the
challenges they encounter, motivates them to accomplish greater feats and the comforts of
rewards and recognition comes as a package.
HSBS takes pride in their long serving colleagues. They are
a major force behind their success.HSBS recognizes their contribution through a comprehensive
reward programme schemes include holiday packages with special facilities.



Rewards provided to employees for motivation:-
Pension plan / pension contributions
Health insurance/above-standard medical treatment.
Life insurance/other insurance.
Education/training program / school fees.
Recreation / sport /culture.
Meal vouchers / canteen.
Company cars.
Mobile phones.
Gifts to employees.
Accommodation.




Profile:-
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba
Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in
Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred
years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization
in the year 1969, attaining the status of a national level player in terms of geographical reach and
clientele segments. Eighties was characterized by business diversification for the Bank. In June
2006, the Bank completed a century of operation in the Indian banking industry. The eventful
journey of the Bank has been characterized by several memorable milestones. Today, Canara
Bank occupies a premier position in the comity of Indian banks. With an unbroken record of
profits since its inception, Canara Bank has several firsts to its credit.
Work Culture:-
As a premier commercial bank in India, Canara Bank has a distinct track record in the
service of the nation for over 100 years. Today, Canara Bank has a strong pan India presence
with 3002 branches and over 2000 ATMs, catering to all segments of an ever growing clientele
base of over 36 million. We are recognized as a leading financial conglomerate in India, with
as many as nine subsidiaries/sponsored institutions/joint ventures in India and abroad. As we
step into the second century, we aspire to emerge as a Global Bank with Best Practices.

Work culture where family concept is practiced among the employees.
Receptivity to new ideas

Opportunities for experimentation
Facilities which supports growth
Record cordial Industrial Relations
HRD Initiatives
Vision:-
To emerge as a µBest Practices Bank¶ by pursuing global benchmarks in profitability, operational
efficiency, asset quality, risk management and expanding the global reach.
Mission:-
To provide quality banking services with enhanced customer orientation, higher value creation
for stakeholders and to continue as a responsive corporate social citizen by effectively blending
commercial pursuits with social banking.
HRD INITIATIVES:-
Human Resources Development envisages the growth of the individual in tandem with the
organization and aims to achieve synchronization in a bid to attain the goals set out. It also, inter-
alia, aims at the upliftment of the individual by ensuring an enabling environment to develop
capabilities and to optimize performance. The organization, on its part, would endeavour to tap
individual talents and through various initiatives, ingrain in its human resources, a sense of job
satisfaction that would, with time, percolates down the line.
Our Bank has, over the years, taken a series of initiatives in ensuring the development of our
human resources and a number of time ± tested systems have been put in place to hone employee
talent and equip them to take the vigours of office and take the measure of the competition. That
we have been largely successful in our endeavour is a testimony to the efficacy of our well
crafted systems:
Entry Interview
Training System
Incentives for Self Development

Employee Suggestion Scheme
Staff Meeting
Study Circle
Brainstorming Sessions
Quality Circle
Exit Interview

Entry Interview:-
Entry Interview assumes great significance as it is the first step in the process of enfolding the
new entrant in the warmth embrace of "Canbank Family Culture". The pride of being a part of
our institution goes a long way in moulding our best asset the human resource. The system of
"Entry Interview" paves way for this. Objectives of the system is
To introduce the new entrant to the history, ethos, culture, tradition and work ethics of the
Bank.
To show concern for proper settlement of the new entrant at the work place and to ensure
full devotion to work.
Proper introduction of the new entrant to all the employees and to create a feeling of
oneness and a sense of belonging so that the process of emotional integration is fast and
smooth.
To lay a firm foundation for enriching partnership between the new entrant and the
organization.
Training System:-
The Visionaries of our Bank had, long back, foreseen the importance of imparting professional
training to our employees for efficient working. As a result, 'Bangalore School of Training', the
in house training centre of the Bank, was born on 12.04.1954. Today, our Training system has an
Apex College, viz., The Staff Training College (STC) at Bangalore with 13 Regional Staff
Training Colleges (RSTCs) spread across the country for effective in-house and cost beneficial

training. The Apex College at Bangalore is the epicenter of training, involving itself in
designing, conducting and evaluating the in-house training programmers¶ and getting feedback
on post training utilization. It has Core Group of faculty dealing in these aspects. HR&OD
Section, Personnel Wing, HO, co-ordinates with the functions of STC and also takes care of
external, in-company and foreign training of employees and executives.

Incentives for Self Development:-
Knowledge Management of Human Resource is crucial for any business organization to face the
challenges of competition and to march ahead in the field. As knowledge is power, constant
updation of knowledge is essential. Besides, the well established and constantly reviewed
training system, we have certain incentive schemes as HR initiatives for self development of our
employees.

Employee Suggestion Scheme:-
Employees are the 'Back Bone' of any organization. Systems & procedures are implemented and
new & innovative products are delivered through them. They are the ones who are in constant
touch with clients and customers. Hence, they can pinpoint as to where exactly the shoe pinches
and are capable of giving their suggestions and ideas for improving the systems, procedures,
services, products, etc. To facilitate this, we have a HRD system of 'Employee Suggestion
Scheme' in place. This aims at kindling innovative spirit of the employees and recognizing their
valuable contributions by way of feasible suggestions.







Staff Meeting:-
Staff Meeting is one of the oldest format HRD systems of the Bank. It is the most useful
participative forum at branch/unit level enlisting involvement of all the employees at all cadres in
the effective functioning of the branch/office. It is a free forum for two way communication
facilitating both individual development and organizational effectiveness. The concept basically
aims at Group Synergy, Team Building, Open Culture, Family Feeling and Talent Recognition
which individually and cumulatively benefits the organisation.

Study Circle:-
The concept of Study Circle aims at self development of employees by instilling a desire to
acquire/update knowledge, information and experience. It also kindles and triggers thinking and
learning process, thus facilitating personality development. This is an innovative HRD practice
of the Bank, envisaging enrichment of general knowledge, enabling multifaceted development of
employees, giving an opportunity to employees to discover their talent, come out of their cocoon
and exhibit the same. Added advantage is that the same is arranged at the doorstep of the
employees for their benefit.

Brainstorming Sessions:-
This is an old and useful technique for generating ideas and suggestions on a topic of relevance
so as to generate different possible solutions to a problem by stimulating thinking and
imaginative power of employees. This common technique is well utilized by our Bank, involving
employees at all levels and cadres. Having faith in collective wisdom of employees, we have
adopted the Brainstorming technique to generate ideas from a cross section of employees on
corporate topics of relevance.


Quality Circle:-
The roots of genesis of Quality Circle could be traced to post 2
nd
world war scenario when mass
industrial production resulted in low quality, high competition, loss of communication and
closeness between Management and workers. Japan, which lost everything, could thrive only on
its survival instinct and Dr Kaoru, Ishikawa an Engineering Professor at Tokyo University
conceived the idea of Quality Circle under his leadership which was registered with Union of
Japanese Scientists and Engineers.
Quality Circle is a voluntary group of employees in the same work area, coming together,
working as a team, solving work related problems resulting in self development and
organizational benefit. The concept has been built on the basic foundation of "Participative work
culture" with motivation and involvement of employees at grass roots level exploring their
potentials, creativity and capabilities.
With a view to provide greater exposure and wide experience, Quality Circles which have
successfully completed their projects are nominated ±
To participate in Bank¶s Apex Quality Circe Contest.
For presentations at external forums like ± Local Chapter Conventions and Annual
National Convention on Quality Circles(NCQC) organized by Quality Circle Forum of
India (QCFI).
Apart from the above, QC Teams are being nominated to International Conventions on Quality
Control Circles(ICQCC) organized by member countries. Several of our QCs have won prizes
and accolades at these conventions.

Exit Interview:-
The concept enables to bid a 'Warm Farewell' to exiting employees, remembering their long
association, respecting their vast experience and considering their valuable suggestions for
organizational benefit. It is an old and well conceived HRD system of the Bank which needs

focussed attention to build better employer ± employee relationship and to ensure post retirement
association with the Bank by way of business and propagation of goodwill.
Recent changes which affected motivation:-
NOT many in the banking industry talk about human resource management or employee
motivation. But for Ms. Ranjana Kumar, Chairman and Managing Director (current charge),
Canara Bank, it is a subject that is close to her heart.
Ever since she assumed office in April 1999, Ms. Kumar has been talking about the need to
motivate employees in the banking sector and give them fresh roles. For instance, she introduced
the concept of relationship management at Canara Bank, where the ma rketing professionals are
called relationship managers. It is the task of the relationship managers to relay back to the bank
the needs of the customers. Predictably, Ms. Kumar does not talk about excess workforce in her
organisation unlike some of her p eers!
Even in performance appraisal, Canara has been innovative in recent times. The appraisals are no
more restricted to interviews and tests. Instead, candidates have to take part in group discussions
and psychometric tests were becoming the order of the day at Canara.
Ms. Kumar says the time has come for bankers to look beyond the usual training methods and
evaluation. Bankers have to be `more alive' today than they were earlier. The bank has tied up
with the National Institute of Bank Management (NIBM) for its traini ng and HRD focus to be
different from other PSBs.
The bank already has a tie-up with NIBM for its customer contact programme, where customers
are encouraged to respond to a questionnaire which covers issues ranging from the timings of the
bank to the ambience in the branches. Ms. Kumar says the response has been encouraging and
the bank has even taken up training its front office staff to meet customer demands.



FINDINGS:-
Remuneration packages play an important role in motivating employees. But every employee
is different and what motivates one employee may be of little or no interest to another. To
tackle this, some companies offer a 'salad bar' approach to remuneration that allows staff to
pick and choose their benefits package.
The most visible or obvious part of any remuneration package is the salary. Salary can
be made up of several elements including basic pay, commission, bonuses, profit-
related pay and share dividends.
Many employees appreciate company contributions to pension, insurance or healthcare
schemes.
It is often much cheaper for companies to offer access to group schemes like pensions
than it would be for employees to purchase individual rights.
Company cars remain a popular perk for many employees despite increasing taxation
on cars and fuel.
Rewarding staff through company events and days out can be very effective.
It is a particularly useful way of rewarding groups of people and helps build team
spirit at the same time. It is mainly implemented in the creation of accounts and teams
which are helping in selling personal loans.
For many employees, money and benefits are not the main motivator. Doing
something worthwhile or working for a worthwhile cause is all the motivation they
need.
Bonuses linked to company profits can promote teamwork, as long as individuals can
see how they can affect the figures.
It is true, we all need money for the expenses of day to day living but studies indicate that when
employees receive a monetary bonus it is typically used to pay bills, expenses or purchase
something that the employee needs, not some thing they truly enjoy. Consequently money
becomes a very in-personal gift. Thus a company should have right balance of monetary and
other facilities.


SUGGESSIONS:-
1. Public sector banks like Canara bank should practice according to equity theory-other
outside which says employee should not compare himself from other bank employees.
We often observe that private sector bank employee are paid higher, so this might de-
motivate public sector banks employees.
2. Private sector banks like HDFC & HSBC banks generally motivate by giving variable
pay program. But according to cognitive evaluation theory the introduction of extrinsic
rewards for work effort that was previously intrinsically rewarded due to the pleasure
associated with the content of the work itself tends to decrease over all motivation.


REFERENCES:-
1. Manoj. K- 9962794639 (HSBC BANK-VISHAKAPATNAM)
2. Santosh Mahapatra ± 9986724981(HDFC BANK-BANGALORE)
3. Wikipedia.com
4. Organizational behavior by STEPHEN P.ROBBINS