An Internship Report entitled

“The Effectiveness of Reward System on Motivation Level”

By

Chetna U Tilwani

1BG17MBA14

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. L Vijayashree Dr. Oliver Gutzeit

Professor Head of Next Level IT Lab&

Experiences

Department of MBA

B.N.M. Institute of Technology

(Approved by AICTE, Affiliated to VTU, ISO 9001:2008 Certified
And Accredited as Grade an Institution by NAAC)
Post box no. 7087, 27th Cross, 12th Main, Banashankari II Stage,
Bengaluru -560070
2017-2019
 Acknowledgement

It is my foremost duty to express my gratitude to Dr. Maruthi Ram R, HOD, MBA

Department, for his constant encouragement and guidance throughout the completion of the
study.

I wish to express my profound gratitude to my guide Dr L Vijayashree, Professor, for her

invaluable guidance, support and motivation during the course of this project work. Her
inspiration at every stage of my work has helped me immensely in completion of this project
work and preparation of report.

My profound thanks to Dr Oliver Gutzeit, Head of Next Level IT Lab& Experiences, SAP
SE, Germany, who took keen interest in explaining concepts and imparting necessary inputs
pertaining to the project work, without which, it would not have been possible for me to
complete this work. I am also thankful to other executives and staff of the company for their
co-operation.

My special thanks to faculty members of the department for their constant support and
encouragement, which contributed towards the successful completion of the work.

Last, but not the least, I am indebted to my family members and friends for their blessings
and encouragement.
 Table of Contents

Chapter Title Page

Number

Executive Summary 1

2
Introduction
2
1.1 Introduction to Internship
2-4
1.2 Industry Profile
2
1.2.1 History
3-4
1.2.2 Size of the Industry
5-17
1.3 Company Profile
5
1.3.1 History
5-6
1.3.2 Company Introduction
6
1.3.3 Corporate Restructuring
1 7
1.3.4 Organization
7
1.3.5 SAP Labs
8
1.3.6 Contributions
9
1.3.7 Vision
9
1.3.8 Mission
9
1.3.9 Quality Policy
10
1.3.10 Products
10
1.3.11 Infrastructural Facilities
11
1.3.12 Employee Benefits
12
 1.3.13 Competitors

1.3.14 SWOT Analysis 13

1.3.15 Future Growth of SAP SE 14

1.3.16 Financial statements 15-17

Conceptual Background
17-29
2.1 Theoretical Background of the study
17
2.2 Reward
18-22
2.2.1 Reward Management
18
2.2.2 Types of Rewards
18-19
2.2.3 Components of pay in Germany
20
2 2.2.4 Benefits given to employees at SAP
21
2.2.5 Laws/Rights of employee in Germany
22
2.2.6 SAP performance management system
22
2.3 Motivation
23

2.3.1 Maslow’s theory of motivation 23-25

2.3.2 Mc Gregor theory of Theory X and Theory Y 25

2.3.3 Literature Review and Literature Gap 26-29

Research Design 29-32

3.1 Title of the Project 29

3.2 Statement of Problem 29

3 3.3 Need for the Study 29

3.4 Objectives of the study 29

3.5 Scope of the study 30

3.6Research Methodology 30
 3.7 Hypothesis Statements 31

3.8 Limitation of the Study 31

3.9 Chapter Scheme 32

4 Data analysis and interpretation 33-53

5 Findings, Suggestions and Conclusions 53-55

Bibliography 56-57
 List of Tables
TABLE NO TITLE PAGE NO

1.1 Table showing the top 10 companies in the Forbes list 3

4.1 Table showing the age classification of employees at sap 33

4.2 Table showing the gender classification of employees at sap 34

4.3 Table showing the work experience of employees at sap 35

4.4 Table showing which type of incentive motivates the most 36

4.5 Table showing the importance of income 37

4.6 Table showing the importance of job security 38

Table showing the relation of the performance-based rating
4.7 39
increases productivity
4.8 Table showing the if the rewards match the work effort 40
Table showing if employees are ready to increase the work
4.9 41
effort to gain incentives
4.10 Table showing the techniques which motivate the most 42
Table showing if there is a positive effect of reward at
4.11 43
workplace
Table showing how frequent the management recognises and
4.12 44
rewards the contribution
4.13 Table showing the motivation level at workplace 45

4.14 Table showing the pay structure which motivates the most 46
Table showing if the management is interested in motivating
4.15 47
the employees
4.16 Table showing the satisfaction towards reward system 48

4.17 Table showing the satisfaction towards company culture 49

Table showing the relationship between age and motivation
4.18 50
level of employees
Table showing the relationship between work experience and
4.19 51
performance
Table showing the association between gender and satisfaction
4.20 52
towards reward system.
 Table showing the cross tabulation of gender and satisfaction
4.21 53
towards reward system.

LIST OF GRAPHS

GRAPH NO TITLE PAGE NO

4.1 Graph showing the age classification of employees at sap 33

4.2 Graph showing the gender classification of employees at sap 34

4.3 Graph showing the experience level of employees at sap 35

4.4 Graph showing the type of incentive motivating the most 36

4.5 Graph showing the importance of income 37

4.6 Graph showing the importance of job security 38

Graph showing the relation of performance-based rating
4.7 39
productivity
4.8 Graph showing the if rewards match the work effort 40
Graph showing the scale where employees are ready to
4.9 41
increase their work effort
4.10 Graph showing the techniques which motivates the most 42
Graph showing if there is positive effect of reward at
4.11 43
workplace
Graph showing if the management recognises and rewards the
4.12 44
contributions
4.13 Graph showing the motivation level at workplace 45

4.14 Graph showing the pay structure which motivates the most 46
Graph showing if the management is interested in motivating
4.15 47
the workplace
4.16 Graph showing the satisfaction towards reward system 48

4.17 Graph showing the satisfaction towards company culture 49

 List of Figures

Figure Page
Title
number number

1.1 Buzz words of software industry 4

1.2 Founder of SAP 5

1.3 Fast facts of SAP in 2017 6

1.4 Vision and mission of SAP 9

1.5 Star building infrastructure at SAP 10

1.6 Coffee corner at SAP 11

2.3.1 Maslow’s hierarchy of needs 23

2.3.2 Theory X and theory Y 24