INTRODUCTION

Reward is the benefits that arise from performing a task, rendering a service or
discharging a responsibility. Reward is one of the important tools for organization to
motivate its employees at workplace. In present competitive business scenario, every
organization needs to have competent and motivated human resource, so that organization
can sustain in the market. Human Resource is one of the most important factors of
production. The world has been changing fast now a days. Competition is hitting up. New
products, new technologies, new processes, new entrants, new substitutes are hitting the
market regularly. In order to survive, corporate are virtually compelled to economize on
every fronts- go after modern technology, restructure operations, explore new markets,
find new use of existing products, innovate, experiment and find new ways of living and
most importantly use of human resource productively. It is therefore important for a
company to find out what motivates its employees so that employees can give their best to
the organization. Employees will give their maximum to their organization when they feel
that their efforts will be rewarded by the management. Therefore reward management is
one of the important functions of Human Resource Management for attracting and
retaining competent employees as well as facilitating them to improve their performance
through motivation. “Motivation is an accumulation of different processes which influence
and direct our behavior to achieve some specific goals”. Reward includes systems,
practices and programs which influence the actions of employees. The aim of reward
system is to provide a systematic way to deliver positive consequences. “Fundamental
purpose is to provide positive consequences for contribution to desired performance”. “The
only way employees will fulfill the employers dream is to share in their dream”. Reward
system is an important mechanism that makes it happen. Employers can include
recognition, bonuses, promotions, challenging assignment, or a simple thank you to
motivate their employees. When employees are rewarded, they get work done and
employers will get more than their expectations. Thus employees surpass their target or
exceed their performance standard they should be rewarded as a way of motivating them.
Motivated employees are assets for organization.

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 COMPANY PROFILE
SBI is an Indian multinational, Public Sector banking and financial
services company. SBI is one of India’s major banks and is an industry leader
in terms of size, business sector promotion and initiatives for the progress
and economic enhancement of the Indian economy.
SBI is entering into many new businesses with strategic tie ups –
Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile
Banking, Point of Sale Merchant Acquisition, Advisory Services, organized
items and so on – every one of these activities having a massive potential for
development.SBI is moving forward with forefront innovation and
imaginative new saving money models, to strengthen its presence and widen
its client base. The bouquet of services provided by SBI includes Personal
Banking, International, Banking, Agriculture / Rural and Corporate Banking,
SME, Government Business and Domestic Treasury. SBI is a universally
acknowledged regional banking giant and has 20% market share in deposits
and loans among Indian commercial banks.
As on 30.06.2019 revenue earned by SBI was Rs. 2.573 trillion and
Net Income was Rs. 175.2 billion. By the end of December 2018, SBI had assets
worth US$388 billion and 17,000 branches, including 190 foreign offices,
making it the largest banking and financial services company in India by
assets.SBI has acquired local banks as part of rescue efforts. Bank of Bihar was
acquired in 1969 along with its 28 branches. Krishnaram Baldeo Bank was
acquired in 1975 and the Bank of Cochin in Kerala was acquired in 1985 along
with its 120 branches. SBI share is listed in NSE stock market by the symbol
of SBIN.

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 SIGNIFICANCE

Organization’s performance highly depends on the employee’s level of

motivation. In present competitive working environment it is important for an
organization to find out factors that may motivate its employees. The concern
has to develop a suitable reward system with right combination of monetary
and non-monetary rewards. This can boost the employee’s motivational level
and they can work with more enthusiasm and enhance their commitment
towards the organization and the job. The purpose of the study is to
investigate and analyze the current reward system of State Bank Of
India’s(SBI) assess that how much it is helpful to motivate its employees.
More specifically, it aims to find which aspect of reward system functions well,
and which aspects could be further developed and improved in order to
increase employees’ work motivation and satisfaction level.

Significance of the Research for the Clientele (SBI) :

Although State Bank Of Indian is a leading banking and financial services
company in the field of banking services, but there are a number of
competitors existing in the environment like, HDFC Bank ,ICICI Bank ,Bank Of
India etc which are trying to become most leading company. Poaching is a
very common phenomena in current business environment through which
rival companies are trying to attract talented employees of competitors by
offering better perks and benefits. Therefore, it is a challenge for the company
to retain its talented employees with itself for longer period. This research
work will give to SBI competitive advantage through a feedback about existing
reward policy and suggestions to develop a competitive reward system
through eye’s of employees of SBI itself.

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 OBJECTIVES

The objectives of the study are following:

 To analyze the reward system of SBI.

 To study the impact of intrinsic reward on employees performance.

 To study the impact of extrinsic reward on employees performance.

 To determine the impact of rewards on work motivation and job

satisfaction.

 To identify the impact of recognition on work motivation and job

satisfaction.

 To evaluate the impact of other benefits on work motivation and job

satisfaction

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 RESEARCH METHODOLOGY

This is an empirical study, based on primary data. Structured questionnaire

were used for data collection and a census study has been done. The
researcher wanted to know whether cash bonus given to employees of SBI
have any impact on performance of the employees.

Extrinsic reward
An extrinsic reward is tangible form of reward that is provided to employees
after work performance such as pay raise, promotion, cash bonus, etc. These
are not inherent to the work itself but emerge from outside the work.
Intrinsic reward
An intrinsic reward emerges from the work performance itself when the
work performer experiences sense of accomplishment on doing a good work
such as recognition, career advancement, learning opportunity. Intrinsic
rewards satisfy employee internally.

Extrinsic Reward

Reward System Employee Performance

Intrinsic Reward

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 DATA ANALYSIS

The self completion questionnaire was administered to more than 40

respondents. Out of the total distributed questionnaire, 10 completely filled
questionnaires have been taken for the analysis. The 30 respondent samples
have been described on the basis of their gender, age and educational
qualification etc by the following tables :-

Gender
Gender Frequency Percentage (%)
Male 19 63.33%
Female 11 36.67%
TOTAL 30 100.00

GENDER

63.33%
70.00%
60.00%
50.00% 36.67%
40.00%
30.00%
20.00%
10.00%
0.00%
Male Female
GENDER 63.33% 36.67%

Interpretation :- As per table 1, total of 30 respondents consist of 19 male

and 11 female respondents which is 63.33% and 36.76% of the total
respondents respectively.

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 Age (In Year)

Age Frequency Percentage(%)

18-23 02 6.67%
24-30 11 36.67%
30-40 14 46.67%
40-Avobe 3 10%
Total 30 100%

AGE

50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
18-23 24-30 30-40 40-Above
AGE 6.67% 36.67% 46.67% 10%

Interpretation : In this table the age of employees are 18 years to above 40

years but In this SBI branch the age between 18-23 years is 6.67%, 24-30
Years is 6.67%, 30-40 years is 46.67% and age between 40-above years is
10%.

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 Qualification

Qualification Frequency Percentage (%)

12th pass 03 10%
Graduation 16 53.33%
Masters 08 26.67%
Others 03 10%
Total 30 100%

Qualification
100%
100%
80%
53.33%
60%
40% 26.67%
10% 10%
20%
0%
12th Graduati Masters Others Total
pass on
Qualification 10% 53.33% 26.67% 10% 100%

Interpretation :
From this table we see that in this SBI branch 12th pass are
10%, Graduation 53.33%,Masters 26.67% and Others 10%.

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 Know about Reward

Reward Frequency Percentage(%)

Yes 23 76.66 %
No 07 23.33%
Total 30 100%

Reward
76.66%
80.00%
60.00%
23.33%
40.00%
20.00%
0.00%
Yes No
Reward 76.66% 23.33%

Interpretation :
People in this branch aware or know about reward is 76.67%
and rest of the people in this branch don’t know abut reward.

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 If yes, then what does it mean

Category Responds Percentage(%)

Motivation of employee 14 46.67%
No motivation of employee 10 33.33%
No impacts 05 16.67%
Any other 01 3.33%
Total 30 100%

Reward means
46.67%
50.00%
45.00%
40.00% 33.33%
35.00%
30.00%
25.00% 16.67%
20.00%
15.00%
10.00% 3.33%
5.00%
0.00%
Motivation No No impacts Any other
of employee motivation
Reward means 46.67% 33.33% 16.67% 3.33%

Interpretation :
Reward on performance means employees thinks in this SBI
branch that 46.67% think Motivation of employee, 33.33% think No
motivation , 16.67% think no impact and other 3.33% think some other
things.

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 Reward bring positive impact of employee performance

Category Responds Percentage (%)

Yes 22 73.33%
No 08 26.67%
Total 30 100%

Positive Impact

80.00%

60.00%

40.00% 73.33%

20.00% 26.67%

0.00%
Yes No
Positive Impact 73.33% 26.67%

Interpretation :
In this branch employees think Reward on performance is
73.33% positive and 26.76% think negative.

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 Reward is more important for employee to motivate

Category Responds Percentage(%)

Financial reward 17 56.67%
Non financial reward 08 26.67%
any other 05 16.67%
Total 30 100%

Important Reward
56.67%
60.00%
50.00%
40.00%
26.67%
30.00%
16.67%
20.00%
10.00%
0.00%
Financial Non financial any other
reward reward
Important Reward 56.67% 26.67% 16.67%

Interpretation:
Employees think financial reward is 56.67% important,
Nonfinancial reward is 26.76% important other 16.67% is important for other
thing.

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The reward system facilitates implementation of strategy by motivating
desired levels of performance

Category Responds Percentage(%)

Yes 23 76.33%
No 07 23.67%
Total 30 100%

Facilitates implementation of strategy

80.00%
70.00%
60.00%
50.00%
40.00% 76.66%
30.00%
20.00%
23.33%
10.00%
0.00%
Yes NO
Facilitates implementation of
76.66% 23.33%
strategy

Interpretation:
The reward system facilitates implementation of strategy by motivating
desired levels of performance is 76.66% positive and 23.33% negative.

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 Performance goals are mutually developed and have specific time frames

Category Responds Percentage(%)

Agree 14 46.67%
Strongly agree 09 30.00%
Disagree 05 16.67%
Strongly Disagree 02 6.67%
Total 30 100%

Performance goals are mutually developed

50.00%
45.00%
40.00%
35.00%
30.00%
25.00% 46.67%
20.00%
15.00% 30.00%
10.00% 16.67%
5.00% 6.67%
0.00%
Agree Strongly Disagree Strongly
agree Disagree
Performance goals are mutually
46.67% 30.00% 16.67% 6.67%
developed

Interpretation:
Performance goals are mutually developed and have specific time
frames is 46.67% agreeable, 30% strongly agreeable 16.67% Disagree and 6.67% strongly
disagreeable by this SBI Branch’s employees.

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 CONCLUSION

On basis of the above study, we can say that cash bonuses have a positive
impact on employees performance in State Bank Of India. But many of the
employees perceived that it has no positive impact on performance and some
of them were neutral. It has seen that many employees were not satisfied with
cash reward of the company. According to them bonus has not been fairly
distributed among the employees.

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 SUGGESTIONS

 SBI is a public Banking sector in India and it has been advocating “One
Size Fits All Approach”. This also holds true in the case of Indian
banking sector. Therefore, cash bonus is linked to Basic plus D.A of the
employees. There is possibility that employees working within same
pay scale work differently. Someone works may more satisfactory but
someone not. In this situation, employees who worked up to more
satisfactory level will get same as the employees whose work was less
satisfactory. It will create dissatisfaction among the employees.
Therefore, reward schemes must be person oriented rather than
organization.
 Such organizations are under the immense pressure to adopt various
private sectors tools like 360 degree appraisal system, Incentives
linked to performance etc to sustain their legitimacy without knowing
the compatibility of the tools used. So it is suggested that tools and
techniques adopted should be as per the requirements of the
organization along with the consent of Human Resource Department
rather than adopting it blindly.
 Government should ensure that the reward schemes are more
employees oriented rather organization oriented. “A Balanced
Approach” or “A Slow Transition” would be a better approach than
jumping to them in a fast mode. Government should recommend
policies as per the culture and working of public sector undertakings
and therefore they ensure that the policies are more employees
oriented rather than for organization good only.
 Government should offer a sort of “Cafeteria Approach” where an
individual could pick up the toward as per their preference.

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 REFERENCES

Websites:
 www.businesstopia.net
 www.smallmarket.com
 www.managementstudyguide.com
 www.businessjargons.com
Books:
 Organization Behavior, ICFAI Center for management research
 Organization Behavior, Jit S Chandan

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 QUESTIONNAIRS
THE IMPACT OF REWARD ON EMPLOYEE PERFORMANCE

Name :

1. Gender - Male ( ) Female ( )

2. Your age between –

a) 18-23 b) 24-30 c) 30-40 d) 40-Avobe

3. Qualification –

a) 12th pass b) Graduation c) Masters d) Others

4. Do you know about Reward?

a) Yes b) No

5. If yes, then what does it mean?

a) Motivation of employee b) No motivation of employee.

c) No impacts d) Any other

6. Does the reward bring positive impact of employee performance?

a) Yes b) No

7. Which reward is more important for employee to motivate?

a) Financial reward b) Non financial reward c) any other

8. 13. The reward system facilitates implementation of strategy by motivating desired

levels of performance.

a) Yes b) No

9. Positive and negative financial and non-financial consequences of performance (e.g.

salary adjustments, recognition) are utilized effectively.

a. Yes b. No

16. Performance goals are mutually developed and have specific time frames.

a. Agree b. Strongly agree c. Disagree d. Strongly Disagree

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