Abstract

Topic of the Research Report is “A STUDY OF DIFFERENT MOTIVATIONAL

TECHNIQUES ADOPTED BY ORGANIZATIONS TO RETAIN EMPLOYEES WITH
REFRENCE TO SERVICE SECTOR OF INDIA”

Retention management is a highly topical subject and an important dilemma many

organizations might face in the future, if not facing it already. We believe that the leader
plays a key role in employee retention and retention management. The concept of retention
management can both have a narrow, and a broader significance. Both parts of its
significance are generally included in this thesis. The background of the thesis presents a
few articles that discuss issues that makes it important for the organization, and the leaders,
to work hard with retention management. The research is based on the leaders in the
service sectors. Following key questions are intended to be answered: What are the
consequences between leaders actions and employees retention? Which is the leader’s role
when it comes to retaining employees? Purpose statement: The purpose of the thesis is to
investigate and analyze how company leaders today can retain their key employees. How
can the provision of key human resources develop a long-term relationship that makes top
employees stay in the company? The study aims to establish the procedure leaders apply to
retain employees. The purpose is to compare the qualitative study, made at the case
company, with findings from the thesis theoretical framework.

TABLE OF CONTENTS

Sl. No. Chapters Page No.

1 INTRODUCTION

1.1 BACKGROUND OF
STUDY

1.2 BACKGROUND OF
TOPIC

1.3 PURPOSE

1.4 OBJECTIVE

1.5 LIMITATION

1.6 MOTIVATIONAL
METHODS
2 RESEARCH
METHODOLOGY
4 DATA ANALYSIS &
INTREPRETATION
5 FINDINDS

6 SUGGESTIONS

7 RECCOMENDATION

8 CONCLUSION
 CHAPTER-1

INTRODUCTION
 Background of study
1.1
ABOUT MOTIVATION

Motivation in these organizations at this early stage is driven in part by the experimental
atmosphere that prevails. New entrepreneurial leaders often emerge, and there is a feeling
that almost anything is possible. However, as these organizations mature, they begin to
develop structures and rules. People are no longer free to make up their own ways of doing
things. Roles and responsibilities are set. The excitement of newness fades and other
motivational patterns emerge. As the context of the organization changes, it becomes
imperative for the organization to change. We talk about organizational renewal or rebirth. If
organizations do not renew themselves they become ill, and in the private sector, at least,
they die.

While the metaphor of the organizational life cycle does not strictly hold true, understanding
the history of an organization gives insight into what the organization is. The organization’s
raison d’être, the characteristics of its founders, an understanding of its major milestones
and organizational changes—all play an important role in shaping the personality of an
organization and how it performs.

The second concept of motivation focuses on the role or purpose of the organization: its
mission. Every organization has a distinct role or purpose that is manifested in its goals and
objectives. In most definitions of the concept of “ organization,” there is an explicit goal
orientation. Each organization creates, either implicitly or explicitly, a forward looking
direction of what it wants to accomplish, a vision of where it wants to go, or what it wants to
be (Allen, 1995). Some organizations are motivated by the opportunity to do good works or
to provide services to citizens. Many NGOs are motivated by helping those in need. Other
organizations, such as research centers, may be driven by prestige—the desire to be
regarded as the best in their field. In the private sector, motivation might mean having a
bigger market share. Organizational analysts recognize the important role mission plays in
shaping and creating an organization’s personality, and as such consider it an important
diagnostic consideration. Analyzing the mission of an organization offers insights into the
organization itself.

Culture, the third concept, also provides a window to view organizational motivation.
Organizational culture relates to the shared assumptions, values and beliefs held by
organizational members These factors are at work, however subliminally, within the
organization’s boundaries. The culture of an organization is rarely written
 WHY MOTIVATION

How to Motivate and Inspire:

How do you increase the business value of the people who

work for you?

Above all, remember that they are people, each one an important part of your business
family-not just a cog in a human machine that goes through certain muscular motions every
day with time out for refueling and maintenance.
Remember that your staff has heart and brains, feelings and ideas-and is made
of the same raw materials as you. Their energies are there to be used for their own good
and for yours.

Some ways of harnessing these energies:

1. Seeking and using your employee's own ideas.

2. Keeping employees informed.

3. Expressing personal interest in employees.

4. Instilling pride in work well done.

5. Providing effective supervision

What Makes Employee Leave

Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most
Common reasons can be:

 Job is not what the employee expected to be: Sometimes the job responsibilities
don’t come out to be same as expected by the candidates. Unexpected job
responsibilities lead to job dissatisfaction.

 Job and person mismatch: A candidate may be fit to do a certain type of job, which
matches his personality. If he is given a job, which mismatches his personality, then
he won’t be able to perform it well and will try to find out reasons to leave the job.

 No growth opportunities: No or less learning and growth opportunities in the current

job will make candidate’s job and career stagnant. Lack of appreciation: If the
supervisor does not appreciate the work, the employee feels de-motivated and loses
interest in job.

 Lack of trust and support in coworkers, seniors and management: Trust is the most
important factor that is required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment unfriendly and
difficult to work in.

Can a person ever be motivated by someone else?

Motivation is concerned with getting someone to do something you want or, on an individual
basis, wanting to do something for yourself for a particular reason. For many businesses,
the most expensive asset they possess is their human resources. These resources are hired
for the value that they add to a business - as a result it makes sense to ensure that the
business gets the best out of those resources. The question that has exercised managers
for many years is how? There are a number of key theories you should know in relation to
motivation. The Motivation Mind Map identifies the main ones. Before you look in more
detail at these, let's look a little further into the nature of motivation. Imagine yourself as a
business manager. You want your staff to do certain things in order to help achieve key
business objectives. It might be simple things like being polite and attentive to customers.
How do you get them to do this? Herzberg identified a very simple approach, which he
termed the 'KITA approach' - politely translated from the American as 'Kick InThe Pants'.
Once the employee has done this action then repeating the KITA approach may mean that
they also repeat the behavior. But, Herzberg questioned, who was motivated - the manager
or the employee? With such an approach, how long term would the behavior be? It may well
be that in many business scenarios; the leader or manager is the one motivated, not the
employee. This has a significant impact on how we motivate in the workplace. Many
businesses would like their staff to internalize the behavior and act and think in the desirable
manner each and every time.
 1.2-BACKGROUND OF THE TOPIC

Role of Motivation for Employees Retention

While implementing and evaluating computer support for corporate creativity it

was noticed that the sheer presence of technology does not guarantee usage.
Factors such as organizational culture and management attitudes seem to have
an equally important role, and this observation called for a more focused analysis
of the motivational aspects of crativity management. Based on literature and
empirical data, four managerial advice to promote corporate creativity are
presented : abandon reward system; officially recognize creative initiatives ;
encourage self-initiated activities, and ; allow redundancy.
A NEED FOR CRATIVITY:

The importance of creativity in industry has risen dramatically during the last few
decades. During the peak of the industrial era, a company could prosper from
slowly developing and refining one single product or service. The increasing pace
with which business now reshapes itself propelled by the new capabilities offered
by information technology (IT) places higher demand on the organizational
members to be able to see, and grasp, new opportunities. Globalization, and the
competition that accompanies it, further adds to the need for creativity in an
entrepreneurial way, and it is argued that employees of tomorrow will be valued
more for their ability to create new knowledge than for being able to manage
known facts [1,2,3]. Creativity will therefore become a quality of increasing
importance and a vital branch of knowledge management (K.M.). Although
creativity is highly unpredictable it can be promoted. If you in a library start
reading book after book looking for a particular word, you cannot predict when
and where it will show up, but you know with certainty that you will eventually find
it. However, by carefully choosing what shelf to start from, you may increase the
probability for the sought word to turn up. Similarly, managing creativity is about
raising the probability for creative acts to happen by stimulating the factors that
works in favour of creativity.

WORK ON BRAINSTORMING

Since introduced by Osborn in 1953, brainstorming has been widely used in

industry and business as a technique for idea enervation and problem solving.
However, in contrast to its popularity stands the result of several studies that
consistently show that nominal brainstorming, i.e. the aggregated work of
individuals working simultaneously but without contact with each other,
outperform group brainstorming. Three main reasons for this have been
identified. Firstly, there is evaluation apprehension, which refers to a situation
when the group members are reluctant to express their perhaps unpopular or
politically incorrect suggestions or poorly developed ideas in fear of being judged
or evaluated by peers or managers. Secondly, social loafing occurs when group
members intentionally limit their contributions and rely on other group members
to do the job. Thirdly and finally, there is the problem of production blocking, .e.
the result of group members having to wait for others to finish before they can
offer their own ideas. While waiting deals may become obsolete or forgotten, or,
in order not to forget, people concentrate on and rehearse their own ideas
instead of participating and generating more and new ideas. Electronic
brainstorming was introduced as an attempt to address these three problems. In
EBS, the participants use networked computers to send ideas to and read ideas
from the group. By allowing anonymous idea entry the evaluation apprehension
problem is avoided.
FOCUS ON EXTRINSIC MOTIVATION

Practical experiences of Mind pool are yet in their early stages but the tentative
results analyzed this far are consistent with the findings derived from the work
with its predecessor. Organizational members express a concern for not
receiving the financial reward that the final suggestion might generate. This
concern can be attributed to the use of a suggestion system based on extrinsic
motivation. It should be noted that the suggestion system in use remunerates the
propose of a good idea with financial compensation corresponding to half of the
company’s first year’s savings, which might come to a substantial amount of
money. During 1999, the company under study spent approximately USD 45000
on rewards. It was thus argued that if users A and B above are not
acknowledged, they are instead encouraged to keep their ideas to themselves to
try to develop them into what C managed to come up with however, not many
employees actually contribute to the suggestion system that is in use. During
1999, the PHC received suggestions from 226 of the +2400 employees, which
means that less than 10 percent of the members participated actively consistent
research findings show that the reliance on extrinsic motivation limits
participation to typically 10-15 percent of the employees, as opposed to 70-80
percent when no reward system is used , or when recognition is kept to a
symbolic level.

ALLOW SELF-INITIATED ACTIVITIES

Self-initiated activities are powerful because they are driven primarily by intrinsic
motivation. When employees are allowed to, and in fact encouraged to, pick and
pursuits their own projects, their personal interests drive them. Research in a
corporate setting has shown that professional interests rather than espoused
theory is what motivates people. A management strategy to promote creativity
would be to present and motivate the direction for work but leave the individuals
to conduct the work as they see fit. Employees should further be matched up with
projects according to their interests or where their competence is challenged and
developed. Planned actions can only take an organization in directions already
anticipated. To reach the unexpected, the company must go beyond what is
scheduled and put its trust in the unplanned actions that often are the result of
user initiatives. Every unanticipated activity begins as an unofficial task, and very
often, if not always, these unanticipated and unofficial activities are indeed also
user initiated. The expression “Skunk Works” was coined during the second
World War by the aircraft manufactufacturer Locked Martins to describe a
situation where a small group of technician were allowed to work outside.
THE NEED FOR REDUNDANCY

Although it is not desirable to reinvent the wheel from scratch, repeating all the
error previously made, it is often necessary to allow every one to build their own
wheel. This is due to the strong relationship between knowledge and action.
Learning – by- doing is the only way to acquire certain knowledge, and this
suggests that enough redundancy should be allocated to allow for such
experimenting. However, corporate settings with deadlines and resource
constrains do seldom allow for much spontaneous self-initiated activities, as
testified by the quoted respondent earlier. Tight budgets and deadlines are
denying the employees the ability to follow-up on the hunches they get, or to be
“creative on speculation” as one respondent put it. The fact that today’s Iean
organizations do to allow the redundancy that is so vital to knowledge creation
has also been recognized by the literature. To set free the desire to initiate
creative acts that already exists within most people, the company must take
appropriate actions. For example, Toshiba and 3M allow their employees to
devote 15 percent of their time to self-initiated activities.

Attrition and motivation: Retaining staff in India

Many international companies in India struggle to find and keep the right people
for the job. High attrition rates cause unforeseen expenses and sometimes even
crush the entire Indian business venture. Motivating workers becomes a vital part
of the business. But how do you motivate the Indian employee?

We have all become accustomed to the colorful and optimistic descriptions of

present-day India. Nowadays, India is seen as a country of opportunities, a
booming market, one of the best performing economies in the world, a nation on
the move.Since the onset of globalization in India during the early 1990s, liberal
economic reforms of the government led to a steady flow of investments,
provided competitive advantages to attract major multinational corporations
(MNCs), and eventually turned the country into the world outsourcing center. In
2005, India controlled more than 40 percent of the global offshore outsourcing
market for software and back-office services, with revenues of US $17.2 billion.
By the end of 2008, as many as 2,279 MNCs in both manufacturing and service-
sector industries set up more than 3,300 offices in India. In spite of the global
financial crisis, India not only manages to stay afloat but also keeps on a rather
active process of development. While offering a rich set of advantages, India is
equally famous for the great amount of challenges, which it delivers to foreign
companies. Experience shows that a considerable number of MNCs face serious
problems while establishing and running a business in India. For example,
statistics show that as many as 70 percent of South Korean companies working.
Attrition – a major issue

A number of research projects in the last five years show that one of the most
common issues leading to failure or unexpected expenses is the fact that almost
every foreign company fails to retain qualified personnel in India. Statistics are
impressive. According to the recent study of the Chambers of Commerce of
India, attrition in the booming IT/ITES sector averages 25 - 30 percent. The
average personnel turnover rate in the business process outsourcing (BPO)
sector even hit a high of 30 - 35 percent.The business that probably suffers most
from attrition are call centers. A personnel turnover rate in Indian call centers has
become a legend, with an average of around 30 - 40 percent and extreme cases
of 80 percent. Growing attention to the issue and the global economic slowdown
reduced the average figure to 24 - 30 percent, but this still has a significant
impact on costs and quality.A number of experts claim that the costs associated
with attrition are so high in India that they can override the benefits of lower
wages. Both smaller and bigger businesses are facing the same problem. A
number of companies in the BPO sector have already moved their offices from
India after staff turnover rates wiped away any potential cost savings. One of the
major concerns that MNCs’ human resources managers express in India is that
people do not stay long enough to be taught or to learn the job. This can have a
disastrous impact on a company’s success.

Retaining staff

It would be wrong to say that only MNCs and foreign businesses fail to keep
personnel. Turnover of staff is a significant concern at many national and
multinational corporations in many parts of the world. Staff attrition and
absenteeism cause significant costs for most local Indian organizations as well.
Almost every sector in India is facing high rates of attrition. It is a universal
phenomenon and almost no industry or region is devoid of it. Nevertheless, its
degree in MNCs operating in India is considerably higher than in the local,
traditional Indian companies. The main question is why experienced international
companies cannot retain qualified personnel in India. Probably, the first mistake
that a number of companies make, is to assume that a company in India can be
run just (or almost) like a company in its home country. Home-country HR
approaches can appear to be less effective in India than in any other region of
the world.Motivation procedures are a major factor to help retain staff. However,
motivation is not achieved with the same methods and procedures throughout
the world. The first mistake foreign companies can make in India, is to use the
same methods of motivation in order to retain Indian personnel as they use in
their home countries.Generally, in the context of international business, being
able to motivate your employees has become increasingly significant. According
to the Western perspective, the main factors to retain employees in order of
importance are: salary and remuneration, providing recognition, benefits, and
opportunities for individual growth. But do these methods really help to keep staff
in every company and every region of the world?
 How To Increase Employee Retention

Choose to pay a flat figure. In some companies, bonuses range from 25 percent
to 50 percent of Companies has now realized the importance of retaining their
quality workforce. Retaining quality performers contributes to productivity of the
organization and increases morale among employees/ Four basic factors that
play an important role in increasing employee retention include salary and
remuneration, providing recognition, benefits and opportunities for individual
growth. But are they really positively contributing to the retention rates of a
company? Basic salary, these days, hardly reduces turnover. Today, employees
look beyond the money factor. Retention Bonus Higher attrition rates within a
particular industry have forced companies to use some innovative strategies to
retain employees.

Retention Bonus is one of the important tools that are being used to retain
employees. Retention bonus is an incentive paid to an employee to retain them
through a critical business cycle. Retention bonuses are becoming more
common in the corporate world because companies are going through more
transitions like mergers and acquisitions. They need to give key people an
attractive incentive to stay on through these transitions to ensure productivity.
Retention bonuses have proven to be a useful tool in persuading employees to
stay.
 Creating a Motivating Environment

Team leaders who create motivating environments are likely to keep their team
members together for a longer period of time. Retention does not necessarily
have to come through fun events such as parties, celebrations, team outings etc.
They can also come through serious events e.g. arranging a talk by the VP of
Quality on career opportunities in the field of quality. Employees who look
forward to these events and are likely to remain more engaged. Standing up for
the Team: Team leaders are closest to their team members. While they need to
ensure smooth functioning of their teams by implementing management
decisions, they also need to educate their managers about the realities on the
ground. When agents see the team leader standing up for them, they will have
one more reason to stay in the team. Providing coaching: Everyone wants to be
successful in his or her current job.

Employees are always concerned about their future career. A manager should
focus on showing employees his career ladder. If an employee sees that his
current job offers a path towards their future career aspirations, then they are
likely to stay longer in the company. Therefore, managers should play the role of
career counselors as well. How to Improve Employee Retention People want to
enjoy their work so make-work fun and enjoyable.
Understand that employees need to balance life and work so
offer flexible starting

Times and core hour provide 360 feedback surveys and other questionnaires
Foster open communication. Consider allowing anonymous surveys occasionally
so employees will be more honest and candid with their opinions. Provide
opportunities within the company for career progression and cross training. Offer
attractive, competitive benefits and Organizations should target job applications
for employees who have characteristics that fit well with the organizational
culture. Upon conducting an interview, seek out traits, such as loyalty. Also, ask
the potential employee what motivates them on the job. Having more information
about the potential employee’s expectations can help retain them, should they
get hired into the company. Rewards and Recognition Employees want to be
recognized for a job well done. Rewards and recognition respond to this need by
validating performance and motivating employees toward continuous
improvement. Rewarding and recognizing people for performance not only affect
the person being recognized, but others in the organization as well. Through a
rewards program, the entire organization can experience the commitment to
excellence. When the reward system is credible, rewards are meaningful;
however, if the reward system is broken, the opposite effect will occur.
Employees may feel that their performance is unrecognized and not valued, or
that others in the organization are rewarded for the wrong behaviors.
Unrecognized and no valued performance can contribute to turnover.
Recognition for a job well done fills the employees' need to receive positive,
honest feedback for their efforts.
Employee Motivation and Work Incentives in the Service
Industries

Nearly everyone makes an impression on someone else every day of his life. At
the same time, nearly everyone is forming an impression of someone else. It
happens in private life, in business, in offices, on farms, in schools, in
government-wherever people are involved with people. It happens both
unconsciously and consciously, and with a purpose. There is no end to the
process. You, as a manager in the service industries such as the
hotel, resort, restaurant, or other travel business, are judged not only by the good
meal, the restful night's sleep, or the weekend of fun that your guests enjoyed.
You are judged also by the friendliness of your staff, their alertness, their attitude,
how they look, and the way they do their job. What did your staff do to send a
satisfied guest or customer on his way or bring him back? Your success in
business will depend on how well you-the manager-build these impressions. How
well you do this job depends on how well you can manage people-your
employees. The most important asset of any business is its human family of
workers -managers and employees. Increasing the capabilities and productivity
of your staff is simply smart business management. From the purely
humanitarian standpoint, it is also a moral obligation.
Getting people to work for you and with you as a team-and
keeping them working is never simple. However, these skills pay handsomely in
many fields. They are an especially important key to your success in the service
industries.
 Need for Rewards and Recognition

 Recognition should be part of the organization's culture because it

contributes to both employee satisfaction and retention. Organizations can
avoid employee turnover by rewarding top performers. Rewards are one
of the keys to avoiding turnover, especially if they are immediate,
appropriate, and personal. A Harvard University study concluded that
organizations can avoid the disruption caused by employee turnover by
avoiding hiring mistakes and selecting and retaining top performers. One
of the keys to avoiding turnover is to make rewards count.

 Rewards are to be immediate, appropriate, and personal. Organizations

may want to evaluate whether getting a bonus at the end of the year is
more or less rewarding than getting smaller, more frequent payouts.
Additionally, a personal note may mean more than a generic company
award. Employees should be asked for input on their most desirable form
of recognition. Use what employees say when it comes time to reward for
performance (St. Amour, 2000). Designing a Rewards and Recognition
Solution In designing a rewards and recognition program, the following
guidelines should be considered. Rewards should be visible to all
members of the organization. Rewards should be based on well-defined,
credible standards that have been developed using observable
achievements. Rewards should have meaning and value for the recipient.
Rewards can be based on an event (achieving a designated goal) or
based on a time frame (performing well over a specific time period).
 Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention
Strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things
done.

3. Make employees realize that they are the most valuable assets of the
Organization.

4. Have faith in them, trust and respect them

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9.Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.
Low Level Employee Retention Strategies
Appreciating and recognizing a well-done job
Personalized well done and thank-you cards from supervisors
Congratulations e-cards or cards sent to spouses/families
Voicemails or messages from top management
Periodic days off for good performance
Rewards (gift, certificates, monetary and non monetary rewards)
Recognizing professional as well as personal significant events
Wedding gifts
Anniversary gifts
Newborn baby gifts
Scholarships for employee’s children
Get-well cards/flowers
Birthday cards, celebrations and gifts
 Providing benefits

 Home insurance plans

 Legal insurance
 Travel insurance
 Disability programs
 Providing perks: It includes coupons, discounts, rebates, etc
 Discounts in cinema halls, museums, restaurants, etc.
 Retail store discounts
 Computer peripherals purchase discounts
 Providing workplace conveniences
 On-site ATM
 On-site facilities for which cost is paid by employees
 Laundry facility for bachelors
 Shipping services
 Assistance with tax calculations and submission of forms
 Financial planning assistance
 Casual dress policies
 Facilities for expectant mothers
 Parking
 Parenting guide
 Lactation rooms
 Flexi timings
 Fun at work
 Celebrate birthdays, anniversaries, retirements, promotions, etc
 Holiday parties and holiday gift certificates
 Occasional parties like diwali, holi, dushera, etc
 Organize get together for watching football, hockey, cricket matches
 Organize picnics and trips for movies etc
 Sports outings like cricket match etc
 Indoors games
 Occasional stress relievers
 “Casual dress” day
 “Green is the color” day
 Handwriting analysis
 Tattoo, mehandi, hair braiding stalls on weekends
 Mini cricket in office
 Ice cream Fridays
 Holi-Day breakfast
 Employee support in tough time or personal crisis 
 Personal loans for emergencies
 Childcare and eldercare services
 Employee Assistance Programs (Counseling sessions etc)
 Emergency childcare services

Benefit programs for family support

 Child adoption benefits

 Flexible benefits
 Dependents care assistance
 Medical care reimbursement
 Providing conveniences at workplace
 Gymnasiums
 Athletic membership program
 Providing training and development and personal growth opportunities
 Sabbatical programs
 Professional skills development
 Individualized career guidance
 1.3- Purpose of the Study

The purpose of this study was to describe the importance of certain factors in
motivating employees at service sector. The study sought to describe the ranked
importance of the following ten motivating factors:
(a) Job security,

(b) Sympathetic help with personal problems,

(c) personal loyalty to employees,

(d) interesting work,

(e) good working conditions,

(f) tactful discipline,

(g) good wages,

(h) promotions and growth in the organization,

(i) Full appreciation of work done

 1.4- OBJECTIVE OF THE STUDY

A study of different motivational techniques adopted by organizations to retain

employees with reference to service sector of India
 1.5- LIMITATIONS OF THE STUDY

 Limited to Raipur Region.

 Data collected may be inappropriate due to bias or any other.

 Motivational methods used in service sector are considered.

 Sample size for questionnaire is 50.

 Data collected through questionnaire method.

 1.6-Methods of motivation

According to the classical theory of Abraham Maslow, people are motivated by

unmet needs. The famous Maslow’s hierarchy of needs includes:

 Psychological,
 survival needs
 Safety and security needs
 Social needs of acceptance
 Esteem and acknowledgement needs
 Self-actualization and self-development needs

In management theory, once one of these needs is met, a person will start to
develop the next need. The challenge of an international HR manager is to
understand the types of needs in a particular culture.
 Money as a motivator

The traditional method of motivating employees in the Western business culture

has been to use extrinsic motivation such as pay rises, bonuses, and promotions.

A recent study revealed that employees (especially those in non-Western

cultures) leave not only for compensation reasons. It is no surprise that money is
an important factor, but there are many other reasons for an employee’s decision
to leave. In fact, in the current Indian business environment, increasing the basic
salary hardly reduces turnover. In a country with a comparably low cost of living,
satisfaction with the salary tends to be reached more quickly. Employees look
beyond the money factor and new aspects become crucial. A long-term
perspective including the family Safety and acceptance needs are the ones to be
satisfied next. According to a recent survey, consistent with the Indian traditional
collectivist and relations-oriented culture, as many as 70 percent of employees
see job security and emotional comfort as the major elements of motivation.
Traditional Indian companies often play the role of a family extension for their
staff. They provide a feeling of belonging, build personal relations, and offer long-
term (often life-long) contracts.Besides, research shows that those organizations
that appear to be successful on the Indian market often include employees’
families into the company life. Family in India plays a crucial role in the life of an
individual. A family decision can change the career path of a young professional
and make him abruptly change his or her job. All this translates into huge losses
for the company, which invests a lot of money into training them. That is why one
of the reasonable solutions for a company would be to involve the families of
employees into the company life.
 Enabling personal development

 Ideally, the next step of the motivation policy should meet the esteem and
acknowledgement needs. These are highly important in such a
hierarchical society as India. A higher position in this culture means status
and respect. It often does not automatically imply elements of extra
responsibility and additional duties typical for the Western attitude, but
rather means additional benefits, better work conditions, and respect.This
explains the concern for individual development and career advancement.
An Indian employee, as any other employee, is keen to know his or her
career opportunities and path in the company.

 A career development program could be one of the solutions for an

effective motivation policy. Another factor closely connected with career
growth are the learning opportunities available. Knowledge and
experience are seen as status factors and lead to a higher degree of
respect and acknowledgement. According to research, companies
providing both technical and soft skills trainings appear to be more
attractive and succeed more in their retention policies. Consistent with the
status value, experience of companies operating in India shows that
overseas assignments and the possibility to work abroad play a positive
role in motivating younger generations and thus appear to be effective
methods of reducing personnel fluctuation.

 Along with the above-mentioned factors, experts often emphasize the

importance of the organization’s reputation. Big brands, famous, and well-
established names appear to be more attractive for an Indian employee
even if the level of benefits is lower than in a middle-size or small
organization.Last, but not least, self-actualization needs appear to be of
great importance in the present-day Indian business environment.
Financial satisfaction and acknowledgement needs are relatively fast to
reach and internal motivators become crucial elements of the retention
policy. Considering this, the key motivator for professionals (especially
those at young age) is that their learning curve and the challenges given
to them should not come to a standstill. Such aspects as work on new
projects and exposure to new technologies come to scene. classical
external ones. Such motivators as challenging work, family benefits,
learning opportunities, the chance to go abroad, and career
advancements were found to be much more significant than monetary
compensation.
Employee motivation principles of improving employee
motivation and empowerment

This provides a structure and tips for creating an employee motivation survey
questionnaire, and also the principles of employee motivation and empowerment
in organizations. See also the related theory article about individual motivation.
The motivational expert and writer Blaire Palmer, which is gratefully
acknowledged, provide this organizational motivation article. See also the free
leadership test which can be used to test your own leadership ability, and also as
a questionnaire/survey to assess leadership and motivation ability and
effectiveness among managers and supervisors (MSWord format). Employee
motivation questionnaires or surveys Staff surveys are usually very helpful in
establishing whether staff in your company is motivated and therefore performing
to best effect. Aside from the information that questionnaires reveal, the process
of involving and consulting with staff is hugely beneficial and motivational in its
own right, (see the 'Hawthorne Effect'). Whilst your survey will be unique to your
company, your staff issues, your industry and culture, some useful generic
guidelines apply to most situations. Although not exhaustive, the following ten
points may help you cover the relevant subject areas and help towards
establishing facts rather than making assumptions about motivation when
designing your own questionnaires on employee motivation. Disparity is between
the employee’s image of the company from the outside and from the inside.
 Tools for Managers to Retain Employees

This training course explores the challenges managers face to meet deadlines,
motivate their staff, and reduce costs while building loyalty in their key people. It
delivers the skills new and existing managers need in order to deliver engaging,
motivating, and powerful communication to each employee.

The Goal(s):

To retain your staff. To retain your managers. To give your managers skills to
reduce turnover in their department. You know retention skills can make a
difference in the employee experience, as well as on profits and want new and/or
existing managers to receive the training.

Your Challenge:

Your company is concerned; you need to reduce staff exits. You recognize that
the high turnover rate could be indicative of poorly skilled direct Supervisors.
Likewise, Exit Interviews indicate that middle management techniques may be a
problem or Employee Surveys Interviews indicate that middle management
techniques may be a problem or Employee Surveys point to management
communication as a significant issue impacting performance or job satisfaction.
Maybe there are no indicators, but new managers were recently promoted and
you want them to start out on the right note. Now is the time to teach your
managers to identify and address turnover issues before they arise. You must
ensure that retention continues long after the incentive programs and/or retention
bonus ends.

How Can Retensa Help:

Retensa works with your firm to teach managers how to drive the message of
retention into every point of contact with their staff. Managers learn to reinforce
employee productivity and open communication, to coach employees, to provide
meaningful feedback, and to inspire employees to work as an effective team by
providing immediacy-based recognition. We establish benchmarks to measure
individual progress. The customized course leads through one-on-one role-plays,
real life work case scenarios and other highly interactive learning methods.
 Motivation in practice

Introduction to financial incentives Although some theorists like Herzberg believe

that money is not a positive motivator (although lack of it can de-motivate), pay
systems are designed to motivate employees. The scientific / Theory X
approach, in particular, argues that workers respond to financial rewards. Getting
employee pay right (often referred to as the “remuneration package”) is a crucial
task for a business.

Why is pay important?

• It is an important cost for a business (in some “labor-intensive” businesses,

payroll costs are over 50% of total costs)
• People feel strongly about it. Pay helps to satisfy many needs (e.g. security,
esteem needs, resources to pursue self-actualization)
• Pay is the subject of much important business legislation (e.g. national
minimum wage; equal opportunities legislation)
• It helps attract reliable employees with the skills the business needs for success
• Pay also helps retain employees – rather than them leave and perhaps join a
competitor
• For most employees, the remuneration package is the most important part of a
job – and certainly the most visible part of any job offer.
There are many methods of financial reward (these are covered in separate
revision notes).

•Time-rate pay
• Piece-rate pay
• Commission
• Performance-related pay
• Bonuses
• Shares and options
• Benefits in kind (“fringe benefits”)
• Pensions

Because pay is a complex issue, there are several ways in which businesses
determine how much to pay, and which methods to use:

• Job evaluation / content;

This is usually the most important factor. What is involved in the job being paid?
How does it compare with similar jobs?

• Fairness –
Pay needs to be perceived and be seen to match the level of work.

• Negotiated pay rates –

The rate of pay may have been determined elsewhere and the business needs
to ensure that it complies with these rates.

• Market rates –
Another important influence – particularly where there is a standard pattern of
supply and demand in the relevant labor market. If a business tries to pay below
the “market rate” then it will probably have difficulty in recruiting and retaining
suitable staff.

• Individual performance –
Increasingly, businesses include an element of “performance-related” reward in
their pay structures.
However, it is important to remember that pay is only one element of motivation
and will work best where management also give attention to:
• Developing good management and supervision;
• Designing jobs and organizing work groups to make them as satisfying as
possible;
• Providing feedback to staff about their performance and training and
development;
• Making effective arrangements for communications and consultation.
 HOW MANAGERS MOTIVATE THEIR EMPLOYEES IN
BANKING SETOR
Employees' performance has been established to be directly related to
employees' motivation. This assertion was corroborated by different management
theories since the works of Frederick Taylor on 'The Principle of Scientific
Management' in 1911 and Henry Gantt on 'Works, Wages and Profits' in 1913.
Modern employees' motivation management methods have evolved which
discredited Taylor's "differential rate piece-work" and Gantt's "task and bonus
wage" systems.The modern methods are employees' oriented and more
effective. This research work was to ascertain from the employees the motivating
factors that can 'adequately' motivate them to work tirelessly and to achieve
results. It found out that employees can be adequately motivated and are best
suited to determine what can collectively motivate them Motivation is the catalyst
that spurns employees' eagerness to work without pressure. To motivate is to
provide employees with a motive to do some tasks. It is to cause or provoke
somebody to act either positively or negatively. To say that nobody can motivate
employees at work is like saying there are no influential leaders, there are no
effective managers, there are no motivational speakers, the psychologists in
sports management teams are useless and that motivation is not achievable.
Motivation has been used by effective managers to prompt ordinary people to
achieve uncommon results in all fields of endeavours. If you doubt there is
motivation, read "I have a dream", the public speech by Martin Luther King, Jr.,
when he talked of his ambition for an America where blacks and whites, the poor
and the rich, the educated and uneducated, the youths and the old and others
would co-exist harmoniously and peacefully as equals on August 28, 1963 from
the steps of the Lincoln Memorial (Lucas and Medhurst, 1999). Managers who
have been able to motivate their employees successfully realised how easy it is
to achieve tasks with motivated employees. The American Heritage Dictionary of
the English Language (2006) defined employee "as a person who works for
another in return for financial or other compensation". Employees do not only
work because they want to collect only pay but for other numerous factors.
People work because they have goals to achieve which surpass financial gains
from their employment.Maslow (1943) said that people work to survive and live
through financial compensation, to make new friends, to have job security, for a
sence of achievement and to feel important in the society, to have a sense of
identity, and most especially to have job satisfaction. All employees that have job
satisfaction are high performers in their respective workplaces.Taylor (1911)
opined that the most important motivator of workers is salary and wages when he
said that "non-incentive wage system encourages low productivity". He said that
if employees receive the same wage irrespective of their individual contribution to
the goal, they will work less and that employees think working at a higher rate
means fewer employees may be needed which discourages employees to work
more. All these analogies affect only the unskilled and "unmotivated" workers in
Midvale Steel Company where Taylor worked as a manager.
 CHAPTER-2

RESEARCH METHODOLOGY
 METHODOLOGY

Collection and identification of data-

In order to identify key influencers and variables influencing Motivational
methods, an exploratory study was carried out initially. This was achieved by
conducting informal interviews with Employees of service sector and discussions.
During the course of the exploratory study, it was felt that a showroom intercept
or a telephonic interview would not generate the required information, so
personal interviews were conducted. Non-probability convenience sampling
technique was used to arrive at a total sample of fifty respondents.

The Questionnaire
The information needs identified were used to design a questionnaire for carrying
out the research. Respondents were administered through a structured
questionnaire comprising a mix of open ended as well as closed ended
questions.

Sampling design and sample size

The data collection exercise took into account the following parameter in order to
ensure Employee satisfaction.

• To ensure that the users belonged to different age, gender, occupations

and income levels.

Selection of the respondents was on convenience sampling basis. Any person

who was willing to cooperate in the conduct of the survey was requested to fill
the questionnaire. The investigators in getting the questionnaire filled and also
requested for the findings of the study. The filled in questionnaires went through
the process of editing so as to ensure consistency, accuracy and completeness.
This resulted in 50 usable questionnaires. The remaining ones were not able to
meet the stated criteria and hence were eliminated. A coding scheme for the
questionnaire was prepared and the data collected from 50 respondents were
entered
 CHAPTER-3

DATA ANALYSIS
 Data Analysis

QUE-1) Are you aware about hr policies at your company?

INTERPRETATION:-

It is found out that, 40% of respondents are aware of HR Policies and 60 % of

Respondents are not aware of HR Policies.
QUE-2) Are you getting information about changes at right time?

INTERPRETATION:-

It is found out that, 76% of respondents are getting right amount of accurate
information at right time and 24% of respondents are not getting right amount of
accurate information at right time.
QUE-3) Are you satisfied with your pay structure comparison to your
responsibilities?

INTERPRETATION:-

· It is found out that,41% of respondents feels that there pay is on par with
compare to employee’s handling similar responsibilities, and 59% of respondents
feels that there pay is less with compare to employee’s handling similar
responsibilities.
QUE-4) Are you satisfied with hygiene and cleanliness of company premises?

INTERPRETATION:-

· It is found out that, 70% of respondents are satisfied with hygiene and
cleanliness of company infrastructure and 30% of respondents are not satisfied
with hygiene and cleanliness of company infrastructure.
QUE-5) Are your skills recognized and rewarded by your superiors?

INTERPRETATION:-

· It is found out that, 78% of respondents skills are recognized by superiors and
22% of respondents skills are not recognized by superiors.
QUE-6) Are your superior are taking effort to motivate you?

INTERPRETATION:-

· It is found out that, 78% of respondents skills are recognized by superiors and
22% of respondents skills are not recognized by superiors.
QUE-7) what kind of non-monitary perks you getting as a motivational factor?

INTERPRETATION:-

It is found that non monitory perks that employee gets as motivational factor are
10% of them get coupon, 40% of them get travelling allowance, and 50% of them
get other benefits.
QUE-8) Is your workload is manageable?

INTERPRETATION:-

· It is found out that, 89% of respondents feel that workload is manageable and
11% of respondents feel that workload is very hard to manage.
OUE-9) Are your complaints are resolved quickly on time?

INTERPRETATION:-

· It is found out that, 51% of respondents feel that their complaints are resolved
quickly and 49% of respondents feel that their complaints are not resolved
quickly.
QUE-10) Are you getting updates on internal activities?

INTREPRETATION:-

It is found out that, 55% of respondents feels that the field worker are able to get
Updates on internal activities, and 45% of respondents feels that the field worker
are not able to get updates on internal activities.
 FINDINGS

· It is found out that, 40% of respondents are aware of HR Policies and 60 % of

respondents are not aware of HR Policies.

· It is found out that, 76% of respondents are getting right amount of accurate
information at right time and 24% of respondents are not getting right amount of
accurate information at right time.

· It is found out that,41% of respondents feels that there pay is on par with
compare to employee’s handling similar responsibilities, and 59% of respondents
feels that there pay is less with compare to employee’s handling similar
responsibilities.

· It is found out that, 70% of respondents are satisfied with hygiene and
cleanliness of company infrastructure and 30% of respondents are not satisfied
with hygiene and cleanliness of company infrastructure.

· It is found out that, 40% of respondents are satisfied with Availability of system,
Storage facilities of company and 60% of respondents are not satisfied with
Availability of system, storage facilities of company.

· It is found out that, 78% of respondents skills are recognized by superiors and
22% of respondents skills are not recognized by superiors.

· It is found out that, 74% of respondents feel that superiors are taking efforts to
motivate them and 26% of respondents feel that superiors are not taking efforts
to motivate them.
· It is found out that, 89% of respondents feel that workload is manageable and
11% of respondents feel that workload is very hard to manage.

· It is found out that,55% of respondents feels that the field worker are able to get
updates on internal activities, and 45% of respondents feels that the field worker
are not able to get updates on internal activities.

· It is found out that, 89% of respondents feel that the superiors are easily
accessible and 11% of respondents feel that the superiors are not easily
accessible.

· It is found out that, 51% of respondents feel that their complaints are resolved
quickly and 49% of respondents feel that their complaints are not resolved
quickly.
 SUGGESTION

A. Employee should be provided with proper training.

B. Employee should be appreciated for good work.

C. Employee should be motivated to welcome the change.

D. If any changes are brought in to software or any module is added then

proper training should be given.
 Conclusion

Retention is an important concept that has been receiving considerable attention

from academicians, researchers and practicing HR managers. In its essence,
Retention comprises important elements such as the need or content, search
and choice of strategies, goal-directed behavior, social comparison of rewards
reinforcement, and performance-satisfaction. The increasing attention paid
towards Retention is justified because of several reasons. Motivated employees
come out with new ways of doing jobs. They are quality oriented. They are more
productive. Any technology needs motivated employees to adopt it successfully.
Several approaches to Retention are available. Early theories are too simplistic in
their approach towards Retention. For example, advocates of scientific
Management believe that money is the motivating factor. The Human Relations
Movement posits that social contacts will motivate workers. Mere knowledge
about the theories of Retention will not help manager their subordinates. They
need to have certain techniques that help them change the behavior of
employees. One such technique is reward. Reward, particularly money, is a
motivator according to need-based and process theories of Retention. For the
behavioral scientists, however, money is not important as a motivator. Whatever
may be the arguments, it can be stated that money can influence some people in
certain circumstance. Being an outgrowth of Herzberg’s, two factor theory of
Retention, job enrichment is considered to be a powerful motivator. An enriched
job has added responsibilities. The makes the job interesting and rewarding. Job
enlargement refers to adding a few more task elements horizontally. Task variety
helps motivate job holders. Job rotation involves shifting an incumbent from one
job to another.
 Recommendations

1. Develop an attractive employee value proposition

An employee value proposition means that your company has something

attractive to offer that is perceived as valuable to an employee. as an employer,
you must understand what makes your organization attractive to potential recruits
and current employees. Branding yourself, as an employer of choice is not just a
slick set of marketing tactics. The best advocates for an employer’s brand are its
current employees. What messages do they send to others about their
employer? Are they honestly saying and believing that,” This is a great place to
work.”

2. Create a total reward structure that includes more than

compensation

Every company should have all the normal compensation mechanisms common
to their type of employment. yet, total rewards packages go far beyond money.
While money might temporarily retain employees, it does not always equate with
engagement. People want a chance to make a difference and realize
themselves. That self-realization is multi-dimensional and different for each
employee. The total reward structure should include, in addition to compensation,
support for employees to attain their personal objectives aligned with the goals of
their organization.
 3. Give feedback on employee performance on a regular
basis

Most managers and employees are not enamored with the performance
appraisal process in their organization. yet, an effective performance
management process serves many purposes. Ongoing performance feedback
allows employees to better know where they stand, gives them a formal means
to provide input, indicates that their managers pay attention to them and that their
performance matters. This feedback contributes to employee engagement and
retention. Create a culture of engagement. Employees have become more
connected with others in the organization (and the broader supply-and-customer
chain) through project-based teamwork and process management activities.
Employees are shifting their loyalty to people, teams and projects and away from
company loyalty. It is organizations that create the culture and climate that allow
people, processes and projects to become fully connected and engaged with one
another. Engaged employees are more likely to stay with their employer.

4. Train managers to be effective

Exit interviews consistently show that “poor and bad” management practices
greatly contribute to an employee’s decision to leave a company. It is imperative
to provide supervisors and managers with adequate tools to become effective
managers since we cannot assume that these competencies are innate.
 BIBLIOGRAPHY

 GOOGLE.COM

 ANSWERS.COM

 SCIENCE.COM

 PROJECTINSIGHT.COM