CHAPTER: 1

INTRODUCTION
 “A STUDY ON THE IMPACT OF REWARD SYSTEM ON
EMPLOYEE MOTIVATION IN AM MOTORS

INTRODUCTION

Definition of Motivation ;

“Motivation is the desire to achieve beyond expectations, being driven by internal rather than
external factors, and to be involved in a continuous striving for improvement”.
(Torrington, Hall, Taylor & Atkinson, 2009, p. 276).
Motivation, in the context of work, is a psychological process that results from the
interaction between an employee and the work environment and it is characterized by a
certain level of willingness. The employees are willing to increase their work effort in order
to obtain a specific need or desire that they hold. According to Arnold (1991), motivation
consists of three components:
 Direction – what a person is trying to do,
 Effort – how hard a person is trying,
 Persistence – how long a person keeps on trying
Motivation theory tries to explain why people at work behave the way they do in terms of
their efforts and strive for achievement. In order to satisfy the needs and wants, goals are
created and a behavior selected in order to achieve these goals. If the goal is achieved, the
behavior is likely to be repeated when a similar need emerges. If the goal is not achieved, the
same action is less likely to be repeated.
Managers can motivate employees through methods such as pay, promotion and praise.
Employees can also motivate themselves by seeking work where individual goals, needs and
wants will be achieved. These two types of motivation are called intrinsic and extrinsic
motivation and are more closely described as follows:

(A) Intrinsic motivation: It refers to the motivation that comes from inside an individual.
The motivation is generated trough satisfaction or pleasure that one gets in
completing or even working on a task. Factors that influence on intrinsic motivation
include responsibility, freedom to act, scope to use and develop skills and abilities,
interesting
work and opportunities for advancement. These motivators, which are concerned with
the quality of work life, tend to have a long-term effect since they are inherent in
individuals and not imposed from outside.
 package, it minimizes the undervaluing of the true costs of the packages.
 Flexibility to meet individual needs – due to the variety of rewards, the total reward is
able to answer the individual needs of the employees and hence bind them more
strongly to the organization.
 Winning the war for talent – because relational reward processes are more difficult to
 replace than individual pay practices, total reward gives the organization the ability to
attract and retain talented employees by differentiating their recruitment process and
hence becoming “a great place to work.”

1.2 STATEMENT OF THE PROBLEM

Rewards can be used to influence motivation. By no means financial rewards are
the only way to motivate, as there are many HRM (human resource management)
practices which aim to motivate. ... Motivation is the desire to achieve beyond
expectations, being driven by internal rather than external factors.AM Motors is an
emerging firms in the field of Auto Mobiles. Now there are many industries that are sales
and service in Automobiles.

1.3 OBJECTIVES OF THE STUDY

The percent study was carried out with the following objectives.

Primary Objective
1. To study the impact of reward system on employee motivation in AM
Motors

Secondary Objective
1. To determine if there is a relationship between reward and employee
motivation.
2. To determine the impact of rewards on motivation.
3. To determine which factors contribute to work motivation.
4. To determine the impact of biographical variables on work motivation.
5. To analyze the effect of reward system on motivational level of
employees at A M Motors.
1.4 IMPORTANCE OF STUDY

Managers can motivate employees through methods such as pay, promotion

and praise. Employees can also motivate themselves by seeking work where
individual goals, needs and wants will be achieved.
Simply put, the importance of a rewarding employees in an organization is
that it spurs people to work harder and be more productive. There is a saying that
“people will always work harder when they know they are appreciated,” and research
backs it up. According to one survey, 79 percent of employees say that recognition
makes them work harder, and 78 percent are more productive after being rewarded.
 1.6 RESEARCH METHODOLOGY
Research methodology is the specific procedures or techniques used to
identify, select, process, and analyze information about a topic. In a research
paper, the methodology section allows the reader to critically evaluate a
study's overall validity and reliability.
1.6.A RESEARCH DESIGN:-
Fundamental to the success of any research project is a sound research design.
In this project descriptive type of research design is used.
1.6.B SAMPLE DESIGN:-

Simple random sampling method is used for this study .

1.6. C SOURCES OF DATA
The data collection method is an integral part of research design. The data
was collected with the help of questionnaire and interview with the workers in
AM Motors.
The study is based on both primary and secondary data.
 PRIMARY DATA

It is the data used in research originally obtained through the direct efforts of

the researcher through surveys, interviews and direct observation. Primary data is
more costly to obtain than secondary data, which is obtained through
published sources, but it is also more current and more relevant to the
research project .Primary data are collected from questionnaire, interview and
survey.

 2. SECONDARY DATA

Secondary data is the data that have been already collected by and readily
available from other sources. Such data are cheaper and more quickly
obtainable .secondary data are collected from company broachers, annual
publications, websites, registers and journal.
1.5.4 SAMPLE DESIGN
A sample design is a definite working plan for obtaining a sample from a
given population. It refers to the technique or the procedure the researcher
would adopt in selecting items for samples. As the customers for the study are
from different parts of the districts, We had to do convenience sampling. For the
study I contacted fifty workers from non random sample and collected
information from them using questionnaire, which are directly filled and mailed
by the customers. Therefore the data is mainly composed of primary nature.
1. Population

population of the study 50

2. Sample Size

Sample size refers to the number of items or respondents include in

theAsample. The sample used for the study is the workers of AM Motors .
Sample size is 50.
3. Sampling Technique

Random sampling method is the sampling technique used for the study.

1.6.D TOOLS USED FOR THE STUDY

 Tools for data collection

Primary data : Questionnaire is the tool used for collecting primary data.
Secondary data: Books, website, Journals, company records are the tools
used for collecting secondary data.

 Tools for data analysis

Percentage analysis

 Tools for Presentation

Tables and Graphs

1.6 PERIOD OF THE STUDY

The period of study is 21 days starting from ……………………

LIMITATIONS
1. The respondents were limited and cannot be treated as the whole population.
2. The respondents may be biased.
3. The accuracy of indications given by the respondents may not be consider adequate
4. Inspite of precautions taken there are certain procedural and technical limitations.
5. Lack of sufficient time to exhaust the detail study of the above topic became a
 hindering factor in my research.
6. Resources were limited.
7. Respondents are not willing to respond properly.