Project Report

On

Effect of Remuneration on Employee Motivation

Submitted to
Prof. Dr Bhumika

Section G – Group 7

1. Ankit Verma - PGP36302

2. Harshita – ABM17039

3. Jaydeb Das – PGP36311

4. K S Raksha – PGP36312

5. L Ngamgunlun Khongsai – PGP36320

Table of Contents
Table of Contents 2

1. Introduction of the organization: Tata Consultancy Services 3

2. Introduction to Organization: Hindustan Petroleum Corporation Limited 5

3. Objective of the project 7

Non-monetary Factors: 7

4. Scope of study 8

5. Methodology 9

6. Data Collection 10

7. Data Analysis 11

8. Proposed System/Recommendation 16

9. References 17
 1. Introduction of the organization: Tata
Consultancy Services

Missions and Values

The major mission, vision, and value statements that drive the organization are as follows:

The mission of the organization:

The mission of TCS is majorly to enable their customers to achieve their target work and
business objectives by providing the best consulting services and IT solutions that are
innovative

The vision of the organization:

Tata consultancy services’ vision is majorly to decouple business growth and the ecological
footprint from the majority of its operations, which will enable them to address the environment
bottom-line.
The organization functions with a green approach. From the services that are offered to the
infrastructure they use, they try and make it sustainable and environmentally friendly. They not
only want to grow substantially but also want their clients to grow in an environmentally
friendly way.

The Values of the organization:

The major values that drive any organization under the TATA banner are as follows:

Unity

They understand the team efforts and how important it is for the people of the organization to
stand together to work towards the goals of the organization. They also understand that people
are the biggest assets of the organization and hence, employee welfare is always a priority.

Pioneering

They are bold and confident about their approaches and understand how important confidence
is and work towards deepening their customer knowledge to work on the fulfilment of their
business objectives.

Responsibility

They are an organization which has sustainability and social responsibility as the major driver
for their business. They have these two goals embedded in their way of business.

Excellence

They always have excellence as a driver, which means meritocracy and highest quality
standards will be prioritized.
Integrity

Tata group always believes in integrity and have a fair approach towards the performance of
their tasks. They are extremely ethical and transparent in their approach.

Evolution of the organisation:

Tata Consultancy Services was founded in 1968 by Tata Sons, to focus on IT services and IT
consulting majorly. They are headquartered in Mumbai Maharashtra. It is the first Indian IT
company to reach a market valuation of $100 Billion and the 2nd company in India to do so.

Current Business Scenario:

It is one of the strongest brand in the IT industry worldwide. Their customer base runs across
all the major economies and they have a client base across all the industries too. It operates in
46 countries. In 2018, Tata sons sold about $1.25 Billion worth of stocks it owned in the
subsidiary in a bulk deal.

Leadership and Strategy:

Natarajan Chandrasekaran is the chairman of Tata Consultancy Services and Rajesh

Gopinathan is the MD&CEO of the organization. The major way TCS tries to drive its revenue
is through Customer Retention strategies and they focus extensively on customer relationship
management too. They provide both low-end cost services and high-end types of services. It
has a balance of both.

HRM practices in the organization

TCS is the largest private-sector employer in India. It is also 4th in the entire county after
considering a few government organizations. They have good people management practices
and they always put employee satisfaction, safety and security as a priority. They also have a
good gender ration maintained concerning its competitors, and has about 37% of its employees
being woman.
 2. Introduction to Organization: Hindustan
Petroleum Corporation Limited
Hindustan petroleum corporation limited is a Public sector undertaking and a
subsidiary of ONGC. It is an oil marketing company which has 25% marketing share in India.
In 2019 Company became the 10th Maharatna PSU of India.
HPCL was incorporated in 1974 after the merger of Esso standard and lube India. In 1978
Caltex oil was also merged in HPCL. On 30 January 2018 ONGC acquired 51.1% stake in
HPCL and become the promoter of the same.
HPCL operated 2 major refineries in India one in Mumbai and other in Vizag. HPCL has the
largest share of the lube market in India, it also has the second-longest oil pipeline network in
India. HPCL sells various petroleum product such as Petrol, Diesel, LPG, Aviation turbine fuel,
Solvent, MTO, lubes and petrochemicals. HPCL is consistently growing its profit and market
share by its workforce of 9500 posted all over India from Leh in the north to Kanyakumari in
the south.

Mission
The mission of HPCL is to become a fully integrated company in the hydrocarbon sector from
the exploration of crude to refining of product and marketing of all petroleum product. Along
with focusing on productivity, profitability and quality; Sustainable approach of business and
caring for customer and employees. Along with this HPCL also wants to attain diversity by
entering into another energy-related field.

Vision
To be a World-Class Energy Company known for caring and delighting the customers with
high-quality products and innovative services across domestic and international markets with
aggressive growth and delivering superior financial performance. The Company will be a
model of excellence in meeting social commitment, environment, health and safety norms and
in employee welfare and relations.
Values
HPCL cultural moto is HP FIRST which guides HPCL employee to reach HPCL mission and
mission and guides their endeavours and engagement
F: Free, Frank and Fair
I: Integrity
R: Respect for Individual
S: Sustainable Performance
T: Team Spirit

Evolution
As mentioned earlier HPC was incorporated in 1974 after the merger of Esso standard and lube
India. In 1978 Caltex oil was also merged in HPCL. Since than HPCL has been steadily
growing over the years. The refining capacity of HPCL has been growing since then from 5.5
MMT in 1984/85 to 17.18 MMT in 19-20. On the financial front, the revenue of the
organization has been grown tremendously from 2687 Crore in 1984-85 to 2,98,000 Crore in
19-20. Currently, the company has a huge marketing network in the country with more than
16,476 Retail Outlets,6,110 LPG Distributor 133 Regional offices, 111 Terminal and depots,
50 LPG bottling plants, 44 Aviation Service Facilities and 8.5 Crore LPG Customers. HPCL is
also constructing a new greenfield refinery of capacity 9 MMTPA at Ratnagiri in a joint venture
with Government of Rajasthan.

Current Business Scenario:

As the current situation of COVID-19, the demand for fuel has been decreased the pandemic
has adversely affected several service sectors such as trade, tourism, airlines, people prefer to
work from home rather than going to the office. These all have led to the long decrease in
demand for fuel, we have also witnessed the price of crude oil falling below $0 first time in
history. HPCL is also facing stiff competition from IOCL, BPCL and reliance petroleum in the
Indian subcontinent. Along with this, we can see tremendous R&D happening in the sector of
Electric vehicle, policies of the government are also supporting the increase of Electric vehicle
on road to curb pollution. As World is moving more toward the renewable source of energy it
is high time for HPCL to plan and invest in other energy sectors to keep growing along with
fulfilling the need of society. We can expect an increase in Fuel demand after complete unlock
after COVID.
Leadership and Strategy:
HPCL currently has 5 permanent directors and 3 government nominee director and 7
Independent directors.
CMD: Mukesh Kumar Surana
Director HR: Pushp Kumar Joshi
Director of Finance: R. Kesavan
Director of Marketing: Rakesh Mishri
Director Refineries: Vinod S Shenoy

HRM Practices in Organization: The Human Resource is one of the strongest resources for
any Company. The Corporation considers Human dimension the key to Organization’s success.
many initiatives for the development of Human Resource to meet new challenges within the
competitive business atmosphere are introduced from time to time. The Corporation employee
9500 people, a mixture of energetic youth and knowledgeable about seniors who harmonize
the efforts to attain the Corporation’s goals. HPCL receives FIPI company of the year award
in 2019 for excellence in human resource management from Ministry of petroleum and natural
gas.
Some New HR initiative in the organization are:
• Santushti: This is a new program initiated for the person who is retiring or leaving the
job. This is a one-stop destination for all parting formalities and also bid warm
innovative farewell to its employee.
• Online meetings with HR
• Online skill enhancement program compulsory for all to attend 3 in every quarter.
• Introduced 15 days of parental leave.
 3. Objective of the project
The motivating factors that drive a person to work can be divided into two categories: monetary
and non-monetary factors, which can be used to increase their performance. The objective of
this project is to find out the balance between monetary and non-monetary remuneration that
can be done to increase the morale and motivation of employees.
Monetary Factors:
Monetary factors are extrinsic to the work; it includes the following:

1. Salary or wages:
One of the most important motivating variables in an organization is this. Wages and pensions
should be fairly set and charged on schedule.
2. Bonus:
Bonus is an above and beyond wage additional benefit, and it serves as an opportunity to do
well. It is tied to the organization’s sustainability and efficiency.
3. Financial incentives:
The company provides its workers with additional benefits, such as medical allowance, health
allowance, house rent allowance, hard duty allowance and educational allowance for children.
4. Promotion (monetary part):
Promotion is related to wage rises, which motivates workers to do well.
5. Profit sharing:
This is an arrangement through which organizations distribute compensation based on some
established formula built around the profitability of the company.

Non-monetary Factors:
Non-monetary factors are rewards intrinsic to work, it includes the following:

1. Status:
Better status and designation motivate an employee. Organizations should offer job titles that
express the significance of the role.
2. Appreciation and recognition:
For all their accomplishments and sacrifices, workers must be respected and fairly paid.
3. Work-life balance:
Employees should be in a position to reconcile work and life with the two major portions of
their lives. This equilibrium helps them to guarantee the quality of work and life. A healthy
worker is a driven worker.
4. Delegation:
Authority delegation supports loyalty and devotion among employees. Employees feel happy
that they have confidence in their boss and this helps them to do well.
6. Job enrichment:
It gives workers more difficult tasks and responsibilities. The employee's job is becoming more
meaningful and satisfying.
Considering the above factors our objectives include-
 1. To find the effect on remuneration on the motivation of employees based on Gender.
2. Effect of remuneration on the motivation of people who feels they are overpaid or
underpaid.
3. To find the balance between monetary and non-monetary remuneration to achieve
maximum employee motivation.
4. What is the effect of salary hike on employee motivation?
5. Effect of variable pay such as performance-related pay or commission on sales on
employee motivation.
6. The tradeoff between work life balance and remuneration affecting the motivation of
employees.

4. Scope of study

The scope of the study included studying various aspects-

• Employee satisfaction is an important aspect of an organization's success; much
research has been conducted into ways of improving job satisfaction of workers in
various sectors of the Indian economy.

• Studies typically find that employee satisfaction is correlated with pay, job intensity,
empowerment, business and administrative strategy, success, personal development,
relationships with others, and the general working condition. Employee happiness,
however, has a huge influence on the lives of individuals.

• Studies have found that job productivity most generally impacts the physical health of
a worker along with social and mental health.

• Employment happiness is related to life happiness, whereby individuals who are happy
with their work will also appear to be happy with their lives, and vice versa.

• Our research endorsed the viewpoint that success can have on the lives of people;
between results and incentives, while satisfaction concerns how people feel about the
benefits they have got.

Employees who are pleased with both motivation and hygiene variables will be high
performers, and those who are unhappy with both variables will be bad performers, employee
happiness is an emotional reaction following work-related acts or feelings, while motivation is
the behaviour-activating mechanism. Because satisfaction is a mentality, it is possible for a
worker to be happy but not pleased with his job. Motivation and happiness, however, are not
interchangeable with one another. The discrepancy between the principles must be explained
so that it is easier to grasp that inspiration contributes to happiness, which eventually leads to
better results.
5. Methodology
Research Approach:

The research approach is a plan and procedure that consists of the steps of broad
assumptions to detailed method of data collection, analysis and interpretation.

There are mainly two kinds of research approaches- inductive and deductive:

Inductive Research Approach: In this kind of research, theories are developed according
to the situation or problem. All these theories enable the researcher to explain data and
information. This is very flexible and based on a bottom-up approach. In this kind of
approach, the researcher evaluates the main concept and generalizes this view as per the
research problem.

Deductive Research Approach: In this kind of approach, the research develops theories
and hypothesis and tests these theories with the help of empirical observations. This
approach is top to bottom approach in which the researcher evaluates general views to
reach a specific situation.

For this project, the inductive research approach is used.

And the suitable research methodology for this research topic would be descriptive. The
main reason behind choosing this methodology is its advantage of identifying population
characteristics (number of employees to collect primary data) from the response we got
from our questionnaires to understand the importance of remuneration in employee
motivation.
The questionnaire designed with a set of questions that can help us find the effect of
remuneration was shared to TCS and HPCL employees or ex-employee
After the data from the questionnaire were received, analysation of the data was done with
the help of charts and recommendations were made from the finding.
6. Data Collection
For this project, the data was collected by creating a questionnaire containing a set of
questions that can help us identify the factors involved in employee motivation and
demotivation at the workplace.
Once the respondents filled the questionnaires, the data was then analysed using charts to
find the study the effect remuneration have on employee motivation and employees
motivation can be improved.
The Form was floated with following questionnaire
Q1. Name (Optional)
Q2. Name of Organization
Q3. Designation
Q4. Gender
Q5. Total years of service in that organization?
Q6. CTC
Q7. Do you feel motivated towards work?
Q8. How far are you satisfied with the amount of remuneration received from
organization?
Q9. Why do you feel Underpaid?
Q10. Do you think variable pay and other benefits motivates you to perform better?
Q11. How will you rate your present work life balance?
Q12. Will you prefer to switch company for better work life balance but lower
remuneration?
7. Data Analysis
On analysing the data collected through research we gained many insights regarding the
motivation of an employee due to remuneration. Let’s go through the insights on by one
and see the effect:

a) Gender vs Motivation

Surprisingly, the survey also found that even though the male respondents earned a
considerably higher salary on average, they were less motivated compared to our female
respondents at their jobs. About 47% of the male respondents felt motivated at their work
while 52% of the females felt motivated.
b) Satisfaction vs CTC
In the survey, the employees were asked to rate their satisfaction level in range on 1 to 5
where 1 means not satisfied and 5 mean highly satisfied. Below are the insights from the
same.
From the graphs above, it can be observed that the average satisfaction level of the
employees increases with an increase in their CTC. This could mean that people tend to
be more satisfied with their job with an increase in their CTC. But it can also be seen that
some employees who earn a higher salary are less satisfied than those who earned less than
them. This could prove that money is not the only factor that plays in the satisfaction level
of the employees.

d). Work-life balance vs CTC

The study also found that there was no dissatisfaction in their work-life balance for the
respondents who earned 20 lakhs and above. Only 10% of the respondents who earned less
than 5 lakhs were satisfied with their work-life balance.
It was also observed that only about 16% of the respondents with 10-20 lakhs CTC were
satisfied with their work-life balance compared to 38.89% of the satisfied respondents with
5-10 Lakhs CTC, this can be due to the higher work pressure.

e). People willing to switch for better work-life balance?

The study also found that

people who are not
motivated towards their
work are more likely to
switch company in search
of better work-life
balance even at lower
Remuneration. We found
that 56.52% of
employees who feel no
motivation at work are
willing to switch even for lower CTC compared to 27.78% who feels motivated towards
the work. This shows that Motivation is an important factor for the employee which keep
then connected to their work and employee with less motivation are always in search of a
better job.

f). CTC vs motivation status

It was also observed from the survey that the employees who earned more than 20Lakhs
CTC were motivated at their jobs, there was no lack of motivation found in this CTC range.
It was also observed that about 45% of people earned less than 5lakhs were not motivated
at their jobs. And the higher the CTC, the higher was the average motivation rate of the
employees.
It can also be observed that more percentage of the respondents earning between 10-20
lakhs were not motivated at their job compared to those that earned between 5-10 lakhs.
This could be due to the finding that people earning between 10-20 lakhs were less satisfied
with their work-life balance.

g). Effect of CTC on employee do they feel overpaid or underpaid?

It can be observed from the graph that in every CTC range, at least 50% of the employees
felt that they were underpaid, with the highest percentage of the employee who felt they
were underpaid come from those who earned between 5-10 lakhs or below 5 Lakhs.
It is also observed that 73% of the employees who felt they were underpaid were because
they either felt that they were overworked or because of their pay compared to their peers.
Also, 21% of the employees felt this way because of the lack of incentives at their job.

h). Effect of Variable pay on Motivation of Employee

The study found that about 95% of the respondents felt that variable have an effect on their
motivation at their job. We can conclude that the proper structure of variable pay is one of
the key factors in improving the motivation levels of employees in the workplace.
8. Proposed System/Recommendation
Based on the finding of survey we have the following recommendation for the
organization:
1. Create a proper structure of variable pay since it was found that it is one of the key
factors in improving the motivation levels of employees.

2. Provide employees with better work-life balance. Employees with better work-life
balance tend to be more motivated at the workplace, ultimately creating a healthy
workplace environment.

3. Additional remuneration system like overtime bonuses, better incentive system, the
proper appraisal should be added to increase the employee's motivation.

4. Equal distribution of targets and work load among employee so that no employee feels
overworked, as most employee who feels are underpaid are because they feel that they
overwork.

5. It should be noted that money is not the only factor that motivates an employee and
creating a healthy work-life balance, praises from their seniors etc. should be focused
on to create a healthy work environment.

6. Provide employees with better work life balance such as giving freedom to work from
home.

7. Employee should be provided with autonomy to take decision to perform their duty as
this will increase their motivation towards work.
9. References
• https://www.hindustanpetroleum.com/
• https://www.hindustanpetroleum.com/documents/pdf/HPCL%20Annual%20Report
%202019-2020.pdf
• https://en.wikipedia.org/wiki/Hindustan_Petroleum
• https://www.tata.com/about-us/tata-values-purpose
• https://www.tcs.com/marketing-enterprise-purpose-values-north-star-business-
strategy-article
• https://www.tcs.com/about-us
• https://www.comparably.com/companies/tcs/mission
• Randy K. Chiu, Vivienne Wai‐Mei Luk and Thomas Li‐Ping Tang (2002) "Retaining
and motivating employees", Personnel Review, Vol. 31 No. 4, pp. 402-431
• Marai, L., Kewibu, V., Kinkin, E., Peter Peniop, J., Salini, C., &Kofana, G. (2010).
Remuneration disparities in Oceania: Papua New Guinea and Solomon Islands.
International Journal of Psychology, 45(5), 350-359.
• Calvin, O. Y. (2017). The impact of remuneration on employees' performance: A
study of Abdul gusau polytechnic, Talata-Mafara and State College of Education
Maru, Zamfara State.Nigerian Chapter of Arabian Journal of Business and
Management Review, 62(139), 1-10.
• Pratheepkanth, P. (2011). Reward system and its impact on employee motivation in
commercial bank of Sri lankaplc, in Jaffna district. Global Journal of Management
and Business Research, 11(4).
• https://www.yourarticlelibrary.com/motivation/monetary-and-non-monetary-factors-
of-motivation/32391
• https://www.grin.com/document/376007