SUMMER TRAINING REPORT

ON
A HOLISTIC STUDY OF MONETARY MOTIVATIONAL TOOLS FOR PRODUCTIVITY ENHANCEMENT at

ITC Ltd. SIDDKUL HARIDWAR (UTTRAKHAND)

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

OF U.P.TECHNICAL UNIVERSITY, LUCKNOW

BY
SATENDRA SINGH TOMER ROLL NO.0807270123

ACKNOWLEDGEMENT This project is a culmination of task undertaken by me during the tenure of eight weeks at ITC limited as a project trainee. Acknowledgement is not a mere formality or ritual but a genuine opportunity to express the indebtedness to all those without whos active support and encouragement this project wouldnt have been possible. My special thanks to Dr. P.K. Gosh (Director), Mr. Farzan Ahmed who helped me for a proper guidance. The General acknowledgement goes to the Management of Videocon industries limited where I have got the ample opportunity to undertaken the study and completion of this project. I would like express my thanks to Mr.Arun Raghav (H.R HEAD) for his guidance and cooperation rendered for allowing me to undergo training under his guidance. My special thanks to Ms. Aparna for her active support, affectionate guidance and constant encouragement. They helped me in getting all required notes, required by my project. Im highly indebted to Ms. Anubhuti Dwivedi (Program Co-ordinator of MBA dept.) for her continuous effort in building a good infrastructure and develop a professional attitude within ourselves during the academic period of MBA. Diction is not enough to express my guidance to my parents who have molded my career through enormous sacrifice throughout the years. Satendra Singh Tomer,
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INTRODUCTION

MOTIVATION

Motivation - key to performance improvement

There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus: Job performance = (ability) x (motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.

Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related Restructuring jobs Base rewards on job performance

Meaning and Definition of Motivation

According to Dublin, Motivation is the complex forces starting and keeping a person at work in an organization. Motivation is something that moves the person to action, and continues him in course of action already. According to McFarland, Motivation refers to the way in which urges, drives, desires, aspirations, strivings, or needs direct, control or explain the behavior of human beings.

Motive

Motivating

Motivation

Needs in individuals

Activating needs and providing needs satisfaction environment

Engagement in work behavior

Nature of Motivation
Based on the definition of motivation, we can derive its nature relevant for human behavior in organization. Based on Motives. Motivation is based on individuals motives which are internal to the individual. These motives are in the form of feelings that individual lack something.
1.

Affected by Motivating. Motivation is affected by way the individual is motivated. The act of motivating channelizes need satisfaction. It can also activate the latent needs in the individual.
2.

Goal-directed Behavior. Motivation leads to goal-directed behaviour. A goal-directed behavior is one which satisfies the causes for which behaviour takes place.
3.

Related to satisfaction. Motivation is related to satisfaction. Satisfaction refers to the contentment experiences of an individual which he derives out of need fulfillment.
4.

Person motivated in totality. A person is motivated in totality and not in part. Each individual in the organization is a self contained unit and his needs are interrelated.
5.

Motivation and Performance

Motivation Extrinsic Abilities Resources

Performance

Reward

Role perception Intrinsic Sense of competence

Theories of Motivation
There are a number of different views as to what motivates workers. The most commonly held views or theories are discussed below and have been developed over the last 100 years or so. Unfortunately these theories do not all reach the same conclusions! Taylor Frederick Winslow Taylor (1856 1917) put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following: Workers do not naturally enjoy work and so need close supervision and control Therefore managers should break down production into a series of small tasks

Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task. Workers are then paid according to the number of items they produce in a set period of time- piece-rate pay. As a result workers are encouraged to work hard and maximise their productivity. Taylors methods were widely adopted as businesses saw the benefits of increased productivity levels and lower unit costs. The most notably advocate was Henry Ford who used them to design the first ever production line, making Ford cars. This was the start of the era of mass production. Taylors approach has close links with the concept of an autocratic management style (managers take all the decisions and simply give orders to those below them) and Macgregors Theory X approach to workers (workers are viewed as lazy and wish to avoid responsibility). However workers soon came to dislike Taylors approach as they were only given boring, repetitive tasks to carry out and were being treated little better than human machines. Firms could also afford to lay off workers as productivity levels increased. This led to an increase in strikes and other forms of industrial action by dis-satisfied workers. Mayo Elton Mayo (1880 1949) believed that workers are not just concerned with money but could be better motivated by having their social needs met whilst at work (something that Taylor ignored). He introduced the Human Relation School of thought, which focused on managers taking more of an interest in the workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting together. Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in Chicago He isolated two groups of women workers and studied the effect on their productivity levels of changing factors such as lighting and working conditions.
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He expected to see productivity levels decline as lighting or other conditions became progressively worse What he actually discovered surprised him: whatever the change in lighting or working conditions, the productivity levels of the workers improved or remained the same. From this Mayo concluded that workers are best motivated by: Better communication between managers and workers ( Hawthorne workers were consulted over the experiments and also had the opportunity to give feedback) Greater manager involvement in employees working lives ( Hawthorne workers responded to the increased level of attention they were receiving) Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams) In practice therefore businesses should re-organise production to encourage greater use of team working and introduce personnel departments to encourage greater manager involvement in looking after employees interests. His theory most closely fits in with a paternalistic style of management.

Maslow
Abraham Maslow (1908 1970) along with Frederick Herzberg (1923-) introduced the Neo-Human Relations School in the 1950s, which focused on the psychological needs of employees. Maslow put forward a theory that there are five levels of human needs which employees need to have fulfilled at work. All of the needs are structured into a hierarchy (see below) and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied. For example a person who is dying of hunger will be motivated to achieve a basic wage in order to buy food before worrying about having a secure job contract or the respect of others.

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A business should therefore offer different incentives to workers in order to help them fulfill each need in turn and progress up the hierarchy (see below). Managers should also recognise that workers are not all motivated in the same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a slightly different set of incentives from worker to worker.

Herzberg Frederick Herzberg (1923-) had close links with Maslow and believed in a two-factor theory of motivation. He argued that there were certain factors that a business could introduce that would directly motivate employees to work harder (Motivators). However there were also factors that would demotivate an employee if not present but would not in themselves actually motivate employees to work harder (Hygienefactors) Motivators are more concerned with the actual job itself. For instance how interesting the work is and how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are factors which surround the job rather than the job itself. For example a worker will only turn up to work if a business has provided a reasonable level of pay and safe working conditions but these factors will not make him work harder at his job once he is there. Importantly Herzberg viewed pay as a hygiene
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factor which is in direct contrast to Taylor who viewed pay, and piece-rate in particular Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods. Some of the methods managers could use to achieve this are: Job enlargement workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting. Job enrichment - involves workers being given a wider range of more complex, interesting and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement. Empowerment means delegating more power to employees to make their own decisions over areas of their working life.

RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY Research in common practice refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Some people consider it as a movement from the known to unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge of whatever the unknown, can be termed as research.

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Research Design: Definition: "A research design is the arrangement of condition for collection and analysis of data in a manner that to combine relevance to research purpose with economy in procedure". Research design is a conceptual structure within which research is conducted. It constitutes the blueprint for the collection, measurement and analysis of data. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximum information with minimum effort, time and money. Research design stands for advance planning of methods to be used for collecting the relevant data and the techniques to be used in their analyses. Preparation of research design should be done with great care as any error may upset the entire project. Therefore it is imperative that an efficient design must be prepared before starting research operations. The design helps the researcher to organize his ideas in a form whereby it will be possible for him to look for flaws and inadequacies.

The following questions have to be answered in a research design: What is the study about? Why is the study being made? Where will the study be carried out? What type of data is required? Where can the required data be found?
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 What periods of time will the study include? What will be the sample design? What techniques of data collection will be used? How will the data be analyzed?

RESEARCH PROCESS

o Formulating research o Extensive literature o Developing hypothesis o Preparing research design o Data mining sample o Collecting the data o Execution of project
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o Analysis of data o Hypothesis testing o Generalization & interpretation o Report writing.

Research objective

Primary Objectives: To study the effectiveness of Monetary Incentives.

To study employees behaviour.

To measure the satisfaction level of employees regarding different aspects of work. Identify the most motivating factor in the organization.

Secondary Objective:

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 Impact of motivational programs on employees.

Identify the effective motivational tools so as to increase the productivity of an employee.

To find out the areas of improvement for the company.

To examine the reasons for Employee Turnover.

The objective of research was to Enhance Productivity through Monetary Motivational Tools.

Research Procedure Data Sources Information has been gathered through primary and secondary sources. Primary Data It consists of original information gathered for the specific purpose. This data is generally collected by observation and survey method.

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 Secondary Data It consists of information that already exists somewhere having been collected for another purpose. They offer the advantage of low cost and ready availability. Sources of Secondary Data Various Magazines (Business India, Advertising & Marketing) Newspapers, Industry Trade Association Manual.

Annual Report of ITC ltd.

Data Collection Primary data was collected by performing personal interviews and observation. Secondary data was collected mainly from the Companys web site and annual report.

Research Instrument To collect the primary data the most common research instrument used was Questionnaire. A questionnaire consists of a set of questions presented to respondents for their answers.

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Sampling Plan This calls for three decisions : 1. Sample Units 2. Sample Size : : : Who is to be surveyed ? How many are to be surveyed ? How they are to be surveyed ?

3. Sample Procedure Sample Size:

All employees working in the COT division of ITC Ltd. Sample Extent: All the Employees were a part of COT Central Operating Team which coordinated between all the divisions of the organization. Interview was conducted by adopting random sampling procedure.

Questionnaire Q1. What is your age? Q2.How long you have been working in this organization? Q3. Are you satisfied with the working conditions? Q4. What do you prefer financial incentives or non-financial? Q5. Are you satisfied with the financial incentives company is providing?
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Q6. Is there any specific type of financial Incentive Company is giving to you?

Findings
Mostly Employees are satisfied with the policies provided by Company. Financial incentives given by the company greatly influences the working of the employees. Most of the employees prefer financial incentives.
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 Employees are happy with performance based incentives Due to continuous entrance of new employees in the Company, competition is intensifying.

Conclusion
It focuses on the integrated effort in development of performance culture and increasing motivation of the employees. Motivational tools are pivotal mechanism of good performance management. Positive motivation is the definite guide for todays competitive businesses enterprise.
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It is yardstick that would help in improving the contribution of an employee in the organization. Improved measurement of human resources plays a vital role in linking the human resource initiative to business strategies for significantly increasing the values.

Targets should be challenging as well as achievable goals, which are not beyond the scope of employees should be selected. Goals, which are mess with group goals and organizational goals, should be selected. Employees should be in position to influence the outcomes. Employees should know what they are expected to achieve and management should know what they want. System should be flexible enough to changes standard according to the needs of the company.

Conclusions regarding organization (ITC) None of the employees are unskilled in the organization.

Motivation is a continuous process.

All employees fully understand the goals of the organization.

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In this organization reward are given to the employees for the

better performance.

Reward in both forms that is cash form and king form are given to the

employees for better performance. Individuals are fully aware about the rating procedure.

A special company run pension scheme is given to employees.

Recommendation
To study the motivation system in ITC limited, Haridwar. I want to give some suggestions to make this system aware, effective and better.

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 Performance appraisal must be done to motivate the employees.

Motivation must done on regular basis and difference of time between appraisal should be less.

Motivational tools must be regularly amended and updated. The help of experts should be taken while examining the motivation level of the employees in the company.

Give appropriate rewards, which inspire them to give better performance. Like promotion, monetary and non-monetary incentives. At this time of recession monetary incentives plays a crucial role.

In order to avoid critical situation and to develop team spirit, to motivate employees, feedback is necessary tool.

Giving and receiving feedback is a skill, so a proper system should be adopted for the same.

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