Human resources are one of the most important features of any business especially in an economy where there is an increasing

shift towards service-based industries. Human resources account for a large proportion of many businesses' costs and it is the people that invariably drive a business. Management of these resources therefore is an integral part of business successful. The employees satisfaction is one of the main factors to achieve a goal of any Organization. Employee motivation is an important concept in an organization. When workers are motivated in an organization their productivity increases and therefore the organization realizes various advantages associated with the rise in labour productivity. The key to the best employee motivation technique is balance which needs to understand that people have different preferences. Since it is virtually impossible to meet every employees motivation needs, organization must develop a technique that incorporates all of the elements of employee motivation. In doing so, employers will be able to ensure companys continued growth. DEFINITION: According to Edwin B Flippo, motivation is the process of attempting to influence others to do their work through the possibility of gain or reward. According to G. Jones and J. George "Psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort and a person's level of persistence." According to S.P.Robbins Motivation is the willingness to exert high levels of effort towards organizational goals, conditioned by the effort and ability to satisfy some individual needs Motivation comes from the enjoyment of the work itself and/or from the desire to achieve certain goals e.g. earn more money or achieve promotion. Managers spend considerable time working out how best to motivate their workers and there are a number of different opinions about how this can be best done. Motivation can therefore be thought of as the degree to which an individual wants and chooses to engage in certain behaviors.

The concept of motivation:

The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior. Many people know motivation as the driving force behind an action. This is probably the simplest explanation about motivation. Motivation can be considered the state of having encouragement to do something. A basic principle is that the performance of an individual depends on his or her ability backed by motivation. Stated algebraically the principle is: Performance =f (ability motivation) Ability refers to the skill and competence of the person to complete a given task. However, ability alone is not enough. The persons desire to accomplish the task is also necessary. Organizations become successful when employees have abilities and desire to accomplish given task. Motivation in simple terms may be understood as the set of forces that cause people to behave in certain ways. 6 Reassess needs deficiencies 5 Receives either rewards or punishment 4 Performs 3 Engages in goal directed behavior 2 Searches for ways to satisfy needs 1 Identifies needs

Framework of motivation:
The framework comprises six steps.

Step 1: Motivation process begins with the individuals needs. Needs are telt deprivations which the individual experiences at a given time and act as energizers. These needs may be psychological (e.g., the needs for recognition), physiological (e.g., the needs for water, air or foods) or social (e.g., the needs for friendship). Step 2: Motivation is goal directed. Step 3: A goal is a specific result that the individual wants to achieve .An employees goal are often driving forces and accomplishing those goals can significantly reduce needs. Step 4: Promotions and raises are two of the ways that organizations seek to maintain desirable behavior. They are signals to employees that their needs for advancement and recognition and their behaviors are appropriate. Step 5: Once the employee have received either rewards or punishments. Step 6: They reassess their needs. IMPORTANCE OF MOTIVATION: Probably, no concept of HRM receives as much attention of academicians, researchers and practicing managers motivation. The increased attention towards motivation is justified by several reasons. Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated. 1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise. 2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity. 3. The rates of labors turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease. 5. The number of complaints and grievances will come down. Accident will also be low.
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There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business. TYPES OF MOTIVATION: There is no one thing that motivates people to perform certain actions. People are different, so it follows that their motivations have to be different. Here are some types of motivation: 1)Achievement This is the motivation of a person to attain goals. The longing for achievement is inherent in every man, but not all persons look to achievement as their motivation. They are motivated by a goal. In order to attain that goal, they are willing to go as far as possible. The complexity of the goal is determined by a person's perception. 2)Socialization Some people consider socialization to be their main motivation for actions. This is especially evident in the situation of peer pressure. Some people are willing to do anything to be treated as an equal within a group structure. The idea of being accepted among a group of people is their motivation for doing certain things. 3) Incentive motivation This motivation involves rewards. People who believe that they will receive rewards for doing something are motivated to do everything they can to reach a certain goal. While achievement motivation is focused on the goal itself, incentive motivation is driven by the fact that the goal will give people benefits. Incentive motivation is used in companies through bonuses and other types of compensation for additional work. By offering incentives, companies hope to raise productivity and motivate their employees to work harder. 4) Fear motivation When incentives do not work, people often turn to fear and punishment as the next tools. Fear motivation involves pointing out various consequences if someone does not follow a set of prescribed behavior. This is often seen in companies as working hand-in-hand with incentive motivation. Workers are often faced with a reward and punishment system, wherein they are given incentives if they accomplish a certain goal, but they are given punishments when they disobey certain policies.

5) Change motivation Sometimes people do things just to bring about changes within their immediate environment. Change motivation is often the cause of true progress. People just become tired of how things are and thus, think of ways to improve it.

Need for the study

To study effectiveness of Employee Motivation in NMDC Ltd. To examine various practices the management follows for motivating its employees. To study the various factors that motivates employees. To research and find out if present motivational plan used by Management is motivating the employees or not.

To create awareness about motivation in the organization.

OBJECTIVES

This research is carried out to study the various factors that are needed to motivate the
employees.

To study the different motivation factors that the management is following in the
organization.

To study the effectiveness of present motivation techniques of the management. To study how the monetary and non-monetary benefits motivate employees in the
organization.

To examine the rate of enhancement in the performance of employees after motivating

them.

To provide suggestions on improving the techniques and performance of employees so

as to achieve the goals of the organization. To ascertain the set hypotheses and come to the actual conclusion.

HYPOTHESES TESTING
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With respect to the above stated objectives the following hypotheses have been formulated: Null Hypothesis (H0): The Employee Motivation in NMDC Ltd. is effective and successful in motivating the employees of the organization. Alternative Hypothesis (H1): The Employee Motivation in NMDC Ltd. is not effective and successful in motivating employees at NMDC Ltd.

SCOPE OF STUDY

The research is carried out at NMDC Ltd to study the effectiveness of Motivation. The scope of this project is restricted to a small sample size of employees 40, when compared to the total population of 277employees. In addition to that the study is carried out for restricted time duration of 90 days. The research is carried out to evaluate Employee Motivation at NMDC Ltd. Detailed study is made of all the Employee Motivation activities carried out at NMDC Ltd. Under the guidance of the Senior Manager at NMDC Ltd, a questionnaire was circulated to get feedback from employees regarding the Employee Motivation day to day activities at NMDC Ltd. were observed for a period of 90 days. All Employee Motivation activities carried out were summed up. A thorough study was made on Motivational practices used by management in NMDC Ltd. to motivate employees and how effective are these practices in motivating them.

RESEARCH AND METHODOLOGY The study is mainly based on primary data and the main sources of primary data are the employees at NMDC Ltd. For the purpose of collecting primary data from employees, questionnaires have been designed and administered to respondents and their feedback evaluated. SAMPLE: The required data in personnel research may be obtained by following either the census method or the sampling method. Under sampling method data is collected about only a part of the universe called the sample and based on this data, conclusions are drawn for the whole population. SAMPLING TECHNIQUE: Simple random sampling is used to draw the sample from the population. Here the total population N=277 SAMPLE SIZE: The size of the sample is based on population. Here the sample size is 40 i.e., n=40. SOURCE OF DATA COLLECTION: The data for the study is collected from primary and secondary sources. PRIMARY DATA: A well structured questionnaire is used to collect the data. It is a combination of closed and open ended questions covering all the areas of the study. QUESTIONNAIRE: No. of questions: 20 Close ended questions: 4 SECONDARY DATA: Secondary data is gathered from academic textbooks, internet and company profile books, available.

Historical Perspectives of Motivation:

A. Early Views of Motivation:
One early view of motivation derives from the concept of Hedonism the idea that people seek pleasure and comfort and try to avoid pain and discomfort. This philosophy, which argues that pleasure is the ultimate importance and is the most important pursuit of humanity, dominated and shaped early thinking of human motivation. Even if this theory seems reasonable as far as it applies to the current society, there are still many kinds of behavior that it cannot explain. For instance, why do recreational athletes train themselves very hard willingly and regularly while hedonism suggests that people are always seeking to relax? And why do volunteers spend their time working untiringly to collect money for charity events? As experts eventually realized that the concept of hedonism is very limited and does not adequately explain the view of human behavior, other perspectives of motivation stood out.

B. The Scientific Management Approach:

The Scientific Management Approach strongly emphasizes the belief that people are motivated by money. Frederick W. Taylor, the supporter of this approach, assumed that employees are economically motivated and will work hard to earn as much money as they can. Researchers, however, soon found out that human behavior is far more complex and cannot simply be explained by the assumption of the scientific management theory.

C. The Human Relations Approach:

The human relations approach suggested that employees are motivated by social factors other than money, in other words, they respond to their social environment at work. Job satisfaction is assumed to be the crucial motive in improving employees performance. The development of Maslow's hierarchy of needs theory, which is our next main topic of discussion, has played a vital role in helping scientists answer questions related to human behavior.

3 TOP VIEWS OF MOTIVATION, COMPETENCE, AND RELATED EMOTIONS:

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By David Hale In Academic Motivation in University: The Role of Basic Psychological Needs and Identity Formation (2008), the authors stated that the reason students of equivalent intelligence and aptitude excel in a university setting while others do not is due to academic motivation. At the same time, some students earn their degree and feel as though they have not performed to their academic potential. The authors investigated these two issues by examining academic motivation in the context of self-determination theory and the psychological stage theory. The researchers found that in an academic realm factors that will foster both healthy psychological development and academic intrinsic motivation include allowing students to make their own choices, express their own opinions, and be an essential part in classroom decision making. A second scholarly article pertaining to motivation, competence, and related emotions is Parental Predictors of Motivational Orientation in Early Adolescence: A Longitudinal Study (2005). In this article the researchers examined the pathways between parenting practices and the motivational orientation of their children toward school work over the transition from elementary school to middle school. The authors stated that children who have academic behavior that is motivated because they enjoy it and are interested in the subject matter feel more academically competent and perceive themselves as having greater control over their academic achievements than do children who are motivated by external factors such as a cash reward for grades. The researcher's findings supported already existing models in which they found that academic achievement lead to children having more positive perceptions of their academic competence, which then leads them to develop more intrinsic motivation toward school work, whereas poorer scholastic performance can lead to self-perceptions that are negative and may lead to a more extrinsic motivational orientation. The authors also found that autonomy-style parenting is linked with children receiving higher grades that those children who have more controlling parents. In The Role of Friends in Early Adolescent's Academic Self-Competence and Intrinsic Value for Math and English (2009), researchers examined the similarities between friends in achievement motivation and whether friendship support regulated these associations. The authors stated that having friends that are academically motivated is generally associated with higher achievement motivation. The authors found that students tend to overestimate the degree to which the attitudes of their friends are similar to their own and that they underestimated the value that their friends placed on scholarly realms of English and math
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despite the students reporting that they themselves placed higher values on academics. The authors also found that students were more similar in academic self-competence when friendships were rated as being supportive, and that in those friendships students are more likely to be influenced to develop self-competence in academic areas in which the friends excel. Each of these articles is similar in that they state that relationships, whether with parents or with friends that are supportive help students succeed in school. The first two articles also state that children who have parental or school environments in which they are given more autonomy and are involved in decision making tend to have better grades and feel that they have control over their academic achievement. David Hale, is the CEO & Founder of DHI-Communications, a full-time Inbound marketing consultancy specializing in assisting businesses with harnessing the awesome power of search engine marketing to dramatically increase their online visibility, generate greater site traffic and how to convert subscribers to paying customers.

George Elton Mayo's Hawthorne Experiments:

George Elton Mayo was in charge of certain experiments on human behavior carried out at the Hawthorne Works of the General Electric Company in Chicago between 1924 and 1927. His research findings have contributed to organization development in terms of human relations and motivation theory. Flowing from the findings of these investigations he came to certain conclusions as follows: Work is a group activity. The social world of the adult is primarily patterned about work activity. The need for recognition, security and sense of belonging is more important in determining workers' morale and productivity than the physical conditions under which he works. A complaint is not necessarily an objective recital of facts; it is commonly a symptom manifesting disturbance of an individual's status position. The worker is a person whose attitudes and effectiveness are conditioned by social demands from both inside and outside the work plant.

Informal groups within the work plant exercise strong social controls over the work habits and attitudes of the individual worker.

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The change from an established society in the home to an adaptive society in the work plant resulting from the use of new techniques tends continually to disrupt the social organization of a work plant and industry generally.

Group collaboration does not occur by accident; it must be planned and developed. If group collaboration is achieved the human relations within a work plant may reach a cohesion which resists the disrupting effects of adaptive society.

RESEARCH
In one of the most elaborate studies conducted on employee motivation, the Minneapolis Gas Company sought to determine what their potential employees desired most from a job. This twenty-year in-depth study (carried out from 1945-1965) involved 31,000 men and 13,000 women. Contrary to common belief the number one motivator of both men and woman was job security, with advancement rating 2nd, type of work 3rd and company (proud to work for) rating 4th. Factors such a money, benefits and working conditions were given a low rating by both men and women. The purpose of research conducted by James Lindner (1998) Research and Extension Associate at The Ohio State University Piketon Research and Extension Center was to describe the importance of certain factors in motivating employees at the Piketon Research and Extension Center and Enterprise Center. Specifically, the study sought to determine the ranked importance of ten motivating factors. The final ranked order of these factors was: Interesting work Good wages Full appreciation of work done Job security Good working conditions Promotions and growth in the organization Feelings of being in on things Personal loyalty to employees Tactful discipline Sympathetic help with personal problems Two further studies cited by Lindner returned the following results:

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A study of industrial employees conducted by Kovach (1987) yielded the following ranked order of motivational factors (a) Interesting work, (b) Full appreciation of work done and (c) A feeling of being in on things. The second study, also on employees and conducted by Harpaz (1990) found the following rankings of motivational factors: Interesting work Good wages Job security The final conclusions that Lindner draws from his own and others research is that ""The discrepancies in these research findings supports the idea that what motivates employees differs given the context in which the employee works. What is clear, however, is that employees rank interesting work as the most important motivational factor". A study of employee attitudes undertaken by the Gallup Organization with more than 100,00 employees in 12 industries using 12 statements, shows employees who have a positive attitude toward their work are 50% more likely to achieve customer loyalty and 44% more likely to produce above-average profitability. Companies whose support of the 12 statements ranked in the top 25% averaged 24% higher profitability, 29% higher revenues and 10% lower employee turnover. The statements included: I know what is expected of me at work At work, I have the opportunity to do what I do best every day In the past seven days I have received recognition or praise for doing good work My supervisor, or someone at work, seems to care about me as a person There is someone at work who encourages my development A study by John Throop (cited in IOMA's Pay for Performance Report 1998) conducted using computer programmers, asked participants to identify the top 10 factors that provided the highest degree of motivation in their jobs. The programmers top three were:

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Full appreciation for work done Feeling that they were in on things Sympathetic help with personnel problems When asked what the top motivators would be, the managers of these programmers predicted rather different priorities with the three top ranking items being: Wages Working conditions Fair discipline The report also revealed research conducted by Greg Smith (2002), President of Chart Your Course International, into the main causes of employee dissatisfaction at work. The factors that de-motivated staff were: Lack of appreciation Too much paperwork Problems with supervisors Poor pay and benefits Lack of training Lack of opportunity Fairness Problems with coworkers Commute Boring job 33% 27% 23% 22% 20% 20% 18% 16% 15% 9%

The factors that workers thought were the most effective actions a firm could take to improve retention were: Train managers better Listen more Try something new Pay more 32% 28% 24% 23%

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Select managers better Set the example Hire better people Improve benefits

22% 22% 18% 13%

SPEAKERS: Motivational quotes

"We cannot solve our problems with the same level of thinking that created them." (Albert Einstein) "It is amazing what you can accomplish if you do not care who gets the credit." (President Harry S Truman) "In the midst of winter, I finally learned that within me there lay an invincible summer." (Albert Camus, 1913 - 1960, French author & philosopher) "If you're not part of the solution you must be part of the problem." (the commonly paraphrased version of the original quote: "What we're saying today is that you're either part of the solution, or you're part of the problem" by Eldridge Cleaver 1935- 98, founder member and information minister of the Black Panthers, American political activist group, in a speech in 1968 - thanks RVP). "A dream is just a dream. A goal is a dream with a plan and a deadline." (Harvey Mackay - thanks Brad Hanson) "I have learned that success is to be measured not so much by the position that one has reached in life as by the obstacles overcome while trying to succeed." (Booker T Washington, 1856-1915, American Educator and African-American spokesman, thanks for quote M Kincaid, and for biography correction M Yates and A Chatterjee) "Most people never run far enough on their first wind to find out they've got a second. Give your dreams all you've got and you'll be amazed at the energy that comes out of you." (William James, American Philosopher, 1842-1910 - thanks Jean Stevens) "Whatever you can do - or dream you can, begin it. Boldness has genius, power and magic in it." (Johann Wolfgang von Goethe, German writer, 1749-1832 thanks Yvonne Bent)

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MOTIVATIONAL THEORIES: For many years, management theorists have tried to understand what makes some people work harder than others. Some of the motivation factors identified by theorists can be seen at work in RBS. Early theorists on staff motivation always looked at factors outside the individual. Frederick W. Taylor (1911) was the creator of 'scientific management'. He felt that every job was measurable and each element of a job could be timed. All managers had to do was pay for every item the workers produced and they would work harder to get more money. This led to a long established pay scheme called the 'piece rate', where workers received a fixed amount for every unit of output. Schemes like this are usually associated with manufacturing industries and are not appropriate for a complex service-led organization like RBS.

1. Need Theory:
Need theories see motivation arising from individual needs or desires for things. These needs and desires can change over time and are different across individuals. There are three popular perspectives on Need theory: Maslows Hierarchy of Needs Alderfers ERG Theory Herzbergs Two-Factor Theory

Maslows Hierarchy of Needs: Abraham Maslow proposes that motivation can be represented as a hierarchy of needs. As lower-level needs are satisfied, workers are likely to be motivated by higher-level needs. Maslow argues that there are five categories of needs: physiological, safety, love, esteem, and actualization.

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Fig 2.1 Hierarchy of needs

Physiological needs - basic biological needs for things such as food, water, and sex Safety needs - need for safety and a safe physical environment (e.g., shelter, a safe workplace) Love needs - need for friendship and partnership Esteem needs - need for self-respect and for the respect of others Self-actualization needs - need for self-improvement, fulfillment of personal life goals and of ones potential

Tension-reduction - According to Maslows tension-reduction hypothesis, an unmet need creates a tension to meet that need. For example, if you need food, you feel tension until the need is met. Maslow believed that needs were arranged hierarchically such that lower, more basic needs must be met before higher needs become the point of focus. Alderfers ERG Theory: Alderfers ERG Theory suggests that there are three classes of needs, not five as Maslow suggests: existence, relatedness, and growth. Another distinction is that Alderfer proposes that when low-level (existence) needs are not met, they grow. For example, when you are hungry and do not eat, your hunger grows. productive, your need to be productive may grow. On the other hand, higher-level (relatedness and growth) needs grow when they are met. For example, as you become more

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Existence needs - need for concrete, tangible things like food, water, and material possessions Relatedness needs - social needs and the need to have relationships with other people (e.g., family, co-workers, and supervisors) Growth needs - need for self-improvement or personal growth, expression of creativity and productivity

Frustration-regression - According to Alderfers frustration-regression hypothesis, when we have trouble meeting a particular need, we regress to meet needs at a lower level. When we are having trouble meeting growth needs, we are more motivated by relatedness needs. When we are having trouble meeting relatedness needs, we are motivated by existence needs. Herzbergs Two-Factor Theory: In his Two-Factor Theory of motivation, Frederick Herzberg argues that there are two types of factors involved in motivation: extrinsic and intrinsic.

Extrinsic (or hygiene) factors include tangible outcomes and things that focus on workers physical well-being such as pay and benefits, organizational policies, quality of supervision, job security, job safety, administrative practices, and physical work conditions.

Intrinsic factors include intangible outcomes such as recognition, responsibility, and respect.

Motivator factors: Motivator factors - Workers are satisfied and motivated when they are happy with the intrinsic factors (e.g., levels of responsibility and respect at work), which is why intrinsic factors are also called motivator factors. When workers are not happy with intrinsic factors, argues Herzberg, they are not satisfied. However, when they feel respected and enjoy the responsibility, they are more likely to be truly satisfied with their jobs. This suggests that we should focus our attention on intrinsic factors if we want to motivate employees. Non-motivator factors - Herzberg argues that workers will be dissatisfied with their job when they are not happy with the job_ extrinsic factors (e.g., pay). An appropriate level of extrinsic factors is necessary to avoid job dissatisfaction, but even when employees are happy with their salary, bonus, vacation, and health benefits, they will not necessarily feel satisfied or motivated. With extrinsic factors, Herzberg argues, the best you can hope for is to keep your employees from feeling dissatisfied. The following chart summarizes these points:
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Extrinsic Factors Dissatisfied Not Dissatisfied Not Satisfied

Intrinsic Factors Satisfied

2. Behavioural Theories:
Two important motivation theories that stem from behavioral psychology are reinforcement and expectancy theories. Both emphasize that behavior is shaped by rewards and punishment. Behavioral theories of motivation advocate the use of behavior reinforcement schedules to shape on-the-job performance. Reinforcement theory: The central premise of reinforcement theory is that the consequences (or outcomes) of behavior influence the likelihood that people will behave the same way again. For example, lets say you make a suggestion in a committee meeting. If people respond positively, you are more likely to make other suggestions in other meetings. If people respond negatively, you are less likely to make other suggestions in other meetings. Reward and Punishment: Behavior can be motivated in four ways: through positive or negative reinforcement and by inflicting or removing a punishment. Positive reinforcement is a form of reward that involves giving the person something that is liked or wanted as a consequence of some behavior. For example, organizations give workers bonuses and bosses give praise for jobs well done. Negative reinforcement is a form of reward that involves taking away something that is disliked as a consequence of some behavior. For example, the removal of the sound of an alarm is a reward for waking up enough to turn off the alarm.

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Something Liked Give + Reinforcement (bonus) Take away Punishment (ground, demote)

Something Disliked Punishment (spank, KP duty)

- Reinforcement (turn off alarm)

Punishment - People can be punished for doing something inappropriate by the removal of something they like or by the addition of something they dislike. For example, in response to bad behavior, some parents may take away things that their children like (e.g., the ability to use the car, talk on the phone, or watch TV). Other parents may instead give their children something they do not like to receive (e.g., a spanking, a lecture, or additional chores). Reinforcement Schedules Behaviorists have recognized that rewards can be given in different ways: through continuous, partial-ratio, and partial-interval schedules. Continuous reinforcement occurs when people are reinforced or rewarded after every correct behavior. For example, fur trappers are rewarded after each successful trap; people who work on commission are rewarded after each successful sale. Partial reinforcement occurs when people are reinforced or rewarded after certain correct behaviors. Partial reinforcement can take two general forms: ratio and interval schedules.

Ratio schedules reward people after some number of correct behaviors. People who are paid on piece-rate pay schedules get paid for every number of items they make, sell, and so on. This type of reinforcement schedule rewards the quality or amount of work without considering the time spent to meet the pay quota. This can cause problems. Workers can spend a lot of time performing well, without a reward.

Interval schedules reward correct behaviors after some time interval. Organizations often adopt a regular pay schedule (e.g., every Friday, every other Friday), and set up rewards
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based on seniority (e.g., three-year bonus, promotion opportunities). Although this system rewards people for the time they spend working, it does not capture the quality of the work performance. In the worst scenarios, lazy workers are rewarded for their ability to avoid termination rather than perform successfully. Since both ratio and interval schedules have their strengths and weaknesses, most standard compensation systems provide both timebased and performance-based rewards. Expectancy Theory: Whereas Reinforcement Theory explains how different types of reinforcement shape behavior, Expectancy Theory explains when and why reinforcement impacts behavior. The Motivation Formula - According to Expectancy Theory, motivation is a function of an individual_ confidence that he/she can perform a behavior successfully (expectancy) and that performing successfully will lead to a desirable outcome (valence and instrumentality). Motivation can be expressed as a mathematical equation: Force = Expectancy x (Valences x Instrumentalities) Force is the amount of motivation a person has to engage in a particular behavior (e.g., motivation to be highly productive at work). Expectancy is the confidence an individual feels that he/she can perform the behavior successfully. This is normally stated as a probability (e.g., 80% confident that I can be highly productive). Instrumentality is the confidence an individual feels that performing the behavior will result in a particular outcome. Again this is expressed as a probability (e.g., 80% sure that high productivity will lead to a raise or promotion). Valance is the value a person assigns to that outcome (e.g., a raise would be highly desirable but a promotion would be even more desirable). This formula suggests that motivation (force) cannot exist unless the individual possesses at least some expectancy, instrumentality, and valance.

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3. Self-efficacy Theory:
Albert Banduras (1982) Self-efficacy Theory asserts that motivation and performance are in part dependent on the degree to which the individual believes he/she can accomplish the task. Defining self-efficacy: Self-efficacy refers to a person_ belief in his/her ability to perform a given task. The term is similar in meaning to self-confidence and expectancy, though some argue that there are differences among these terms. Self-efficacy is sometimes confused with self-esteem also. Self-efficacy and self-esteem - Self-efficacy is like self-esteem in the sense that it is related to a persons feelings of self-worth. Self-efficacy, however, refers to ones ability to perform a certain task, whereas self-esteem reflects a more general belief about ones self-worth. You can have strong feelings of self-worth while still recognizing that you are not good at a particular task (e.g., crossword puzzles). On the other hand, having low self-esteem may cause you to undervalue your ability to perform a particular task. Self-efficacy and motivation Research has found that self-efficacy does predict performance.

Self-efficacy and the self-fulfilling prophecy - Those who have high self-efficacy are more likely to try hard and exhibit high levels of commitment (persistence) on a given task. They are more likely to succeed as a result. Those who have low levels of self-efficacy feel that they are not good at the task and may not try very hard at all. They are less likely to succeed.

Self-efficacy and success - Self-efficacy may develop from prior good performance. Similarly, previous failures can lead to low self-efficacy.

Self-efficacy and goal-difficulty - Self-efficacy interacts with goal setting insofar as people with higher self-efficacy tend to set more challenging goals.

Self-efficacy and goal-commitment _Commitment (or persistence) refers to one_ ability to overcome obstacles in the pursuit of a goal. With more demanding goals and higher levels of commitment, people with high self-efficacy put forth greater effort in performing the task (accomplishing the goal).

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Empowerment Theory: Empowerment theory is an extension or application of self-efficacy theory. It has been used widely in organizational settings. According to empowerment theory, motivation will increase when one_ feelings of competence and self-determination increase. When people have high self-efficacy, they feel more competent and more capable of self-determination. Therefore, improving self-efficacy is a critical component of empowerment efforts. Empowerment Strategies: Common examples of empowerment strategies are participatory management practices and flextime. Participatory decision-making - Sometimes organizations empower employees by asking them to participate in making organizational decisions (e.g., What can we do to cut down on the number of accidents?). Flextime - Flextime is a program that allows workers to design their own work schedule, within certain constraints. People can choose to work a 9 to 5 day, or an 8 to 4 day, or sometimes a 10 to 6 day. Flextime allows the worker to structure the workday, but usually requires workers to be at work during core hours (e.g., 10 to 11 and 1 to 4) so that committees can meet and group work can be completed. Research has shown that participatory decision-making can increase commitment to the decision that is made and improve motivation. The research on flextime has shown that job performance and job satisfaction do benefit from flextime programs, but only sometimes. The most reliable benefit seems to be reduced absenteeism. Flextime allows time for doctors and dentists visits, late mornings, early days, and midday engagements, and reduces work-family conflicts.

4. Equity Theory:
J. Stacey Adams (1965) Equity Theory (a.k.a., Social Exchange Theory) suggests that effort depends on ones perceptions of fairness. According to this theory, people compare their input/output ratio to those of similar others. When the ratio reflects an inequity, tension is created and so people work to reduce that tension.

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Input / Output Ratio: The critical element in this theory is the perceived ratio of ones inputs (what I give) to outputs (what I get in return) with respect to others ratios (what they receive and what they give).

Inputs include what the person contributes - their qualifications, their past experiences, seniority, their effort, the time they spend on the job, and so on. Outputs include what the person is given in return - for example, pay, benefits, appreciation, and respect. Our notion of "equity" is closely linked with our perceptions of justice and fairness.

Adams asserts that as we act to satisfy our needs, we each assess the fairness of the outcome. Each of us asks, Am I getting what I deserve in this exchange? Inequity tension: According to equity theory, when people feel that they give more and get less in return than their co-workers, they feel tension (resentment). Also, when people feel that they get more than their peers, they feel tension (guilt). To reduce this tension people are motivated to: Adjust their inputs (e.g., work harder or slack off) Sabotage an overpaid worker or the organization Find ways to make up for the inequity (e.g., theft) Avoid the inequity by quitting Research has shown that people are motivated to act when they feel cheated. Less research supports the idea that people are motivated to act when they are overpaid in some way. Procedural justice: Equity Theory was popular among industrial/organizational psychologists at one time, but interest in it began to decline in the mid 1980s. While research has found that employee perceptions of inequity correlates with intentions to quit and job search behavior, it is often difficult to tell what workers will perceive as inequitable and how they will respond to inequities. It may vary by individual even within a given context. Lacking the ability to use it to predict motivation and performance, Equity Theory has fallen out of favor. However, in the 1990s, fairness research began to focus on the idea of procedural justice, which deals with the perceived fairness of the distribution process. It may

25

be more important to know if employees perceive the reward distribution process as fair than whether or not they perceive the reward itself as equitable.

5. Goal-Setting Theory:
Building on Banduras self-efficacy research, Edwin Locke and Gary Latham (1990) proposed Goal-setting Theory. According to Goal-setting Theory, goals direct our mental and physical actions. Goals serve two functions: Goals serve as performance targets that we strive to reach. Goals serve as standards against which we measure our own performance. Locke and Latham argue that the outcome of your performance can affect your future effort. In this way, goals provide us with a means of regulating our effort. Goal specificity: Specific goals benefit motivation and performance more so than vague goals. Specific goals provide people with a sharper point of focus. For example, the goal raise profitability 10% this year is likely to be more effective than Lets be more profitable. Research has shown that people who have vague goals are more likely to be satisfied with good performance even though they are capable of better performance. People also tend to give more effort when they are trying to reach harder goals. One might think that people would prefer jobs with easy goals, but they usually do notjobs with easy goals are usually boring. Also, many organizations provide better rewards for meeting difficult goals than they do for meeting easier goals. Performance feedback impacts future effort. By measuring performance against goals, organizations are able to provide workers with feedback that enables them to regulate their efforts. Given the right circumstances, failure to meet a goal can motivate an individual to work harder. Management by objectives (MBO): Goal-setting theory has emerged as one of the top motivational theories for two reasons. First, the research suggests that it is very effective. Second, there has been an increase in the use of the Management by Objectives (MBO) strategy, which is a practical extension of goal-setting theory.

26

With MBO, the manager and the individual employee meet and agree on performance goals, which are then used to evaluate the employee's performance later. MBO performance goals typically have the following characteristics:

Are aligned with higher level goals (e.g., business unit, divisional, and organizational goals) Are mutually agreed-upon (so there is buy-in from the employee) Specify behavior (e.g., reduce data entry errors for a particular department) Specify measurable evaluation criteria (e.g., reduce errors by 20%) Specify when the goal will be achieved (e.g., by the end of the first quarter) Specify who is responsible (e.g., names of task force members) Often identify resources that will be needed (e.g., training, materials, job aids, etc.)

NMDC AT A GLANCE:
NMDC Limited is a public sector company under the Ministry of Steel, Government of India. Primarily engaged in the business of exploring minerals and developing mines to produce raw materials for the industry, it is also expanding its activities towards steel making and other value added products. It has been conferred Navratna status by Government of India. Incorporated in 1958, NMDC has been actively contributing to the development of the nation for five decades and grown from strength to strength on its journey to nation building.

Contribution to Indian Economy:

It has earned foreign exchange to the tune of Rs. 16,228 crore. It has been paying dividend since 1990-91. For the financial year ended 31 March 2010, the dividend paid to the Government of India is Rs. 649 crore and the cumulative dividend up to 2009-2010 is Rs. 3,533 crore approximately. In 2009-10 gross contribution to the national exchequer was Rs. 3,123 crore. It has about 6000 employees.

Single Largest producer of iron ore in India:

From a single-product-single-customer company, NMDC has grown to be a major Indian iron ore supplier in the national and important supplier of iron ore in International
27

markets. The company has planned to increase iron ore production to 50 million tones by 2014-2015 by developing new mines of Bailadila-11/B and Kumarswamy, on the one hand and the other, by expanding the production capacity of existing mines.

Production Projects of NMDC

Pioneer in Exploration:
NMDC is doing exploration and prospecting works for high value minerals like Diamond in Andhra Pradesh and gold in Tanzania.

Scientific Mining:
The scientific exploration conducted by NMDC resulted in proving additional mineable reserves from its existing mines. At Bailadila deposit 14, the oldest mine in the Bailadila range, NMDC was able to prove and establish an additional mineable reserve of 125 million tones. At Bailadila deposit 5, the additional mineable reserve was proved to be about 156 million tones.

Expansion/ Diversification:

28

As part of the Greenfield expansion diversification programme, NMDC is setting up an integrated Steel Plant of 3 MTPA capacity as Nagarnar, Chhattisgarh. The project is estimated to cost about Rs. 15, 525 crore. NMDC is planning to expand its business through forward integration in both Greenfield and Brownfield a) 2.0 MTPA Pellet Plant at Bacheli, Chhattisgarh b) 1.2 MTPA Pellet Plant at Donimalai, Karnataka c) Merger of SIIL and its expansion. NMDC has planned to expand its business through horizontal integration as well in the fields of Coal, Rock Phosphate, Lime Stone, Gold and Diamond. NMDC has already diversified its activities in the field of renewable energy by setting up Wind mills in Karnataka and is exploring the possibilities in solar energy.

NMDC Global International Investment Division of NMDC:

NMDC Global within its one year of formation has actively examined number of proposals in Africa, Australia, Europe and South America. A joint venture has been formed with Black Economic Empower (BEE) Investment Company at South Africa expanding business in African Continent.

Human Resources:
NMDC is known for its excellence of human assets. The company exhibits the best possible work culture, and its manpower productivity shows continuous growth. The per capita productivity in NMDC is now about 30 metric tonnes of output per man shift. More than 50% of its employees belong to the weaker sections of the society, viz., Scheduled Castes, Scheduled Tribes and Other Backward Castes, speaks of NMDCs consciousness of its social responsibility. The company maintains modern townships with all the necessary facilities for its around 6000 employees in Bailadila in Chhattisgarh, Donimalai in Karnataka, Panna in Madhya Pradesh and other units.

Global Exploration Centre:

NMDC has got a drilling division as Raipur for taking up exploratory drilling works at potential mineral deposits. This has been strengthened to take up strategic exploration in mineral rich states (mainly iron ore) at no cost to the State Government. Besides, this would
29

concentrate on establishing additional resources by undertaking exploration in and around existing deposits and areas within the lease area.

R & D Centre:
From a nucleus R&D cell set up in 1970, it has grown into a highly sophisticated R&D Centre. One of the best-equipped laboratories of its kind, the centre at Hyderabad can take up any assignment in the field of ore beneficiation and mineral processing. With its excellent research facilities, the Centre carries out technology development missions in field like mineral processing, flow sheet development, mineralogical studies and product development. It has been recognized as a Centre of Excellence.

Corporate Social Responsibility:

NMDC has taken up CSR activities even much before the concept was formally introduced. It has now strengthened its CSR activities. The beneficiaries are mostly the tribals/ backward sections in the proximity of the mines, which are in remote locations. The areas focused are education, health, Medicare, drinking water, infrastructure development and self employment. These services are provided in consultation with the local people and the local administration. The CSR initiatives are not limited to the Companys operational areas alone, but extended to all corners of the country.

Environment Management:
NMDC pays utmost attention to the environmental management. It has its own Environment Management Programme. Restoration and conservation of forest are its prime objective, and its self-commitment is that the mined out areas will have a better forest than it was when NMDC entered the area. The afforested areas in the mines stand testimony to this commitment.

Accreditation:
NMDC has obtained for its mines the following accreditations:
1. ISO 9001-2000 All its iron ore mines and R&D center.

2. ISO 14001-2004 by Det Norske Veritas, The Netherlands All its production mines. Besides, NMDC is now in the final stage for obtaining OHSAS 18001-2007 Certification for its Occupational Safety and Health Management
30

ORGANIZATION STRUCTURE:

Organization Structure Board of Directors

Organization Structure below Board Level

Organization Structure of Personnel Department

CUSTOMERS:

31

1. MMTC LTD. 2. Rashtriya Ispat Nigam Ltd.( VSP) 3. Essar Steels Ltd. 4. Ispat Industries Ltd. 5. Vikram Sponge Iron Ltd. 6. Sponge Iron India Ltd. 7. KIOCL Ltd. 8. JSW Steel Ltd. 9. Visvesvaraya Iron & Steel Plant 10. Aparant Iron & Steel Co. Ltd. 11. Lanco Industries Ltd. 12. Tata Metalliks Ltd. 13. Kirloskar Ferrous Industries Ltd 14. Southern Iron & Steel Co. Ltd. 15. CG based Sponge Iron Units

32

Q 1) Are you satisfied with the support from the management in your job in the organization?

Options Highly satisfied Satisfied Dissatisfied Highly dissatisfied

No. of Respondents 6 32 1 1 40

% of Respondents 15 80 2.5 2.5 100

INTERPRETATION: 80% of employees are satisfied with the support from the Management, 15% of employees are highly satisfied, 2.5% are dissatisfied and 2.5% are highly dissatisfied. From the above data it is observed that most of the employees i.e., more than 80% of them are satisfied with the support from the Management.

Q 2) Are you satisfied with the loans provided to you in the organization?

Options Highly satisfied Satisfied Dissatisfied

No. of Respondents 5 32 2
33

% of Respondents 12.5 80 5.0

Highly dissatisfied

1 40

2.5 100

INTERPRETATION: 80% of employees are satisfied with the loans provided in the organization, 12.5% are highly satisfied, 5% are dissatisfied and 2.5% of employees are highly dissatisfied. From this it can be inferred that most of the employees are satisfied with the loans given to them by the organization.

34

Q 3) Are you satisfied with the educational assistance (annual charges, hostel subsidy, scholarship, etc.,) provided in your organization?

Options Highly satisfied Satisfied Dissatisfied Highly dissatisfied

No. of Respondents 4 30 2 4 40

% of Respondents 10 75 5 10 100

INTERPRETATION: 75% of employees are satisfied with the educational assistance provided in the organization, 10% are highly satisfied,5% are dissatisfied and 10% of employees are highly dissatisfied. This shows that most of the employees of NMDC ltd. are satisfied with the educational facilities.

Q 4) Are you satisfied with the incentives schemes prevailing in your organization?

35

Options Highly satisfied Satisfied Dissatisfied Highly dissatisfied

No. of Respondents 8 30 1 1 40

% of respondents 20 75 2.5 2.5 100

INTERPRETATION: 75% of employees are satisfied with the incentive schemes provided in the organization, 20% are highly satisfied, 2.5% are dissatisfied and 2.5% of employees are highly dissatisfied. From this data it can be inferred that the satisfaction level of employees regarding incentive schemes is more.

Q 5) Are you satisfied with the Medical facilities that your organization provides to you?

36

Options Highly satisfied Satisfied Dissatisfied Highly dissatisfied

No. of Respondents 16 21 2 1 40

% of Respondents 40 52.5 5 2.5 100

INTERPRETATION: 52.5% of employees are satisfied with the medical facilities provided in the organization, 40% are highly satisfied,5% are dissatisfied and 2.5% of employees are highly dissatisfied. Based on above information it can be concluded that there are very less number of employees in NMDC ltd. who are not satisfied with their medical facilities.

Q 6) Are you satisfied with the career development opportunities in your organization?

Options Highly satisfied satisfied dissatisfied Highly dissatisfied

No. of Respondents 4 25 9 2 40

% of Respondents 10 62.5 22.5 5 100

37

INTERPRETATION: 62.5% of employees are satisfied with the career development opportunities provided in the organization, 10% are highly satisfied, 22.5% are dissatisfied and 5% of employees are highly dissatisfied. Based on above information it can be concluded that the satisfaction level of employees regarding career development opportunities is not as good as the other facilities.

Q 7) Are you satisfied with the welfare facilities provided in your organization?

Options Highly satisfied Satisfied Dissatisfied Highly dissatisfied

No. of Respondents 6 29 5 0 40

% of Respondents 15 72.5 12.5 0 100

INTERPRETATION:

38

72.5% of employees are satisfied with the welfare facilities provided in the organization, 15 % are highly satisfied, and 12.5% are dissatisfied. This shows that the employees are satisfied with the welfare facilities.

Q 8) Are you satisfied with the training &development activities implemented in your organization?

Options Highly satisfied Satisfied dissatisfied Highly dissatisfied

No. of Respondents 3 25 12 0 40

% of Respondents 7.5 62.5 30 0 100

INTERPRETATION: 62.5% of employees are satisfied with the training & development activities provided in the organization, 7.5 % are highly satisfied,30% are dissatisfied. It is to be said from the graph that the satisfaction level of employees regarding training & development activities is high in the organization.

Q 9) Which type of incentive motivates you more?

39

Options Financial incentives Non financial incentives

No. of Respondents 20 20 40

% of Respondents 50 50 100

INTERPRETATION: It can be concluded that different employees have different needs and thus may be motivated by different factors.50% employees of NMDC ltd. get motivated by financial incentives whereas 50% get motivated by non-financial incentives.

Q 10) What motivates you mostly for better performance in the organization?

Options Reward/appreciation Job security High salary Adequate resources

No. of Respondents 26 9 3 2 40

% of Respondents 65 22.5 7.5 5 100

40

INTERPRETATION: 65% employees are motivated by reward/appreciation, 22.5% are motivated by job security,7.5 are motivated by high salary,5% are motivated by adequate resources provided by the management. As per the data received from the employees, rewards are the most motivating factor for the employees.

Q 11) Are you satisfied with the advances provided by the management?

Options Highly satisfied Satisfied Dissatisfied Highly dissatisfied

No. of Respondents 5 33 2 0 40

% of Respondents 12.5 82.5 5 0 100

INTERPRETATION: 82.5% of employees are satisfied with the advances provided in the organization, 12.5% are highly satisfied and 5% are dissatisfied. This shows that the satisfaction level of employees regarding advances is high.

41

Q 12) Does your organization recognize and appreciate your work?

Options Yes No

No. of Respondents 38 2 40

% of Respondents 95 5 100

INTERPRETATION: 95% employees of NMDC ltd. agreed that management acknowledges their work. From this it can be inferred that management at NMDC recognizes and appreciates its employees work.

42

Q 13) Do you agree that better welfare measures implemented in your organization is useful in improving the performance of employees?

Options Strongly agree Agree Disagree Strongly disagree

No. of Respondents 9 30 1 0 40

% of Respondents 22.5 75 2.5 0 100

INTERPRETATION: 22.5% employees of NMDC ltd. strongly agree that better welfare measures improve their performance, 75% agree with this, where as 2.5% disagree. Thus it can be inferred that if the organization provides better welfare measures, this in turn can improve the performance of the employees.

43

Q 14) Do you agree that the failure in achieving goals will affect the performance of an employee?

Options Strongly agree Agree Disagree Strongly disagree

No. of Respondents 5 27 8 0 40

% of Respondents 12.5 67.5 20.5 0 100

INTERPRETATION: 12.5% employees of NMDC ltd. strongly agree that the failures effect the performance of employees, 67.5% agree with this, where as 20.5% disagree. employees feel that failures affect the performance of the employees. Most of the

Q 15) The performance appraisal system being followed in NMDC ltd. is motivating the employees of the organization. Do you agree with this statement?

Options

No. of Respondents
44

% of Respondents

Strongly agree Agree Disagree Strongly disagree

5 22 12 1 40

12.5 55 30 2.5 100

INTERPRETATION: 12.5% of employees strongly agree that the performance appraisal system in NMDC ltd. is motivating the employees, 55% agree with this, where as 30% disagree and 2.5% highly disagree with this statement. This shows that most employees agree that performance appraisal system of their organization motivates them but a few disagree to this.

Q 16) Are you satisfied with the present performance appraisal system?

Options Highly satisfied satisfied dissatisfied Highly dissatisfied

No. of Respondents 4 27 9 0 40

% of Respondents 10 67.5 22.5 0 100

45

INTERPRETATION: 67.5% of employees are satisfied with the performance appraisal system followed in the organization, 10% are highly satisfied and 22.5% are dissatisfied. This shows that the satisfaction level of employees regarding performance appraisal system is good.

Q 17) Was your last performance appraisal inspiring?

Options Yes No

No. of Respondents 31 9 40

% of Respondents 77.5 22.5 100

INTERPRETATION: 77.5% employees of NMDC ltd. agree that their last performance appraisal was inspiring but 22.5% do not agree this. The above data it can be inferred that most of the employees got inspired with their last performance appraisal.

46

Q 18) Does your appraiser discuss the performance appraisal result with you?

Options Yes No

No. of Respondents 30 10 40

% of Respondents 75 25 100

INTERPRETATION: 75% employees of NMDC ltd. said that their appraiser discusses the performance appraisal result with them but 25% did not. From the above data it can be understood that there is often discussions between appraiser and appraisee after the completion of total appraisal process.

Q 19) How does your appraiser appraise your performance?

Options Lenient

No. of Respondents 10
47

% of Respondents 25

Strict

30 40

75 100

INTERPRETATION: 25% employees of NMDC ltd. think that their appraiser is lenient where as 75% employees think that their appraiser is strict. The data shows that most of the time the appraiser strictly appraises the performance of the appraisee.

48

Q 20) Do you agree that the motivation is necessary to achieve the specific goals?

Options Strongly agree Agree Disagree Strongly disagree

No. of Respondents 15 23 1 1 40

% of Respondents 37.5 57.5 2.5 2.5 100

INTERPRETATION: 37.5% of employees strongly agree that the motivation is necessary to achieve goals, 57.5% agree with this, where as 2.5% disagree and 2.5% highly disagree with this statement. The above data shows that almost all the employees feel that motivation is necessary to achieve goals.

FINDINGS
1. The Management of NMDC ltd. is very supportive. 2. NMDC Ltd. has a well defined organizational structure.

3. There are excellent Employee Motivation activities in NMDC Ltd. 4. Employees feel they are well motivated with the present Motivation system in the organization.
49

5. Most of the employees of NMDC ltd. are satisfied with their jobs. 6. It is also clear from the study that the employees mostly get motivated by their promotions. 7. It is found that the performance appraisal system is not motivating some employees of organization.
8. Some of the employees responded that the last performance appraisal did not inspire

them. 9. The employees of the organization agreed that motivation is necessary to accomplish the given task.
10. It is also found that the monetary benefits motivate most of the employees of the

organization. 11. Most of the employees agreed that the company is recognizing and appreciating their work.
12. From the study it is clear that monetary rewards will motivate the employees to be very

productive. 13. Employees feel that they have enough opportunities in the organization to be able to learn & grow.

CONCLUSION
This project was conducted to study the effectiveness of employee motivation at NMDC Limited corporate office, Hyderabad. It was a great experience doing a project on Employee Motivation in a large public sector enterprise like NMDC Limited. From the research study it can be inferred that NMDC Ltd. keeps its employees well motivated in the work. It is seen that at NMDC Ltd. the

50

Employee Motivation concept is highly and rightly stressed upon. The employees here are most motivated by medical benefits and loans provided to them. With the data gathered from questionnaire and a study carried around the organization, it can be concluded that the Null Hypothesis holds good or fit i.e. Null Hypothesis: The Employee Motivation in NMDC Limited is effective and successful in motivating the employees of the organization.

LIMITATIONS
The scope of this study is limited to a size of 40 respondents which is a small section

compared to the total strength of the organization. Thus inferences drawn from this study may not be generalized to the whole organization.
The project was undertaken for a period of 90 days so time factor was the major

limitation of the study.

51

 NMDC Ltd. is a multi spread organization having divisions, mines and projects at

different locations throughout the country. It is not possible to visit each location to carry out the study.
Since individuals are different hence their perceptions differ. Thus the differences in

understanding the questions are a big limitation in getting the right response. Findings of the research may change depending upon the area, demography etc.

RECOMMENDATIONS
Based on be made. 1. Though the managements procedures are highly effective in motivating the employees, but still short comings of these procedures can be seen in some areas like Performance Appraisal system. Hence management should revise the performance appraisal system to motivate the employees.
52

the questionnaire and interaction with employees of the organization and

through analysis of information gathered through these, the following recommendations may

2. As most of the employees prefer recognition as their motivational factor, this factor

should be taken into account when designing motivation strategies in the organization.
3. The management should try to provide more career development opportunities. 4. There should be a discussion between appraiser and appraisee on performance

appraisal results. 5. Financial Incentives motivate employees more than non financial incentives. Thus the management should put more stress on extending financial benefits to motivate employees than non financial benefits. 6. From the research it is gathered that job security plays an important role in retaining and motivating an employee in the organization. Management should see to it that the employees get greater job security in the organization.

53

BIBLIOGRAPHY

BOOKS REFFERED: Personnel Management By Dr C.B Memoria ,S.V Gankar Essentials of Human Resource Management & Industrial Relations By P.SubbaRao, Himalaya Publications, 3rd Edition Performance management and appraisal system By T.V.Rao

WEBSITES: www.google.com www.nmdc.co.in www.wikipedia.org

54

APPENDIX-A QUESTIONNAIRE
1. Are you satisfied with the support from the management regarding your job in the organization? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

2. Are you satisfied with the loans (housing loan , vehicle loan) provided in your organization? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

3. Are you satisfied with the educational assistance (annual charges, hostel subsidy, scholarship, etc.,) provided in your organization? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

4. Are you satisfied with the incentive scheme (production incentive, hot seat change over scheme, attendance bonus, etc.,) prevailing in your organization? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

5. Are you satisfied with the medical facilities that your organization providing to you? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

6. Are you satisfied with the career development opportunities (such as incentives for higher studies etc.,) in your organization? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

55

7. Are you satisfied with the Welfare facilities (canteen, working place, transportation, etc.,) provided in your organization? a) Highly satisfied c) Dissatisfied b) Satisfied d) Highly dissatisfied

8. Are you satisfied with the Training & Development activities implemented in your organization? a) Highly satisfied c) Dissatisfied
9. Which type of incentive motivates you more?

b) Satisfied d) highly dissatisfied

a) Financial incentives (salary, bonus, etc.) b) Non-financial incentives (promotion, rewards, etc.) 10. What motivates you mostly for better performance in the organization? a) Reward/appreciation c) High salary b) Job security d) Adequate resources

11. Are you satisfied with the Advances (festival advance, salary advance, etc.,) provided

by the management? a) Highly satisfied c) Dissatisfied b) Satisfied d)Highly dissatisfied

12. Does your organization recognize and appreciate your work? a) Yes b) No

13. Do you agree that better welfare measures implemented in your organization is useful in improving the performance of employees? a) Strongly agree c) Disagree b) Agree d) Strongly disagree

14. Do you agree that the failure in achieving goals will affect the performance of an

employee?
56

a) Strongly agree c) Disagree

b) Agree d) Strongly disagree

15. The performance appraisal system being followed in NMDC ltd. is motivating the employees of the organization do you agree with this? a) Strongly agree c) Disagree b) Agree d)Strongly disagree

16. Are you satisfied with the present performance appraisal system? a) Highly satisfied c) Dissatisfied
17. Was your last performance appraisal inspiring?

b) Satisfied d) Highly dissatisfied

a) Yes a) Yes 19. How your appraiser appraise your performance? a)lenient

b) No b) No

18. Does your appraiser discuss the performance appraisal result with you?

b) strict

20. Do you agree that the motivation is necessary to achieve the specific goals? a) Strongly agree c) Disagree b) Agree d) Strongly disagree

57

APPENDIX-B

PERFORMNCE IN LAST 5 YEARS AT NMDC (2005-2010):

The physical performance for last five years is as below:

Details Production of Iron Ore (in million tonnes)

2005-06 22.92

2006-07 26.23

2007-08 29.82

2008-09 28.52

2009-10 23.80

Production of Diamonds (carats)

43878

1703

16529

Sale of Iron Ore (in million tonnes)

24.85

25.59

28.18

26.47

24.09

Sale of Diamonds (carats) 48825 14588 2632 7335

Physical performance

58

The financial performance for last five years is as below: (Rs. in Cr.) Details 2005-06 2006-07 2007-08 2008-09 2009-10

Sale of Iron Ore

3669.47

4170.92

5705.32

7559.11

6222.60

Sale of Diamonds

35.69

10.60

3.75

6.94

Sale of Wind Power

2.22

6.57

Turnover

3710.92

4185.84

5711.31

7564.03

6239.09

PBT

2770.13

3498.31

4947.47

6648.23

5207.32

PAT

1827.80

2320.21

3250.98

4372.38

3447.26

Dividend

365.57

465.19

651.53

876.20

693.82

Financial performance

EMPLOYMENT (During the last five years):

59

NMDC Limited has near to 6000 employees. The year wise employment for last year as below: Year 2005-06 2006-07 2007-08 2008-09 2009-10 Employment 5,667 5,582 5,560 5,652 5,895

Employment during period: 2005 to 2010

WAGE STRUCTURE AT NMDC:

There are two categories of employees in NMDC: Executives and Workmen. The pay scale for Executives and Workmen are detailed in below tables.

Pay Grade

Pre-revised scale of pay Revised scales of pay w.e.f. 01.01.2007 23750 - 28550 20500 - 26500 19500 - 25350 19000 - 24400 18500 - 23900 17500 - 22300 16000 - 20800 13700 - 18250
10750 - 16750 8600 - 14600 Scale of Pay for Executives

E9 E8 E7 E6 E5 E4 E3 E2
E1 E0

62000 - 80000 51300 73000 * * 43200 - 66000 36600 - 62000 32900 - 58000 24900 - 50500
20600 - 46500 16400 - 40500

* Revised pay scales for E6 and E7 shall be notified later after obtaining necessary clearance from the Administrative Ministry and DPE.

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Pay Grade

Pre-revised scale of pay

Revised scales of pay w.e.f. 01.01.2007

RS-10 RS-9 RS-8 RS-7 RS-6 RS-5 RS-4 RS-3 RS-2 RS-1

6200 - 11580 5750 - 10630 5500 - 9880 5250 - 9255 5000 - 8630 4800 - 8055 4600 - 7605 4400 - 7090 4300 - 6740 4200 - 6450

11670 - 17750 11330 - 17230 11000 - 16720 10670 - 16230 10350 - 15750 10040 - 15290 9740 - 14480 9450 - 13170 9170 - 12780 8900 - 12400

Scale of Pay for Workmen

61