A study study on effective effectivenes nesss of reward reward system system - with speci special al reference to Magnes Management Consultants Pvt. Ltd Submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration of Madurai Madurai Kamaraj Univer University sity By S.Siva Sangari (Reg No: 2014MBA44) Under the guidance of Mrs. L.Meena MBA, M.Phil. (Ph.D)
DEPARTMENT OF MANAGEMENT STUDIES FATIMA COLLEGE (AUTONOMOUS) (COLLEGE WITH POTENTIAL FOR EXCELLENCE) RE-ACCREDITTED WITH ‘A GRADE BY NAAC MARY LAND MADURAI-625018 January 2016
1
DEPARTMENT OF MANAGEMENT STUDIES
FATIMA COLLEGE (AUTONOMOUS) (COLLEGE WITH POTENTIAL FOR EXCELLENCE) RE-ACCREDITTED WITH ‘A GRADE BY NAAC MARY LAND MADURAI-625018
BONAFIDE CERTIFICATE
This is to certify that the project project work entitled “A study on effectiveness of SANGARI reward system”, is a bonafide record of work done by S.SIVA SANGARI (Reg. No. 2014MBA44) submitted in partial fulfillment of the requirement for the Degree of Master of Business Administration, 2014-2016.
Signature of the Faculty Guide
Signature of the Director
(Mrs.L. Meena)
(Dr. Mrs. P. UMA)
2
DEPARTMENT OF MANAGEMENT STUDIES
FATIMA COLLEGE (AUTONOMOUS) (COLLEGE WITH POTENTIAL FOR EXCELLENCE) RE-ACCREDITTED WITH ‘A GRADE BY NAAC MARY LAND MADURAI-625018
BONAFIDE CERTIFICATE
This is to certify that the project project work entitled “A study on effectiveness of SANGARI reward system”, is a bonafide record of work done by S.SIVA SANGARI (Reg. No. 2014MBA44) submitted in partial fulfillment of the requirement for the Degree of Master of Business Administration, 2014-2016.
Signature of the Faculty Guide
Signature of the Director
(Mrs.L. Meena)
(Dr. Mrs. P. UMA)
2
DEPARTMENT OF MANAGEMENT STUDIES
FATIMA COLLEGE (AUTONOMOUS) (COLLEGE (COLLEGE WITH POTENTIAL POTENTIAL FOR EXCELLENC EXCELLENCE) E) RE-ACCREDITTED WITH ‘A GRADE BY NAAC MARY LAND MADURAI-625018
DECLARATION
I hereby declare that the project done under the title “A study on effect eff ectiv ivene eness ss of rew rewar ard d system system - with with speci special al refe referen rence ce to Mag Magne ness Management Consultants Pvt. Ltd” submitted for the award of the degree of Master of Business Administration is my original work and that no part of this report has been submitted fully or partly for any other recognition earlier.
Place: Madurai
Signature of Student
Date:
S.Siva Sangari
3
ACKNOWLEDGEMENT
First and foremost we would like to thank God almighty whose blessings made us to complete the project successfully. It is a great pleasure to acknowledge our sincere thanks to Dr. Sr. K. Fatima Mary Principal, Fatima College, Madurai for giving this great opportunity. It is a great pleasure to acknowledge our sincere thanks to Sr. Celine Sahaya Mary, Dean of the professional courses, Fatima College, Madurai for giving the opportunity to get practical knowledge about our theoretical studies. I express my sincere gratitude towards Mrs. Rajalakshmi Kandasamy, MD of Magnes Management Consultants Pvt. Ltd, Madurai for her valuable guidance to complete this project. I owe a deep sense of gratitude to Ms.M.Sathya, Director of Magnes Management Consultants Pvt. Ltd, Madurai for her keen interest on me at every stage of my research. Her prompt inspiratons, timely suggestions with kindness, enthusiasm and dynamism have enabled me to complete my thesis. I thank profusely all the Staffs of Magnes Management Consultants Pvt. Ltd, Madurai for their kind help and co-operation throughout my study period. I also thank Dr. Mrs. P. Uma, Director of the Department for the successful completion of this project work. I indeed greatly thankful to our faculty guide Mrs. L.Meena I thank her for guiding me to successful complete the project. I wish to express my gratitude to all the staff members in the Department of Management Studies for their encouragement for completing this project. Finally I thank my teachers, respondents, friends and parents who helped us in completing our project successfully.
4
TABLE TABLE OF CONTEN CONTENTS TS
CHAPTER
I
TITLE
INTRODUCTION
PAGE NO 1
1.1 INTERNATIONAL SCENARIO
3
1.2 INDIAN SCENARIO
6
1.3 COMPANY COMPANY PROFILE PROFILE
9
1.4 NEED FOR THE STUDY
11
1.5 STATEMENT STATEMENT OF THE PROBLEM PROBLEM
11
1.6 FOCUS ON RESEARCH QUESTION
12
1.7 OBJECTIVES
12
1.8 SCOPE OF THE STUDY
12
1.9 LIMITATIONS OF THE STUDY
12
II
2.1 REVIEW OF LI LITERATURE
13
III
RESEARCH METHODOLOGY
20
3.1 RESEARCH DESIGN
20
3.2 DATA COLLECTION
20
3.3 DATA COLLECTION COLLECTION METHOD METHOD
20
3.4 PROCESSING OF THE DATA VALIDATION
21
DATA ANALYSIS AND INTERPRETATION
22
4.1 PERCENTAGE ANALYSIS
22
4.2 WEIGHTED AVERAGE
57
4.3 CHI-SQUARE
62
4.4 ONE WAY ANOVA
74
5.1 FINDINGS
80
5.2 SUGGESTIONS
82
CONCLUSION
83
BIBLIOGRAPHY
84
ANNEXURE
87
IV
V
VI
5
LIST OF TABLES
TABLE
TABLE NAME
PAGE NO
4.1.1
Age
22
4.1.2
Gender
24
4.1.3
Education
26
4.1.4
Department
28
4.1.5
Designation
30
4.1.6
Experience
32
4.1.7
Income
34
4.1.8
Ma M arital status
36
4.1.9
Level of effectiveness of reward system
38
4.1.10
Rank of effectiveness of reward system
40
4.1. .1.11
Effe ffective tivene nesss of of re reward ward syst systeem on on pro produ ducctiv tivity ity - Verb Verbaal & wri writt tteen re recogni ogniti tio on
41
4.1.12
Effectiveness of reward system on productivity - Work related recognition
43
4.1.13
Effectiveness of reward system on productivity - Financial recognition
45
4.1.14
Effectiveness of reward system on productivity - Symbolic recognition
47
4.1.15
Effectiveness of of re reward sy system on on pr productivity - Tangible re recognition
49
4.1. .1.16
Effe ffective tivene nesss of of rewa reward rd syst systeem on on per perfo form rmaance nce - Verba rbal & wri writt tteen rec recogn ognitio ition n
51
4.1.17
Effectiveness of re reward system on on pe performance - Work related recognition
53
4.1.18
Effectiveness of reward system on performance - Financial recognition
55
4.2.1
Weighted average towards effectiveness of re reward system on productivity
57
4.2.2
Weighted average towards effectiveness of re reward system on performance
58
4.2.3
Weighted average towards effectiveness of reward system on work efforts
59
4.2.4 .2.4
Weig Weight hteed avera verag ge tow towards rds effe effecctive tiven ness of rewa reward rd sys system tem on job job satis tisfac factio tion
60
4.2.5
Weighted average towards effectiveness of re reward system on motivation
61
6
4.3.1
Chi-square analysis analysis between age and and the effectiveness effectiveness of tangible recognition recognition on work efforts
62
4.3.2
Chi-square analysis analysis between educational educational qualification and the effectiveness of of tangible recognition on work efforts
64
4.3.3
Chi-square analysis between department and the effectiveness of tangible recognition on work efforts
66
4.3.4
Chi-square analysis between experience and the effectiveness of tangible recognition on work efforts
68
4.3.5
Chi-squar Chi-squaree analysis analysis between between income income and the effectiv effectivenes enesss of tangible tangible recognition on work efforts
70
4.3.6 4.3.6
Chi-sq Chi-squa uare re analys analysis is betwe between en marita maritall stat status us and the effect effective ivenes nesss of of tang tangibl iblee
72
recognition on work efforts 4.4.1
One way ANOVA between age of the respondents and their effectiveness towards productivity
74
4.4.2
One way ANOVA between between educational educational qualification of the respondents respondents and their effectiveness towards productivity
75
4.4.3
One way ANOVA between department of the respondents and their effectiveness towards productivity
76
4.4.4
One way ANOVA between experience of the respondents and their effectiveness towards productivity
77
4.4.5
One way ANOVA between income of the respondents and their effectiveness towards productivity
78
4.4.6
One way ANOVA between marital status of the respondents and their effectiveness towards productivity
79
7
LIST OF CHARTS
CHART
CHART NAME
PAGE NO
4.1.1
Age
23
4.1.2
Gender
25
4.1.3
Education
27
4.1.4
Department
29
4.1.5
Designation
31
4.1.6
Experience
33
4.1.7
Income
35
4.1.8
Marital status
37
4.1.9
Level of effectiveness of reward system
39
4.1.10
Effectiveness of reward system on productivity - Verbal & written recognition
42
4.1.11
Effectiveness of reward system on productivity - Work related recognition
44
4.1.12
Effectiveness of reward system on productivity - Financial recognition
46
4.1.13
Effectiveness of reward system on productivity - Symbolic recognition
48
4.1.14
Effectiveness of reward system on productivity - Tangible recognition
50
4.1.15
Effectiveness of reward system on performance - Verbal & written recognition
52
4.1.16
Effectiveness of reward system on performance - Work related recognition
54
4.1.17
Effectiveness of reward system on performance - Financial recognition
56
8
CHAPTER I
INTRODUCTION:
Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization. Reward management consists of analysing and controlling employee remuneration, compensation and all of the other benefits for the employees. Reward management aims to create and efficiently operate a reward structure for an organisation. Reward structure usually consists of pay policy and practices, salary and payroll administration, total reward, minimum wage, executive pay and team reward. Reward management was developed on the basis of psychologists' behavioral research. Psychologists started studying behavior in the early 1900s; one of the first psychologists to study behavior was Sigmund Freud and his work was called the Psychoanalytic Theory. Many other behavioral psychologists improved and added onto his work. With the improvements in the behavioral research and theories, psychologists started looking at how people reacted to rewards and what motivated them to do what they were doing, and as a result of this, psychologists started creating motivational theories, which is very closely affiliated with reward management. Defining motivation as "the degree to which an individual wants and choose to engage in certain specific behaviours", to which Vroom (quoted in Mitchell, 1982) adds that performance = ability x motivation. To have an efficient Reward System then, is mandatory that employees know exactly what their task is, have the skills to do it, have the necessary motivation and work in an environment allowing the transformation of intended actions into an actual behaviour. From the company point of view instead, an effective performance appraisal has to be present, in order to let motivation be a major contributor to the rewarded performance. Reward management deals with processes, policies and strategies which are required to guarantee that the contribution of employees to the business is recognized by all means. Objective of reward management is to reward employees fairly, equitably and consistently in correlation to the value of these individuals to the organization. Reward system exists in order to motivate employees to work towards achieving strategic goals which are set by entities. Reward management is not only concerned with pay and employee benefits. It is equally concerned with non-financial rewards such as recognition, training, development and increased job responsibility. Rewards serve many purposes in organisations. They serve to build a better employment deal, hold on to good employees and to reduce turnover. The principal goal is to increase people’s willingness to work in ones company, to enhance their productivity. 9
Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of reward, Extrinsic reward. Studies proves that salespeople prefer pay raises because they feel frustrated by their inability to obtain other rewards, but this behavior can be modified by applying a complete reward strategy. There are two kinds of rewards: Extrinsic rewards: Concrete rewards that employee receive. Bonuses: Usually annually, Bonuses motivates the employee to put in all endeavours and efforts during the year to achieve more than a satisfactory appraisal that increases the chance of earning several salaries as lump sum. The scheme of bonuses varies within organizations; some organizations ensure fixed bonuses which eliminate the element of asymmetric information, conversely, other organizations deal with bonuses in terms of performance which is subjective and may develop some sort of bias which may discourage employees and create setback. Therefore, managers must be extra cautious and unbiased. Salary raise: Is achieved after hard work and effort of employees, attaining and acquiring new skills or academic certificates and as appreciation for employees duty (yearly increments) in an organization. This type of reward is beneficial for the reason that it motivates employees in developing their skills and competence which is also an investment for the organization due to increased productivity and performance. This type of reward offers long-term satisfaction to employees. Nevertheless, managers must also be fair and equal with employees serving the organization and eliminate the possibility of adverse selection where some employees can be treated superior or inferior to others. •
•
•
Gifts: Are considered short-term. Mainly presented as a token of appreciation for an achievement or obtaining an organizations desired goal. Any employee would appreciate a tangible matter that boosts their self-esteem for the reason of recognition and appreciation from the management. This type of reward basically provides a clear vision of the employees correct path and motivates employee into stabilising or increasing their efforts to achieve higher returns and attainments. Promotion: Quite similar to the former type of reward. Promotions tend to effect the long-term satisfaction of employees. This can be done by elevating the employee to a higher stage and offering a title with increased accountability and responsibility due to employee efforts, behaviour and period serving a specific organization. This type of reward is vital for the main reason of redundancy and routine. The employee is motivated in this type of reward to contribute all his efforts in order to gain managements trust and acquire their delegation and responsibility. The issue revolved around promotion is adverse selection and managers must be fair and reasonable in promoting their employees.
Other kinds of tangible rewards.
10
Intrinsic rewards: tend to give personal satisfaction to individual •
•
•
Information / feedback: Also a significant type of reward that successful and effective managers never neglect. This type of rewards offers guidance to employees whether positive (remain on track) or negative (guidance to the correct path). This also creates a bond and adds value to the relationship of managers and employees. Recognition: Recognition: Is recognizing an employees performance by verbal appreciation. This type of reward may take the presence of being formal for example meeting or informal such as a "pat on the back" to boost employees self-esteem and happiness which will result into additional contributing efforts. Trust/empowerment: in any society or organization, trust is a vital aspect between living individuals in order to add value to any relationship. This form of reliance is essential in order to complete tasks successfully. Also, takes place in empowerment when managers delegate tasks to employees. This adds importance to an employee where his decisions and actions are reflected. Therefore, this reward may benefit organizations for the idea of two minds better than one.
Intrinsic rewards makes the employee feel better in the organization, while Extrinsic rewards focus on the performance and activities of the employee in order to attain a certain outcome. The principal difficulty is to find a balance between employees' performance (extrinsic) and happiness (intrinsic). The reward also needs to be according to the employees personality. Fo r instance, a sports fan will be really happy to get some tickets for the next big match. However a mother who passes all her time with her children, may not use them and therefore they will be wasted. When rewarding one, the manager needs to choose if he wants to rewards an Individual, a Team or a whole Organization. One will choose the reward scope in harmony with the work that has been achieved. •
Individual •
Base pay, incentives, benefits
•
Rewards attendance, performance, competence
•
Team: team bonus, rewards group cooperation
•
Organization: profit-sharing, shares, gain-sharing
INDUSTRY PROFILE : 1.1 HISTORY INTERNATIONAL SCENARIO: HR CONSULTING:
Our people management team can provide you with professional advice and practical support across the full range of HR and training services. From employment law to talent management, our team can help you keep pace with new legislation and best practice, and support you in motivating and retaining your people. 11
We offer tailored services ranging from a telephone helpline to full project support for HR initiatives. Whether you need advice on HR strategy or employment contracts, pay systems or management development, we can give you timely and accurate information combined with practical advice that you can use in your business. Our people management services are: • •
• • • •
• • •
restructuring and rebuilding your team HR management review ‘Pay As You Go’ - telephone support job evaluation pay and reward systems performance management recruitment and selection employment policies and procedures training and development specialist pay services for housing associations
Restructuring and rebuilding your team: People issues are at the heart of any successful change programme, and we are experienced in advising on change management issues at board level. We work with directors and management teams to support workforce planning and the development and implementation of HR and training strategies. We can assist with: •
restructuring and building teams
•
managing redundancy programmes
•
managing the staff aspects of mergers and take-overs
•
facilitating Board level away days and training events
•
team building activities for senior teams including the use of psychometric tools such as the Myers Briggs Type Indicator
•
planning, implementing and supporting culture change programmes
•
coaching for senior managers and directors in people skill areas
•
board level briefings on employment legislation and its impact on organisations
HR and management review:
Our HR and management review is a health check of the people aspects of your business to ensure that your HR strategies and procedures are aligned with your business goals, are compliant with current employment legislation, and are effective in supporting productive and committed employees.
12
It includes: •
a thorough review of your systems and processes
•
a compliance review in terms of employment legislation
•
an opportunity for expert feedback and guidance on good practice
•
a comprehensive report to help with action planning
‘Pay As You Go’ telephone support service: Our ‘Pay As You Go’ service means that you can use us as and when you need to obtain specialist advice on HR or training matters. Our rates are clear and transparent, so you can see exactly what costs you are incurring as you go. You can choose to make this available to selected individuals, or to allow all of your managers and supervisors to use the service. We guarantee fast response times to your queries, and the latest advice in terms of employment and staff management issues. We can also come in and work alongside your existing managers and advisers to provide HR support for the whole of your organisation. Job evaluation pay and reward systems: Regular reviews of your reward strategy and systems are essential to ensure that your pay system supports your organisational goals and to avoid inequalities in pay. Our services include: job matching or full analytical job evaluation •
•
pay benchmarking to establish relativity with the market, taking account of your organisations size, location and sector
•
designing executive reward packages and longer term incentives
•
equal pay audits
•
implementing performance related pay systems
•
advice and support with the annual pay review process
Recruitment and selection: We can support you throughout the whole recruitment and selection process for senior roles in your business. Our aim is to save you time and effort, and to find the right person for your organisation as soon as possible. Our services include: •
writing job descriptions and person specifications
•
recruitment advertising and use of agencies
•
dealing with applications, producing shortlists and conducting interviews
•
taking up references and arranging medical checks
•
advising you on the selection decision 13
•
putting together appropriate remuneration packages
•
preparing contracts of employment
•
providing effective induction support
Employment policies and procedures: Over recent years there has been a tremendous increase in the volume of new legislation on employment and employment related issues. Many businesses find it increasingly difficult to keep up to date with all of these changes.
Much of our support consists of providing advice on employment legislation and its practical application in organisations, including the following areas: •
implementing effective policies and procedures
•
setting up terms and conditions of employment
•
preparing contracts and accompanying documentation
•
using disciplinary and grievance procedures
•
avoiding unfair dismissal
•
negotiating changes to terms and conditions of employment
•
briefings on employment law changes, including practical advice on implementing changes in your organisation
•
collective bargaining with staff or union representatives
•
dealing with employment tribunal proceedings
1.2 INDIAN SCENARIO:
McKinsey was the first strategy company to enter the Indian market in the early 90's with their office in Delhi. They were slow to scale up with about 100 odd consultants in India. McKinsey's Knowledge Center India Private Ltd. (McKC) in Gurgaon is the largest hub of knowledge management professionals within the firm. Created in 1998, McKC is made up of a practice research group that supports McKinsey's global industry and functional practices; an analytics group that works on site and remotely with the firm's consulting teams. Booz Allen Hamilton entered the Indian market in 1997-98 but exited after 2 years when the market was tough to crack. They re-entered the market a couple of years ago as Booz & Co., the newly formed strategy and operations arm that does work outside government projects. A strategic orientation to reward means understanding the ‘big pictures- What the organization is there to do, where it is going, and how it is going to get there. It requires the development of a longer term vision of the future. Importantly, it requires alignment- of the reward strategy with the business strategy and of reward strategies with the other aspects of
14
HR strategies. Reward strategies flow from the business strategy and HR strategy and is based on some fundamental consideration. Reward strategy is the business focused statement of the incentives of the organization concerning the development of future reward processes and practices which are align to the business and human resources strategies of the organization, its culture and the environment in which it operates. A more comprehensive description is to be found in Gomez-Mejia and Balkin (1992), who defined it as: “The deliberate utilization of the pay system as an essential integrating mechanism through which the efforts of various subunits and individuals are directed towards the achievement of an organizations effective objectives, subject to internal and external constraints. When properly designed, contingent upon the organizations strategic objective and constraints, it can be a important contributor to the firms performance. Armstrong in Employee Reward Says Reward strategies provide a sense of purpose and direction which will help to establish priorities for developing reward plans which can be align to business and HR strategies. It will express as clearly as possible the intension of the organization and form the basis for communicating those intension with employees It is necessary to recognize that effective reward strategies have three components: •
They have to have clearly-defined goals and a well defined linked to business objectives.
•
There have to be well designed pay and reward programs, tailored to the need of the organization and its people, and consistent and integrated with one another.
•
Perhaps most important and most neglected, effective and supportive HR and reward processes must be in place.
Reward Strategy and Performance: From the past decades there was an important link between Reward strategies and Performance. Employee were rewarded according to there performance. Performance related Reward allowed the highest performer to be awarded accordingly. Lyons and Ben-Ora in (2002) gave a new definition for successful performance based rewards. According to them those rewards which are perfectly start up, implemented and support the total reward strategy are successful performance based reward. Among several key component of pay for performance “stock” is reckoned most pertinent and measurable way to relate pay to performance. The only way to enhance the employees motivation and enthusiasm is performance appraisal system especially when efforts directly linked with rewards through particular and formalized individual objectives (Fay and Thompson, 2001). Michael Armstrong was the next in the series who explains the relation between reward strategy and performance. According to him the higher level of organizational , team and individual performance can be achieved through the reward strategy. This means focusing on resourcing, organizing, communicating and rewarding for contribution to value added as well as providing recognition for accomplishment and growth.
15
Recent Trends Used for Reward and Recognition: Since compensation and rewards is important, HR managers are now realizing t hat employees need to be kept happy and satisfied on a daily basis to enhance the productivity, for that companies need to include Fun Quotient in their Reward strategies. Having fun on the job the new cool thing? Atul Saxena, head Hr, CHD Developers LTd says, “The management has to ensure that employees get what they want. It is not all about money, it
Resources
Corporate goals and objectives
Organization design and management style
Reward system
Individual and organizational behavior
Environment must be a good mixture of fun, stress free work environment, compensation, working hours, rewards and most importantly, employees being a part of common organizational growth. CHD Developers LTd introduce ‘HQTF (Happiness quotient task force) which is an event calendar, which includes celebration of various festivals, employee birthdays, sports day, health camps and csr events which figure out a plan for employee bonding and encourages strong internal communication between them. Accenture India has introduce a new idea named Vaahini, for womens networking which supports networking on efforts and initiatives related to mentoring, communication and counseling. It aims at addressing women issues proactively by nurturing, sustaining and building the female work force at all levels. The perception of workplace diversity has changed. Now many organizations are formulating policies according to their employee feelings to make the work environment more LGBTfriendly. According to recent report, as the flood of change is coming, not only in India but also Asian companies is now accepting this issues in their reward strategies programs. LGBT employees in India face several challenges for entering into the new projects, for that they also hide their identities or even not going for an open discussion about it. To remove such hesitations from LGBT peoples many progressive organization are formulating policies, so as to provide ample opportunities for the such groups of peoples at t he workplace. “At Accenture, they introduced policies permitted by law to ensure an equal treatment of employees, regardless of sexual orientation or gender identity. IBM encourages ‘reverse mentoring to sensitize the workforce on topics pertaining to div ersity and inclusiveness. Thus a diverse workforce is must for enhancing the performance and productivity for every organization and the right policy decisions will only steer the way forward. Today workforce is bare to the developed world and want best of everything to utter their needs, and wants such as - competitive salaries, comfortable lifestyle, job security, career enhancement option, work life balance etc. To satisfy this fact, companies now designed 16
philosophies, which have helped them to develop innovative, intrinsic ways of motivating and engaging with their employees. The recently held National Summit on “Recent Trends in compensation and Rewards: Managing from Design to Delivery” organized by the AIMA emphasized that while retaining talent in companies is a major challenge for HR professionals. R&R is not only an HR policy, but also an important part of companys business strategy. Apart from that, another area, which most companies neglect while designing their R&R policy is the element of ‘Emotional Connect. While it is important to reward employees, but it is more important how we reward him or her. A new program is developed by Intel net global services named ‘I -versity which is an in house promotion program based on performance and strategic input designed to integrate growth path for employees. Under this the following programs are run: Strive towards excellence programs (for agents to team leader promotions), Leadership Excellence Accreditation and Development Programs (for team leader to team manager promotion). Some of the other programs include performance based incentives, transparent promotion policies, accelerated career growth, employee development programs, incentives programs, pay for performance, fun at work and employee appreciation week. Many multinational banks give flexibility to their employees to work from their home. By that not only employees are benefitted but banks too. This fl exibility helps banks in their cost cutting. Standard Charted, city group, HSBC and DBC many of such banks adopt such policies known as Teleworking. By adopting such policies employees are ready to work on low compensation and benefits and maintain good work life balance in their life.
1.3 COMPANY PROFILE: MAGNES AT A GLANCE:
The word Magnes, derived from Latin meaning magnet. Magnet is primarily known for showing the right direction. Magnes came into being to show the right career paths to aspiring candidates and provide the right manpower to our clients. Our slogan "Pool in the right talent" is coined to add meaning to the name of the organization. VISION:
To become the Most Trusted Management Consultant in the world. MISSION:
To play a predominant role in the HR industry by serving our clients 'Human Resource' needs.
17
BUILDING BLOCKS: m: magnificent manpower:
Magnes provide best in the industry manpower to our clients. Our Team comes with good man years of experience and hence can understand the requirements of our clients. Empower our client with the best Human Resource. a: adequate acumen:
With an experience from the largest HR Services Company, we have adequate knowledge to understand your business requirements. With our Business acumen, we provide solutions to your Human Resource problems. Our members have adequate acumen to identify and understand your needs and provide you with exact manpower. g: gradual grooming:
The company strongly believe that any human being needs time to change his or her behavioral skills. Their trainings are inclined towards behavioral changes and hence grooming will be gradual which adds value to the money. n: niche networking:
Magnes can provide some of best leaders required for your organization. We are capable of sourcing the top management employees for you using our networking skills. We do map industries and identify niche players in the same industry and fetch candidates through our professional networks. e: efficient execution:
By efficient, we mean that the time consumed for us to serve any of your Staffing requirements will be less and hence you can expect quick solutions. s: simple strategies:
Magnes do not complicate things while providing solutions to our clients. We believe that, the simpler, the easier. Hence we practice as well as preach simpler strategies to our clients and candidates. STRENGTHS: •
Effective client relations and efficient management
•
Transparency in our operations and confidentiality in our executions
•
Expertise not only in established sectors. But also in niche sectors such as Education, Jewellery, Agriculture; Printing to name a few
•
Access to a wide pool of resources including rural markets
•
Resource identification through social networking
18
•
Access to Alumni of various educational institutions and database access through various campus-connect programmes
MILESTONES ACHIEVED:
Raised 300th invoice - 18th June 2015 Renewed ISO Certification - 22nd March 2015 Received ISO 9001:2008 Certification - 3rd April 2014 Inaugurated Magnes - 12th June 2013 MANAGEMENT: Board Members: Ms.Rajalakshmi Kandasamy -- Our Co-Founder and Managing Director has over a decade's experience in the HR industry. She holds a Masters in Business Administration with specialization in Human Resource & Marketing from BIM, Trichy and a B.Tech - Electronics from Madras Institute of Technology, Anna University, Chennai. Her portfolio includes varied experiences ranging from a Generalist HR at IT Companies in Bangalore, Visiting Faculty at BIM, a Top B-Scholl in India to a Senior Consultant for South TamilNadu at Ma Foi Randstad - World's Second Largest HR Services Provider. She is also actively involved in CSR activities as a trustee of The Kurinji Trust which was incorporated in the year 2010. Manivannan -- Our Founder and Director has a Bachelor degree in Business Administration from Madurai Kamaraj University. He has 15+ years' experience in Sales and Marketing across various industries which includes Banking, Insurance, Telecom, Automobiles and Real Estate. He had been the Project Director for Leading Infrastructure companies based at Bangalore and Chennai. He is also a free lancer Real Estate Consultant. Mr.Manivannan is the founder and Managing Trustee of "Kurinji Trust". He does lots of CSR activities through the trust to help the orphans and under privileged. 1.4 NEED FOR THE STUDY:
Many studies were done in various factor of reward system. Those studies covers promotions, opportunity for personal growth, increased levels of responsibility and an increase on social standing. And also argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition. Hence, there is a lack of this particular research in the madurai city especially in this organisation. So in order to fill the research gap, the researcher have undertaken this study. 1.5 STATEMENT OF THE PROBLEM:
In the past, Magnes has had some problems in finding a suitable and functioning reward system that would motivate the employees in a proper way. One of the main problems has been the rapid change of the employees. In three years Magnes has had five different designations. The reward types are decided by the upper management, the employees 19
however decides how to implement the rewards to each position. Hence some problems are created when the employees changes constantly and each position has its own way of implementing the rewards into the system. The constant change of the employees also results in some problems with the development and learning of the employees. Development discussions between the management and the employees take place in the company each year. The process of learning and development is however slow due to the fact that the employees is different almost each time a development discussion is held. The process needs to be started from zero each time the employee changes and this demotivates the management and influences their motivation towards the reward system. 1.6 FOCUS ON RESEARCH QUESTION: What is the impact of effectiveness of reward system with respect to various factors
like productivity, performance, work efforts, job satisfaction and motivation? What are the strategies to be formulated to improve the effectiveness of reward system? 1.7 OBJECTIVES:
1. To analyse the effectiveness of the reward system with respect to the various factors like productivity, performance, work efforts, job satisfaction and motivation. 2. To offer valuable suggestions to the organisation to improve the effectiveness of the rewards system. 1.8 SCOPE OF THE STUDY:
This study is mainly focused on the employees who are working in the Magnes Management Consultants Pvt Ltd and analyse the level of effectiveness of reward system. And also getting various views of employees regarding reward system with respect to various factors like productivity, performance, work efforts, job satisfaction and motivation. This study is done in the geographic area of Madurai during the period of November to December 2015. 1.9 LIMITATIONS OF THE STUDY: The researcher has time constraint to do the project. Most of the employees are not welcome us and they look like as if the researcher is
disturbing their work schedule.
20
CHAPTER II
2.1 REVIEW OF LITERATURE:
Reward is a broad construct that has been said to represent anything that an employee may 1 value that an employer is willing to offer in exchange for his or her contributions (Chiang and Birtch, 2008). The lack of rewards will create an unpleasant environment, thus diminishing employees work efforts and may cause them to with draw from their jobs. For these reasons, rewards are increasingly important. The main objectives of rewards are to attract and retain employees, to motivate employees to achieve high levels of performance, and to elicit and reinforce desired behavior of the employees. Organizations often use financial rewards to prevent employee dissatisfaction and to motivate employees, although it 2 may not be the best motivator for the long term (Mossbarger and Eddington, 2003). 3
Deeprose (2014) had stated that “while the presence of money may not be a very good motivator, the absence of it is a strong de-motivator”. In addition, financial rewards are significant not only in terms of their instrument value as a medium of exchange, but also a highly tangible means of recognizing an individuals worth, improving self -esteem, and 4 symbolizing status and achievement (Armstrong, 1996).
Therefore, organizations can best utilize financial rewards in supporting organizational human resource strategy. Non-financial rewards are tangible rewards provided and controlled by a firm; which do not necessarily benefit employees in monetary sense (Chiang and Birtch, 5 2008). Nowadays, individuals require beyond monetary rewards for their effort (Millmore et al, 2007). This means that employees seek for other return in exchange for their contribution which is of value and meaningful to them, rather than being given just money 6 (Johnson and Welsh, 1999). Given the labor-intensive nature of the hospitality industry and the rising pressure to control costs, nonfinancial rewards are being used increasingly to motivate employee performance and to increase employee satisfaction (Chiang and Birtch, 2008). Rewards have two broad types; extrinsic and intrinsic rewards are also called financial and nonfinancial rewards and these rewards further divided in so many sub categories. Extrinsic rewards relates to financial rewards or cash related like formal recognition, fringe benefits, incentive type payments, pay, promotion and intrinsic relates to nonfinancial or non-cash rewards like achievement, accomplishment feelings, recognition, job satisfaction and growth 7 (Clifford, 1985). Today world balance between employees commitment and performance for the organizations much necessary and rewards are most important tool for employee's 8 commitment, job satisfaction, and motivation and employees good performance. Kalleberg,
21
(1977) explained rewards consist on benefits that employees receive in exchange of their work during the job. 9
According to Wang (2004), in so many organization rewards plays so many roles in sustaining and creating commitment among employees for good performance and that better performance leads to job satisfaction. When employees achieved their desire results from job 10 so that of desired achievement is called job satisfaction (Brief & weiss, 2002). 11
Ali & Ahmad, (2009) investigated that there is positive relationship between “recognition and reward”, “performance”. They stated that if reward and recognition are given to employee then there is a huge change in their employee performance.
The study conducted to check the relationship between rewards and employee's performance schools of Pakistan. They use these variables employees‟ performance, job description, extrinsic reward, intrinsic reward, gender discrimination, and environment; recondition techniques, and performance bonus. They used cement companies, questionnaire was used for data collection, and Total two hundred questionnaires were randomly distributed among the employees of private schools in Khyber Pakhtoonkhawa Province of Pakistan. The results revealed that there is a direct relation between reward system and employee's performance 12 13 (Qureshi, Zaman, & Shah, 2010). Jehanzeb et al. (2012). 14
According to Mishra and Dixit (2013), financial and non financial rewards and benefits are highly correlated with employee's performance in an education rewards system. Because of positive relationship of between rewards and performance also increase the job satisfaction of workers. Job satisfaction leads to success and feelings of achievement during the job. Also linked increase productivity, increase workers efforts on job and leads to happiness 15 enthusiasm, feeling of fulfilment (Kaliski, 2007). Rewards promote happiness and job 16 satisfaction investigated in his research study by (Boehm & Lyubomirsky, 2008). Intrinsic and extrinsic rewards are determinants work satisfaction (Clifford, 1985). 17
According to Andrew & Kent (2004), explained in his research all the employees revolve around the rewards and recognition so the both aspects have much importance for employees. Good reward system help to retain high performers in the firm so rewards must be fulfill the 18 19 high performers feelings (Carraher, Gibson, & Buckley, 2006). Bishop (1987) explained that pay relates to productivity and reward system relate to size of the firm. Monetary and nonmonetary rewards motivate the workers of any organization and these 20 rewards also resulted in higher growth and productivity (Reio & Callahon, 2004). Organizations in todays environment seek to determine the reasonable balance between employee commitment and performance of the organization. The reward and recognition programs serve as the most contingent factor in keeping employees self esteem high and 21 passionate. Oosthuizen (2001) stated that it is among the function of managers to motivate the employees successfully and influence their behavior to achieve greater organizational 22 efficiency. La Mott (1995) is of the view that performance at job is the result of ability and 22
motivation. Ability formulated through education, equipment, training, experience, ease in task and two types of capacities i.e. mental and physical. The performance evaluation and rewards are the factors that proved to be the bonding agents of the performance evaluation programs. 23
According to Wilson (1994), the process of performance management is one among the key 24 elements of total reward system. Entwistle (1987) is of the view that if an employee performs successfully, it leads to organizational rewards and as a result motivational factor of employees lies in their performance. Majority of the organizations require their employees to work according to the rules and regulations, as well as, job requirements that comply with full standards. The investigations that have been conducted to find the relationship between compensation and individuals were focused to increase the performance of employees 25 (Ciscel, 1974). The highly motivated employees serve as the competitive advantage for any company because their performance leads an organization to well accomplishment of its goals. Among financial, economical and human resources, human resources are more vital that can provide a company competitive edge as compared to others. 26
According to Andrew (2004), commitment of all employees is based on rewards and 27 recognition. Lawler (2003) argued that prosperity and survival of the organizations is determined through the human resources how they are treated. Most of organizations have gained the immense progress by fully complying with their business strategy through a well balanced reward and recognition programs for employee. 28
Deeprose (1994) argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations. The entire success of an organization is based on how an organization keeps its employees motivated and in what way they evaluate the performance of employees for job compensation. Managing the performance of employees forms an integral part of any organizational strategy and how they deal with their human capital 29 (Drucker as cited in Meyer & Kirsten, 2005).
Today where every organization has to meet obligations; the performance of employees has a very crucial impact on overall organizational achievement. In a demotivated environment, low or courage less employees can not practice their skills, abilities, innovation and full 30 commitment to the extent an organization needs. Freedman (1978) is of the view that when effective rewards and recognition are implemented within an organization, favorable working environment is produced which motivates employees to excel in their performance. Employees take recognition as their feelings of value and appreciation and as a result it boosts up morale of employee which ultimately increases productivity of or ganizations. 31
Csikszentmihalyi (1990) Flynn (1998) argued that rewards and recognition programs keep high spirits among employees, boosts up their morale and create a linkage between performance and reward of the employees. The basic purpose of recognition and reward program is to define a system to pay and communicate it to the employees so that they can 23
link their reward to their performance. Rewards play a vital role in determining the significant performance in job and it is positively associated with the process of motivation. Lawler (2003) argued that there are two factors which determine how much a reward is attractive, first is the amount of reward which is given and the second is the weight age an individual gives to a certain reward. Deeprose (1994, p. 3) is of the view that “Good managers recognize people by doing things that acknowledge their accomplishments and they reward people by giving them something tangible.” Fair chances of promotion according to employees ability and skills make employee more loyal to their work and become a source of pertinent workability for the 32 employee. Bull (2005) posits a view that when employees experience success in mentally challenging occupations Rewards and recognition are the key parameters of todays motivation programs according to most of the organizations as these bind the success factor with the employees performance. 33
Robbins (2001) asserts that promotions create the opportunity for personal growth, increased levels of responsibility and an increase on social standing. Similarly, the recognition which is a central point towards employee motivation adores an employee through appreciation and assign as status at individual level in addition to being an employee 34 of the organization. Barton (2002) argued that the factor in Rewards and recognition at their job. Rewards enhance the level of productivity and performance at job whether its a first time performance or repeated activity at the job in a progressive way. 35
Eastman (2009) consistently found that intrinsic motivation is conducive to producing creative work, while extrinsic motivation is unfavorable to producing creative work. 36
Gagne (2009) suggested a new model of knowledge-sharing motivation which provides suggestion for designing five important human resource management (HRM) practices including staffing, job design, performance and compensation systems, managerial styles and training. Ali and Ahmed (2009) confirmed that there is a statistically significant relationship between reward and recognition respectively, also motivation and satisfaction.
24
REFERENCES: 1
(Chiang and Birtch, 2008) Reward is a broad construct that has been said to represent anything that an employee may value that an employer is willing to offer in exchange for his or her contributions. 2
(Mossbarger and Eddington, 2003) Organizations often use financial rewards to prevent employee dissatisfaction and to motivate employees, although it may not be the best motivator for the long term. 3
Deeprose (2014) had stated that “while the presence of money may not be a very good motivator, the absence of it is a strong de-motivator”. 4
(Armstrong, 1996) also stated that financial rewards are significant not only in terms of their instrument value as a medium of exchange, but also a highly tangible means of recognizing an individuals worth, improving self -esteem, and symbolizing status and achievement. 5
(Millmore et al, 2007), individuals require beyond monetary rewards for their effort.
6
(Johnson and Welsh, 1999). Given the labor-intensive nature of the hospitality industry and the rising pressure to control costs, nonfinancial rewards are being used increasingly to motivate employee performance and to increase employee satisfaction. 7
(Clifford, 1985)Extrinsic rewards relates to financial rewards or cash related like formal recognition, fringe benefits, incentive type payments, pay, promotion and intrinsic relates to nonfinancial or non-cash rewards like achievement, accomplishment feelings, recognition, job satisfaction and growth. 8
Kalleberg, (1977) explained rewards consist on benefits that employees receive in exchange of their work during the job. 9
Wang (2004), in so many organization rewards plays so many roles in sustaining and creating commitment among employees for good performance and that better performance leads to job satisfaction. 10
(Brief & weiss, 2002) When employees achieved their desire results from job so that of desired achievement is called job satisfaction. 11
Ali & Ahmad, (2009) investigated that there is positive relationship between “recognition and reward”, “performance”. 12
(Qureshi, Zaman, & Shah, 2010) The study conducted to check the relationship between rewards and employee's performance schools of Pakistan. 13
Jehanzeb et al. (2012) The results revealed that there is a direct relation between reward system and employee's performance. 25
14
Mishra and Dixit (2013), financial and non financial rewards and benefits are highly correlated with employee's performance in an education rewards system. 15
(Kaliski, 2007) linked increase productivity, increase workers efforts on job and leads to happiness enthusiasm, feeling of fulfilment. 16
(Boehm & Lyubomirsky, 2008) investigated in his research that rewards promote happiness and job satisfaction. 17
Andrew & Kent (2004), explained in his research all the employees revolve around the rewards and recognition so the both aspects have much importance for employees. 18
(Carraher, Gibson, & Buckley, 2006) explained that good reward system help to retain high performers in the firm so rewards must be fulfill the high performers feelings. 19
Bishop (1987) explained that pay relates to productivity and reward system relate to size of the firm. 20
(Reio & Callahon, 2004) proves monetary and nonmonetary rewards motivate the workers of any organization and these rewards also resulted in higher growth and productivity. 21
Oosthuizen (2001) stated that it is among the function of managers to motivate the employees successfully and influence their behavior to achieve greater organizational efficiency. 22
La Mott (1995) is of the view that performance at job is the result of ability and motivation. Ability formulated through education, equipment, training, experience, ease in task and two types of capacities i.e. mental and physical. 23
Wilson (1994), the process of performance management is one among the key elements of total reward system. 24
Entwistle (1987) is of the view that if an employee performs successfully, it leads to organizational rewards and as a result motivational factor of employees lies in their performance. 25
(Ciscel, 1974) the investigations that have been conducted to find the relationship between compensation and individuals were focused to increase the performance of employees. 26
Andrew (2004), commitment of all employees is based on rewards and recognition.
27
Lawler (2003) argued that prosperity and survival of the organizations is determined through the human resources how they are treated.
26
28
Deeprose (1994) argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations. 29
(Drucker as cited in Meyer & Kirsten, 2005) managing the performance of employees forms an integral part of any organizational strategy and how they deal with their human capital. 30
Freedman (1978) is of the view that when effective rewards and recognition are implemented within an organization, favorable working environment is produced which motivates employees to excel in their performance. 31
Csikszentmihalyi (1990) Flynn (1998) argued that rewards and recognition programs keep high spirits among employees, boosts up their morale and create a linkage between performance and reward of the employees. 32
Bull (2005) posits a view that when employees experience success in mentally challenging occupations Rewards and recognition are the key parameters of todays motivation programs according to most of the organizations as these bind the success factor with the employees performance. 33
Robbins (2001) asserts that promotions create the opportunity for personal growth, increased levels of responsibility and an increase on social standing. 34
Barton (2002) argued that the factor in Rewards and recognition at their job.
35
Eastman (2009) consistently found that intrinsic motivation is conducive to producing creative work, while extrinsic motivation is unfavorable to producing creative work. 36
Gagne (2009) suggested a new model of knowledge-sharing motivation which provides suggestion for designing five important human resource management (HRM) practices including staffing, job design, performance and compensation systems, managerial styles and training.
27
CHAPTER III
RESEARCH METHODOLOGY: 3.1 RESEARCH DESIGN: Descriptive research:
The Research Design undertaken for the study is Descriptive one. A study, which wants to portray the characteristics of a group or individuals or situation, is known as Descriptive study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire knowledge. This research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. 3.2 DATA COLLECTION:
There are two main sources for collecting data. These are:1. Primary Data. 2. Secondary Data. 3.2.1. Primary Data:
It is the data that is collected for the first time. It is fresh and the originally collected by the surveyor. In this, data are collected through Questionnaire. 3.2.2. Secondary Data:
Secondary data is the one which is collected by someone else and already used in some or the other form. Here the secondary data are collected from books and websites. 3.3 DATA COLLECTION METHOD: Census Method: Census and sampling though both serve the purpose of providing data and information about a population. In Census, entire population is taken into account and as such it is most accurate. It is obvious that when whole population is taken into account, data collection is called Census Method.
28
3.4 PROCESSING OF THE DATA VALIDATION: TOOLS USED FOR THE STUDY: Percentage Analysis Weighted Average Analysis
Chi – Square test One way anova
29
CHAPTER IV DATA ANALYSIS AND INTERPRETATION 4.1 PERCENTAGE ANALYSIS
Percentage is used for data presentation for they simplify numbers, reducing all for them to a 0 to 100. Though the use of percentages, the data are reduced in the standard form base equal to 100 which fact facilitates relative comparisons. FORMULA:
Individual respondents PERCENTAGE =
* 100 Total number of respondents
TABLE: 4.1.1 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF AGE
Table: 4.1.1 show the age wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF AGE
S. NO.
AGE
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
18 – 23
8
27%
2
24- 29
10
33%
3
30 – 35
6
20%
4
36 – 41
4
13%
5
42 and above 42
2
7%
TOTAL
30
100
INFERENCE:
The above table showing the respondents 27% of the respondents were of age 18-23, 33% of the respondents were 24- 29, 20% of the respondents were of age 30-35, 13% of the respondents were of age above 36-41 and 7% of the respondents were 42 & above 42. 30
FIGURE NO 4.1.1 CLASSFICATION OF TH
RESPONDENTS ON THE BASIS OF A E
42 & above 42
7
36-41
13
30-35
20
24-29
33
18-23
27
0%
20%
40%
60%
80%
100%
INFERENCE:
The above table showing the respondents 27% of the respondents were of age 18-23, 33% of the respondents were 24- 29, 20% of the respondents were of age 0-35, 13% of the respondents were of age above 36-41 and 7% of the respondents were 42 above 42.
31
TABLE: 4.1.2 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF GENDER
Table: 4.1.2 show the gender wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF GENDER
S. NO
GENDER
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
MALE
12
40%
2
FEMALE
18
60%
TOTAL
30
100
INFERENCE:
The above table showing the 40% of the respondents were male and 60% of the respondents were female.
32
FIGURE NO 4.1.2 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF GENDER
40 Male Female 60
INFERENCE:
The above table showing the 40% of the respondents were male and 60% of the respondents were female.
33
TABLE: 4.1.3 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EDUCATION
Table: 4.1.3 show the level of education wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EDUCATION
S. NO
LEVEL OF EDUCATION
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
DIPLOMA
5
17%
2
UG
7
24%
3
PG
11
36%
4
PH.D
4
13%
5
OTHERS
3
10%
TOTAL
30
100
INFERENCE:
The above table showing that 17% of the respondents were diploma, 24% of the respondents were UG, 36% of the respondents were PG, 13% of the respondents were Ph.D, and 10% of the respondents were others.
34
FIGURE NO 4.1.3 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EDUCATION
40 36
35 30 25
24
20 17 15 13 10
10
5 0 Diploma
UG
PG
Ph.D
Others
INFERENCE:
The above table showing that 17% of the respondents were diploma, 24% of the respondents were UG, 36% of the respondents were PG, 13% of the respondents were Ph.D, and 10% of the respondents were others.
35
TABLE: 4.1.4 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DEPARTMENT
Table: 4.1.4 show the department wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DEPARTMENT
S. NO
DEPARTMENT
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
ADMIN
6
20%
2
BUSINESS DEVELOPMENT
8
27%
3
HR
14
47%
4
OTHERS
2
6%
TOTAL
30
100
INFERENCE:
The above table showing that 20% of the respondents were in admin, 27% of the respondents were in business development, 47% of the respondents were in HR and 6% of the respondents were in other department.
36
FIGURE NO 4.1.4 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DEPARTMENT
50
47
45 40 35 30
27
25 20
Department
20 15 10
6
5 0 Admin
Business development
HR
Others
INFERENCE:
The above table showing that 20% of the respondents were in admin, 27% of the respondents were in business development, 47% of the respondents were in HR and 6% of the respondents were in other department.
37
TABLE: 4.1.5 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DESIGNATION
Table: 4.1.5 show the designation wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DESIGNATION
S. NO
DESIGNATION
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
5
17%
2
DATA ENTRY OPERATOR EXECUTIVE
14
47%
3
TEAM LEADER
6
20%
4
MANAGER
2
6%
5
TELECALLER
3
10%
TOTAL
30
100
INFERENCE:
The above table showing that 17% of the respondents were data entry operator, 47% of the respondents were executive, 20% of the respondents were team leader, 6% of the respondents were manager and 10% of the respondents were telecaller.
38
FIGURE FIGURE NO NO 4.1.5 4.1.5 CLASSFICATION OF TH
RESPONDE RESPONDENTS NTS ON THE BASIS OF D SIGNATION
47
50 45 40 35 30 25 20
20 17
15
10
10
6
5 0 Data entry operator
Executive
Team leader
Manager
Tel caller
INFERENCE:
The above table showing tha t 17% of the respondents were data entry o erator, erator, 47% of the res respond pondeents nts were ere exec xecutiv utivee, 2 0% of the respondents were team leader, 6% of the respondents were manager and 10% of the respondents were telecaller.
39
TABLE: TABLE: 4.1.6 CLASSFICA CLASSFICATION TION OF OF THE THE RESPONDE RESPONDENTS NTS ON THE BASIS BASIS OF OF LEVEL OF EXPERIENCE
Table Table:: 4.1.6 4.1.6 show show the experience wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EXPERIENCE
S. NO
EXPERIENCE
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
LESS THAN 1
9
30%
2
1-2
6
20%
3
2-3
8
27%
4
MORE THAN 3
7
23%
TOTAL
30
100
INFERENCE:
The above above table table showin showing g that that 30% of the respon responden dents ts were were with with less less than than 1yr 1yr expe experie rience nce,, 20% of the responde respondents nts were with 1-2yrs 1-2yrs experience experience,, 27% of the respondents respondents were were with 23yrs experience and 23% of the respondents were with more than 3yrs experience.
40
FIGURE FIGURE NO NO 4.1.6 4.1.6 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EXPERIENCE
Experience
23 30 Less than 1 1 - 2yrs 2 - 3yrs More than 3 27 20
INFERENCE:
The above above table table showin showing g that that 30% of the the res respon ponden dents ts were were with with less less than than 1yr 1yr experi experien ence, ce, 20% of the respon responden dents ts were with 1-2yrs 1-2yrs experienc experience, e, 27% of the respo responden ndents ts were were with 23yrs experience and 23% of the respondents were with more than 3yrs experience.
41
TABLE: 4.1.7 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF INCOME
Table: 4.1.7 show the income wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF INCOME
S. NO
INCOME
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
5k - 8k
7
23%
2
8k - 10k
13
43%
3
10k - 15k
6
20%
4
ABOVE 15k
4
14%
TOTAL
30
100
INFERENCE:
The above table showing that 23% of the respondents were paid 5k-8k, 43% of the respondents were paid 8k-10k, 20% of the respondents were paid 10k-15k and 14% of the respondents were paid above 15k.
42
FIGURE NO 4.1.7 CLASSFICATION OF TH INCOME
RESPONDENTS ON THE BASIS OF L VEL OF
45 40 35 30 25
Income
43
20 15
23
20
10
14
5 0 5k-8k
8k-10k
10k-15k
Above 15k
INFERENCE:
The above table showing t hat 23% of the respondents were paid 5 k-8k, 43% of the respondents were paid 8k-10 k, 20% of the respondents were paid 10k-1 5k and 14% of the respondents were paid above 15k.
43
TABLE: 4.1.8 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF MARITAL STATUS
Table: 4.1.8 show the marital status wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF MARITAL STATUS
S. NO
MARITAL STATUS
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
SINGLE
14
47%
2
MARRIED
9
30%
3
WIDOWED
4
13%
3
10%
30
100
4
SEPARATED/ DIVORCED TOTAL
INFERENCE:
The above table showing that 47% of the respondents were single, 30% of the respondents were married, 13% of the respondents were widowed and 10% of the respondents were separated/ divorced.
44
FIGURE NO 4.1.8 CLASSFICATION OF TH STATUS
RESPONDENTS ON THE BASIS OF M ARITAL
Separated/ Divorced
10
Widowed
13 Marital status
Married
30
Single
47 0
10
20
30
40
50
INFERENCE:
The above table showing tha t 47% of the respondents were single, 30% of the respondents were married, 13% of the r spondents were widowed and 10% of the respondents were separated/ divorced.
45
TABLE: 4.1.9 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM
Table: 4.1.9 show the level of effectiveness of reward system wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM
S. NO
LEVEL OF EFFECTIVENESS OF REWARD SYSTEM
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
HIGHLY INEFFECTIVE INEFFECTIVE
2
7%
3
NEITHER NOR
9
30%
4
EFFECTIVE
5
17%
5
HIGHLY EFFECTIVE
14
46%
TOTAL
30
100
INFERENCE:
The above table showing that 7% of the respondents were said ineffective, 30% of the respondents were said neither effective nor ineffective, 17% of the respondents were said effective and 46% of the respondents were said highly effective regarding to the reward system.
46
FIGURE NO 4.1.9 CLASSFICATION OF TH EFFECTIVENESS OF RE
RESPONDENTS ON THE BASIS OF L VEL OF ARD SYSTEM
100% 90% 80% 70% 60% 7
50%
30
17
46
40%
Effectiveness of reward system
30% 20% 10% 0%
0
INFERENCE:
The above table showing th at 7% of the respondents were said ineff ctive, 30% of the respondents were said neither effective nor ineffective, 17% of the res ondents were said effective and 46% of the respondents were said highly effective regar ing to the reward system.
47
TABLE: 4.1.10 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF RANK OF EFFECTIVENESS OF REWARD SYSTEM
Table: 4.1.10 show the rank of effectiveness of reward system wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF RANK OF EFFECTIVENESS OF REWARD SYSTEM
S. NO
RANK OF EFFECTIVENESS OF REWARD SYSTEM
MEAN VALUES
1
VERBAL & WRITTEN RECOGNITION
5.53
2
WORK RELATED RECOGNITION
4.88
3
FINANCIAL RECOGNITION
4.33
4
SYMBOLIC RECOGNITION
7.53
5
TANGIBLE RECOGNITION
7.73
TOTAL
30
INFERENCE:
The above table showing that 5.53 of the respondents were said verbal & written recognition, 4.88 of the respondents were said work related recognition, 4.33 of the respondents were said financial recognition, 7.53 of the respondents were said symbolic recognition and 7.73 of the respondents were said tangible recognition regarding to the rank of effectiveness of reward system.
48
TABLE: 4.1.11 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY VERBAL & WRITTEN RECOGNITION
Table: 4.1.11 show the level of effectiveness of reward system on productivity - Verbal & written recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - VERBAL & WRITTEN RECOGNITION
S. NO
LEVEL OF EFFECTIVENESS ON PRODUCTIVITY
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
HIGHLY INEFFECTIVE INEFFECTIVE
5
17%
3
NEUTRAL
6
20%
4
EFFECTIVE
8
27%
5
HIGHLY EFFECTIVE
11
36%
TOTAL
30
100
INFERENCE:
The above table showing that 17% of the respondents were said ineffective, 20% of the respondents were said neutral, 27% of the respondents were said effective and 36% of the respondents were said highly effective regarding to the reward system on productivity with verbal & written recognition.
49
FIGURE NO 4.1.10 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - VERBAL & WRITTEN RECOGNITION
Highly effective
36
Effective
27
Neutral
20
Ineffective
Verbal & written recognition
17
Highly ineffective 0
0
10
20
30
40
INFERENCE:
The above table showing that 17% of the respondents were said ineffective, 20% of the respondents were said neutral, 27% of the respondents were said effective and 36% of the respondents were said highly effective regarding to the reward system on productivity with verbal & written recognition.
50
TABLE: 4.1.12 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY WORK RELATED RECOGNITION
Table: 4.1.12 show the level of effectiveness of reward system on productivity - Work related recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - WORK RELATED RECOGNITION
S. NO
LEVEL OF EFFECTIVENESS ON PRODUCTIVITY
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
HIGHLY INEFFECTIVE INEFFECTIVE
6
20%
3
NEUTRAL
5
17%
4
EFFECTIVE
10
33%
5
HIGHLY EFFECTIVE
9
30%
TOTAL
30
100
INFERENCE:
The above table showing that 20% of the respondents were said ineffective, 17% of the respondents were said neutral, 33% of the respondents were said effective and 30% of the respondents were said highly effective regarding to the reward system on productivity with work related recognition.
51
FIGURE NO 4.1.11 CLASSFICATION OF TH RESPONDENTS ON THE BASIS OF L VEL OF EFFECTIVENESS OF RE ARD SYSTEM ON PRODUCTIVITY - ORK RELATED RECOGNITIO
30
Highly effective
33
Effective
17
Neutral
20
Ineffective
Highly ineffective
Work rel ted recognition
0
0
10
20
30
40
INFERENCE:
The above table showing th t 20% of the respondents were said ineff ctive, 17% of the respondents were said neutra l, 33% of the respondents were said effecti ve and 30% of the respondents were said highly effective regarding to the reward system o productivity with work related recognition.
52
TABLE: 4.1.13 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY FINANCIAL RECOGNITION
Table: 4.1.13 show the level of effectiveness of reward system on productivity - Financial recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - FINANCIAL RECOGNITION
S. NO
LEVEL OF EFFECTIVENESS ON PRODUCTIVITY
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
HIGHLY INEFFECTIVE INEFFECTIVE
4
13%
3
NEUTRAL
7
24%
4
EFFECTIVE
10
33%
5
HIGHLY EFFECTIVE
9
30%
TOTAL
30
100
INFERENCE:
The above table showing that 13% of the respondents were said ineffective, 24% of the respondents were said neutral, 33% of the respondents were said effective and 30% of the respondents were said highly effective regarding to the reward system on productivity with financial recognition.
53
FIGURE NO 4.1.12 CLASSFICATION OF TH EFFECTIVENESS OF RE RECOGNITION
RESPONDENTS ON THE BASIS OF L VEL OF ARD SYSTEM ON PRODUCTIVITY - INANCIAL
35 30
33
25
30
24
20 15
13
10 5 0
Fina cial recognition 0
INFERENCE:
The above table showing that 13% of the respondents were said ineffective , 24% of the respondents were said neutral , 33% of the respondents were said effective and 30% of the respondents were said highly effective regarding to the reward system on roductivity with financial recognition.
54
TABLE: 4.1.14 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY SYMBOLIC RECOGNITION
Table: 4.1.14 show the level of effectiveness of reward system on productivity - Symbolic recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - SYMBOLIC RECOGNITION
S. NO
LEVEL OF EFFECTIVENESS ON PRODUCTIVITY
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
HIGHLY INEFFECTIVE INEFFECTIVE
3
10%
3
NEUTRAL
8
27%
4
EFFECTIVE
10
33%
5
HIGHLY EFFECTIVE
9
30%
TOTAL
30
100
INFERENCE:
The above table showing that 10% of the respondents were said ineffective, 27% of the respondents were said neutral, 33% of the respondents were said effective and 30% of the respondents were said highly effective regarding to the reward system on productivity with symbolic recognition.
55
FIGURE NO 4.1.13 CLASSFICATION OF TH EFFECTIVENESS OF RE RECOGNITION
RESPONDENTS ON THE BASIS OF L VEL OF ARD SYSTEM ON PRODUCTIVITY - YMBOLIC
35
33
30
30
27
25 20 15
10
10 5
Sym olic recognition
0
0
INFERENCE:
The above table showing that 10% of the respondents were said ineffective , 27% of the respondents were said neutral , 33% of the respondents were said effective and 30% of the respondents were said highly effective regarding to the reward system on roductivity with symbolic recognition.
56
TABLE: 4.1.15 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY TANGIBLE RECOGNITION
Table: 4.1.15 show the level of effectiveness of reward system on productivity - Tangible recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - TANGIBLE RECOGNITION
S. NO
LEVEL OF EFFECTIVENESS ON PRODUCTIVITY
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
HIGHLY INEFFECTIVE INEFFECTIVE
3
10%
3
NEUTRAL
12
40%
4
EFFECTIVE
8
27%
5
HIGHLY EFFECTIVE
7
23%
TOTAL
30
100
INFERENCE:
The above table showing that 10% of the respondents were said ineffective, 40% of the respondents were said neutral, 27% of the respondents were said effective and 23% of the respondents were said highly effective regarding to the reward system on productivity with tangible recognition.
57
FIGURE NO 4.1.14 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - TANGIBLE RECOGNITION 45 40
40
35 30 27
25
23 20
Tangible recognition
15 10
10
5 0
0 Highly ineffective
Ineffective
Neutral
Effective
Highly effective
INFERENCE:
The above table showing that 10% of the respondents were said ineffective, 40% of the respondents were said neutral, 27% of the respondents were said effective and 23% of the respondents were said highly effective regarding to the reward system on productivity with tangible recognition.
58
TABLE: 4.1.16 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - VERBAL & WRITTEN RECOGNITION
Table: 4.1.16 show the effectiveness of reward system on performance - Verbal & written recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFROMANCE - VERBAL & WRITTEN RECOGNITION
S. NO
PERFORM WELL IF REWARDED WITH VERBAL & WRITTEN RECOGNITION STRONGLY DISAGREE
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
0
0%
2
DISAGREE
4
13%
3
NEUTRAL
9
30%
4
AGREE
8
27%
5
STRONGLY AGREE
9
30%
TOTAL
30
100
1
INFERENCE:
The above table showing that 13% of the respondents were said disagree, 30% of the respondents were said neutral, 27% of the respondents were said agree and 30% of the respondents were said strongly agree regarding to the reward s ystem on performance with verbal & written recognition.
59
FIGURE NO 4.1.15 CLASSFICATION OF TH OF REWARD SYSTEM O RECOGNITION
RESPONDENTS ON THE BASIS OF E FECTIVENESS PERFORMANCE - VERBAL & WRIT EN
30 25 20 30
15
30 27
Verbal & wri ten recognition
10 13 5 0
0 Strongly disagree
Disagree
Neutral
Agree
Strongly agree
INFERENCE:
The above table showing that 13% of the respondents were said disagree, 0% of the respondents were said neutral , 27% of the respondents were said agree and 30% of the respondents were said strongl y agree regarding to the reward system on pe rformance with verbal & written recognition.
60
TABLE: 4.1.17 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - WORK RELATED RECOGNITION
Table: 4.1.17 show the effectiveness of reward system on performance - Work related recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFROMANCE - WORK RELATED RECOGNITION
S. NO
PERFORM WELL IF REWARDED WITH WORK RELATED RECOGNITION STRONGLY DISAGREE
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
0
0%
2
DISAGREE
4
13%
3
NEUTRAL
5
17%
4
AGREE
11
37%
5
STRONGLY AGREE
10
33%
TOTAL
30
100
1
INFERENCE:
The above table showing that 13% of the respondents were said disagree, 17% of the respondents were said neutral, 37% of the respondents were said agree and 33% of the respondents were said strongly agree regarding to the reward s ystem on performance with work related recognition.
61
FIGURE NO 4.1.16 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - WORK RELATED RECOGNITION
40 35 30 25 20
37 33
15 10 5 0 0 Strongly disagree
Work related recognition
17 13
Disagree
Neutral
Agree
Strongly agree
INFERENCE:
The above table showing that 13% of the respondents were said disagree, 17% of the respondents were said neutral, 37% of the respondents were said agree and 33% of the respondents were said strongly agree regarding to the reward s ystem on performance with work related recognition.
62
TABLE: 4.1.18 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - FINANCIAL RECOGNITION
Table: 4.1.18 show the effectiveness of reward system on performance - Financial recognition wise classification of the respondents. CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS OF REWARD SYSTEM ON PERFROMANCE - FINANCIAL RECOGNITION
S. NO
PERFORM WELL IF REWARDED WITH FINANCIAL RECOGNITION
NO. OF RESPONDENTS
PERCENTAGE OF RESPONDENTS
1
0
0%
2
STRONGLY DISAGREE DISAGREE
5
17%
3
NEUTRAL
7
23%
4
AGREE
9
30%
5
STRONGLY AGREE
9
30%
TOTAL
30
100
INFERENCE:
The above table showing that 17% of the respondents were said disagree, 23% of the respondents were said neutral, 30% of the respondents were said agree and 30% of the respondents were said strongly agree regarding to the reward s ystem on performance with financial recognition.
63
FIGURE NO 4.1.17 CLASSFICATION OF TH OF REWARD SYSTEM O
RESPONDENTS ON THE BASIS OF E FECTIVENESS PERFORMANCE - FINANCIAL REC GNITION
30
30
30
23
25
20
17
15
Fina cial recognition
10
5 0 0 Strongly disagree
Disagree
Neutral
Agree
Strongly agree
INFERENCE:
The above table showing that 17% of the respondents were said disagree, 3% of the respondents were said neutral , 30% of the respondents were said agree and 30% of the respondents were said strongl y agree regarding to the reward system on pe rformance with financial recognition.
64
4.2 WEIGHTED AVERAGE ANALYSIS
An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average. FORMULA:
∑
=
FIGURE 4.2.1 WEIGHTED AVERAGE RANKED TOWARDS THE EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY FACTORS
VERBAL
WORK
FINANCIAL
SYMBOLIC
TANGIBLE
&WRITTEN
RELATED
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
W
X
WX
W
X
WX
W
X
WX
W
X
WX
W
X
WX
HI
9
5
45
3
5
15
2
5
10
6
5
30
10
5
50
I
2
4
8
5
4
20
6
4
24
9
4
36
8
4
32
N
4
3
12
5
3
15
2
3
6
10
3
30
9
3
27
E
8
2
16
10
2
20
9
2
18
2
2
4
1
2
2
HE
7
1
7
7
1
7
11
1
11
3
1
3
2
1
2
TOTAL
30
15
88
30
15
77
30
15
63
30
15
103
30
15
111
WEIGHTED
5.87
5.13
3
2
4.2
6.87
7.4
4
5
AVERAGE RANK
1
INFERENCE:
It is inferred that the highest rank is given to financial recognition and the least rank is given to tangible recognition with respect to effectiveness of reward system on productivity.
65
FIGURE 4.2.2 WEIGHTED AVERAGE RANKED TOWARDS THE EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE
FACTORS
PERFORM WELL IF
PERFORM WELL
PERFORM WELL
PERFORM NOT
PERFORM NOT
REWARDED WITH
IF REWARDED
IF REWARDED
WELL IF
WELL IF
VERBAL &WRITTEN WITH WORK
WITH
REWARDED
REWARDED
RECOGNITION
RELATED
FINANCIAL
WITH SYMBOLIC
WITH TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
W
X
WX
W
X
WX
W
X
WX
W
X
WX
W
X
WX
SD
9
5
45
3
5
15
2
5
10
6
5
30
10
5
50
D
2
4
8
5
4
20
6
4
24
9
4
36
8
4
32
N
4
3
12
5
3
15
2
3
6
10
3
30
9
3
27
A
8
2
16
10
2
20
9
2
18
2
2
4
1
2
2
SA
7
1
7
7
1
7
11
1
11
3
1
3
2
1
2
TOTAL
30
15
88
30
15
70
30
15
69
30
15
104
30
15
113
WEIGHTED
5.87
4.67
4.6
6.93
7.53
3
2
1
4
5
AVERAGE RANK
INFERENCE:
It is inferred that the highest rank is given to financial recognition and the least rank is given to tangible recognition with respect to effectiveness of reward system on performance.
66
FIGURE 4.2.3 WEIGHTED AVERAGE RANKED TOWARDS THE EFFECTIVENESS OF REWARD SYSTEM ON WORK EFFORTS
FACTORS
VERBAL &WRITTEN WORK RELATED
FINANCIAL
SYMBOLIC
TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
W
X
WX
W
X
WX
W
X
WX
W
X
WX
W
X
WX
HI
4
5
20
3
5
15
3
5
15
9
5
45
11
5
55
I
7
4
28
4
4
16
4
4
16
7
4
28
8
4
32
N
7
3
21
6
3
18
3
3
9
8
3
24
6
3
18
E
4
2
8
8
2
16
9
2
18
5
2
10
4
2
8
HE
8
1
8
9
1
9
11
1
11
1
1
1
1
1
1
TOTAL
30
15
85
30
15
74
30
15
69
30
15
108
30
15
117
WEIGHTED
5.67
4.93
4.5
7.2
7.8
3
2
1
4
5
AVERAGE RANK
INFERENCE:
It is inferred that the highest rank is given to financial recognition and the least rank is given to tangible recognition with respect to effectiveness of reward system on work efforts.
67
FIGURE 4.2.4 WEIGHTED AVERAGE RANKED TOWARDS THE EFFECTIVENESS OF REWARD SYSTEM ON JOB SATISFACTION
FACTORS
VERBAL &WRITTEN WORK RELATED
FINANCIAL
SYMBOLIC
TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
W
X
WX
W
X
WX
W
X
WX
W
X
WX
W
X
WX
VL
9
5
45
3
5
15
2
5
10
6
5
30
10
5
50
L
2
4
8
5
4
20
6
4
24
9
4
36
8
4
32
M
4
3
12
5
3
15
2
3
6
10
3
30
9
3
27
H
8
2
16
10
2
20
9
2
18
2
2
4
1
2
2
VH
7
1
7
7
1
7
11
1
11
3
1
3
2
1
2
TOTAL
30
15
88
30
15
72
30
15
69
30
15
103
30
15
113
WEIGHTED
5.87
4.8
4.6
6.87
7.53
3
2
1
4
5
AVERAGE RANK
INFERENCE:
It is inferred that the highest rank is given to financial recognition and the least rank is given to tangible recognition with respect to effectiveness of reward system on job satisfaction.
68
FIGURE 4.2.5 WEIGHTED AVERAGE RANKED TOWARDS THE EFFECTIVENESS OF REWARD SYSTEM ON MOTIVATION
FACTORS
GET MOTIVATED
NOT MOTIVATED NOT MOTIVATED
VERBAL &WRITTEN WORK RELATED
FINANCIAL
SYMBOLIC
TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
W
X
WX
W
X
WX
W
X
WX
W
X
WX
W
X
WX
SD
4
5
20
3
5
15
3
5
15
9
5
45
11
5
55
D
7
4
28
4
4
16
4
4
16
7
4
28
8
4
32
N
7
3
21
6
3
18
3
3
9
8
3
24
6
3
18
A
4
2
8
8
2
16
9
2
18
5
2
10
4
2
8
SA
8
1
8
9
1
9
11
1
11
1
1
1
1
1
1
TOTAL
30
15
85
30
15
74
30
15
69
30
15
110
30
15
114
WEIGHTED
GET MOTIVATED
GET MOTIVATED
5.67
4.93
4.6
7.3
7.6
3
2
1
4
5
AVERAGE RANK
INFERENCE:
It is inferred that the highest rank is given to financial recognition and the least rank is given to tangible recognition with respect to effectiveness of reward system on motivation.
69
4.3 CHI – SQUARE
A chi-squared test, also referred to as test (or chi-square test), is any st atistical hypothesis test in which the sampling distribution of the test statistic is a chi-squar distribution when the null hypothesis is true. Chi-squared tests are often constructed from a sum of squared errors, or through the sampl variance. A chi-squared test can then be used to reject the hypothesis that the data are in dependent. CHI - SQUARE 4.3.1 CHI-SQUARE ANALYSI BETWEEN AGE AND THE EFFE CTIVENESS OF TANGIBLE RECOGNITI N ON WORK EFFORTS
Table: 4.3.1.1 show the comp arison between age and the effectiveness of t angible recognition on work efforts.
Table 4.3.1.1 Cross tabulation between
ge and the effectiveness of tangible recognition on work
efforts. Highly Effectiveness of tangible recognition
Ineffective
Neutral
Effective
ineffective
Highl
Total
effective
Age 18-23
0
1
2
2
4
9
24-29
0
0
3
1
2
6
30-35
0
1
3
0
3
7
36-41
0
0
0
1
3
4
42 & above 0
0
1
1
2
4
2
9
5
14
30
42 Total
0
Source: Primary data
70
The table above shows that among the 30 respondents, who 9 are belong to the age group of 18-23, 6 respondents belong to 24-29, 7 respondents belong to the age group of 30-35, 4 respondents belong to the age group of 36-41 and 4 respondents belong to the age group of 42 and above 42 in age group. In order to examine the formulated null hypothesis that there is no significant relationship between the age and the effectiveness of tangible recognition on work efforts,
test was
employed. The computed results are given in Table 4.3.1.2 H0 – There is no relationship between age and the effectiveness of tangible recognition on work efforts.
Table 4.3.1.2 Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
26.296
16
.000
Significant at 5% level
Degrees of Freedom = (R-1) (C-1) = (5-1) (5-1) = (4) (4) = 16. 10.02 < 26.296
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 26.296 which is greater than calculated value 8.56. Therefore, the null hypothesis is rejected. Hence there is a significant association between age and the effectiveness of tangible recognition on work efforts.
71
CHI - SQUARE 4.3.2 CHI-SQUARE ANALYSIS BETWEEN EDUCATIONAL QUALIFICATION AND THE EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.2.1 show the comparison between educational qualification and the effectiveness of tangible recognition on work efforts.
Table 4.3.2.1 Cross tabulation between educational qualification and the effectiveness of tangible recognition on work efforts. Highly
Ineffective
Neutral
Effective
Effectiveness of ineffective tangible recognition
Highly
Total
effective
Education Diploma
0
1
2
2
4
9
UG
0
0
3
1
2
6
PG
0
1
3
0
3
7
Ph.d
0
0
0
1
3
4
Others
0
0
1
1
2
4
Total
0
2
9
5
14
30
Source: Primary data
72
The table above shows that among the 30 respondents, who 9 are belong to diploma, 6 respondents belong to UG, 7 respondents belong to PG, 4 respondents belong to Ph.d and 4 respondents belong to others in educational qualification. In order to examine the formulated null hypothesis that there is no significant relationship between the educational qualification and the effectiveness of tangible recognition on work efforts,
test was employed. The computed results are given in Table 4.3.2.2
H0 – There is no relationship between educational qualification and the effectiveness of tangible recognition on work efforts.
Table 4.3.2.2 Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
26.296
16
.000
Significant at 5% level
Degrees of Freedom = (R-1) (C-1) = (5-1) (5-1) = (4) (4) = 16. 10.71 < 26.296
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 26.296 which is greater than calculated value 8.56. Therefore, the null hypothesis is rejected. Hence there is a significant association between educational qualification and the effectiveness of tangible recognition on work efforts.
73
CHI - SQUARE 4.3.3 CHI-SQUARE ANALYSIS BETWEEN DEPARTMENT AND THE EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.3.1 show the comparison between department and the effectiveness of tangible recognition on work efforts.
Table 4.3.3.1 Cross tabulation between department and the effectiveness of tangible recognition on work efforts. Highly
Ineffective
Neutral
Effective
Effectiveness of ineffective tangible recognition
Highly
Total
effective
Department Admin
0
1
2
2
4
9
Business
0
0
3
1
2
6
HR
0
1
4
0
3
8
Others
0
0
0
2
5
7
Total
0
2
9
5
14
30
Development
Source: Primary data
74
The table above shows that among the 30 respondents, who 9 are belong to admin, 6 respondents belong to business development, 8 respondents belong to HR and 7 respondents belong to others in department. In order to examine the formulated null hypothesis that there is no significant relationship between the department and the effectiveness of tangible recognition on work efforts,
test
was employed. The computed results are given in Table 4.3.3.2 H0 – There is no relationship between department and the effectiveness of tangible recognition on work efforts.
Table 4.3.3.2 Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at 5% level
Degrees of Freedom = (R-1) (C-1) = (4-1) (5-1) = (3) (4) = 12. 10.24 < 21.026
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 21.026 which is greater than calculated value 10.24. Therefore, the null hypothesis is rejected. Hence there is a significant association between department and the effectiveness of tangible recognition on work efforts.
75
CHI - SQUARE 4.3.4 CHI-SQUARE ANALYSIS BETWEEN EXPERIENCE AND THE EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.4.1 show the comparison between experience and the effectiveness of tangible recognition on work efforts.
Table 4.3.4.1 Cross tabulation between experience and the effectiveness of tangible recognition on work efforts. Highly
Ineffective
Neutral
Effective
Effectiveness of ineffective tangible recognition
Highly
Total
effective
Experience Less than 1yr
0
1
2
2
4
9
1-2yrs
0
0
3
1
2
6
2-3yrs
0
1
4
0
3
8
More than 3yrs
0
0
0
2
5
7
Total
0
2
9
5
14
30
Source: Primary data
76
The table above shows that among the 30 respondents, who 9 are belong to less than 1yr, 6 respondents belong to 1-2yrs, 8 respondents belong to 2-3yrs and 7 respondents belong to more than 3yrs in experience. In order to examine the formulated null hypothesis that there is no significant relationship between the experience and the effectiveness of tangible recognition on work efforts,
test
was employed. The computed results are given in Table 4.3.4.2 H0 – There is no relationship between experience and the effectiveness of tangible recognition on work efforts.
Table 4.3.4.2 Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at 5% level
Degrees of Freedom = (R-1) (C-1) = (4-1) (5-1) = (3) (4) = 12. 9.099 < 21.026
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 21.026 which is greater than calculated value 9.099. Therefore, the null hypothesis is rejected. Hence there is a significant association between experience and the effectiveness of tangible recognition on work efforts.
77
CHI - SQUARE 4.3.5 CHI-SQUARE ANALYSIS BETWEEN INCOME AND THE EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.5.1 show the comparison between income and the effectiveness of tangible recognition on work efforts.
Table 4.3.5.1 Cross tabulation between income and the effectiveness of tangible recognition on work efforts. Highly
Ineffective
Neutral
Effective
Effectiveness of ineffective tangible recognition
Highly
Total
effective
Income 5k-8k
0
1
2
2
4
9
8k-10k
0
0
3
1
2
6
10k-15k
0
1
4
0
3
8
Above 15k
0
0
0
2
5
7
Total
0
2
9
5
14
30
Source: Primary data
78
The table above shows that among the 30 respondents, who 9 are belong to 5k-8k, 6 respondents belong to 8k-10k, 8 respondents belong to 10k-15k and 7 respondents belong to above 15k in their income level. In order to examine the formulated null hypothesis that there is no significant relationship between the income and the effectiveness of tangible recognition on work efforts,
test
was employed. The computed results are given in Table 4.3.5.2 H0 – There is no relationship between income and the effectiveness of tangible recognition on work efforts.
Table 4.3.5.2 Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at 5% level
Degrees of Freedom = (R-1) (C-1) = (4-1) (5-1) = (3) (4) = 12. 8.56 < 21.026
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 21.026 which is greater than calculated value 10.24. Therefore, the null hypothesis is rejected. Hence there is a significant association between income and the effectiveness of tangible recognition on work efforts.
79
CHI - SQUARE 4.3.6 CHI-SQUARE ANALYSIS BETWEEN MARITAL STATUS AND EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
THE
Table: 4.3.6.1 show the comparison between marital status and the effectiveness of tangible recognition on work efforts.
Table 4.3.6.1 Cross tabulation between marital status and the effectiveness of tangible recognition on work efforts. Highly
Ineffective
Neutral
Effective
Effectiveness of ineffective tangible recognition
Highly
Total
effective
Marital Status Single
0
1
2
2
4
9
Married
0
0
3
1
2
6
Widowed
0
1
4
0
3
8
Separated/
0
0
0
2
5
7
0
2
9
5
14
30
Divorced Total
Source: Primary data
80
The table above shows that among the 30 respondents, who 9 are belong to single, 6 respondents belong to married, 8 respondents belong to widowed and 7 respondents belong to separated/ divorced in their marital status. In order to examine the formulated null hypothesis that there is no significant relationship between the marital status and the effectiveness of tangible recognition on work efforts, test was employed. The computed results are given in Table 4.3.6.2 H0 – There is no relationship between marital status and the effectiveness of tangible recognition on work efforts.
Table 4.3.6.2 Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at 5% level
Degrees of Freedom = (R-1) (C-1) = (4-1) (5-1) = (3) (4) = 12. 8.56 < 21.026
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 21.026 which is greater than calculated value 8.56. Therefore, the null hypothesis is rejected. Hence there is a significant association between marital status and the effectiveness of tangible recognition on work efforts.
81
4.4 ONE WAY ANOVA
One way ANOVA technique is used when the data are classified on the basis of two factors. One way design may have repeated measurements of each factor or may not have repeated values. ONE WAY ANOVA 4.4.1 One way ANOVA between age of the respondents and their effectiveness towards productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards productivity does not vary with age. Table 4.4.1
One way ANOVA between age of the respondents and effectiveness towards productivity Source of variation
Sum of squares
df
Mean square
F
Critical value F(at 5%) (from the F-table)
Between columns
22.5
4
5.625
5.357
6.39
Between rows
4.2
4
1.05
Total
26.7
8
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial recognition towards productivity among different age of the respondents at 5% level. This finding indicates that the effectiveness of financial recognition towards productivity do vary with their age at 5%.
82
ONE WAY ANOVA 4.4.2 One way ANOVA between educational qualification of the respondents and their effectiveness towards productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards productivity does not vary with educational qualification. Table 4.4.2
One way ANOVA between educational qualification of the respondents and effectiveness towards productivity
Source of variation
Sum of squares
df
Mean square
F
Critical value F(at 5%) (from the F-table)
Between columns
20.5
4
5.125
4.270
6.39
Between rows
4.8
4
1.2
Total
24.7
8
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial recognition towards productivity among different educational qualification of the respondents at 5% level. This finding indicates that the effectiveness of financial recognition towards productivity do vary with their educational qualification at 5%.
83
ONE WAY ANOVA 4.4.3 One way ANOVA between department of the respondents and their effectiveness towards productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards productivity does not vary with department. Table 4.4.3
One way ANOVA between department of the respondents and effectiveness towards productivity
Source of variation
Sum of squares
df
Mean square
F
Critical value F(at 5%) (from the F-table)
Between columns
18.3
3
6.1
4.784
6.59
Between rows
5.1
4
1.275
Total
23.4
7
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial recognition towards productivity among different department of the respondents at 5% level. This finding indicates that the effectiveness of financial recognition towards productivity do vary with their department at 5%.
84
ONE WAY ANOVA 4.4.4 One way ANOVA between experience of the respondents and their effectiveness towards productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards productivity does not vary with experience. Table 4.4.4
One way ANOVA between experience of the respondents and effectiveness towards productivity
Source of variation
Sum of squares
Df
Mean square
F
Critical value F(at 5%) (from the F-table)
Between columns
23.4
3
7.8
6.36
6.59
Between rows
4.9
4
1.225
Total
28.3
7
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial recognition towards productivity among different experience of the respondents at 5% level. This finding indicates that the effectiveness of financial recognition towards productivity do vary with their experience at 5%.
85
ONE WAY ANOVA 4.4.5 One way ANOVA between income of the respondents and their effectiveness towards productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards productivity does not vary with income. Table 4.4.5
One way ANOVA between income of the respondents and effectiveness towards productivity
Source of variation
Sum of squares
Df
Mean square
F
Critical value F(at 5%) (from the F-table)
Between columns
25.4
3
8.47
6.27
6.59
Between rows
5.4
4
1.35
Total
30.8
7
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial recognition towards productivity among different income of the respondents at 5% level. This finding indicates that the effectiveness of financial recognition towards productivity do vary with their income at 5%.
86
ONE WAY ANOVA 4.4.6 One way ANOVA between marital status of the respondents and their effectiveness towards productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards productivity does not vary with marital status. Table 4.4.6
One way ANOVA between marital status of the respondents and effectiveness towards productivity
Source of variation
Sum of squares
Df
Mean square
F
Critical value F(at 5%) (from the F-table)
Between columns
21.4
3
7.13
5.48
6.59
Between rows
5.2
4
1.3
Total
26.6
7
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial recognition towards productivity among different marital status of the respondents at 5% level. This finding indicates that the effectiveness of financial recognition towards productivity do vary with their marital status at 5%.
87
CHAPTER V 5.1 FINDINGS: Percentage analysis: 33% of the respondents are between the age group of 24-29. 60% of the respondents are female candidates and 40% of the respondents are male. 36% of the respondents are PG holder. 47% of the respondents are in the department of HR. 47% of the respondents are in the designation of executive. 30% of the respondents are having less than 1 year experience. 43% of the respondents are getting income in the range of 8k-10k. 47% of the respondents are single in their marital status. 46% of the respondents are choosing highly effective in the level of effectiveness of
reward system. 36% of the respondents are choosing highly effective in the level of effectiveness of
verbal & written recognition with respect to productivity. 33% of the respondents are choosing effective in the level of effectiveness of work
related recognition with respect to productivity. 30% of the respondents are choosing agree and strongly agree if they are rewarded
with financial recognition with respect to performance. 37% of the respondents are choosing neutral in the level of effectiveness of tangible
recognition with respect to work efforts. 37% of the respondents are choosing high in the level of effectiveness of work related
recognition with respect to job satisfaction. 30% of the respondents are choosing neutral when they are not getting symbolic
recognition with respect to motivation
Weighted average method: On the basis of weighted average, highest rank is given to financial recognition with
respect to productivity. On the basis of weighted average, the second highest rank is given to work related
recognition with respect to performance.
88
On the basis of weighted average, least rank is given to tangible recognition with
respect to work efforts. On the basis of weighted average, highest rank is given to financial recognition with
respect to job satisfaction. On the basis of weighted average, least rank is given to tangible recognition with
respect to motivation.
Chi-square test: There is a significant association between age and the effectiveness of tangible
recognition on work efforts. There is a significant association between educational qualification and the
effectiveness of tangible recognition on work efforts. There is a significant association between department and the effectiveness of tangible
recognition on work efforts. There is a significant association between experience and the effectiveness of tangible
recognition on work efforts. There is a significant association between income and the effectiveness of tangible
recognition on work efforts. There is a significant association between marital status and the effectiveness of
tangible recognition on work efforts.
One way anova: There is a significant difference financial recognition towards productivity among
different age of the respondents at 5% level. There is a significant difference financial recognition towards productivity among
different educational qualification of the respondents at 5% level. There is a significant difference financial recognition towards productivity among
different department of the respondents at 5% level. There is a significant difference financial recognition towards productivity among
different experience of the respondents at 5% level. There is a significant difference financial recognition towards productivity among
different income of the respondents at 5% level. There is a significant difference financial recognition towards productivity among
different marital status of the respondents at 5% level. 89
5.2 SUGGESTIONS:
•
According to the study, it is important to get praise as part of a team that successfully meets goals and quotas, everyone needs to be recognized for their individual accomplishments by the people around them – and above them. Anticipating that they will be recognized for completing a task well is strong motivation and job satisfaction for an individual to “go the extra mile.”
•
According to the age, educational qualification and marital status of the respondents, the management can fix the target in order to increase the level of productivity and performance. If the financial recognition can be changed to fixed amount + variable amount, it will have great impact on productivity. Variable amount may vary with respect to the target percentage they achieved. (More than 100%)
•
According to the department, experience and income of the respondents, the management can give out gold coins for a job well done. And for once a year, have a “Staff Appreciation Day” where the managers supply, cook and serve food. Also post a large “celebration calendar” in the work area. Tack on notes of recognition to specific dates. Can also send birthday cards to employees homes, signed by HR(Generalist) or director.
•
Providing positive recognition and financial recognition of an accomplishment serves to raise individual productivity, performance, work efforts, job satisfaction, motivation, selfesteem, reinforce their value to the organization, improve their self-image and encourage them to accomplish even greater results in the future.
•
The management can improve work efforts by planning a surprise picnic, creating a hall of fame wall with photos of outstanding employees, making a photo collage about a successful project that shows the people that worked on it, its stage of development and its completion and presentation, find out the person's hobby and buy an appropriate gift, etc.,
•
The company has more female employees so they can recruit more male candidates and can expand their business in other cities too. The management focussed more on women colleges, clubs & meetings rather they should equally concentrate on other common colleges, clubs, etc.,
90
CHAPTER VI CONCLUSION:
This study was conducted in Magnes Management Consultants Pvt Ltd in order to analyze the effectiveness of various reward system. More specifically it helped the company to investigate attitudes of their employees towards the reward system and also what other rewards motivate the employees. As a conclusion it can be seen that the general factors that affect productivity, performance, work efforts, job satisfaction and motivation of an employee. A combination of material reward and spiritual encouragement seems be the most efficient way to maximize productivity, performance, work efforts, job satisfaction and motivation in Magnes. And also offered valuable suggestions to the company regarding reward system. Thus all the objectives are achieved successfully.
91
BIBLIOGRAPHY
•
Research Methodology methods and techniques – Third revised edition - C.R.Kothari.
•
K.Ashwathappa, Human Resource Management.
•
http://www.aupc.info/wp-content/uploads/2015/01/V7I2-8.pdf
•
http://www.irbrp.com/static/documents/June/2009/22.Reena.pdf
•
http://psrcentre.org/images/extraimages/26.%20113535.pdf
•
http://www.washington.edu/admin/hr/roles/mgr/ee-recognition/award-ideas
•
(Chiang and Birtch, 2008) Reward is a broad construct that has been said to represent anything that an employee may value that an employer is willing to offer in exchange for his or her contributions.
•
(Mossbarger and Eddington, 2003) Organizations often use financial rewards to prevent employee dissatisfaction and to motivate employees, although it may not be the best motivator for the long term.
•
Deeprose (2014) had stated that “while the presence of money may not be a very good motivator, the absence of it is a strong de-motivator”.
•
(Armstrong, 1996) also stated that financial rewards are significant not only in terms of their instrument value as a medium of exchange, but also a highly tangible means of recognizing an individuals worth, improving self -esteem, and symbolizing status and achievement.
•
(Millmore et al, 2007), individuals require beyond monetary rewards for their effort.
•
(Johnson and Welsh, 1999). Given the labor-intensive nature of the hospitality industry and the rising pressure to control costs, nonfinancial rewards are being used increasingly to motivate employee performance and to increase employee satisfaction.
•
(Clifford, 1985)Extrinsic rewards relates to financial rewards or cash related like formal recognition, fringe benefits, incentive type payments, pay, promotion and intrinsic relates to nonfinancial or non-cash rewards like achievement, accomplishment feelings, recognition, job satisfaction and growth.
•
Kalleberg, (1977) explained rewards consist on benefits that employees receive in exchange of their work during the job.
•
Wang (2004), in so many organization rewards plays so many roles in sustaining and creating commitment among employees for good performance and that better performance leads to job satisfaction.
•
(Brief & weiss, 2002) When employees achieved their desire results from job so that of desired achievement is called job satisfaction.
•
Ali & Ahmad, (2009) investigated that there is positive relationship between “recognition and reward”, “performance”.
•
(Qureshi, Zaman, & Shah, 2010) The study conducted to check the relationship between rewards and employee's performance schools of Pakistan. 92
•
Jehanzeb et al. (2012) The results revealed that there is a direct relation between reward system and employee's performance.
•
Mishra and Dixit (2013), financial and non financial rewards and benefits are highly correlated with employee's performance in an education rewards system.
•
(Kaliski, 2007) linked increase productivity, increase workers efforts on job and leads to happiness enthusiasm, feeling of fulfilment.
•
(Boehm & Lyubomirsky, 2008) investigated in his research that rewards promote happiness and job satisfaction.
•
Andrew & Kent (2004), explained in his research all the employees revolve around the rewards and recognition so the both aspects have much importance for employees.
•
(Carraher, Gibson, & Buckley, 2006) explained that good reward system help to retain high performers in the firm so rewards must be fulfill the high performers feelings.
•
Bishop (1987) explained that pay relates to productivity and reward system relate to size of the firm.
•
(Reio & Callahon, 2004) proves monetary and nonmonetary rewards motivate the workers of any organization and these rewards also resulted in higher growth and productivity.
•
Oosthuizen (2001) stated that it is among the function of managers to motivate the employees successfully and influence their behavior to achieve greater organizational efficiency.
•
La Mott (1995) is of the view that performance at job is the result of ability and motivation. Ability formulated through education, equipment, training, experience, ease in task and two types of capacities i.e. mental and physical.
•
Wilson (1994), the process of performance management is one among the key
•
elements of total reward system.
•
Entwistle (1987) is of the view that if an employee performs successfully, it leads to organizational rewards and as a result motivational factor of employees lies in their performance.
•
(Ciscel, 1974) the investigations that have been conducted to find the relationship between compensation and individuals were focused to increase the performance of employees.
•
Andrew (2004), commitment of all employees is based on rewards and recognition.
•
Lawler (2003) argued that prosperity and survival of the organizations is determined through the human resources how they are treated.
•
Deeprose (1994) argued that the motivation of employees and their productivity can be enhanced through providing them effective recognition which ultimately results in improved performance of organizations.
•
(Drucker as cited in Meyer & Kirsten, 2005) managing the performance of em ployees forms an integral part of any organizational strategy and how they deal with their human capital.
93
•
Freedman (1978) is of the view that when effective rewards and recognition are implemented within an organization, favorable working environment is produced which motivates employees to excel in their performance.
•
Csikszentmihalyi (1990) Flynn (1998) argued that rewards and recognition programs keep high spirits among employees, boosts up their morale and create a linkage between performance and reward of the employees.
•
Bull (2005) posits a view that when employees experience success in mentally challenging occupations Rewards and recognition are the key parameters of todays motivation programs according to most of the organizations as these bind the success factor with the employees performance.
•
Robbins (2001) asserts that promotions create the opportunity for personal growth, increased levels of responsibility and an increase on social standing.
•
Barton (2002) argued that the factor in Rewards and recognition at their job.
•
Eastman (2009) consistently found that intrinsic motivation is conducive to producing creative work, while extrinsic motivation is unfavorable to producing creative work.
•
Gagne (2009) suggested a new model of knowledge-sharing motivation which provides suggestion for designing five important human resource management (HRM) practices including staffing, job design, performance and compensation systems, managerial styles and training.
94
ANNEXURE STUDY ON EFFECTIVENESS OF REWARD SYSTEM WITH RESPECT TO MAGNES MANAGMENT CONSULTANTS PVT LTD
1. Name: 2. Age: 18 – 23
24-29
30-35
36-41
42 and above 42
Ph.d
Others __________
HR
Others
3. Gender: Male
Female
4. Educational qualification of the respondent Diploma
UG
PG
5. Department Admin
Business Development
6. Designation Data entry operator
Executive
Team Leader
1-2
2-3
Manager
Telecaller
7. Experience (in years) Less than 1
More than 3
8. Income 5k-8k
8k-10k
10k-15k
Above 15k
Widowed
Separated / divorced
9. Marital status of the respondent Single
Married
10. Mark the level of effectiveness of the reward system? Highly ineffective
Ineffective
Neither nor
95
Effective
Highly effective
11. Rank the effectiveness of the following rewards from 1 to 5 Methods
Rank
Verbal & written recognition Work related recognition Financial recognition Symbolic recognition Tangible recognition
1 - Most effective ------------------------------- 5 - Least effective 12. Mark the effectiveness of the following rewards on your productivity.
Methods
Highly ineffective
Ineffective
Neutral
Effective
Highly effective
Level Verbal & Written recognition Work related recognition Financial recognition Symbolic recognition Tangible recognition
13. Mark the effectiveness of the following rewards on your performance.
Methods
Strongly disagree
Disagree
Neutral
Level I perform better if I am rewarded with verbal & written recognition
96
Agree
Strongly agree
I perform better if I am rewarded with work related recognition I perform better if I am rewarded with financial recognition I will not perform better if I am rewarded with symbolic recognition I will not perform better if I am rewarded with tangible recognition
14. Mark the effectiveness of the following rewards on your work efforts.
Methods
Highly ineffective
Ineffective
Level Verbal & Written recognition
Work related recognition
Financial recognition Symbolic recognition Tangible Recognition
97
Neutral
Effective
Highly effective
15. Mark the effectiveness of the following rewards on your job satisfaction.
Methods
Very low
Low
Moderate
High
Very high
Level Verbal & Written recognition Work related recognition Financial recognition Symbolic recognition Tangible recognition
16. Mark the effectiveness of reward system on your motivation.
Methods
Strongly disagree
Disagree
Neutral
Level I get motivated when the organisation rewards me verbal & written recognition I get motivated when the organisation rewards me work related recognition I get motivated when the organisation rewards me financial recognition
98
Agree
Strongly agree
