A SUMMER INTERNSHIP PROJECT ON “The Impact of Reward & Recognition on Employee Motivation at Prime coOperative Bank”
Submitted to S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF
Faculty Guide
Company Guide
Ms. Parinaz Todiwala
Mr. Manoj Kamalia
Assistant Professor
Assistant General Manager (Prime Co-operative Bank Ltd)
Submitted by
Miss. Komal Sompura [Batch No. 2015-17, Enrollment No. 158050592102]
MBA SEMESTER III S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805
MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad July, 2016
1
Students’ Declaration
I, Miss Komal Sompura, hereby declare that the report for Summer Internship Project entitled “The Impact of Reward & Recognition on Employee Motivation at Prime Co-operative Bank Ltd.” is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged.
Place: Surat
Date: _____________
__________________ (Komal Sompura)
2
Institute’s Certificate
Certified that this Summer Internship Project Report Titled “The Impact of Reward & Recognition on Employee Motivation at Prime Co-operative Bank Ltd”
is
the
bonafide
work
of
Miss.
Komal
Sompura
(Enrollment
No.158050592102), Who has carried out the research under my supervision I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
Place: Surat
Date: ________________
___________________ Parinaz Todiwala Assistant Professor
__________________ J. M. Kapadia Director
3
PREFACE As MBA students our Aim should not be only to learn theoretical concept in classrooms, but it becomes more important as how we apply those concepts in practical. Each & every activity is started for accomplished of goals & for this purpose management is required. As being Student of MBA a Management stream, we have to go in different types of analysis for practical knowledge & practical training. A project is a study of The Impact of Reward & Recognition On employee motivation as practical aspects, the purpose of to select this study is want to know about Reward and Recognitions program of Prime co-operative bank and their Impact on employee motivation. The successful completion of this project was a unique experience for me because by visiting bank and many interacting various person, I achieved a better knowledge about banking sector. Prime co-operative Banks gave me the golden opportunity to carry out my visit in such great co-operative bank. I have prepared the details report regarding the potential and future of financial industry. I have tried my best to collect all necessary information relating to the project work. During this whole training I got a lot of experience and came to know about the management practices in real and how it differs from the theoretical knowledge.
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ACKNOWLEDGEMENT I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and Bank. I would like to extend my sincere thanks to all of them. I am highly indebted to Mr. Manoj Kamalia, Assistant General Manager and Mr. Niren Mehta, Senior Manager of Prime co-operative Bank Ltd for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I am very much thank full to Ms. Parinaz Todiwala, Assistant Professor, SRLIM for her continuous guide and co-operation. I would like to express my gratitude towards Employees and all other staff of Prime Co-operative Bank Ltd, for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my friends in developing the project and people who have willingly helped me out with their abilities.
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EXECUTIVE SUMMARY In the age of globalization Banks have realized the importance of their human resources and become increasingly interested in managing employees in such a way that can enhance business performance. To ensure competitive advantage, people who are working for the Bank should be motivated by providing a wellbalanced reward and Recognition system. The purpose of this study is to identify the relationship between rewards (extrinsic and intrinsic) and their impact on employee performance and actions to motivate the employees of Prime co-operative bank Ltd, to determine the impact of reward and recognition on employee motivation. The data was collected from 116 employees of different 13 branches of Prime cooperative Bank Ltd. in surat city with the help of structured likert scale questionnaire and analysis using mean values and frequency percentage tables and correlations between variables and work Motivation and Satisfaction. The result concludes that, with the advancement in the Compensation, Job security, Leadership and works itself intrinsic rewards become the vital factor for the employee motivation. However, Bank should redesign recognition system because employees are dissatisfied to get Recognition, consider for a more structured reward system that considers both intrinsic and extrinsic rewards which in turn prospers high performance culture in the financial industry.
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TABLE OF CONTENTS
Company‟s Certificate
Students‟ Declaration
Institute‟s Certificate
Preface
Acknowledgement
Executive Summary
Sr. No.
Page No.
Particulars
1.
Introduction
1
2.
Banking Industry Profile
6
3.
a. Global
7
b. National
9
c. State
10
d. PESTEL
12
e. Current trends
15
f. Major Players
18
g. Major Offerings
20
Prime Co-operative Bank Profile
24
a. Company Profile
24
b. Organogram
33
c. Divisions/ Departments
34
d. SWOT
35
e. Market Position
36
4.
Review of Literature
37
5.
Research Methodology
44
6.
Data Analysis & Findings
48
7.
Conclusions and Recommendations
73
8.
Bibliography
76
9.
Annexure
80
7
LIST OF TABLES Table No.
Page No.
List of co-operative banks in Gujarat with respect to their deposits advances and profit List of Board of Directors of Prime Co-operative Bank Ltd
2.1
11
3.1
25
3
Charges list of Real Time Gross Settlement
3.2
30
4
Charges list of National Electronic Fund Transfer
3.3
30
5
List of Fixed Deposit Duration and Interest rate
3.4
31
6
Designation information of Employees
6.1
48
7
Department information
6.2
49
8
Gender Information of Employee
6.3
50
9
Salary Package Information of Employee
6.4
51
10
Age Group information of Employee
6.5
52
11
Experience of Employees with Prime Co-operative Bank Ltd
6.6
12
Impact of Compensation on Employees Motivation level Impact of Leadership, Support/ Direction on Employees Motivation level Impact of Work Itself on Employees Motivation level
6.7
54
6.8
55
6.9
57
Impact of Promotional Opportunity on Employees Motivation level Impact of Awards on Employees Motivation level
6.10
59
6.11
61
Impact of Recognition & Appreciation on Employees Motivation level Descriptive statistics for the Factors of work
6.12
63
motivation
6.13
19
Correlations between factors and work motivation
6.14
20
The relationship between rewards, recognition and
Sr. No.
Particulars
1 2
13 14 15 16 17 18
work motivation and satisfaction
8
6.15
53
65 67 68
LIST OF FIGURES Sr. No.
Particulars
Figure No.
Page No.
1
Intrinsic Rewards and Employee Motivation
1.1
3
2
Extrinsic Rewards and Employee Motivation
1.2
3
3
Organogram of Prime Co-operative bank Ltd.
3.1
33
4
Designation information of Employees
6.1
48
5
Department information
6.2
49
6
Gender Information of Employee
6.3
50
7
Salary Package Information of Employee
6.4
51
8
Age Group information of Employee
6.5
52
9
Experience of Employees with Prime Cooperative Bank Ltd
6.6
10
Impact of Compensation on Employees Motivation level Impact of Leadership, Support/ Direction on Employees Motivation level Impact of Work Itself on Employees Motivation level Impact of Promotional Opportunity on Employees Motivation level Impact of Awards on Employees Motivation level
6.7
54
6.8
55
6.9
58
6.10
59
6.11
61
6.12
63
11 12 13 14 15
Impact of Recognition & Employees Motivation level
9
Appreciation
on
53
CHAPTER: 1 INTRODUCTION
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Cooperative bank have been pillared on social purpose of providing benefit to people who are somewhere or other deprived of banking facilities provided by private players and thus main purpose of cooperative banks is to provide people economically not strong and facilitate them with banking service and what creates hurdle in this is end user is not aware about many of ultra- modern facility and thus even educating their consumers first is also something which cooperatives should focus on. Cooperative Banking industry has gone through many problems with the reference to its functions and working with changing times and it has forced this industry to cope up with new fresh private players who have created all together a new pool of services and has also given them a tough competition this has forced cooperative to upgrade the tag of least efficient to modern and 21st century bank. Apart from their traditional way of working what cooperative need to also understand is that now they have to come out of their comfort zone and have a fresh look on their way of working. Agreed that every service has some cost incurred and in doing this bank„s social objective is somewhere lost but bank has to even land upon some model which accommodates this new avenues of services which will further add on to bank„s position and strengthen its presence in market. Apart from basic core banking which is part of bank, innovation with the respect to services and operations should also be thought upon, customization and personalization is something which now every customer looks forward to and thus even cooperatives should enter this untapped area of facilities which it has not yet thought. They have now started looking to even different avenues where they can provide services to people and be near to consumer which will further help them to increase their market space, but problem is that this cooperative banks have somewhere or other faced problems in this as they have been not able to effectively convert their performance to the expected efficiency level that„s where they have to improve.
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1. Motivation The word “motivation” was originally derived from the Latin word “mover” which means “to move”. However, over time various researchers have attempted to have a more comprehensive definition of the word and motivation has been defined in different ways, most of them agree that it is a goal directed Behavior. Motivation is key factor of employee. Motivation is psychological process that gives behavior purpose and direction. We can define motivation as “Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role or subject and to exert persistent effort in attaching a goal”. All employees of bank are very important but motivated employees are more productive and help to bank survive. The main objective of reward system is to attractive, retain high performance employees, get maximum employees performance and satisfy legal standard see. There are three most motivating factors as: interesting work, good wages and job security. The aim of this study is identify main factors of employee motivation of Prime co-operative Bank. 2. Reward Reward system is very important tool that all banks can use to strait employees motivation in different ways. In other words, banks give rewards to employees and rewards system seek to attract employees to join the bank to keep than coming to work and also motivate them to perform to high level. A reward system is scheme perform of HR management which provides increases of those individual or group who perform well in any organization. Basically all types of rewards motivate to employees to perform well by attracting with well-designed compensate package by bank. All employees of bank must believe effective performance will lead to certain rewards. We can define of reward system as “reward system is formal or informal program used to recognize individual employee achievements, such as accomplishment of goal or project.” We can says that pay and thing such as pension, health insurance, salary, bonus, promotion that you get from being employed.
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There are two types of reward system i)
Intrinsic rewards
ii)
Extrinsic Rewards
Figure 1.1: Intrinsic Rewards and Employee Motivation
Fringe benefits
Salary
Motivation
Promotion
Job security
Opportunity for career growth and Development
Challanging and intresting Task
Motivation
Recognition and Apperication
Empowerment and autonomy
Figure 2: Extrinsic Rewards and Employee Motivation
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Organizations are under constant pressure to enhance and improve their performance and are realizing that relationship exists between organizational Performance and employee performance. Rewards may or may not enhance the employee‟s financial well-being. If they do, they can do this directly through wages, bonuses or profit sharing or indirectly, through employer-subsidized benefits such as retirement plans, paid vacations, paid sick leaves and purchase discounts. Non-financial rewards do not directly increase the employee‟s financial position but emphasizes on making the life on the job more attractive. Rewards and recognition programs honor both individuals and teams who go the extra mile to service their organizations. Rewards can be extrinsic or intrinsic. Extrinsic rewards are the tangible rewards which one gets from the employer. External rewards can be in terms of salary/pay, incentives, bonuses, stock options, promotions, job security, flex-time, etc. Intrinsic rewards are intangible rewards or psychological rewards which one receives from the job itself. These are the self-initiated rewards. Such as- pride in one‟s work, a feeling of accomplishment, appreciation, meeting the new challenges, positive and caring attitude from employer, and participation in decision making, or being part of a team. Recognition Recognition can be Peer to Peer Thank you note or Appreciation form Manager and co-worker, Awards for best performance, long year of services, regularity awards can motivate more than financial rewards because on some of stage employees wants recognition instated of Money. The aim for select this topic is to determine the impact of reward and recognition on employee motivation at prime co. operative bank. Bank is successfully working from last 23rd year. To understand how they motivate their employee to work more by giving them different types of reward and by recognize employee front of others.
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CHAPTER 2 BANKING INDUSTRY PRFILE
15
A Bank is a financial institution that provides banking and other financial services to their customers. A bank is generally understood as an institution which provides fundamental banking services such as accepting deposits and providing loans. There are also nonbanking institutions that provide certain banking services without meeting the legal definition of a bank. Banks are a subset of the financial services industry. A banking system also referred as a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, throughout the day. The banking system in India should not only be hassle free but it should be able to meet the new challenges posed by the technology and any other external and internal factors. For the past three decades, India‟s banking system has several outstanding achievements to its credit. The Banks are the main participants of the financial system in India. The Banking sector offers several facilities and opportunities to their customers. All the Banks safeguard the money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashier‟s cheques. The banks also offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role accepting deposits and lending funds from these deposits.
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a. Global Today‟s banking industry is facing the effects of a deep economic recession and is set to suffer additional losses in credit portfolios. Meanwhile, governments and financial authorities have announced stricter banking rules and more stringent supervision at an international level. Capital and solvency requirements for banks will be tightened, and improved risk management will be required. Moreover, stringent policy measures to safeguard the stability of the financial system are underway the global turbulence shook up the banking sector and led to new rules of the game. Banks had to rethink their strategy and adjust their business principles and structures. The new financial system will maintain a tighter focus on customer centricity, while integrity and ethics will play a more important role in retail banking than in the past. International controls will be improved, and the corporate governance and compensation schemes of banks must be adjusted to provide adequate incentives for a responsible balance between risks and their capital position. Banks have to apply a long-term perspective instead of a dominant focus on short-term profit. A distinction is drawn in this study on co-operative banks. The fundamental difference between them is their corporate governance: shareholder versus member ownership. This difference entails numerous consequences in term of their business orientation and principles. The characteristics and achievements of co-operative banks in the past few years have remained notably underexposed in recent publications, the press and various reports. But the success of co-operative business model is abundantly evident in the figures they have posted. Average market shares of European co-operative banks as well as member-topopulation ratios have increased over the last decade. This is one of the strongest proofs of the vitality of the co-operative business model. But one has to bear in mind that co-operative banking is not by definition better than other banking models and after all, past performance is no guarantee of future success. For instance, co-operative banks were and are not sheltered from extraordinary events resulting from the crisis. They too suffered losses and incurred write-downs directly related to the financial crisis. But they appear to have been hit less hard than private banks and they did not need large-scale
17
government support. They feel the effects of the general loss of confidence in the banking sector and face competitors on a sharply tilted playing field. Owing to their strong position in there tail markets, they will feel the negative impact of the deep economic recession. Looking further ahead, the unique features and natural core competences of co-operative banks provide clear-cut opportunities in this new banking environment. The new characteristics of the financial system have been part of co-operative banks‟ DNA from the start and are considered to be their main competitive advantage. As member-owned institutions, co-operative banks now have the opportunity to leverage the new banking rules and ethics to their advantage in a well-designed public relations campaign. In addition, their strong capital base, balanced corporate governance structure and large yet finely-meshed branch networks enable them to maintain a more pronounced external focus than many of their competitors, which may translate into market share gains. The opportunity steams from the origin of most co-operative banks they were often establish more than a century ago in rural areas where people were deprived of financial service. Co-operative bank are eminently well-equipped to help these countries in setting up sustainable financial infrastructures, visibly contributing to economic and social development. With a presence in these emerging of developing countries, co-operative bank can clearly demonstrate their “presence value”, which is virtually impossible to show in western countries is not right way forward. Adjustments are necessary to allow for historical and cultural difference. Microfinance is a natural fit for co-operative banks in emerging and developing countries and they should make it their business to claim this promising area of banking. When the financial sectors in these countries mature, co-operative banks will possess a strong foot hold based on a long-term commitment. The governments, regulators and financial sectors of developing countries should also embrace co-operative banks, since they would provide the necessary access to finance for enterprising poor people.
18
b. National Co-operative Banks in India have become an integral part of the success of Indian Financial Inclusion story. They have achieved many landmarks since their creation and have helped a normal rural Indian to feel empowered and secure. The story has not been smooth and has its share of procedural glitches and woes placed at various pockets. A cooperative bank is an institution which is owned by its members. They are the culmination of efforts of people of same professional or other community which have common and shared interests, problems and aspirations. They cater to services like loans, banking; deposits etc. like commercial banks but widely differ in their values and governance structures. They are usually democratic set-ups where the board of members are democratically elected with each member entitled to one vote each. In India, they are supervised and controlled by the official banking authorities and thus have to abide by the banking regulations prevalent in the country. The basic rules, regulations and values may differ amongst nations but they have certain common features:
Customer-owned
Democratic structures
Profits are mainly pooled to
Involved in community development
Foster financial inclusion by
form reserves while some
bringing banking to the
amount is distributed to
doorstep of the lowest
members
segment of society
These banks are small financial institutions which are governed by regulations like Banking Regulations Act, 1949 and Banking Laws Cooperative Societies Act, 1965. They operate both in urban and rural areas under different structural organisations. Their functions are decided by the level at which they operate and the type of people they cater to. They greatly differ from the commercial banking entities. These are established under specific acts of cooperative societies operating in different states unlike mainstream commercial banks which are mainly joint-stock companies. They have a tiered network with a bank at each level of state, district and rural.
19
c. State The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centred on communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably. The origins of the urban cooperative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany such societies were set up in India. Cooperative societies are based on the principles of Co-operation, mutual help, democratic decision making and open membership. Co-operatives represented a new and alternative approach to organization as against proprietary firms, partnership firms and joint stock companies which represent the dominant form of commercial organization. The following table shows the clear picture of co-operative banks functioning in Gujarat state. The list below has some of well-known and well-established co-operative banks of Gujarat which are functioning in their respective cities since a long time. The table has supporting data about the total deposits advance and Total profit of various banks having its operations in Gujarat state under Co-operative umbrella.
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TOP TEN BANKS IN GUJARAT--31-03-2015 (Rs in Crores)
Table 2.1 List of co-operative banks in Gujarat with respect to their Deposits Advances and profite
Sr.No
Name Of the Bank
Total
Total
Total
Deposit
advance
Profit
Rs
Rs.
Rs
1
Kalupur Com.co-op.Bank Ltd.
4756
2729
75
2
Rajkot Nagrik Sahakari Bank Ltd.
3242
2017
52
3
Mahesana Urban Co-op. Bank
2753
2006
50
Ltd. 4
Surat Peoples Co-op. Bank Ltd.
2637
1777
30
5
Co-operative Bank of Rajkot Ltd.
1656
1012
27
6
Sutex Co-op. Bank Ltd. Surat
1248
841
25
7
Ahmedabad Mer. Co-op. Bank
1126
707
16
Ltd. 8
Nutan Nagrik Sah. Bank Ltd.
1039
589
9
9
Prime Co-op. Bank Ltd.
790
507
9
10
Varachha Co-op. Bank Ltd., Surat
621
385
8
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d. PESTEL
1. Political factors Here you have to look at the overall restrictions and support that your new investment should anticipate from the government. Essentially, determine how stable the political environment is and what government policies will impact laws that regulate banking industry and apparent taxes. Check whether the government is involved in any trading agreements that control the banking market.
Government organization/attitude
Monetary policy
Regulatory Framework
Budget & Budget measures
Changes in interest rates
2. Economic factors This is other critical PESTLE analysis for a bank that will help determine the economic condition of the marketplace. Here, consider the general shape of the market, interest rates and inflation. Your goal here is to check whether there is another financial institution that has been able to thrive in the present economic climate.
Economic growth
Unemployment policy
Consumer confidence
More savings
More capital formation
Increase in production of goods & Services
Banking channels
22
3. Social factors It is wise to look at the socio-cultural factors that may affect your venture into the banking sector. Determine cultural attitude of the market towards money-related issues. Look at how savings are approached and how effective are the available loans. Determine the market‟s attitudes towards foreign services and products.
Income distribution
Demographic changes
Lifestyle changes
Increase in population
Changes in lifestyle
Easy way of lending money
Exploring banking facilities in rural areas
4. Technological factors Technology is imperative in the banking industry. It is vital for the competitive advantage and it also a core driver for globalization. In your PESTLE analysis consider whether technology allows sell of quality services and products and at affordable rate. Ascertain more on the internet services that most of the banks are utilizing and whether they have been effective.
New inventions & development
Rate of technology transfer
Changes in information technology
Internet banking
It services & Mobile banking
Credit cards
Improvement in efficiency
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5. Environmental factors Here consider the location of countries impact on the trades conducted by banking sector. Climatic changes alter bank operations and the way consumes respond to the market. The banking sector is a great source of revenue that governments rely on to improve people‟s well-being. To excel in this sector, it is wise to understand how a PESTLE analysis on the field will impact your goals and objectives of your business.
Environmental regulation & protection
Geographical location
6. Legal factors Legal issues have matchless impact on the banking sector. Here consider the securities law, trade structures and bank note regulation among other legal necessities. Check whether the legal frameworks in the market are reliable and facilitate discovery of economic tools that link a local venture into the international economy.
Tax policies
Employment laws
Competition regulations
Health & safety standards
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e. Current trends 1. Customer Focus Hectic competition in the banking sector put the customers on the driver‟s seat by getting their required products and services. As the business environment changes across industries, the customers‟ expectations are also growing. The facilities and options put forth by banks to customers made the present customers demand more through customer service. Customer service is the main guiding factor to enhance banks‟ reputation and ensure their survival in the competitive environment. Increased competition, technology driven services, lower entry barriers leading to new entrants, less protective regulation, increased autonomy for the banks etc. are some of the features of the new trend.
2. Branch Banking Expansion of branch network is one of the means to augment business. The new generation private sector banks and foreign banks have started exploiting business potential through other strategies as well. Traditionally public sector commercial banks have been able to augment the business level by increasing their branch network.
3. Best Practices code The best practices code represents details rules for entering into transactional relation within the banks. The objective of BPC is to endure that all procedures, especially in sensitive are well documented, compared with national and international best practices and improved upon in the light of the experience gained. Best practices code involves examination of all procedures, products, activities and systems.
4. Differentiating brands The digitalization of the industry is further commoditizing our brands, with fewer face-to-face interactions limiting our ability to set banks apart. Banks and credit unions will begin to find ways to stand out in a crowded competitive marketplace in 2014, leveraging all channels to make their message heard.
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5. Business process Re-engineering Business process Re-engineering represents transformation of select processes and procedures with a view to empower the bank with contemporary technologies, business solutions and innovations that enhances the competitive advantage. It seeks to enhance the value of services to the customer. Four Important aspects are 1. Customer (to give him enhanced value) 2. Competition (to meet successfully) 3. Change (to meet it) 4. Cost (to reduce) There are three key parameters 1. Customer service 2. Product innovation 3. Operational excellence
6. Improving contextual experiences According to Aide Group senior analyst, Ron Shevlin, a new type of marketing will emerge in 2014 activity based marketing or marketing within the context of an activity being performed by a customer or prospect. Activity based marketing will change the point of interaction, moving that point closer to the point of customer need. New merchant-funded reward platforms will emerge that improve the targeting of offers and social media channel insight will be used to improve service and delivery. Finally, banks will continue to improve real-time alerts and notifications that will strengthen loyalty and engagement.
7. Global innovation perspective Unfortunately, some of the most exciting banking innovations over the past several years have occurred in the Asia Pacific region, Eastern Europe and not in the U.S. or U.K. In 2014, banks and credit unions will begin to look beyond our shores for innovative ideas, learning from overseas organizations that in some cases are far ahead of our domestic offerings.
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8. Liberalized branch authorization policy RBI has liberalized and rationalized the policy for authorization of branches and it has put in place a framework for branch authorization policy which would be consistent with the corporate strategy of banks. While considering applications for opening branches, RBI shall give weightage to the nature and scope of banking facilities provided by banks to common persons, credit flow to priority sector, pricing of products and banks efforts towards promotion of financial inclusion and enhanced services. The system of granting authorization for opening individual branches from time to time is replaced by a system of giving aggregated approvals, on an annual basis, through consultative and interactive process.
9. Electronic Banking One of the most exciting growth phases for the banking sector is the emergence of technology enabled business models, which led to geographic expansion, wider product offering and newer revenue streams. Electronic banking means banking done electronically. Transaction handling, cash management, account reporting is done through electronic media. Banks today reach their customers through ATMs, point of scale devices, telephone banking. Internet banking etc. electronic banking comprises of the following
Electronic funds transfer
Electronic Clearing system
Tele-Banking
Automated teller machines
Shared payment network system
Credit cards/ Debits cards
Corporate Banking terminals
Point of scale terminal
Electronic dad interchange
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f. Major Players 1. Adinath Co-operative Bank Ltd.,
12. Sachin Industrial Co-operative
2.
Bank Ltd.
Akhand
Aanand
Co-operative
Bank Ltd.
13. Sarvodaya Sahakari Bank Ltd.,
3. Associate Co-operative Bank Ltd.
Surat
4. Bardoli Nagrik Sahakari Bank Ltd.
14. Surat Mercantile Co-operative
5. City Co-operative Bank Ltd.,
Bank Ltd.
6. Financial Co-operative Bank Ltd.,
15. Surat Nagrik Sahakari Bank Ltd.
7. Kosamba Mer. Co-operative Bank
16. Varachha Co-operative Bank
Ltd.
Ltd., Surat
8. Mandvi Nagrik Sahakari Bank Ltd.
17. Surat Peoples Co-operative Bank
9. Panchsheel Mer. Co-operative
Ltd.
Bank Ltd.
18. Sutex Co-operative Bank Ltd.
10. Prime Co-operative Bank Ltd.
19. Textile Co-operative Bank of
11. Rander Peoples Co-operative
Surat Ltd.
Bank Ltd.
20. Udhna Citizen Co-operative Bank Ltd.
i.
Surat people’s Co-operative Bank
The surat people‟s co-operative bank ltd. Is serving since last 90 years to the people of surat having network of 23 computerized branches out of them 21 in surat and 1 in vapi and 1 in navsari. The bank is the “first registered urban cooperative bank” of India and among the first 13 co-operative banks to get the “scheduled bank” status. It is the first bank to provide the “depository participant servives” in south gujrat.
ii.
Sutex Bank
Sutex Bank‟s proud journey started with its establishment on 15th May, 1972. At the prime time of opening Sutex Bank its name was the surat textile traders coop. bank ltd. In the year 1972 Bank‟s Establisher chairman late shri Ashabhai shankarbhai patel having a prosperous vision to provide a golden & profitable market to surat‟textile industry, registered the bank at a co-op. level. Sutex bank 28
provided services with a view to help surat textile market shop keepers with banking facilities and help them start and manage their businesses. Sutex bank in the intial stage started with only 270 shareholders and Rs. 1.10 laces share capital. Sutex bank has in total 14 branches and a administrative office.
iii.
Kalupur Co-operative Bank
The bank is founded by late shri baldevbhai dosabhai patel, late shri gopaldas shivlal patel and shri arvindbhai jivanlal saheba. The bank has nurtuted its traditional values in business practices and in serving the small businessmen. These were the people with deep and abiding ideas, faith, vision, optimism and entrepreneurial skills with commendable sense of service and duty. The bank has 38 branches of which 33 are situated in bank‟s own premises. These branches are spread over Ahmedabad, Anand, khambhat, vadodara, surat, gandhinagar and Mumbai.
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g. Major Offering
1. Current Account A Current Account is a common type of bank account used to store money that is needed on a regular, day-to-day basis. It is a handy way to manage your money in the short-term. It allows you to
Receive money such as your salary or other types of income
Pay for things using your Laser Card or by writing cheque
Withdraw cash by using your
Transfer money to other accounts
ATM (Automated Teller Machine)
Bank using the internet or the
or Laser Card or at the bank
telephone
counter
Pay bills
2.Savings account: A savings account is a type of bank, building society, credit union or An Post account that is used for accumulating money. Funds saved can be for both short and long-term needs. Short-term needs include things like holidays, weddings and Christmas presents or just for a rainy day. Longer-term needs include things like saving for college or a house. There are many different types of savings accounts available. When deciding on a savings account you should consider how much you want to save and what access you want to the money. Generally speaking, savings accounts can be opened with a small sum of money and you can save either regular amounts or lumps sums, or sometimes both.
3.Recurring Deposit Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit account and earn interest at the rate applicable to Fixed Deposits.
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4. Fixed deposit A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.
5. Online banking Online banking refers to carrying out certain banking transactions over the internet. Banking online is very convenient and can save you time and money. All the major banks offer online banking. There are a number of things you can do online such as
View balances and statements
Transfer money
Top up your mobile phone
Pay bills
Some bank‟s online banking services
Apply for certain products, such as credit cards, loans and savings accounts
Set up, amend and cancel standing orders.
Share deal - buy and sell shares online.
6. Loans A loan is the act of giving money, property or other material goods to another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan may be for a specific, one-time amount or can be available as open-ended credit up to a specified ceiling amount.
1. Student Loan Student loans are offered to college students and their families to help cover the cost of higher education. There are two main types: federal student loans and private student loans. Federally funded loans are better, as they typically come with lower interest rates and more borrower-friendly repayment terms. 31
2. Mortgages Mortgages are loans distributed by banks to allow consumers to buy homes they can‟t pay for upfront. A mortgage is tied to your home, meaning you risk foreclosure if you fall behind on payments. Mortgages have among the lowest interest rates of all loans.
3. Auto Loan Like mortgages, auto loans are tied to your property. They can help you afford a vehicle, but you risk losing the car if you miss payments. This type of loan may be distributed by a bank or by the car dealership directly but you should understand that while loans from the dealership may be more convenient, they often carry higher interest rates and ultimately cost more overall.
4. Personal Loan Personal loans can be used for any personal expenses and don‟t have a designated purpose. This makes them an attractive option for people with outstanding debts, such as credit card debt, who want to reduce their interest rates by transferring balances. Like other loans, personal loan terms depend on your credit history.
5. Loans for Veterans The Department of Veterans Affairs (VA) has lending programs available to veterans and their families. With a VA-backed home loan, money does not come directly from the administration. Instead, the VA acts as a co-signer and effectively vouches for you, helping you earn higher loan amounts with lower interest rates.
6. Small Business Loans Small
business
loans
are
granted
to
entrepreneurs
and
aspiring
entrepreneurs to help them start or expand a business. The best source of small business loans is the U.S. Small Business Administration (SBA), which offers a variety of options depending on each business‟s needs.
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7. Cash Advances A cash advance is a short-term loan against your credit card. Instead of using the credit card to make a purchase or pay for a service, you bring it to a bank or ATM and receive cash to be used for whatever purpose you need. Cash advances also are available by writing a check to payday lenders.
8. Home Equity Loans If you have equity in your home – the house is worth more than you owe on it – you can use that equity to help pay for big projects. Home equity loans are good for renovating the house, consolidating credit card debt, paying off student loans and many other worthwhile projects. 7.Services 1. Safe Deposit Locker A Locker usually located inside a bank which is used to store valuables. A safe deposit box is rented from the institution and can be accessed with keys, pin numbers or some other security pass.
2. Demand draft Demand
draft
is
a
method
used
by
individuals
to
make transfer
payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature in order to be cashed.
3. ATMs There are two primary types of automated teller machines, or ATMs. The basic units allow the customer to only withdraw cash and receive a report of the account's balance. The more complex machines will accept deposits, facilitate credit card payments and report account information. To access the advanced features of the complex units, you will usually need to be a member of the bank that operates the machine
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CHAPTER 3 PRIME CO-OPERATIVE BANK PROFILE
34
Prime is a name of the bank where the bank is ready to serve its banking services to all customers under the slogan of “YOUR BANK FOR YOU” Prime co-operative bank ltd was promoted by an experienced and visionary entrepreneur named Mr. GOKUL BAKSHI, he is the Founder Chairman of the bank and continues to supervise its growth and development. The Bank started off with exemplary combination of talented Board & potential staff team, stuffed with extreme professionalism and well-designed contours of working method. The bank started as a paperless unit employing telebanking, remote banking, off-time banking, Sunday banking, holiday banking and many more allied methodologies from the very beginning right from the Dday. Prime Co-operative Bank Ltd. known as a “Fully Equipped High Tech Banking Super Market” in South Gujarat Area, There are so many products & services we have launched first in South Gujarat Area. Therefore, we are trendsetter to others for our unique, extraordinary, high tech, speedy services & products; So far bank has got 61 awards/certificate/appreciation from various organizations. During current year FOUR more awards are added as under – Bank is awarded by Surat District Co-op. Union for the overall performance of the bank among co-operative banks registered in Surat District. And recently three more awards have been conferred on us by SCOBA. Under following category among very large banks located in South Gujarat (Vapi to Bharuch)
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Vision & Mission Vision To make brand “Prime Bank” synonymous to trust and reliability to be a leader among the co. operative Banks in the whole central and south Gujarat, to render excellent and personalized service and to contribute to co-operative moments, making credit available to customers, more particularly to individuals, SMEs, thereby contributing to their growth and striving to maintain net NPAs at 0% level throughout. A fully equipped one-stop high tech “Banking Super Market”
Mission Our mission is to be a preferred financial service provider with a special focus on innovative quality products, technical expertise & efficient services for customer achieve their objectives and goals.
Board of directors Table 3.1 List of Board of Directors of Prime Co-operative Bank Ltd Name
Designation
Shri Gokul bakshi
Founder chairman
Shri Anand bakshi
Chair man
Smt.Champaben makwana
Vice chairman
Shri Mukesh bombaywala
Director
Shri Rajnikant kapadiya
Director
Shri Dhiraj shah
Director
Shri Dharmesh chorawala
Director
Shri Kanubhai tailor
Director
Shri Parimal vyas
Director
Shri Kishor brahmbhatt
Director
Shri vijay parekh
Executive Director
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History of Bank Bank was incorporated under the chairmanship of Mr. Gokul Bakshi. Bank commenced business from a rented location. Retail banking was the initial activity of the bank. Focus of strategy was stability, market penetration; resources build up and steady growth. Product development strategy initiated. Bank started financing small scale industries as recommended by RBI from Goiporia Committee and Narsimha committee in 1994. Customer is a king approach initiated concept of information technology was used like TELE Banking/Remote Banking with the advent of computerized operations. Off time banking concept were introduced i.e. evening 6:00 p.m. to 8:00 p.m. were provided for bank‟s retail customer to reduce their Cash risk and continue as on date in 1995. Branch Expansion Strategy initiated and bank started its first branch Bhulka Bhavan Branch at Adajan in August 1997 with in the very next month i.e. Sept.97 bank had started another Branch at Katargam GIDC. Branch Expansion had continued during the year and 3rd branch was opened in June 98 at M.G.Road, 4th branch was opened in oct 98 at new sardar market & 5th branch was opened in Dec 98 at bhatar char rasta. Bank has taken permission from RBI to accept the NRI deposits. Introducing “smart cash” a smart alternative of cash named as “prime purse”. It is useful at 143 places in the entire Surat area and response encouraging received from valuable class of people of Surat. Bank started with opening of a new millennium branch at navsari (millennium branch in feb.2000 first bank in south Gujarat to open its out city branch. Bank has opened another outstation branch at Bharuch in sep2000, starting to open DMAT a/c in November 2000 Prime completed its 10th anniversary in the year 2004 and introduced schemes like Prime Sarasvatee, Prime Health Card and Prime Citizen for its valued customers.Prime Introduced Schemes like Loan for Gold in partnership with ICICI Bank in year 2006. Also opened a Bill Collection Centre at its Bharuch Branch for collecting Gas Bills of Gujarat Gas Co. Ltd. To make payment system quicker RBI has launched RTGS scheme for scheduled bank, Prime has joined hands with Kalupur Commercial Bank to help its 37
customers to have the advantages of RTGS.Prime has done a remarkable job as Baroda District Industrial Cooperative Bank‟s merger with Prime Cooperative Bank, placing its management on its 7 branches, which has increased area of its working upto Chotta Udaipur in Gujarat just 72 km away from the MP border.Prime started the process of Franking on 21st Nov. at Surat & Baroda, whire customers can bring in their blank papers and convert them to a stamp paper without paying additional fees. In the year 2007 Prime has done a remarkable job as Adajan Nagrik CoOp. Bank's merger with Prime Cooperative Bank, placing its management on it, which has increased area of its working in Surat city. Prime Bank has started business of Mutual Funds on a referral basis. Bank has tied with Principal PNB Mutual Fund, UTI, Benchmark, ICICI Prudential, Reliance, SBI, Lotus, Birla, Kotak, Sundaram ETC. Prime Bank has received Category2 License to carry out Foreign Exchange Business Prime Bank had done Hattrick in Merger of week Banks In June 2006 Vadodara's 50 year old bank with its 7 branches, 'Baroda Industrial Co.op. Bank. In June 2007 Surat's Adajan Nagrik Co-op. Bank In June 2008 Nadiad's 38 year old bank with its 3 branches 'United Mercantile Co-op. Bank. In 2009 Tie up with Paul Merchants for foreign inward remittance facility through Western Union Money Transfer. Two branches opened on 1062009 – one at Bodeli dist. Bodeli and another one at Vyara Dist. Tapi Fourth merger taken place on 220909. Sanand Urban Coop. Bank Ltd., Sanand taken into merger. In the year 2010 Implementation of 100% Core Banking Solutions. In the year 2011 5th merger The Mercantile Coop. Bank Ltd., Godhra merged with the bank with two branches. In the year 2012 Implementation of Disaster Recovery Site,Bardoli Branch. Launching of ATM Card. Merger of Bayad Nagarik Sahakari Bank Ltd., Bayad Dist. Sabarkantha in 2013 1st Rank best banking among urban co-operatives of all over in Gujarat awarded by Gujarat rajya sahakari sangh. Rupay card facility through sarwatra tie-up with ICICI bank in 2014.Own training Centre at city light branch new premises in 2015. Provide E-commerce facility to customer in 2016.
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Awards
The Bank Conferred with three awards among large category CoOperative banks as under by South Gujarat Co-Op. Bank Association.
Winner for total Business Continuity & Growth.
Winner for Public Relations & Social Activities.
Runners up for Profitability.
The Bank conferred with three national level awards among Medium category co-operative banks by Banking Frontier.
Best Fee based income.
Best Data Centre Innovation.
Best IT Head Manager-Shailesh Joshi
Ranked by Gujarat State Co-Op. Union as First among all Co-Op banks of Surat Dist.
Bank conferred with two awards among very large category co-operative banks as under by South Gujarat Co-op. Bank Association.
Public Relations & Social Activities (Runners up)
Corporate Governance and Modern Banking Technology. (Runners up)
Best Paperless Banking Initiative
Best Youth Customer Acquisition
Best Physical Security Initiative
The Bank Conferred with three awards among large category CoOperative banks as under by South Gujarat Co-Op. Bank Association 2014-2015.
Total Business Continuity & Growth (Runners Up)
Profitability Management & Corporate Governance (Runners Up)
Public Relation & Social Activities (Runners Up)
The Bank Conferred with Two National Leval awards in Medium category Co-Operative banks by Banking Frontiers.
Best Chairman In India (2014-2015) Shri Gokul Bakshi
Best Marketing Initiative (2014-2015).
Best chairman- Shri Gokul Bakshi among urban co-operative banks all over in India awarded by banking frontier.(2016) 39
Services of Prime Co-operative Bank Ltd 1. ATM To provide flexibility and access to account 24X7 to the customers‟ bank has tied up with NPCI for Rupay card. Through Rupay card customer can withdraw money up to Rs. 10,000.00 per day, can make balance enquiry, can get short statement for their account and can change their accounts PIN anywhere in INDIA.
2. Life Insurance We are first Co-operative Bank of South Gujarat Area who has tie up & start Life Insurance Products Business with Aviva Life Insurance Co. India Ltd. as a “Bank Assurance”. (Corporate Basis)
3. General Insurance We are first Cooperative Bank of South Gujarat Area who has tie up & start Life Insurance Products Business with as a “Bank Assurance”. We have tie up with corporate agent of New India Assurance Company.
4. Real Time Gross Settlement (RTGS) “RTGS” stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. This is the very quickest possible money transfer system through the banking channel. Settlement in “real time” and the transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without clustering with any other transaction. As this money transfer takes place in the books of the Reserve Bank of India, the payment is considered as final and irrevocable.
The minimum amount to be remitted through RTGS is 2.00 laces. There is no upper ceiling for RTGS transactions. RTGS eliminates settlement risk. The volume of RTGS transactions is increasing rapidly.
40
Table 3.2 Charges list of Real Time Gross Settlement Charges for Real Time Gross Settlement Value Of Transaction
Charges
Rs 2 lakhs to Rs 5 lakhs
Rs 28.00 per transaction Inclusive of Service tax
Above Rs 5 lakhs
Rs 57.00 per transaction Inclusive of Service tax
5. National Electronic Fund Transfer (NEFT) Prime Co Operative Bank has direct membership for NEFT with RBI. NEFT is an electronic payment system to transfer funds from one account to another, between NEFT participant bank branches in India. in which transactions are settled in batches. It is a risk free, secure and reliable mode for transfer of funds of any amount.
Table 3.3 Charges list of National Electronic Fund Transfer Charges for National Electronic Fund Transfer NEFT Value Of Transaction
Charges
Inward
Nil
Outward
Up to Rs. 1.00 lakh Rs 6.00 per Transaction Rs. 1.00 Lakh to 2 Lakhs Rs.17.00 per Transaction Inclusive of Service Tax
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6. Deposit
Table 3.4 List of Fixed Deposit Duration and Interest rate Previous
Existing
6.50%
6.50%
91 days To 180 days
7.00%
7.00%
181 days To 365 days
7.50%
7.50%
Above 1 Year
8.50%
8.50%
13 Months
9.50%
9.00%
7 – 90 days (minimum Rs.15 Lakhs Single Deposit)
GET MORE THAN DOUBLE IN JUST 99 MONTHS Deposit of Rs.15.00 Lakhs & above & get 0.50% extra Interest. Deposit of Rs. 5 corers and above - 60% extra interest extra interest to Senior citizens
i.
Prime Citizen 60% extra interest on Deposit or Recurring Account of Senior Citizen of 60 Year & more. Get your interest of fixed deposit monthly, quarterly, Half Year or Yearly to your Savings Account (If in other bank also) facility.
ii.
Prime Gem A scheme to get flexible interest monthly, quarterly, half yearly or yearly.
iii.
Prime Gold A cumulative interest scheme. To get Rs.1,000/- on maturity for deposit Rs.900/- for 15 months or Rs.657/- for 60 months.
iv.
Prime plus Get more than double in 99 months @8.50 rate of interest. Effective Yield 10.72% (limit for TDS – Rs. 69,700/-) more than double
v.
Prime Flexi Floating Interest Recurring Scheme offer you to decide your instalment and period Rate of Interest is Bank Rate + 1% (Bank Rate is subject to RBI Policy) Flexi Recurring scheme 27 Months to 120 Bank rates + 1%
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7. Foreign Exchange We can cater Foreign Exchange (Letter of Credit & Bank Guarantee) through IndusInd Bank. Now, we have been doing the business of Money Exchange/Changing Business. We have tie up with Axis bank, ICICI bank for foreign currency.
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a. Organogram
Figure 3.1 Organogram of Prime Co-operative Bank Ltd.
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b. Department 1. Current Department Business related transaction can be done in to this account.
2. Cash Department All cash transaction can be done in the cash department. Cash withdraw and cash deposit.
3. Clearing Department In this account two types of clearing can be done: 1. Inward Clearing. 2. Outward Clearing.
4. Human Resource Department All the management of the bank can be done through the HR Department.
5. Fixed Deposit Department Long term fixed deposit and short term fixed deposit.
6. Saving Department Saving can be Regular saving and basic saving. Regular saving requires pan no and require balance for regular saving is 500RS. Basic saving not requires pan no and require balance for basic saving is 0Rs.
7. Loan Department Bank Provide Home loan, Study loan, Business loan, Car loan, etc.
8. Forex Department It Provide International credit/debit card, Currency Exchange, and Money transfer through Western Union.
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c. SWOT analysis Strength Dedicated and well trained staff. Long standing clients. Excellent customer relationship. Effective front end service. Trend setter in high-tech banking. Any branch banking. Internet banking.
Weakness Inadequacy of initiative and innovation among the staff and members. High operating cost.
Opportunity Penetrating into market due to increase in industry banking. Increase the economy of scale by reducing the per capital cost of operation.
Threats Economic slowdown Highly competitive environment Low speed of the recovery loan Bank has to face So much competition in present time.
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d. Market Position
As per the present scenario the market position of prime co-operative bank stands at 3rd position preceded by top players like surat people‟s cooperative bank and varacha co-operative bank. The prime co-operative bank has its own customer base and so it hardly gets affected because of its market position.
Prime co-operative bank had gained good position in the market. From the last 23year, it has improved the services, profitability and position. It had earns loyalty, preference and trust of the customer. The deposit from customers has been increasing over a year, which enhances the capacity to provide credit to individual, company etc. Bank has tie up with the companies involving in general insurance and life insurance. Prime co-operative bank provides non-banking services such as stamp franking, pan card, insurance services, mutual fund, etc. The branches of the prime co-operative banks are situated at different place, so customer can approach the bank at nearest branch. Further, it provides scholarship to shareholders students having first class. It will lead to motivate the shareholders. The initiative of ECS services in relation to the shareholders benefit by transferring dividend to their preference account proven to be essential.
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CHAPTER 4 REVIEW OF LITERATURE
48
Ali and Ahmed (2009) Determine that Organization like banking sector have determined a balance between the performance of the employees and their commitment to the work which in result of job satisfaction. Reward and motivation are the two main factors that have an effect on the job satisfaction and motivation of employees. In reference to statistics, there is a significant relationship between reward and recognition, and between motivation and job satisfaction they established that there is a substantial affiliation between reward and recognition, and similarly in employee motivation and job satisfaction. Study exposed that if rewards and recognition offered to employees then there would be a substantial modification in work motivation and satisfaction. Amabile et al. (1994) suggested that employee who reveals high job satisfaction is motivated by rewards, and rewards supported work engagement. Job satisfaction of rewards in public and private sector employee has been established certainly associated with job satisfaction. Preceding research found that job satisfaction is associated with the monetary compensation (pay, promotion, and bonus) and non-monetary compensation is one of the most important explanatory variables in both sectors. Beer et al. (1984) investigate that employees expect the organization to provide fair pay, safe working Conditions and fair treatment. Like management, employees often expect more, Depending on the strength of their needs for security, status, involvement, challenge, Power and responsibility. Just how ambitious for expectations of each party are vary from organization to organization. For organizations to address these expectations an understanding of employee motivation is required. Bishop (1987) Search that, pay is directly related with productivity and reward system depends upon the size of an organization. Firm‟s reward system plays a critical role in motivating employees to perform creatively. Effective reward and recognition system can be a good motivator but inappropriate reward and recognition program increase de-motivation of the employees.
49
(Bowen & Radhakrishna, 1991) indicate that motivated employees are needed in our rapidly changing workplaces. Employees are the sole strategic assets that make organizations alive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Managers have to play different functions but motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employee changes constantly. Brun and Biron et al. (2003) investigate that reveal that lack of recognition constitutes the second-largest risk factor for psychological distress in the workplace. Among managers, for instance, it would appear to constitute a stress-tolerance factor and a key element in their ability to handle difficult professional situations; One of the most important sources of organizational mobilization and engagement, recognition plays a key role in the success and continuity of organizational change. Moreover, it promotes on-the-job learning and is a building block of learning organizations, finally, by contributing to employee job satisfaction; recognition has a positive impact on organizational productivity and performance. (Bursch, 1999) Suggest that increasingly organizations are looking towards non-traditional recognition and rewards systems to retain and motivate employees. An effective recognition and rewards program can achieve this by creating a positive environment that encourages workers to thrive ''business benefits as these basic values translate into happier, more productive workplaces which report high retention rates of skilled staff.'' Carnegie (1975) emphasizes that the human aspects of management. They postulate that as it is people who make a business succeed or fail it is the organization‟s chief responsibility to motivate their people so that they will assure success. The authors believe that each human being has the potential for creativity and for achieving goals. The infinite question is how organizations reach this potential and how they stimulate creativity and foster in their people the desire to succeed and to achieve self-fulfillment through their work. The common theme of the above authors is the belief that people
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need to be respected and treated as precious human capital, more essential to an organization‟s effectiveness than its financial capital. (Deeprose and Bull, 1994) said 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 employee‟s ability and skills make employee more loyal to their work and become a source of pertinent workability for the employee. Bull posits a view that when employees experience success in mentally challenging occupations which allows them to exercise their skills and abilities, they experience greater levels of job satisfaction. Incentives, rewards and recognition are the key parameters of today‟s motivation programs according to most of the organizations as these bind the success factor with the employees‟ performance. (Hackman and Oldham 1976) Determine that extrinsic rewards are the physical benefits provided by the organization such as pay, bonus, fringe benefits and career development opportunities. Intrinsic rewards refer to the rewards that come from the content of the job itself, and encompass motivational characteristics of the job such as autonomy; role clarity and training Social rewards arise from the interaction with other people on the job and may include having supportive relationships with supervisor and coworkers. (Kreitner, 1995) Reward and recognition programs come within the discussion on extrinsically motivated behavior that occurs when an activity is rewarded by incentives not inherent in the task; the concept of motivation has been defined as; the psychological process that gives behavior purpose and direction; a tendency to behave in a purposive method to achieve specific, unmet desires; an inner force to gratify an unsatisfied need and the will to accomplish; motivation is operationally defined as the inner force that drives individuals to achieve personal and organizational goals.
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La Motta (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. The performance evaluation and rewards are the factors that proved to be the bonding agents of the performance evaluation programs. Lawler (2003) Described that there are two aspects that decide how much a reward is attractive, the quantity of reward which is provided and the weight age an employee gives to a specific reward. Employees are certainly closer to their organizations and perform better job, while they receive healthier reward and recognition in their organizations. Rewards increase the level of efficiency and performance of the employees on their jobs and in the result thereof increase the success of the organization. Generally employees job description and job specification determines rewards to maintain fairness among employees within an organization and competitive in the marketplace, organizational reward means all the benefits i.e. financial and non-financial that an employee receives through their employment relationship with an organization. Maire and Nick (2002) investigate that Organizations can motivate the workforce most through introducing appropriate reward and recognition programs and other benefits. Referred that, compensation systems deliver other objectives such as legal compliance, labor cost control, perceived fairness towards employees and enhancement of employee performance to achieve high level of productivity and customer satisfaction. Pay is directly related with productivity and reward system depends upon the size of an organization. Effective reward and recognition system can be a good motivator but inappropriate reward and recognition program increase demotivation of the employees. Reward is the benefit received for performing a task. Rewards can be extrinsic or intrinsic. Extrinsic rewards are the tangible rewards which one gets from the employer. External rewards can be in terms of salary/pay, incentives, bonuses, stock options, promotions, job security, and flex-time.
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(Robbins et al., 2001) conclude that the recognition which is a central point towards employee motivation adores an employee through appreciation and assigns a status at individual level in addition to being an employee of the organization; recognition the most important factor of their reward system. The conditional recognition is that type of recognition which one has to earn by his own efforts and which is gained by some sense of achievement of an action or result. Employees are definitely closer to their organization as their job can become the major satisfaction in their life after having a proper rewards and recognition at their job. Rewards enhance the level of productivity and performance at job whether it‟s a first time performance or repeated activity at the job in a progressive way. Roberts (2005) Define that Reward system is very important tool that all banks can use to strait employees motivation in different ways. In other words, banks give rewards to employees and rewards system seek to attract employees to join the bank to keep than coming to work and also motivate them to perform to high level. A reward system is scheme perform of HR management which provides increases of those individual or group who perform well in any organization. Basically all types of rewards motivate to employees to perform well by attracting with well-designed compensate package by banks. All employees of any bank must believe effective performance will lead to certain rewards. We can define of reward system as “reward system is formal or informal program used to recognize individual employee achievements, such as accomplishment of goal or project.” There are two types of reward system, one is extrinsic rewards (salary, bonus, commission, status and promotion) second is intrinsic rewards (opportunity to completion, training, skills, meaningful work and work kind condition). Organizations are under constant pressure to enhance and improve their Performance and realizing that relationship exists between organizational Performance and employee performance.
53
From the study of all the above this literature review, the Factors find for this survey ”The Impact of Reward & Recognition on employees motivation” is Compensation, Benefits, Autonomy, Promotional Opportunity, Challenging Task, Awards, Appreciations, Recognition can motivate Employees and they satisfied with their work.
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CHAPTER 5 RESEARCH METHODOLOGY
55
a. Problem Statement Employees being the most important assets of the Bank and it is very important to be retained by various ways, even that the workload is increasing day by day due to which employees may be demotivated and that provokes, it is necessary to motivate them through Reward and Recognition program, by the organize program employees can be retained and productivity can be increased. This survey is to identify the impact of Reward and recognition on employee motivation at prime co. operative bank. This survey measures the Motivation level of employee. What is actual Motivate employee and what they want from bank and what they get from their job this kind of questions answer can be found by this survey, the reason for select this topic to determine the reward and recognition system.
b. Objectives of the Study 1) To determine the impact of rewards on motivation. 2) To determine the impact of recognition on motivation. 3) To suggest ways in which reward and recognition programme in Prime coOperative bank can be improved upon in order to increase employee motivation.
c. Research Design 1. Types of Design The Research design adopted for this Survey is Descriptive Research Design. A descriptive study tries to discover answers to the questions like who, what, when, where, and sometimes, how. The Research attempts to describe or define a subject, often by creating a profile of group of problem, people or events.
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2. Sampling Design
Scope of the study: All the branches of Prime Co-operative Bank of Surat city is scope of this survey. The list of branches are described in the sample frame.
Population size: The employees (from different age groups, genders, education backgrounds, Department, income level and designations) from the all branches of Prime co-operative Bank have been taken as population; approximately 130 employees are in the Surat city branches.
Sample frame: For this study all 13 branches of Prime co. operative Bank in Surat city covered
1. Prime House
7. Bhatar Branch
2. Udhna Branch
8. Sardar Market Branch
3. Khatodara (Main Branch)
9. City light Branch
4. Bulka Bhavan Branch
10. Palanpur patia Branch
5. Katargam GIDC Branch
11. Udhana pandesara Branch
6. Lalgate Branch
12. Jahangirpura Branch 13. Amroli
Sample size: 116 Employees.
Sampling Method For this Survey used a Non-probability Convenient Sampling technique is used for recording the responses of 116 respondents. The convenience sampling is used because the information gathered from those employees who were accessed quite easily and conveniently.
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3. Data Collection
Primary data collection Primary data collection has been done by communication approach, personal interview and survey. Questionnaire Design: The questionnaire was designed to determine employee motivation. To make the questionnaire understandable, it was divided into two parts. The first part of the questionnaire contained questions regarding employee Demographic Profile. The Second part was about reward and recognition system. Here, a five point Likert Scale ranging from 1 (Highly Satisfied) to 5 (Highly Dissatisfied) was used to measure responses.
Secondary data collection For the Secondary data, use of the available literature, Internet, Magazines, Published data other Journal publications has been made to find out the theoretical framework and also to know what early research mentioned regarding the given the survey.
4. Tools for analysis: For Analysis the Data of survey SPSS software used, Frequency, present Details Tables done in SPSS Software and Pie charts and Bar chart Made in Use MS Excel.
5. Limitations of the study
1. Employees are not willing to give response regarding their personal details like salary. 2. Many of the Employees are newly joining prime co. operative Bank so they don‟t have much knowledge about the systems and they may not receive all benefits. 3. As the employee busy with their work, absenteeism of employee so cannot get their response. 4. Some employees are Hesitate to gives right information.
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CHAPTER 6 DATA ANALYSIS & FINDINGS
59
Analysis of Demographic Profile To study the Designation of Employees Table 6.1 Designation information of Employees Designation Frequency
Percent
Manager
7
6.0
Assistant general Manager
6
5.2
Officer
27
23.3
Clerk
74
63.8
Branch Head
2
1.7
Total
116
100.0
Designation 2%
5% 6% Manager 23%
Assistant general Manager Officer
64%
Clerk Branch Head
Figure 6.1 Designation information of Employees
Interpretation: this Figure 6.1 show the data of designation in prime co-operative Bank Ltd, Here we can observe from the above chart that there are 64% of the employees Designation is clerk; 23% of employees Designation is officer, Managers are 5% in the bank, Assistant General Manager is 5% and branch head is 2% in the Bank.
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To examine that under the which Department employees work Table 6.2 Department information Department Number of Employee
Percent
2 17 18 12 2 17 20 17 2 2 4 3 116
1.7 14.7 15.5 10.3 1.7 14.7 17.2 14.7 1.7 1.7 3.4 2.6 100.0
All Saving Current Fixed Deposit Franking Loan Clearing Cash Non-Banking Forex Human Resource Audit Total
Department Number of Employee 17
18
20
17
17
12 2
2
2
2
4
3
Figure 6.2 Department information
Interpretation: The graph show the Data of Departments and employees work in department, there are total 11 department in prime co-operative bank, majority of employees work in operational level, there are less employees in medium level and higher level.
61
To Study the Gender of Employees Table 6.3 Gender Information of Employees Gender Frequency
Percent
Male
55
47.4
Female
61
52.6
Total
116
100.0
Gender
Male 47%
Female 53%
male female
Figure 6.3 Gender Information of Employees
Interpretation: The above graph provide information about gender in prime cooperative bank, here female employees are more than male employees, female employees are 53% and the male employees are 47%
62
To study the Salary Package of Employees Table 6.4 Salary Package of Employees Salary (PA) (Approximately) Frequency
Percent
Less than 1Lakh
10
8.6
1Lakh to 3Lakh 3Lakh to 5Lakh
68 32
58.6 27.6
6
5.2
116
100.0
More than 5Lakh Total
Salary (PA) (Approximately) 5%
9%
28%
Less than 1Lakh 1Lakh to 3Lakh 58%
3Lakh to 5Lakh More than 5Lakh
Figure 6.4 Salary Package of Employees
Interpretation: The graph provide information about salary package of the prime co. operative bank, there are majority of employees salary package is between 1 lakh to 3 lakh, 28% employees salary package is between 3 lakh to 5 lakh, 9% employees salary package is less than 1 lakh and most of them are fresher or trainee, only 5% of employees salary package is more than 5 lakh, maximum salary package is 6.5 lakh in the bank.
63
To study the Age group of Employees Table 6.5 Age group Information of Employees Age Frequency
Percent
20 - 30 Year
43
37.1
31 - 40 Year 41 - 50 Year
62 10
53.4 8.6
Above 51 Year
1
.9
Total
116
100.0
Age 1% 9% 37% 20 - 30 Year 31 - 40 Year 41 - 50 Year
53%
Above 51 Year
Figure 6.5 Age group Information of Employees
Interpretation: The graph provide the information about Age group in prime cooperative Bank, here the majority of the employees age between 30 to 40 year that is 53%, there are 37% employees are in young age group, 95 of the employees age group is 41 to 50 year, there only one 1% of employees are age is more than 51 year.
64
To study the Employees Job experience with Prime Co-operative Bank Ltd Table 6.6 Experience of Employees with Prime Co-operative Bank Ltd Year of Experience with Prime co. Operative Bank Frequency 1 to 5 Year 5 to 10 Year 10 to 15 Year
55 33 13
present 47.4 28.4 11.2
15 to 20 year
12
10.3
20 to 25 year
3
2.6
116
100.0
Total
Year of Experience with Prime co. Operative Bank
10%
3%
11%
47%
1 to 5 Year 5 to 10 Year 10 to 15 Year 15 to 20 year
29%
20 to 25 year
Figure 6.6 Experiences of Employees with Prime Co-operative Bank Ltd
Interpretation: the graph provide information about the year of experience of employees with prime co- operative bank, here 47% of employees have 1 to 5 year of experience with Bank, 29% of employees have a 5 to 10 year of experience, 11% of the employees have a 10 to 15 year of experience, 10% of employees have 15 to 20 year of experience and only 35 of employees have 20 to 23 year of experience with bank.
65
To Study the Impact of Compensation on Employees Motivation level Table 6.7 Impact of Compensation on Employees Motivation level Compensation Benefits Pay is coAll Task i responding Associated receive with with performan bonuses ce and incentives 9 14 4
The Amount of pay i receive
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
3 85 21 7 0
70 32 5 0
63 33 4 2
Bonuses and profit sharing plans
Leave policies
19
20
56 34 7 0
78 12 6 0
64 38 9 1
Compensation Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
85 78 70 64
63
56 38
33
32
34
21 3
9
7 0
5
0
20
19
14 4 2
4
9
12
7 1
6 0
The Amount of Benifts i receive Pay is All task Bonuses and pay i receive corresponding associated with profit sharing with bonuses and plans performance incentives
0 Leave policies
Figure 6.7 Impact of Compensation on Employees Motivation level
66
Interpretation:
The
Figure
6.7
provides
information
about
Impact
of
Compensation of Prime co-operative Bank Ltd, here we can observe that there are 85 employees are satisfied with their basic pay, 20 employees are highly motivate because of leave polices, 70 employees are satisfied with benefits they receive. From the year 2015 the bank change their pay system and now it is Based on performance 63 employees satisfied with their new performance based system, Bank giving bonuses and incentives to motivate their employees once in year, 38 employees neutral about bonuses and incentives based on their task which they performed, but overall majority of employees are satisfied and motivate by their financial reward system.
67
To Study the Impact of Leadership & Support on Employee motivation Table 6.8 Impact of leadership & support on employee motivation Leadership Support/Direction Manager Informed about goals
Manager encoura ges me
Encourag ed to think of new ideas
Supported to make improvements
Clear how I can contribute to goals
32 64 18 1 1
37 57 20 1 1
28 55 32 0 1
26 62 27 0 1
42 52 17 4 1
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Leadership Support/Direction Highly Satisfied
Satisfied
Neutral
Dissatisfied
64
Highly Dissatisfied
62 57
55
52 42
37 32
28
32 26
27
20
18
1 1 Manager Informed about goals
17 1 1
Manager encourages me
0 1
0 1
4
1
Encouraged to think Supported to make Clear how I can of new ideas improvements contribute to goals
Figure 6.8 Impact of leadership & support on employee motivation
Interpretation: The Figure 6.8
provide the information about Impact of
leadership & support on employee motivation at Prime co-operative Bank Ltd from their Manager, 64 Employees are motivated by manager informed about goals, 62 employees are satisfied to make them improve, 57 employees are
68
motivate by encourage them, 55 employees are motivate because manager encourage them to think about new ideas and 32 employees are neutral about that so manager should encourage those employee, 52 employees are motivated by themself that they are clear how they contribute for goals, Managers are successfully motivate employees.
To Study the Impact of Work itself on employee motivation Table 6.9 Impact of Work itself on employee motivation Work Itself A
Amount
Security
There is
Duties and
Satisfied
Possibility
Schedule
sense
of job
Related to
Personal
responsibili
with
for
my own
of pride
security
future
growth
ty are
current
training,
work and
to do
I receive
prospects
and
allocated
recognition
seminar
make job
in bank
developm
on
system
and
related
ent
individual
further
Decision
interest
education
my job.
Highly
38
9
16
18
12
12
24
15
Satisfied
61
72
59
57
61
54
35
60
Neutral
16
24
32
24
39
41
34
34
Dissatisfi
1
11
9
17
4
9
22
7
0
0
0
0
0
0
1
0
Satisfied
ed Highly Dissatisfi ed
69
Work Itself Highly Satisfied
Satisfied
Neutral
59
57
Dissatisfied
Highly Dissatisfied
72 61
61 41
39
38
60
54 3534
32 24 16 9 10
18
16
11
24 17
24 12
9 0
0
0
12 4
0
34
22 15
9 0
1
7 0
Figure 6.9 Impact of Work itself on employee motivation
Interpretation: The Figure 6.9 provide to information about The Impact of work itself and autonomy on employee motivation at Prime co-operative Bank, we can see that 72 employees motivated and satisfied by job security, 61 employees are motivated by duties and responsibility on their own interest and they feel pride to do their job, also Bank provide autonomy to their employees, 54 employees are satisfied with recognition system and 41 employee are neutral about the same, here we can see that there are less employees who feel that bank can development in them so many of employees are on neutral stage, here is the main problem of the bank is their training, seminar and further education so its create low impact on employee motivation, 22 employees are dissatisfied by that so bank should provide them benefits for further study.
70
To Study the Impact of Promotional opportunity on employee motivation Table 6.10 Impact of Promotional opportunity on employee motivation Promotional opportunity Opportunit Increase Opportunitie y for level of s for Career responsibil growth/ developm ity advanceme ent nt
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
21 54 35 5 1
14 68 30 4 0
21 57 31 7 0
opportunitie s to learn and update with emerging skills and knowledge 23 61 29 3 0
opportuniti es to leverage their skills through training programs 20 54 36 6 0
Promotional opportunity Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
68 61
57
54
54
36
35
31
30 21
29
23
21
20
14 5
1
Opportunity for Career development
4
7 0
Increase level of responsibility
0
3
6 0
0
Opportunities for Learn and update Leverage their skills growth/advancement with emerging skills through training and knowledge programmes
Table 6.10 Impact of Promotional opportunity on Employee motivation
71
Interpretation: The Figure 6.10 Provide the Detail about Impact of Promotional Opportunity on employee motivation at prime co-operative Bank, there are 68 employees are motivate and satisfied with their increase level of Responsibility, Bank motivates there employees by providing them learning updated and emerging skill and knowledge, here 36 employees have neutral responds on skill development program, 57 employees are motivated by their growth, 21 employees are highly motivate by their growth, the overall response of employees on promotional opportunity is Satisfactory but bank have to do some seminars for Develop their employees.
72
To study the Impact of Award system on Employee motivation Table 6.11 Impact of Award system on Employee motivation Awards Receive Long years Best Receive award for of service performer Award from my Award award bank in front Regularity of family and staff member Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
7
8
12
19
47 35 24 3
43 44 17 4
32 50 20 2
54 25 14 4
Awards Highly Satisfied
Satisfied
Neutral
Dissatisfied
54
50
47
43 44 35
32 25
24
20
17 7
Highly Dissatisfied
8 3
Receive award for my Regularity
19
14
12 4
Long years of service Award
4
2 Best performer award
Receive Award from bank in front of family and staff member
Figure 6.11 Impact of Award system on Employee motivation
73
Interpretation: The Figure 6.11 provide information about the Impact of Award system on Employee motivation of Prime Co-operative Bank ltd, Award system as a one of most attractive way to motivate and satisfied employee without money, Here we can observe the overall scenario of employee satisfaction by award system, some of employees are dissatisfied with this award system, only 47 employees satisfied by get regularity award, there are so many employees have long year experience with bank but still they do not got Long year service award, majority of employee dissatisfied because of they never got best performance award, annually bank organize annual program and invite employees family members also and give awards and gifts front of them its motivate employee to work more.
74
To Study the Impact of Recognition & Appreciation on Employee Motivation Table 6.12 Impact of Recognition & Appreciation on Employee Motivation Recognition & appreciation An article
"thank you"
Appreciation
Getting
Individual
Pastry
by you is
or Note of
from the
vehicle as
photo, name,
cutting
published
appreciation
manager in
a gift for
&
ceremony
in the
from
front of the
best
achievement
on
Bank‟s
supervisor,
colleagues
performanc
for best
individual‟s
magazine
manager, or
e
performance
birthday or
on bank
success at
notice board
bank
co-worker Highly
22
30
24
10
16
15
Satisfied
40
40
56
45
48
43
Neutral
42
35
31
43
32
37
Dissatisfie
12
11
5
15
19
18
0
0
0
3
1
3
Satisfied
d Highly Dissatisfie d
Recognition & appreciation Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
56 40 42
48
45 43
40
43 37
35
32
31
30 24
22 12
11
19
15
18
10 5
0
16
15 0
0
3
1
3
An article by you A personal "thank Appreciation Getting vehicle as Individual photo, Pastry cutting is published in you" or Note of from the a gift for best name, and ceremony on appreciation from manager in front performance achievement for the Bank’s individual’s magazine supervisor, of the colleagues best performance birthday or manager, or coon bank notice success at bank worker board
Figure 6.12 Impact of Recognition & Appreciation on Employee Motivation 75
Interpretation: The Figure 6.12 provide information about Impact of Recognition & Appreciation on Employee Motivation at The Prime co-operative Bank Ltd, this is best way to motivate employee through non-financially, 56 employee are motivated because manager appreciate them in front of their colleagues, employees can motivate when their Article in Bank‟s magazine, Bank give vehicle to Best performance in the year but mostly employees neutral on that it mean very less employee get vehicle because target is very high so it‟s difficult to complete it, 30 employees highly motivate receiving thank you or appreciation note from their colleagues and officers, they are motivate when their achievement and photos on notice board it motivate them also others to work more and achieve targets, bank organize small party on individuals birthday or success to motivate and satisfied them, overall recognition system is average employees are neither motivate nor demotivate by system.
76
Table 6.13 Descriptive statistics for the Factors of work motivation
Descriptive statistics for the Factors of work motivation Variables
Mean
Standard Deviation
Ranking
Compensation
2.27
.50
3
Leadership, Support/ Direction
1.96
.62
1
Work Itself
2.28
.59
4
2.20
.64
2.64
.82
2.41
.65
Promotional Opportunity Awards Recognition & Appreciation
2 6 5
* Where high variables correspond to low motivation
Interpretation: With respect to the Factors of work motivation assessed by the work motivation, Table 6.13 indicates that the means for the Compensation, Leadership, Work itself, Promotional Opportunity, Awards, Recognition & appreciation ranged from a low of 1.96 to a high of 2.64. It therefore appears that Employees in the sample are relatively motivated; however, the mean values for Awards and Recognition were the Highest. These mean values indicate the areas that employees are like to motivate but current scenario indicate that employees demotivated and dissatisfied by that Factors. Thus shows that employees in the sample are mostly motivated due by their Leadership, promotional opportunity, and compensation, work itself. They are least motivated by the Awards they receive and recognition as determined by the Work Motivation and Satisfaction.
77
Hypothesis Hypothesis 1 H0: There is no significant relationship between Compensation and work motivation and satisfaction. H1: There is significant relationship between Compensation and work motivation and satisfaction. Hypothesis 2 H0: There is no significant relationship between Leadership, support/Direction and work motivation and satisfaction. H1: There is significant relationship between Leadership, support/Direction and work motivation and satisfaction. Hypothesis 3 H0: There is no significant relationship between Work itself and work motivation and satisfaction. H1: There is significant relationship between Work itself and work motivation and satisfaction. Hypothesis 4 H0: There is no significant relationship between Promotional Opportunity and work motivation and satisfaction. H1: There is significant relationship between Promotional Opportunity and work motivation and satisfaction. Hypothesis 5 H0: There is no significant relationship between Awards and work motivation and satisfaction. H1: There is significant relationship between Awards and work motivation and satisfaction. 78
Hypothesis 6 H0: There is no significant relationship between Recognition & appreciation and work motivation and satisfaction. H1: There is significant relationship between Recognition & appreciation and work motivation and satisfaction. Hypothesis 7 H0: There is no significant relationship between Reward, Recognition and work motivation and satisfaction. H1: There is significant relationship between Reward, Recognition and work motivation and satisfaction.
Table 6.14 Correlations between factors and work motivation Factors correlations with work Motivation Work motivation and satisfaction Pearson
Significance
Variables
correlation
(2-tailed)
Compensation
0.58
0.000
Leadership, Support/ Direction
0.64
0.000
Work Itself
0.69
0.000
Promotional Opportunity
0.68
0.000
Awards
0.62
0.000
Recognition & Appreciation
0.58
0.000
Detail Calculation mention in annexure 2
Interpretation: The results indicates that Compensation correlates significantly with work motivation and satisfaction (r=0.58) (p<0.01).This supports the hypothesis that there is significant relationship between Compensation and work motivation and satisfaction. 79
A significant correlation is shown to exist between Leadership, support/ Direction and work motivation and satisfaction (r=0.64) (p<0.01), supporting the hypothesis that there is a significant relationship between Leadership, support/ Direction and work motivation and satisfaction. Work itself correlates significantly with work motivation and satisfaction(r=.0.69), (p<0.01).This supports the hypothesis that there is significant relationship between Compensation and work motivation and satisfaction. There was also a significant relationship between promotional and work motivation and satisfaction (r=0.68) (p<0.01). Hence, this supports the hypothesis that promotional opportunities are significantly related to work motivation and satisfaction. A significant correlation also exists between Awards and work motivation and satisfaction(r = 0.62) (p < 0.01), supporting that Awards is significant in explaining the variance in work motivation and satisfaction. There was a significant relationship between Recognition and work motivation and satisfaction (r=0.58) (p<0.01). Hence, the hypothesis that there is a relationship between Recognition and work motivation and satisfaction is supported. Table 6.15 the relationship between rewards, recognition and work motivation and satisfaction Work Motivation and Satisfaction Rewards
0.85
Recognition
0.71
*Correlation is significant at the 0.01level (2 tailed)
Interpretation: There is a statistically significant, direct and positive relationship between rewards and work satisfaction and motivation (r = 0.85). Hence, if rewards offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction. 80
The results indicate that there is a statistically significant, direct and positive relationship between recognition and work satisfaction and motivation (r = 0.71). This implies that if the recognition accorded to employees were to change, there would be a change in work motivation and satisfaction.
81
Findings The Prime co-operative Bank is successfully working from the Last 23year as financial industry, to motivate their employees there are Reward and Recognition Programs, Employees of the Bank are getting financial rewards more than nonfinancial rewards, some of them are very satisfied with that reward but some of them want to grow their carrier. Employees said… We receive all benefits, Insurance and Pay is on Basis of our Knowledge and skill, Salary and Other Benefits are based on Experience, Authority, and Designation, how long we are with Bank. We are highly Motivate to Leadership and supportiveness and autonomy. We want to learn something new and we felt that we need to improve our skill but we don‟t get any opportunity to learn.
Prime co-operative bank has Average Recognition Plan motivate employees, According to survey, there are 24 employees who want to get awards for their regularity and 17 employees want long year services with bank but they don‟t achieve it, some employees are not willing to response about awards because they are not satisfied so they are demotivate, best performance award motivate most to employees.
only 32 employee received it, the prime co-operative bank celebrate one day every year for their success, they invite family members of employees and they give awards front Family members, it is best way to motivate but most of the employees 54 employees are satisfied with is system.
40 employees satisfied and 42 natural about A personal "thank you" or mail of appreciation from supervisor, manager, or co-worker when they done their best performance, 56 employee satisfied with Appreciation from the manager Employees become motivated most if they get Leadership, Support and Direction. Maximum respondents, 52employees satisfied with they are “Clear how they can contribute to goals” and 78 employees are motivate and
82
satisfied with the Leave polices, 57 employees responded that they are given “managers encourage them”.
Promotional opportunity is become most attractive way to retain employees. That is their Bank is well aware of this factor and giving enough opportunity for their growth and development. Whereas, maximum respondents 72 employees answered they feel that their Bank provides Job Security, there are autonomy to work there with minimum supervision it‟s motivate employees.
62 employees feel that Manager encourage them to think about new ideas, from this factors employees things that bank value there employee, its can increase employees knowledge and skill, Managers supported employees to Make improvement, Managers and employees are Contribute same to achieve goal . Prime co-operative bank should be concerned about increasing the harmonious relationship among the employees and managers at workplace.
Financial Reward are Basic necessary of life, 85 Employees are Satisfied with “The Amount of Pay I Receive”, from the year 2015 the bank incentives plan on the Bases of Performance, Employees Expect salary on the Basis of their abilities, knowledge, Skill. All tasks are not associated with bonuses and incentives, Bonuses and Profit sharing Plan motivate employees to achieve their Target, additionally Holidays, Family tour, Health Insurance Policy Keeps Employees Motivated.
61 employees satisfied with All task and responsibility based on their interest, 34 employees neither satisfied and nor dissatisfied with the Bank provide less Benefits like seminar, Refreshment training, and further study plan that is why employees are dissatisfied and not motivated.
in front of the colleagues, 45 employees motivate by vehicle gift as a best performance for this year. 83
According to Study Correlation Between Reward and Recognition and Work motivation and Job satisfaction, if Prime Co-operative Bank Ltd. Give Reward to employee Employees are Motivate and satisfied, Recognition give more motivation to employee, There are correlation between Recognition and Work motivation.
According to Descriptive Study Employee are now Motivated by Leadership, Support, Promotional Opportunity, Compensation, Work it Self, Awards and Recognition, All this Variable are correlated to Work motivation and Satisfaction.
43 employees are not giving any respond on it, 16 employee is highly satisfied 19 employees Satisfied with every month best performance or target achiever Individual photo, name on bank notice board, 43 employees motivate and 18 employees not motivated by small party of a Pastry cutting on individual‟s birthday or success at bank this all things are done by bank to motivate their employees.
Employees said…. Every time financial reward is not motivate us but some of the stage we want recognition, and we want to receive award, we perform our best, when we receive it, it will be pried moment for us.
84
CHAPTER 7 CONCLUSION & RECOMMENDATIONS
85
The study concludes that a reward has positive effect on motivation and satisfaction. Thus reward plan plays vital role in enhancing the value delivered to
the
employees.
Form
this
study
Leadership,
support,
direction
compensation and promotional opportunity, job security, work itself, Interesting work is the most attracting way to motivate employees.
Financial reward is not possible to give all time so that time Bank should give recognition to employee to motivate although many Factors of work and job motivation are related to motivation and satisfaction, there is a positive effect of recognition on employee.
The mean values of Recognition and Awards, shows that employees are less motivated with those aspects. Hence rewards and recognition plans programs given to the employees‟ of Prime co-operative bank in Surat city has to Revised and need to good implementation, in such a way that it has to motivate and satisfy employees.
The impact of non-financial rewards is
instrumental
in
improving
the
employee morale. Employees expect recognition and encouragement their service because nobody likes to be unappreciated for the efforts he or she made.
The results in reflect that there is a statistically significant relationship between reward and recognition respectively, and motivation and satisfaction. The study revealed that if rewards or recognition offered to employees were to be altered, then there would be a corresponding change in work motivation and satisfaction.
The results of this study also indicated that employees were less motivated by Awards and Recognition than some of the other Factors of the Work Satisfaction and Motivation. By implication, this means that if more focus is placed on rewards and recognition, it could have a resultant positive impact on motivation and thus result in higher levels of job performance.
According to Descriptive study, Employees of Prime Co-operative Bank Ltd are Satisfied with Reward and Less Satisfied with Recognition, All variables of this study are correlated with Work Motivation and Satisfaction.
86
Recommendations Prime co-operative bank should redesign the reward and Recognition system.
Trainings and Seminar Sessions Can Be Organized for Enhancing Employee Motivation
According to the survey findings the employees need Training
and seminar and also for further study because employee have poor Skill and less knowledge so they need Refreshment program in order to motivate them.
Target should have realistic so employees can achieve it; some employees are demotivated by higher target.
All tasks have to be associated with bonuses and incentives.
Bonus, Holiday pay, Overtime pay, Pension Benefits, Proper training and promotion also to be given to the employees of Prime co-operative Bank in order to they will be highly satisfied with their job.
Bank should revise Awards program, according to study many employees are not receive at least one awards.
87
BIBLIOGRAPHY
88
Books 1. Donald R Cooper and Pamela S Schindler, Business Research Methods, Tata McGraw Hill Publishing Company Ltd. 2. Gargy Dessler and Biju Varkk ery , Pearson Latest Edition, 20th edition 3. Ken Black, Business Statistics for Contemporary Decision Making 4th edition 4. Stephen Robbins Organizational Behavior, Pearson Education 13th Journal 1. Ali, R., and Ahmed, M. S. (2009). The impact of reward and recognition programs on employee‟s motivation and satisfaction: an empirical study. International Review of Business Research Papers, 5(4), 270-279. 2. Amabile, T. M., Hill, K. G., Hennessey, B. A., and Tighe, E. M. (1994). The Work Preference Inventory: Assessing intrinsic and extrinsic motivational orientations. Journal of Personality and Social Psychology, 66: 950 –967. 3. Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q., & Walton, R.E. (1984). Managing human assets. New York: The Free Press. 4. Bhuvanaiah, Tejaswi, and R. P. Raya. "Mechanism of Improved Performance: Intrinsic Motivation and Employee Engagement." SCMS Journal of Indian Management 12.4 (2015): 92. 5. Bishop, J., The recognition & Reward of Employee Performance, Journal of Labor Economics, Vol. 5, No. 4 Part 2: The New Economics of Personnel, 1987, pp.313-351. 6. Bowen, B. E., & Radhakrishna, R. B., Job satisfaction of agricultural education faculty: A constant phenomena. Journal of Agricultural Education, vol. 32, No. 2, 1991, PP. 16-22. 7. Brun, J.-P., & Dugas, N. (2008). An analysis of employee recognition: Perspectives on human resources practices. The International Journal of Human Resource Management, 19(4), 716-730. 8. Bursch, J. (1999). Well-structured employee reward/recognition programs yield positi\"C results. 11 R Focus. 76. I I. 9. Carnegie, D. 1987 managing through people. New York: Dale Carnegie & Associates, INC.
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and
motivation:
An
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“International journal of business and management 5.2 (2010): 159. 11. Deeprose,D.(1994).How to recognize and reward employees. New York: AMACOM James R.Lindner “Understanding employee motivation” June 1998, Volume 36 Number 3, Journal of Extension. 12. Garaus, Christian, Gerhard Furtmüller, and Wolfgang H. Güttel. "The Hidden Power of Small Rewards: The Effects of Insufficient External Rewards on Autonomous Motivation to Learn." Academy of Management Learning & Education 15.1 (2016) 13. Hackman, J.R. and Oldham, G.R. (1976). Motivation through the Design of Work: Test of a Theory. Organizational Behavior and Human Performance, 16: 250–279. 14. Harvey, Jessica, and Robbie Field. "Recognition and Rewards: Research and Results of a System in a New Zealand Organization." Labour, Employment and Work in New Zealand (2006). 15. Kreitner, R., & Kinicki, A. 1992.
Organizational Behavior (2nd Ed.).USA:
Richard D. Irwin Inc. 16. La Motta, T. (1995).
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Resources. 17. Lawler, E. E. (2003). Treat people right. San Francisco: Jossey-Bass Inc. McGraw- Hill Irwin. 18. Maire, K. and Nick, O., Collective and Individual Improvement Activities: the Role of Reward Systems, Personal Review, 2002, PP.320-337. 19. Robbins, S.P. and Decenzo, D. A., Human resource management (John Wiley & Sons, Inc., New York, 2002. 20. Roberts, R. L. (2005). The relationship between rewards, recognition and motivation at an insurance company in the Western Cape. (Magister Commerci), University of Western Cape. 21. Safiullah, Ayesha Binte. "Impact of Rewards on Employee Motivation of the Telecommunication Industry of Bangladesh: An Empirical Study." 22. Shafiq, Malik Muhammad, and Muhammad Akram Naseem. "Association between Reward and Employee motivation: A case study Banking Sector of Pakistan." Available at SSRN 1857663 (2011) 90
23. Vijayakumar, V. T. R., and Mrs B. Subha. "Impact of Rewards and Recognition on Employees Job Satisfaction and Motivation in Private Banks of Tirunelveli City."
Websites
http://www.gujfed.com http://www.primebankindia.com
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ANNEXURE
92
Annexure 1 QUESTIONNAIRE I am Komal Sompura pursuing MBA from S. R. Luthra Institute of Management, Surat. As a part of the curriculum I am doing research on “The Impact of Reward and Recognition on Employee Motivation at Prime Co-operative Bank” Kindly help me in the same by filling the Questionnaire. Your response would be kept strictly confidential and would be used only for academic research.
Demographic Profile
Designation: ____________________________ Department: _________________ Gender: _____________
Salary (PA) (Approximately): __________ Age: ______
Years of experience with Prime Co-operative Bank: ________
Which amongst the following do you feel as creating an impact on your motivation level? Highly Satisfied 1
Statements Compensation The Amount of Pay I receive Benefits I receive Pay is corresponding with performance All tasks to be accomplished are associated with bonuses and incentives Bonuses and profit sharing plans Leave policies
Leadership Support/Direction Manager Informed about goals Manager encourages me Encouraged to think of new ideas Supported to make improvements
93
Satisfied 2
Neutral 3
Dissatisfied 4
Highly Dissatisfied 5
Clear how I can contribute to goals
Work itself A sense of pride to do my job. Amount of job security I receive Security Related to future prospects in bank. There is Personal growth and development Duties and responsibility are allocated on individual interest Satisfied with current recognition system Possibility for training, seminar and further education, supported by the Bank Schedule my own work and make job related Decision with minimum of supervision
Promotional opportunity Opportunity for Career development Increase level of responsibility Opportunities for growth/advancement opportunities to learn and update with emerging skills and knowledge opportunities to leverage their skills through training programs
Awards Receive award for my Regularity
Long years of service Award
Best performer award
Receive Award from bank in front of family and staff member
Recognition & appreciation An article by you is published in the Bank’s magazine A personal "thank you" or Note of appreciation from supervisor, manager, or co-worker Appreciation from the manager in front of the colleagues
94
Getting vehicle as a gift for best performance Individual photo, name, and achievement for best performance on bank notice board Pastry cutting ceremony on individual’s birthday or success at bank
Annexure 2 Correlation between Variables and work Motivation
Correlations between compensation and work motivation
Compensation Compensation
Pearson Correlation
Work Motivation 1
Sig. (2-tailed)
.000
N Work Motivation
.576**
Pearson Correlation
116
116
.576**
1
Sig. (2-tailed)
.000
N
116
116
**. Correlation is significant at the 0.01 level (2-tailed).
Correlations between Leadership, Support and work motivation Work Motivation Work Motivation
Pearson Correlation
Leadership, Suppoort/ Direction 1
Sig. (2-tailed)
.000
N Leadership, Suppoort/ Direction
.643**
Pearson Correlation
116
116
.643**
1
Sig. (2-tailed)
.000
N
116
**. Correlation is significant at the 0.01 level (2-tailed). 95
116
Correlations between Work itself and work Motivation Work Motivation Work Motivation
Pearson Correlation
Work Itself .692**
1
Sig. (2-tailed)
.000
N Work Itself
Pearson Correlation
116
116
.692**
1
Sig. (2-tailed)
.000
N
116
116
**. Correlation is significant at the 0.01 level (2-tailed).
Correlations Between promotional opportunity and work motivation Work Motivation Work Motivation
Pearson Correlation
promotional opportunity 1
Sig. (2-tailed)
.686** .000
N permotional opportunity Pearson Correlation
116
116
.686**
1
Sig. (2-tailed)
.000
N
116
**. Correlation is significant at the 0.01 level (2-tailed).
96
116
Correlations between Awards and work motivation
Work Motivation
Work Motivation
Awards
1
.620**
Pearson Correlation Sig. (2-tailed)
Awards
.000
N
116
116
Pearson Correlation
.620**
1
Sig. (2-tailed)
.000
N
116
116
**. Correlation is significant at the 0.01 level (2-tailed). Correlations between Recognition & Appreciation and Work Motivation Work Motivation Work Motivation
Pearson Correlation
Recognition & Appreciation 1
Sig. (2-tailed)
.583** .000
N Recognition & Appreciation Pearson Correlation
116
116
.583**
1
Sig. (2-tailed)
.000
N
116
116
**. Correlation is significant at the 0.01 level (2-tailed).
Correlations Between Reward & work motivation Reward Reward
Pearson Correlation
Work Motivation 1
Sig. (2-tailed)
.000
N Work Motivation
.851**
Pearson Correlation
116
116
.851**
1
Sig. (2-tailed)
.000
N
116
**. Correlation is significant at the 0.01 level (2-tailed).
97
116
Correlations between Recognition & work motivation Work Motivation Work Motivation
Pearson Correlation
1
Sig. (2-tailed)
.712** .000
N Recognition
Recognition
Pearson Correlation
116
116
.712**
1
Sig. (2-tailed)
.000
N
116
**. Correlation is significant at the 0.01 level (2-tailed).
98
116
