INTRODUCTION TO THE

COMPANY

HISTORY
Reliance Capital Limited announced the launch of its life insurance business on
February 1, 2006. This was after obtaining the required regulatory approvals from
the Registrar Of Companies and the Insurance Regulatory and Development
Authority.
It was in August 2005 that the ball was set rolling when Reliance Capital Limited,
the financial arm of Reliance Anil DhirubhaiAmbaniGroup

(ADAG)

announced the requisition of 100% shareholding in AMP Sanmar Life Insurance

Company Limited; and the formal transfer of shares took place in October 2005.
The company will issue all policy contracts under the Reliance Life Insurance
Company limited name.
All the existing policy contracts also stand transferred to the Reliance Life
Insurance entity with all
the original contractual terms and commitments intact.
Under Dhirubhais extraordinary vision and leadership,Reliance scripted one of
the greatest growth stories incorporate history anywhere in the world, and went on
tobecome Indias largest private sector enterprise.
Through out this amazing journey, Dhirubhai alwayskept the interests of the
ordinary shareholderuppermost in mind, in the process making millionairesout of

many of the initial investors in the Reliance stock,and creating one of the worlds
largest shareholderfamilies.

FOUNDER
Few men in history have made as dramatic a contributionto their countrys
economic fortunes as did the founder ofReliance, Sh. Dhirubhai H Ambani. Fewer
still have leftbehind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than oneunique way of describing the
true genius of Dhirubhai:The corporate visionary, the unmatched strategist, the
proud patriot, the leader of men, the architect of Indias capital markets, the
champion of shareholder interest.
But the role Dhirubhai cherished most was perhaps thatof Indias greatest wealth
creator. In one lifetime, hebuilt, starting from the proverbial scratch, Indias
largestprivate sector enterprise.
When Dhirubhai embarked on his first business venture,he had a seed capital of
barely US$ 300 (around Rs14,000). Over the next three and a half decades,
heconverted this fledgling enterprise into aRs 60,000crore colossusan
achievement which earned Reliancea place on the global Fortune 500 list, the first
everIndian private company to do so.
Dhirubhai is widely regarded as the father of Indias capital markets. In 1977,
when Reliance Textile Industries Limited first went public, the Indian stockmarket
was a place patronised by a small club of elite investors which dabbled in a handful
of stocks.

 Undaunted, Dhirubhai managed to convince a largenumber of first-time retail

investors to participate in theunfolding Reliance story and put their hardearnedmoney in the Reliance Textile IPO, promising them, inexchange for their
trust, substantial return on theirinvestments. It was to be the start of one of
greatstories of mutual respect and reciprocal gain in theIndian markets.

ABOUT RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil DhirubhaiAmbani Group.
Reliance Capital is one of Indias leading private sector financial services
companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital has interests in asset
management and mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in financial services.
Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)
registered with the Reserve Bank of India under section 45-IA of the Reserve Bank
of India Act, 1934.
Reliance Capital sees immense potential in the rapidly growing financial services
sector in India and aims to become a dominant player in this industry and offer
fully integrated financial services.
Reliance Life Insurance is another steps forward for Reliance Capital Limited to
offer need based Life Insurance solutions to individuals and Corporate.

ROLE OF RELIANCE LIFE INSURANCE

1) World Class Data Centre: They plan to establish a Primary Data Centre at Navi Mumbai(DhirubhaiAmbani
Knowledge City) which will cater to their companyneeds across India, with failover capability to their Chennai Data Centrewithin the same business day in
occurance if an incident or Disasterhappens.

2) Inter Office Connectivity: All their Branch / Area and Regional offices will beinterconnected to their Data
Centre with a 24x7 access to CoreApplications like Lotus Mail, Life-Asia and
Internet Applications. Thiswill enable their associates to work faster and better
with high-speedInternet connectivity and also ensure faster Turn Around Time for
theircustomers.

2) Customer Care Centre: They will host a centralized Customer Care Centre atDhirubhaiAmbani Knowledge
City at Navi Mumbai, which caterservices to internal and external queries and
complications. A customer
Relationship Management Tool (CRM) and Lead Management System(LMS) are
in progress.

3) Web Portal: This portal will be an interface between both internal employeesand their external
users. Some of the functions included in their portal arePolicy Tracking Systems,
Corporate News, Quality Checking System,

Under Writing Medical System, and Agent Management System etc.

5) R World: Reliance Mobile R-World will provide online information abouttheir Company,
Products, and Policy Services to their existing customers,Agents/Advisors and
Lead Generators.

6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about thelatest happenings
like Contests and Campaigns, Employee Alerts willinclude Company News and
Welcome/Birthday/Anniversary

messageetc.

Customer Alerts

will

include

Welcome/Birthday/Anniversarymessage, Policy Dispatch Details, Policy Servicing

SMS like PremiumReceipt and Renewal Premium reminders etc.

7) Life and Group Asia: Single Life and Group Life details will be captured and managedby Life and Group
Asia. A common middleware between theseapplications will enable Group Life
Customers to view their individualSingle Life Insurance Plan details taken with
Reliance Life Insurance andvice versa.
8) Advisor Lounge: It is a dedicated area for Reliance Life InsuranceAgents/Advisors in all the
branches across India. This Lounge will beequipped with desktops and printers
with Internet connectivity, where

their Advisors can bring in the prospects and can have discussions acrossthe table
and they can create and print quotes. The Agents/Advisors canuse this area to
service their existing customers.
9) Document Management System: DMS will enable both policy issuance and contract servicingthrough an automated
workflow, which yields a faster Turn around Timeto both internal and external
users. This application will enable them tohave a paperless office and thus mitigate
the risk of losing vital
records/papers.
10) Wireless Data Access: This will enable identified Top Sales Managers and Top Advisorsto access real
time data for both LMS and CRM on the fly through HandheldPDA device.

COMPANY STRUCTURE

HEAD OFFICE
Registered Office:
H Block, 1st Floor,
DhirubhaiAmbani Knowledge City,
Navi Mumbai, Maharashtra - 400710

Corporate Office:
9th floor/10th floor, Building No. 2,
R-Tech Park, Nirlon Compound,
Next to Hub Mall, Behind I- Flex building,
Goregaon, (East),
Mumbai-400 063.
Fax No: 022- 30002222

BRANCHES

They have so many branches and substations in the India. They have around 1247
branches with over 1,95,000 agents in the India. And they have planned to open
more branches across the country in the coming months.

BRANCH

BRANCH

BRANCH

REGIONAL

REGIONAL

REGIONAL

CHANNEL
HEAD

C EO

Explanations of the diagram:The communication is flow between Branch to Branch.Within a branch, it flows
between

Branch

Manager

to

Sales

Managers

andSales

Managers

to

Agents/Advisors, and then Branch Head to RegionalHead, then different Regional

Head to Regional Head, then Regional Headto Channel Head, then to Chief
Marketing Officer (CMO), then to ChiefExecutive Officer (CEO)

DEPARTMENT
They are providing following areas or departments:
1) Retail Sales
2) Under Writing
3) Actuarial
4) Insurance Operations
5) Customer Service
6) Quality and Processes
7) Human Resources
8) Finance

DISTRIBUTION CHANNEL
Reliance Life Insurance Company Limited is using five types of distribution
channel, which are as follows:

1) Agency: Independent insurance agents represent a number of companies and can research
these companies products to find the right combination for their clients.
Independent agents & insurance producer groups are growing in prevalence.
Although producer groups are in their infancy, their emergence may potentially be
realignment in the distribution of financial services. Independent shops realized
that by pooling production and funding a central support office, they had increased
buying power.
The one type of distribution channel, which Reliance Life Insurance Co. Ltd is
using, is an agency. This channel works as follows:

2) Bank Assurance: While a lot of bank relationships with insurance companies have been established,
life insurance sales have been slower than one would expect he primary bank
insurance activities have been the distribution of annuities, credit life, and direct
marketing insurance.
Banks are failing to incorporate successful sales tactics used to sell other financial
services like investments.
Another type of distribution channel is bank assurance. This channel is tie up with
banks. In this channel the advisors using or targeting the bank customers to make a
business with them i.e., to sell the policy of the company.

4) Corporate:-

To gain a better understanding of the demand amongst independent advisors for

trust services and to gain a better feel for how independent advisors handle trust
services, a research was performed with independent advisors across several
broker/dealers and custodians. The interviews revealed that demand is greatest for
living trusts among independent advisors, followed by demand for corporate
trustee services.
Another type of distribution channel is corporate, which are for employee benefits.
This channel is tie up with corporate or small enterprises. Through these small
enterprises, the advisors will sell the products/policy to customers of the small
enterprises.

5) Rural Benefits:Brokerage firms have gained much of the institutional and personal trust business
lost by the banks. These firms have steadily captured assets, primarily at the
expense of the banks. The number of non-bank trust companies has increased in
recent years as independent trust companies have emerged and more broker/dealers
are integrated services. Insurance companies view full-service brokers as a
potentially new distribution channel as well.
Another type of distribution channel is rural benefits. This channel works as a
dealership. In this channel, the dealers will sell the policy to the target customers.

5) Web World:-

Direct sales of life insurance are growing rapidly, but many of the traditional fullserve players seem to be letting it go. Across all financial services, consumers are
expressing a willingness to deal with a variety of providers on the web. Web sites
are starting to pop up offering consumer insurance products especially designed for
distribution over the web.
Another type of distribution channel is web world. This channel is tie up with
customer database. In this channel, the advisors will sell the policy to the target
customers, which are taken from the customer database, are listed in the website

PRODUCT RANGE
TRADITIONAL PLAN:Life insurance products are designed to suit the requirements of customers.
Fundamentally the product provide for:
Risk cover
Investment
Health cover
In every product, to a certain degree, risk cover is imperative for it to fall under the
category of insurance. Based on the coverage of the product, the premiums are

calculated and the customer pays accordingly. In order to suggest the right product,
it is essential for an agent to understand
the requirements of the customer well.
Reliance Life Insurance Company Limited has offered 9 traditional plans to the
customers, which are listed as follows:
1) Reliance Term Plan
2) Reliance Whole Life Plan
3) Reliance Child Plan
4) Reliance Endowment Plan
5) Reliance Special Endowment Plan
6) Reliance Cash Flow Plan
7) Reliance Credit Guardian Plan
8) Reliance Special Credit Guardian Plan
Each of the above traditional plans is discussed as follows:

1) Reliance Term plan: This insurance policy is designed for those who only want life cover for the
protection of their family, and do not wish to save for themselves. It can also be
useful to business firms that wish to provide financial security to their business
against the sudden loss of partners or valuable manpower. Since there is no saving
element or bonus provision, the premium is very low.
Hence, this is a high-risk plan with a low premium.

Features: a) Purely a term plan

b) Entry age minimum 18 years and maximum 65 year
c) Maximum premium paying term is 30 year
d) Loan facility N.A.
e) Maturity amount = Sum assured

2) Reliance Whole Life Plan: This insurance policy is designed for people who do not wish to avail of any
benefits themselves but wish to create an immediate estate to protect their family
by availing of insurance cover on their life at a very low cost.

Features: a) It is a whole life insurance policy with profits

b) Low cost life cover
c) Maturity age is 85 year or 99 years last birthday as chosen
d) Maturity amount = Sum assured + Vested bonus
e) Tax benefit is available

3) Reliance Child Plan: This insurance policy is designed for people who wish to save money for a future
time when there will be a recurring need for substantial amounts of money. This is
especially true when it comes to paying large sums of money for higher education
as and when your son or daughter is studying to become an Engineer, a Doctor or
specialize in some other field, or is perhaps planning to go abroad.

This money is payable in equal installments over the last 4 years of the policy
term.
Features: I. Minimum entry age is 20 year and maximum 60 year
a) Minimum sum assured is Rs. 25,000.
b) Minimum premium paying term is 5 year and maximum
20 year
c) Tax benefit is available
d) Maturity amount = Four equal installment of sum insured
in last four year plus vested bonus in the last year
e) Loan facility is available

4) Reliance Endowment Plan: Reliance Life Insurances Reliance Endowment Plan is the key to all your financial
needs. It is an inexpensive and easy way to protect you, your family or your
business. In a nutshell this plan will keep you financially prepared for all the
special occasions in your life - your daughters wedding, your childs university
education or even a new office for your business - by eliminating the burden
that a shortage of money creates.
In the event of your untimely death, Reliance Endowment Plan will also assist your
loved ones through this difficult time by the financial support that it provides.

Reliance Endowment Plan also gives you the additional benefit of participating in
the companys profits, which you will receive at the end of the policy period.
Features: a) Entry age minimum is 5 year and maximum 65 year
b) Maturity age minimum is 18 year and maximum 75 year
c) Minimum premium paying term is 5 year and maximum 35 year in case of
regular and in case of single 15 year
d) Minimum sum assured is Rs. 25,000 or as determined by the minimum premium
e) Maximum sum assured is Rs. 5,00,000 (entry age below 18 years and no limit
for entry age 18 and above)
f) Premium mode annual, half yearly, quarterly and monthly (by salary deduction
only)
g) Loan up to 90% of the surrender value of the policy
h) Maturity amount = Guaranteed sum assured + Reversionary bonus

5) Reliance Special Endowment Plan: This insurance policy is designed for people who wish to combine savings with
extended security. The unique feature of this policy is that life protection continues
for five years after you have stopped the payment of premium. Payment of sum
assured at the end of premium paying term and
extension of life cover thereafter for the full sum assured for a period of 5 years,
are characteristics of the policy.
This plan also participates in the profits.

Features: a) Entry age minimum 12 year and maximum 65 year

b) Minimum sum assured is Rs. 25,000
c) Minimum premium paying term is 10 year and maximum 40 year
d) Unique feature of this policy is that five year life protection continues after you
have stopped the payment of premium
e) Tax benefit is available
f) Under this policy bonus is compounded yearly
g) Loan facility is available
h) Maturity amount = Full sum assured before maturity date + Vested bonus at the
time of maturity date

6) Reliance Cash Flow Plan: This insurance policy is designed for those who have a recurring need for
reinvestment in business or look for short-term investment channels. The
advantage of the policy is that they need not part with a sizable amount of money
at any one time, but create, through regular premium payments, a
periodic return of lump sums which become available for reinvestment at higher
returns, while providing simultaneously, substantial life cover.
Alternatively, it can be used to meet any immediate financial crisis in the family
like your son's college admission, your daughter's engagement, and renovation of
your home or perhaps, a holiday abroad.

The money is payable in installments. The first installment is paid at the end of the
4th year and thereafter at the end of every 3rd year.
Features:a) Plan with profits
b) Minimum entry age is 15 year and maximum is 63 year
c) Maximum premium paying term is 34 year
d) Loan facility is not available
e) In case of death full sum assured + accrued bonuses up to
the date of death is payable immediately
f) In case of survival up to maturity date all premium paid
g) Rider accident death and critical illness
h) Mode of payment is available

7) Reliance Credit Guardian Plan: This insurance policy is designed for those who not only safeguards individuals but
also families and businesses from the financial hardship that could arise from
unfortunate and unexpected death.
Features: a) Loan protection against home, home improvement, two wheelers and four
wheelers
b) In case of death remaining loan amount paid immediately
c) In case of survival no benefit is available

d) Premium payment option for single and regular is available

e) Premium paying term is 2/3 of loan period and remaining period paid by the
company

8) Reliance Special Credit Guardian Plan: This insurance policy is designed for those who not only safeguards
individuals but also families and businesses from the financial hardship that
could arise from unfortunate and unexpected death, disability or critical
illnesses.

Features: a) Loan protection against home, home improvement, two wheelers and four
wheelers
b) In case of death remaining loan amount paid immediately
c) In case of survival no benefit is available
d) Premium payment option for regular and single is available
e) Premium payment term is 2/3 of loan period and remaining period paid by the
company
f) Maturity amount = All the premium paid amount
g) Tax benefit is available

8. UNIT LINKED PLAN

A unit-linked policy is a life assurance policy in which the benefits depend on the
performance of a portfolio of shares.
Each premium paid by the insured person is split: a part is used to provide life
assurance cover, while the balance (after the deduction of costs,expenses, etc.) is
used to buy units in a unit trust.
In this way, a small investor can benefit from investment in a managed fund
without making a large financial commitment. As they are linked to the value of
shares, unit linked policies can go up or down in value.
Policyholders can surrender the policy at any time and the surrender value is the
selling price of the units purchased by the date of cancellation 9less expense). A
small part of the contribution is used for providing life cover and the balance is
invested in unit. Legal heirs are entitled to the amount of
insurance cover and entitled units in case of death of the insured.
Reliance Life Insurance Company Limited has also offered the two
Unit Linked Plans, which are listed as follows:
1) Reliance Market Return Plan
2) Reliance Golden Years Plan
Amongst the above plans the Reliance Market Return Plan is the
largest selling plan of the Reliance Life Insurance Company Limited.
The above two ULIP plans are discussed as follows:

1) Reliance Market Return Plan: -

Reliance Market Return Fund is the unit-linked product that helps you invest in the
financial markets in a combination of investment instruments of your choice. You
can enjoy the returns from the markets without the trouble of monitoring and
managing your own investment portfolio and keeping track of the market
movements. At the same time your investment premiums provide you with
insurance cover. Reliance Market Return Fund unit-linked insurance plan provides
you with a basket of fund options that balances your return and risk exposure while
providing life cover at the same time.
Features: a) Minimum entry age is 30 days and maximum entry age is 65 year
b) Maximum policy term 40 year and minimum policy term 5 year
c) Mode of premium as annual, quarterly, half yearly and monthly Rs. 1000 (for
salary deduction only) and Rs. 2500 (standing order/credit card)
d) Top up premium minimum Rs. 2500
e) Option of investment fund
i. Capital secure 100% fixed interest securities
ii. Balanced minimum 80% fixed interest securities and maximum 20% in equity
iii. Equity 100% equity
iv. Growth minimum 60% fixed interest securities and maximum 40% in equity
f) Loan facility is not available
g) One switches every year free and subsequent switches charged 1% of the
amount switched
h) Partial withdrawals per year under regular and single premium options is 2 times
i) Lock in period till today is 3 year
j) Minimum unit account balance after each withdrawals is Rs. 10,000

2) Reliance Golden Years Plan: Reliance Golden Years Plan.. The Reliance Life Insurance no-worry stay
happyretirementplan. Reliance Golden Years Plan is a flexible package that
provides freedom of choice in choosing the type of investment, life cover, vesting
options such as commuting and annuity options. Contributions
provide Income tax savings as well.
Reliance Golden Years Plan, a flexible pension product is available for all
individuals who are between the ages of 18 and 65.
Features: a) Entry age minimum is 18 year and maximum 65 year
b) Minimum premium amount Rs. 10,000 and maximum is unlimited
c) Mode of premium payment is available
d) Pension plan with risk cover and without risk cover
e) Choice of investment
i. Capital secure fund 80% in equity and 20% in government security
ii. Balanced fund 80% in government and 20% in equity
f) No loan facility is available
g) Tax benefit is available
h) Annuity options
i. Annuity payable for life
ii. Annuity payable for 5/10/15 years certain and thereafter with life
iii. Annuity payable for life with return of capital on death of the annuitant

MILESTONE/ FUTURE PROJECTIONS

Forty-four new branches to be opened across the country in thecoming months;
and a pan India presence with 162 branches in thecoming year.

A state-of-the-art customer care centre will provide continuous,responsive

services to the caller and promptly address queries, collatefeedback and
suggestions from the caller, who may be both
prospective and existing clientele and from channel partners inChennai and
Mumbai.
It will be launching additional products aimed at providingunparalleled service to
its valued clientele.

MARKET SHARE OF RELIANCE LIFE INSURANCE

Currently, Reliance Life's market share is at around 5.5 per cent in the life
insurance space.

Reliance Life Insurance had sold the highest number of policies among 22 private
sector players in 2009-10. During the year, the company sold about 23.2 lakh
policies against 22.1 lakh policies in the previous year.
"We hope to achieve an overall premium of Rs 20,000 crore and more than double
our assets under management to cross over Rs 30,000 crore in the next two fiscal,"
Ghosh said.
In the first two months of the current fiscal, the first year premium collection of
Reliance Life increased by 22.5 per cent to Rs 316 crore.
Ghosh further said that the company expects to achieve break even in the next
fiscal.
He added that Reliance Life would require Rs 250 crore in the current fiscal, out of
which Rs 70 crore has already been infused.
Apart from a healthy mix of unit linked and traditional products, Reliance Life also
plans to focus on evolving health insurance segments in the country.
"We are strengthening our health insurance portfolio with innovative products...we
aim to be among the top three health insurers by 2012," Ghosh added.
Reliance Life Insurance, which operates through strong distribution network of
1,247 branches with over 1,95,000 agents, has an AUM (Asset Under
Management) of Rs 13,677 crore.
Replying to questions on Unit Linked Insurance Products (ULIPs), Ghosh said,
"ULIPs constituted around 90 per cent in the company's product basket in the last
fiscal, which is expected to decline to 60 per cent in the current year."

Life insurance industry grew 25 per cent in terms of first year premium collection
in 2009-10. The 23 life insurers mopped up premium of Rs 1.09 lakh crore in the
last fiscal compared to Rs 87,108 crore in 2008-09.

TOTTAL ASSETS
Reliance Life Insurance Company (RLIC), part of Anil Ambani-led Reliance
Capital, on Monday said it has crossed the milestone figure of Rs. 15,000 crore in
assets under management (AUM) and plans to double this by 2011-12. "RLIC
would be among the fastest private sector life insurance

companies to cross this milestone in a span of less than 5 years," said Malay
Ghosh, president and executive director, Reliance Life Insurance.
According to the company, it's AUM registered a growth of 142 percent per annum
in the last five years to reach Rs. 15,000 crore from Rs. 200 crore in October 2005.
It follows the Rs. 10,000 crore AUM mark recorded in September 2009.
Our wide-ranging fund offerings and sharp focus on growth have helped us
achieve this milestone. Ghosh added.
The company plans to double its AUM to Rs. 30,000 crore by 2011-12. The
company has also issued over 9.5 million policies till date.
"We will continue to focus our investments in companies with strong management,
healthy financial growth performance and dynamic business model," said
RangarajanRajagopalan, chief investment officer, RLIC

INTRODUCTION
TO
TOPIC

EMPLOYEE MOTIVATION
The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special
reference to Hyderabad Industries Ltd; Thrissur is mainly conducted to identify the
factors which will motivate the employees and the organizational functions in
Hyderabad Industries Ltd, Thrissur.

Managements basic job is the effective utilization of human resources for

achievements of organizational objectives. The personnel management is
concerned with organizing human resources in such a way to get maximum output
to the enterprise and to develop the talent of people at work to the fullest
satisfaction. Motivation implies that one person, in organization context a manager,
includes another, say an employee, to engage in action by ensuring that a channel
to satisfy those needs and aspirations becomes available to the person. In addition
to this, the strong needs in a direction that is satisfying to the latent needs in
employees and harness them in a manner that would be functional for the
organization.
Employee motivation is one of the major issues faced by every organization. It is
the major task of every manager to motivate his subordinates or to create the will
to work among the subordinates. It should also be remembered that a worker may
be immensely capable of doing some work; nothing can be achieved if he is not
willing to work. A manager has to make appropriate use of motivation to enthuse
the employees to follow them. Hence this studies also focusing on the employee
motivation among the employees of Hyderabad Industries Ltd.
The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation has been
done by using the statistical tools and datas are presented through tables and
charts.

THE CONCEPT OF MOTIVATION

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

There is no universal theory that can explain the factors influencing motives which
control mans behavior at any particular point of time. In general, the different
motives operate at different times among different people and influence their
behaviors. The process of motivation studies the motives of individuals which
cause different type of behavior.
Definition of Motivation.
According to Edwin B Flippo, Motivation is the process of attempting to
influence others to do their work through the possibility of gain or reward.
Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to
give their loyalty to the group, to carry out properly the purpose of the
organization. The following results may be expected if the employees are properly
motivated.
1. The workforce will be better satisfied if the management provides them with
opportunities to fulfill their physiological and psychological needs. The workers
will cooperate voluntarily with the management and will contribute their
maximum towards the goals of the enterprise.
2. Workers will tend to be as efficient as possible by improving upon their skills
and knowledge so that they are able to contribute to the progress of the
organization. This will also result in increased productivity.
3. The rates of labors turnover and absenteeism among the workers will be low.

4. There will be good human relations in the organization as friction among the
workers themselves and between the workers and the management will
decrease.
5. The number of complaints and grievances will come down. Accident will also
be low.
6. There will be increase in the quantity and quality of products. Wastage and
scrap will be less. Better quality of products will also increase the public image
of the business.
Motivation Process.
1. Identification of need
2. Tension
3. Course of action
4. Result Positive/Negative
5. Feed back

THEORIES OF MOTIVATION.
Understanding what motivated employees and how they were motivated was the
focus of many researchers following the publication of the Hawthorne study results
(Terpstra, 1979). Six major approaches that have led to our understanding of
motivation are Mcclellands Achievement Need Theory, Behavior Modification

theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J.S.

Adams Equity Theory, Vrooms Expectation Theory, Two factor Theory.
MCCLELLANDS ACHIEVEMENT NEED THEORY.
According to McClellands there are three types of needs;
Need for Achievement (n Ach);
This need is the strongest and lasting motivating factor. Particularly in case of
persons who satisfy the other needs. They are constantly pre occupied with a desire
for improvement and lack for situation in which successful outcomes are directly
correlated with their efforts. They set more difficult but achievable goals for
themselves because success with easily achievable goals hardly provides a sense of
achievement.
Need for Power (n Pow)
It is the desire to control the behavior of the other people and to manipulate the
surroundings. Power motivations positive applications results in domestic
leadership style, while it negative application tends autocratic style.

Need for affiliation (n Aff)

It is the related to social needs and creates friendship. This results in formation of
informal groups or social circle.
Behavioral Modification Theory;

According to this theory people behavior is the outcome of favorable and

unfavorable past circumstances. This theory is based on learning theory. Skinner
conducted his researches among rats and school children. He found that stimulus
for desirable behavior could be strengthened by rewarding it at the earliest. In the
industrial situation, this relevance of this theory may be found in the installation of
financial and non financial incentives.
More immediate is the reward and stimulation or it motivates it. Withdrawal of
reward incase of low standard work may also produce the desired result. However,
researches show that it is generally more effective to reward desired behavior than
to punish undesired behavior.
Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.
The intellectual basis for most of motivation thinking has been provided by
behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works
are the Bible of Motivation. Although Maslow himself did not apply his theory
to industrial situation, it has wide impact for beyond academic circles. Douglous
Mac Gregor has used Maslows theory to interpret specific problems in personnel
administration and industrial relations.
The crux of Maslows theory is that human needs are arranged in hierarchy
composed of five categories. The lowest level needs are physiological and the
highest levels are the self actualization needs. Maslow starts with the formation
that man is a wanting animal with a hierarchy of needs of which some are lower
ins scale and some are in a higher scale or system of values. As the lower needs are
satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs

are fulfilled. A satisfied need is not a motivator. This resembles the standard
economic theory of diminishing returns. The hierarchy of needs at work in the
individual is today a routine tool of personnel trade and when these needs are
active, they act as powerful conditioners of behavior- as Motivators.
Hierarchy of needs; the main needs of men are five. They are physiological needs,
safety needs, social needs, ego needs and self actualization needs, as shown in
order of their importance.

SelfActualizatio
n
Ego Needs
Social Needs
Safety Needs
Physiological Needs

Fig (2.1)
The above five basic needs are regarded as striving needs which make a person do
things. The first model indicates the ranking of different needs. The second is more
helpful in indicating how the satisfaction of the higher needs is based on the
satisfaction of lower needs. It also shows how the number of person who has
experienced the fulfillment of the higher needs gradually tapers off.

Physiological or Body Needs: - The individual move up the ladder responding

first to the physiological needs for nourishment, clothing and shelter. These
physical needs must be equated with pay rate, pay practices and to an extent with
physical condition of the job.
Safety: - The next in order of needs is safety needs, the need to be free from
danger, either from other people or from environment. The individual want to
assured, once his bodily needs are satisfied, that they are secure and will continue
to be satisfied for foreseeable feature. The safety needs may take the form of job
security, security against disease, misfortune, old age etc as also against industrial
injury. Such needs are generally met by safety laws, measure of social security,
protective labor laws and collective agreements.
Social needs: - Going up the scale of needs the individual feels the desire to work
in a cohesive group and develop a sense of belonging and identification with a
group. He feels the need to love and be loved and the need to belong and be
identified with a group. In a large organization it is not easy to build up social
relations. However close relationship can be built up with at least some fellow
workers. Every employee wants too feel that he is wanted or accepted and that he
is not an alien facing a hostile group.
Ego or Esteem Needs: - These needs are reflected in our desire for status and
recognition, respect and prestige in the work group or work place such as is
conferred by the recognition of ones merit by promotion, by participation in
management and by fulfillment of workers urge for self expression. Some of the
needs relate to ones esteem

e.g.; need for achievement, self confidence, knowledge, competence etc. On the
job, this means praise for a job but more important it means a feeling by employee
that at all times he has the respect of his supervisor as a person and as a contributor
to the organizational goals.
Self realization or Actualization needs: - This upper level need is one which
when satisfied provide insights to support future research regarding strategic
guidance for organization that are both providing and using reward/recognition
programs makes the employee give up the dependence on others or on the
environment. He becomes growth oriented, self oriented, directed, detached and
creative. This need reflects a state defined in terms of the extent to which an
individual attains his personnel goal. This is the need which totally lies within
oneself and there is no demand from any external situation or person.
J.S Adams Equity Theory
Employee compares her/his job inputs outcome ratio with that of reference. If the
employee perceives inequity, she/he will act to correct the inequity: lower
productivity, reduced quality, increased absenteeism, voluntary resignation.

Vrooms Expectation Theory

Vrooms theory is based on the belief that employee effort will lead to performance
and performance will lead to rewards (Vroom, 1964). Reward may be either
positive or negative. The more positive the reward the more likely the employee
will be highly motivated. Conversely, the more negative the reward the less likely
the employee will be motivated.

Two Factor Theory

Douglas McGregor introduced the theory with the help of two views; X
assumptions are conservative in style Assumptions are modern in style.
X Theory
Individuals inherently dislike work.
People must be coerced or controlled to do work to achieve the objectives.
People prefer to be directed
Y Theory
People view work as being as natural as play and rest
People will exercise self direction and control towards achieving objectives
they are committed to
People learn to accept and seek responsibility.

TYPES OF MOTIVATION.
Intrinsic motivation occurs when people are internally motivated to do something
because it either brings them pleasure, they think it is important, or they feel that
what they are learning is morally significant.

Extrinsic motivation comes into play when a student is compelled to do something

or act a certain way because of factors external to him or her (like money or good
grades)
Incentives
An incentive is something which stimulates a person towards some goal. It
activates human needs and creates the desire to work. Thus, an incentive is a means
of motivation. In organizations, increase in incentive leads to better performance
and vice versa.
Need for Incentives
Man is a wanting animal. He continues to want something or other. He is never
fully satisfied. If one need is satisfied, the other need need arises. In order to
motivate the employees, the management should try to satisfy their needs. For this
purpose, both financial and non financial incentives may be used by the
management to motivate the workers. Financial incentives or motivators are those
which are associated with money. They include wages and salaries, fringe benefits,
bonus, retirement benefits etc. Non financial motivators are those which are not
associated with monetary rewards. They include intangible incentives like egosatisfaction, self-actualization and responsibility.

INCENTIVES

Financial Incentives

Non-financial

incentives
- Wages and Salaries.

- Competition

- Bonus

- Group recognition

- Medical reimbursement

- Job security

- Insurance

- Praise

- Housing facility

Knowledge of

result
- Retirement benefits.

- Workers

participation.
-

Suggestion

system.
- Opportunities for growth
Motivation is the key to performance improvement
There is an old saying you can take a horse to the water but you cannot force it to
drink; it will drink only if it's thirsty - so with people. They will do what they want
to do or otherwise motivated to do. Whether it is to excel on the workshop floor or
in the 'ivory tower' they must be motivated or driven to it, either by themselves or
through external stimulus.
Are they born with the self-motivation or drive? Yes and no. If no, they can be
motivated, for motivation is a skill which can and must be learnt. This is essential
for any business to survive and succeed.
Performance is considered to be a function of ability and motivation, thus:
Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement
is a slow and long process. On the other hand motivation can be improved quickly.
There are many options and an uninitiated manager may not even know where to
start. As a guideline, there are broadly seven strategies for motivation.
There are broadly seven strategies for motivation.
Positive reinforcement / high expectations
Effective discipline and punishment
Treating people fairly
Satisfying employees needs
Setting work related goals
Restructuring jobs
Base rewards on job performance
Essentially, there is a gap between an individuals actual state and some desired
state and the manager tries to reduce this gap. Motivation is, in effect, a means to
reduce and manipulate this gap.

OBJECTIVES OF THE STUDY

Primary objective
1. To study the important factors which are needed to motivate the employees.
Secondary Objective.
1. To study the effect of monetary and non-monetary benefits provided by the
organization on the employees performance.
2. To study the effect of job promotions on employees.
3. To learn the employees satisfaction on the interpersonal relationship exists
in the organization.
4. To provide the practical suggestion for the improvement of organizations
performance.

RESEARCH HYPOTHESIS
A hypothesis is a preliminary or tentative explanation or postulate by the
researcher of what the researcher considers the outcome of an investigation will be.
It is an informed/educated guess. It indicates the expectations of the researcher
regarding certain variables. It is the most specific way in which an answer to a
problem can be stated.
Research hypotheses are the specific testable predictions made about the
independent and dependent variables in the study. Hypotheses are couched in terms
of the particular independent and dependent variables that are going to be used in
the study. The research hypothesis of this study is as follows.
Ho: There is no significant relationship between incentives and employees
performance.
Ho: There is no significant relationship between career development opportunities
and the extent of employee motivation
Ho: There is no significant relationship between performance appraisal system and
the extent of motivation.
Ho: There is no significant relationship between interpersonal relationship in the
organization and extent of motivation.

RESEARCH METHODOLOGY.
Research is a systematic method of finding solutions to problems. It is essentially
an investigation, a recording and an analysis of evidence for the purpose of gaining
knowledge. According to Clifford woody, research comprises of defining and
redefining problem, formulating hypothesis or suggested solutions, collecting,
organizing and evaluating data, reaching conclusions, testing conclusions to
determine whether they fit the formulated hypothesis1
Sampling Design.
A sample design is a finite plan for obtaining a sample from a given population.
Simple random sampling is used for this study.
Universe.
The universe chooses for the research study is the employees of Hyderabad
Industries Ltd.
Sample Size.
Number of the sampling units selected from the population is called the size of the
sample. Sample of 50 respondents were obtained from the population.
Sampling Procedure.
The procedure adopted in the present study is probability sampling, which is also
known as chance sampling. Under this sampling design, every item of the frame
has an equal chance of inclusion in the sample.
1 Kothari C R. Research Methodology-Methods & Techniques-2nd revised edition (2007) New
Age International Publishers- New Delhi.

Methods of Data Collection.

The datas were collected through Primary and secondary sources.
Primary Sources.
Primary data are in the form of raw material to which statistical methods are
applied for the purpose of analysis and interpretations.
The primary sources are discussion with employees, datas collected through
questionnaire.
Secondary Sources.
Secondary datas are in the form of finished products as they have already been
treated statistically in some form or other.
The secondary data mainly consists of data and information collected from records,
company websites and also discussion with the management of the organization.
Secondary data was also collected from journals, magazines and books.
Nature of Research.
Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied. Descriptive
research answers the questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research
cannot describe what caused a situation. Thus, descriptive research cannot be used
to create a causal relationship, where one variable affects another. In other words,
descriptive research can be said to have a low requirement for internal validity.

Questionnaire.
A well defined questionnaire that is used effectively can gather information on both
overall performance of the test system as well as information on specific
components of the system. A defeated questionnaire was carefully prepared and
specially numbered. The questions were arranged in proper order, in accordance
with the relevance.
Nature of Questions Asked.
The questionnaire consists of open ended, dichotomous, rating and ranking
questions.
Pre-testing
A pre-testing of questionnaire was conducted with 10 questionnaires, which were
distributed and all of them were collected back as completed questionnaire. On the
basis of doubts raised by the respondents the questionnaire was redialed to its
present form.
Sample
A finite subset of population, selected from it with the objective of investigating its
properties called a sample. A sample is a representative part of the population. A
sample of 50 respondents in total has been randomly selected. The response to
various elements under each questions were totaled for the purpose of various
statistical testing.
Variables of the Study.
The direct variable of the study is the employee motivation

Indirect variables are the incentives, interpersonal relations, career development

opportunities and performance appraisal system.
Presentation of Data.
The data are presented through charts and tables.
Tools and Techniques for Analysis.
Correlation is used to test the hypothesis and draw inferences.

LITERATURE REVIEW
Rensis Likerthas called motivation as the core of management. Motivation is the
core of management. Motivation is an effective instrument in the hands of the
management in inspiring the work force .It is the major task of every manager to
motivate his subordinate or to create the will to work among the subordinates .It
should also be remembered that the worker may be immensely capable of doing
some work, nothing can be achieved if he is not willing to work .creation of a will
to work is motivation in simple but true sense of term.
Motivation is an important function which very manager performs for actuating the
people to work for accomplishment of objectives of the organization .Issuance of
well conceived instructions and orders does not mean that they will be followed .A
manager has to make appropriate use of motivation to enthuse the employees to
follow them. Effective motivation succeeds not only in having an order accepted
but also in gaining a determination to see that it is executed efficiently and
effectively.
In order to motivate workers to work for the organizational goals, the managers
must determine the motives or needs of the workers and provide an environment in
which appropriate incentives are available for their satisfaction .If the management
is successful in doing so; it will also be successful in increasing the willingness of
the workers to work. This will increase efficiency and effectiveness of the
organization .There will be better utilization of resources and workers abilities and
capacities.

DATA ANALYSIS
AND
INTERPRETATIONS

1. Which type of incentives motivates you more?

a) Monetary incentives
b) Non-financial incentives
c) Both

60
52
50

40

30

30

18

20

10

Monetary incentives

Non-financial incentives

Both

INTERPRETATION:
The table shows that 52% of the respondents are expressing that both
financial and non-financial incentives will equally motivate them, 18% are
expressing non-financial incentives motivates and 30% respondents says we only
motivated through monetary incentives only
2. What factor De-motives you at work place?

a) Job profile
b) Company policy
c) Work environment
45
40

40
35
30

32
28

25
20
15
10
5
0

Job profile

Company policy

Work environment

INTERPRETATION:
The table shows that 40% of the respondents are de-motives with work
environment and 32% with company policy and 28% of the respondents are demotives with job profile. From this it can be concluded that work environment and
company policy are de-motives at work place
3. How far you are satisfied with the incentives provided by the organizations?

a)
b)
c)
d)
e)

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

70
60
50
40
30
20
10
0

58

36

6
0

INTERPRETATION:
The table shows that 36% of the respondents are highly satisfied and 58% of the
respondents are satisfied with incentives provided by the organization so we can
conclude most of the employees are satisfied with the incentives provided by the
organization.

4. Does your Job improve your skills and abilities?

a) Yes
b) No
c) Never

70

64

60
50
40
30
20

20

16

10
0

Yes

No

Never

INTERPRETATION:

64% of the respondents are agreed that their job improves their skills and
abilities and 20% of the respondents agreed that their skills and abilities are not
improves. It can be conclude that their job improves their skills and abilities.

5. Do you think that the incentives and other benefits will

influence you

performance?

a) Influence
b) Does not influence
c) No opinion

70

64

60
50
40
30

24

20

12

10
0

Influence

Does not influence

No opinion

INTERPRETATION:
The table shows that 64% of the respondents those incentives and other
benefits will influence their performance,24% respondents says they are not
influence their performance and 12% respondents did not say any opinion.

6. Management is really interested in motivating the employees?

a) Agree
b) Disagree
c) Neutral
)

60
50
40
30
50

20

36

10
0

14

Agree

Disagree

Neutral

INTERPRETATION:
From the above table 50% of the employees are agreed that the management is
really interested in motivating the employees and 36% of the employees are
disagreed and 14% are neutral.So it can be concluded that management is really
interested in motivate the employees in organization.
7. Does the management involve you in the decision making which are connected
to your department?

a) YES
b) No
c) Occasionally

100
90
80
70
60
50
40
30
20
10
0

94

Yes

No

Occasionally

INTERPRETATION:
The table shows 94% of the respondents agree that they the management involves them in
decision making which are connected their department.

8. Do you enthusiastic about your work?

a) Always
b) Sometimes
c) Never

PERCENTAGE
Never; 10
Always; 30

Always
Sometimes
Never

Sometimes; 60

INTERPRETATION:
From the above table, we can conclude that 60% of the respondents agreed
that they feel enthusiastic some times in their work.

9. Are you encouraged to come up with new and better ways of doing things?
a) Strongly agree b) agree c) Neutral

d) Disagree

e) Strongly disagree

50
40
30
20
10
0

40
20

24

16
0

INTERPRETATION:
From the above table we can conclude that 40% of the employees agreed that they
are encouraging to come up with new and better ways of doing things.

10. Have you been promoted at work in the last six months?
a ) Yes
b) N

Yes; 36

Yes
No
No; 64

INTERPRETATION:

The table shows that 64% of the employees are not promoted from the last
six months and 36% of the employees are promoted. From this we can conclude
that most of the employees are not promoted.

11. Are you adequately recognized for your good work?

a)

Agree

b)

Disagree

c)

neutral

60
50
40
30

56

20
10
0

20

Agree

Disagree

24

Neutral

INTERPRETATION:

The figure shows that 56% of the employees agreed that they are recognized
for good work and 20% are disagreed and 24% respondents are neutral.So it can
conclude that most of the employees recognized by their good work.

12. Rank the following factors which motivates you the most?

50
40
30
20
10
0

42
30
6

12

10

INTERPRETATION:

The table shows that 42% of the respondents are responding that the increase
in salary will motivate them the most.

13. Have you been nominated for training & development programmes for the last 6 months?

a) Yes
b) No

Particulars

No. of Respondents

Percentage

Yes

30

60

No

20

40

Total

50

100

40

Yes
No

60

INTERPRETATION:
The table shows that 60% of the respondents are expressing that they are
nominated for training and development programme in the organization for the last
6 months.
14. Does the management provide continuous feed back in solving work related
problems?
a) Strongly Agree

b) Agree

c) Neutral

d) Disagree

e) Strongly Disagre

35
30
25
20
15
10
5
0

32
28

18
12

10

INTERPRETATION:
The table shows that 28% of respondents strongly agreed and 32% agree that
they are getting feedback from management and 20% are neutral and 10% are
disagree that they are not getting feedback from the management.

15. Overall are you satisfied with your job?

a) Yes
b) No
Particulars
Yes
No

Number of
Respondents
28
22

Percentage
56
44

TOTAL

60

50

100

56

50

44

40
Yes

30

No

20
10
0
Percentage

INTERPRETATION:
The figure shows that 56% of the respondents are satisfied with their job and
only 44% of the respondents agreed that they are not satisfied with their job.It can
be concluded that most of the respondents are satisfied with their job.

SUMMARY

&
CONCLUSIONS

FINDINGS
The findings of the study are follows

The Reliance Life Insurance has a well defined organization structure.

There is a harmonious relationship is exist in the organization between

employees
and management.

The employees are really motivated by the management.

The employees are satisfied with the present incentive plan of the company
Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.

The study reveals that there is a good relationship exists among employees.

Majority of the employees agreed that there job security to their present job.

The company is providing good safety measures for ensuring the employees
safety.

From the study it is clear that most of employees agrees to the fact that
performance

Appraisal activities and support from the coworkers in helpful to get

motivated.

The study reveals that increase in the salary will motivates the employees
more.

The incentives and other benefits will influence the performance of the
employees

CONCLUSION

The study concludes that, the motivational program procedure in Reliance

Life Insurance is found effective but not highly effective. The study on employee
motivation highlighted so many factors which will help to motivate the employees.
The study was conducted among 50 employees and collected information through

structured questionnaire. The Study helped to findings, which were related with
employee motivational, programs which are provided in the organization.
The performance appraisal activities really play a major role in motivating
the employees of the organization. It is a major factor that makes an employee
feels good in his work and results in his satisfaction too. The organization can still
concentrate on specific areas which are evolved from this study in order to make
the motivational programs more effective. Only if the employees are properly
motivated- they work well and only if they work well the organization is going to
benefit out it. Steps should be taken to improve the motivational programs
procedure in the future. The suggestions of this report may help in this direction.

SUGGESTIONS
The suggestions for the findings from the study are follows

Most of the employees agree that the performance appraisal activities are
helpful to get motivated, so the company should try to improve performance
appraisal system, so that they can improve their performance.

Non financial plans should also be implemented; it can improve the

productivity level of

the employees.

Organization should give importance to communication between employees

and gain co-ordination through it.

Skills of the employees should be appreciated.

Better carrier development opportunities should be given to the employees
for their

improvement

If the centralized system of management is changed to a decentralized one,

then there would be active and committed participation of staff for the success of
the organization

BIBLIOGRAPHY

BOOKS REFFERED

Wayne F. Cascio 2006, Managing Human Resources, TMH.

Aswathappa, 2006, Human Resource Management, 4th edition, TMH

K.Aswathappa, 2006, Organizational Behaviour- Text, Cases and games,

Himalaya Publishing House

Curtis w. cook and Phillip L.Hunsaker, 2006, Management and

Organizational Behaviour, Macgraw-Hill Irwin

Jyothi P. and DN Venkatesh-2006, Human Resource Management, Oxford

University

press.

HRM Review July 2010. by Dr.G C NAG Adjunct Professor, IBS Mumbai

WEB REFERENCES:

www.google.com

www.syndicatebank.co.in

www. motivationnaukrihub.com

www. humanresources.about.com

ANNEXURE

QUESTIONNAIRE
Employee Name:
Age:
Sex:
Designation:
Department/Branch:
Marital status:
Salary:

1. Which Type Of Incentives Motivate You More?

a) Monetary Incentives
b) Non- Financial Incentives

c) Both
2. What factor de-motivates you at work place?
a) Job profile
b) Company policy
c) Work environment
3.How far you are satisfied with the incentives provided by the organisation.?

a) Highly satisfied
b) satisfied
c) neutral
4. Does your job improve your skills and abilities?
a) Yes
b) No
c) Never

5. Do you think that the incentives and other benefits will influence your
performance?
a) Influence
b) Does not influence
c) No opinion
6. Management is really interested in motivating the employees?

a) Agree
b) Disagree
c) Neutral
7. Does the management involve you in the decision making which are connected
to your department?

a) Yes
b) No
c) Occasionally
8. Do you enthusiastic about your work?

a) Always
b) Sometimes
c) Never
9. Are you encouraged to come up with new and better ways of doing
things?
a) Strongly agree
b) Agree
c) Neutral

d) Disagree
e) Strongly disagree

10. Have you been promoted at work in the last six months?
a) Yes
b) No
11. Are you adequately recognized for your good work?

a) Agree
b) Disagree
c) Neutral

12. Rank the following factors which motivates you the most?
(Rank 1, 2, 3, 4 respectively)
No.
1
2
3
4
5

Factors
Salary increase
Promotion
Leave
Motivational talks
`reorganization

Rank

13. Have you been nominated for training & development programmes for the last
6 months?

a) Yes
b) No

14. Does the management provide continuous feed back in solving work
related problems?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree

15. Overall are you satisfied with your job?

a) Yes
b) No

Thank You
Signature