Reward System Full Project

A study on effectiveness of reward system - with special
reference to Magnes Management Consultants Pvt. Ltd

Submitted in partial fulfillment of the requirement for the
award of the degree of Master of Business Administration of
Madurai Kamaraj University
By
S.Siva Sangari
(Reg No: 2014MBA44)
Under the guidance of
Mrs. L.Meena MBA, M.Phil. (Ph.D)
DEPARTMENT OF MANAGEMENT STUDIES

FATIMA COLLEGE (AUTONOMOUS)
(COLLEGE WITH POTENTIAL FOR EXCELLENCE)
RE-ACCREDITTED WITH A GRADE BY NAAC
MARY LAND
MADURAI-625018
January 2016

MARY LAND
MADURAI-625018
BONAFIDE CERTIFICATE
This is to certify that the project work entitled A study on effectiveness of
reward system, is a bonafide record of work done by S.SIVA SANGARI
(Reg. No. 2014MBA44) submitted in partial fulfillment of the requirement
for the Degree of Master of Business Administration, 2014-2016.
Signature of the Faculty Guide
Signature of the Director
(Mrs.L. Meena)
(Dr. Mrs. P. UMA)

MARY LAND
MADURAI-625018
DECLARATION
I hereby declare that the project done under the title A study on
effectiveness of reward system - with special reference to Magnes
Management Consultants Pvt. Ltd submitted for the award of the degree
of Master of Business Administration is my original work and that no part of
this report has been submitted fully or partly for any other recognition earlier.
Place: Madurai
Signature of Student
Date:
S.Siva Sangari
ACKNOWLEDGEMENT
First and foremost we would like to thank God almighty whose blessings
made us to complete the project successfully.
It is a great pleasure to acknowledge our sincere thanks to Dr. Sr. K. Fatima
Mary Principal, Fatima College, Madurai for giving this great opportunity.
It is a great pleasure to acknowledge our sincere thanks to Sr. Celine Sahaya
Mary, Dean of the professional courses, Fatima College, Madurai for
giving the opportunity to get practical knowledge about our theoretical
studies.
I express my sincere gratitude towards Mrs. Rajalakshmi Kandasamy, MD
of Magnes Management Consultants Pvt. Ltd, Madurai for her valuable
guidance to complete this project.
I owe a deep sense of gratitude to Ms.M.Sathya, Director of Magnes
Management Consultants Pvt. Ltd, Madurai for her keen interest on me at
every stage of my research. Her prompt inspiratons, timely suggestions with
kindness, enthusiasm and dynamism have enabled me to complete my thesis.
I thank profusely all the Staffs of Magnes Management Consultants Pvt.
Ltd, Madurai for their kind help and co-operation throughout my study
period.
I also thank Dr. Mrs. P. Uma, Director of the Department for the
successful completion of this project work.
I indeed greatly thankful to our faculty guide Mrs. L.Meena I thank her for
guiding me to successful complete the project.
I wish to express my gratitude to all the staff members in the Department of
Management Studies for their encouragement for completing this project.
Finally I thank my teachers, respondents, friends and parents who helped us
in completing our project successfully.
TABLE OF CONTENTS
CHAPTER
I
TITLE
PAGE
NO
1
INTRODUCTION
1.1 INTERNATIONAL SCENARIO
1.2 INDIAN SCENARIO
1.3 COMPANY PROFILE
1.4 NEED FOR THE STUDY
11
1.5 STATEMENT OF THE PROBLEM
11
1.6 FOCUS ON RESEARCH QUESTION
12
1.7 OBJECTIVES
12
1.8 SCOPE OF THE STUDY
12
1.9 LIMITATIONS OF THE STUDY
12
II
2.1 REVIEW OF LITERATURE
13
III
RESEARCH METHODOLOGY
20
3.1 RESEARCH DESIGN
20
3.2 DATA COLLECTION
20
3.3 DATA COLLECTION METHOD
20
3.4 PROCESSING OF THE DATA VALIDATION
21
DATA ANALYSIS AND INTERPRETATION
22
4.1 PERCENTAGE ANALYSIS
22
4.2 WEIGHTED AVERAGE
57
4.3 CHI-SQUARE
62
4.4 ONE WAY ANOVA
74
5.1 FINDINGS
80
5.2 SUGGESTIONS
82
CONCLUSION
83
BIBLIOGRAPHY
84
ANNEXURE
87
IV
VI
LIST OF TABLES
TABLE
TABLE NAME
PAGE
NO
4.1.1
Age
22
4.1.2
Gender
24
4.1.3
Education
26
4.1.4
Department
28
4.1.5
Designation
30
4.1.6
Experience
32
4.1.7
Income
34
4.1.8
Marital status
36
4.1.9
Level of effectiveness of reward system
38
4.1.10
Rank of effectiveness of reward system
40
4.1.11
Effectiveness of reward system on productivity - Verbal & written recognition
41
4.1.12
Effectiveness of reward system on productivity - Work related recognition
43
4.1.13
Effectiveness of reward system on productivity - Financial recognition
45
4.1.14
Effectiveness of reward system on productivity - Symbolic recognition
47
4.1.15
Effectiveness of reward system on productivity - Tangible recognition
49
4.1.16
Effectiveness of reward system on performance - Verbal & written recognition
51
4.1.17
Effectiveness of reward system on performance - Work related recognition
53
4.1.18
Effectiveness of reward system on performance - Financial recognition
55
4.2.1
Weighted average towards effectiveness of reward system on productivity
57
4.2.2
Weighted average towards effectiveness of reward system on performance
58
4.2.3
Weighted average towards effectiveness of reward system on work efforts
59
4.2.4
Weighted average towards effectiveness of reward system on job satisfaction
60
4.2.5
Weighted average towards effectiveness of reward system on motivation
61
4.3.1
Chi-square analysis between age and the effectiveness of tangible recognition

on work efforts
62
4.3.2
Chi-square analysis between educational qualification and the effectiveness of

tangible recognition on work efforts
64
4.3.3
Chi-square analysis between department and the effectiveness of tangible

recognition on work efforts
66
4.3.4
Chi-square analysis between experience and the effectiveness of tangible

68
4.3.5
Chi-square analysis between income and the effectiveness of tangible

70
4.3.6
Chi-square analysis between marital status and the effectiveness of tangible
72

4.4.1
One way ANOVA between age of the respondents and their effectiveness
towards productivity
74
4.4.2
One way ANOVA between educational qualification of the respondents and

their effectiveness towards productivity
75
4.4.3
One way ANOVA between department of the respondents and their

effectiveness towards productivity
76
4.4.4
One way ANOVA between experience of the respondents and their

77
4.4.5
One way ANOVA between income of the respondents and their effectiveness
78
4.4.6
One way ANOVA between marital status of the respondents and their
79
LIST OF CHARTS
CHART
CHART NAME
PAGE
NO
4.1.1
Age
23
4.1.2
Gender
25
4.1.3
Education
27
4.1.4
Department
29
4.1.5
Designation
31
4.1.6
Experience
33
4.1.7
Income
35
4.1.8
Marital status
37
4.1.9
Level of effectiveness of reward system
39
4.1.10
Effectiveness of reward system on productivity - Verbal & written recognition
42
4.1.11
Effectiveness of reward system on productivity - Work related recognition
44
4.1.12
Effectiveness of reward system on productivity - Financial recognition
46
4.1.13
Effectiveness of reward system on productivity - Symbolic recognition
48
4.1.14
Effectiveness of reward system on productivity - Tangible recognition
50
4.1.15
Effectiveness of reward system on performance - Verbal & written recognition
52
4.1.16
Effectiveness of reward system on performance - Work related recognition
54
4.1.17
Effectiveness of reward system on performance - Financial recognition
56
CHAPTER I
INTRODUCTION:
Reward management is concerned with the formulation and implementation of strategies and
policies that aim to reward people fairly, equitably and consistently in accordance with their
value to the organization.
Reward management consists of analysing and controlling employee remuneration,
compensation and all of the other benefits for the employees. Reward management aims to
create and efficiently operate a reward structure for an organisation. Reward structure usually
consists of pay policy and practices, salary and payroll administration, total reward, minimum
wage, executive pay and team reward.
Reward management was developed on the basis of psychologists' behavioral research.
Psychologists started studying behavior in the early 1900s; one of the first psychologists to
study behavior was Sigmund Freud and his work was called the Psychoanalytic Theory.
Many other behavioral psychologists improved and added onto his work. With the
improvements in the behavioral research and theories, psychologists started looking at how
people reacted to rewards and what motivated them to do what they were doing, and as a
result of this, psychologists started creating motivational theories, which is very closely
affiliated with reward management.
Defining motivation as "the degree to which an individual wants and choose to engage in
certain specific behaviours", to which Vroom (quoted in Mitchell, 1982) adds that
performance = ability x motivation. To have an efficient Reward System then, is mandatory
that employees know exactly what their task is, have the skills to do it, have the necessary
motivation and work in an environment allowing the transformation of intended actions into
an actual behaviour. From the company point of view instead, an effective performance
appraisal has to be present, in order to let motivation be a major contributor to the rewarded
performance.
Reward management deals with processes, policies and strategies which are required to
guarantee that the contribution of employees to the business is recognized by all means.
Objective of reward management is to reward employees fairly, equitably and consistently in
correlation to the value of these individuals to the organization. Reward system exists in
order to motivate employees to work towards achieving strategic goals which are set by
entities. Reward management is not only concerned with pay and employee benefits. It is
equally concerned with non-financial rewards such as recognition, training, development and
increased job responsibility.
Rewards serve many purposes in organisations. They serve to build a better employment
deal, hold on to good employees and to reduce turnover.
The principal goal is to increase people's willingness to work in ones company, to enhance
their productivity.
9
Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of
reward, Extrinsic reward. Studies proves that salespeople prefer pay raises because they feel
frustrated by their inability to obtain other rewards, but this behavior can be modified by
applying a complete reward strategy.
There are two kinds of rewards:
Extrinsic rewards: Concrete rewards that employee receive.
Bonuses: Usually annually, Bonuses motivates the employee to put in all endeavours and
efforts during the year to achieve more than a satisfactory appraisal that increases the chance
of earning several salaries as lump sum. The scheme of bonuses varies within organizations;
some organizations ensure fixed bonuses which eliminate the element of asymmetric
information, conversely, other organizations deal with bonuses in terms of performance
which is subjective and may develop some sort of bias which may discourage employees and
create setback. Therefore, managers must be extra cautious and unbiased.
Salary raise: Is achieved after hard work and effort of employees, attaining and acquiring
new skills or academic certificates and as appreciation for employees duty (yearly
increments) in an organization. This type of reward is beneficial for the reason that it
motivates employees in developing their skills and competence which is also an investment
for the organization due to increased productivity and performance. This type of reward
offers long-term satisfaction to employees. Nevertheless, managers must also be fair and
equal with employees serving the organization and eliminate the possibility of adverse
selection where some employees can be treated superior or inferior to others.
Gifts: Are considered short-term. Mainly presented as a token of appreciation for an

achievement or obtaining an organizations desired goal. Any employee would
appreciate a tangible matter that boosts their self-esteem for the reason of recognition
and appreciation from the management. This type of reward basically provides a clear
vision of the employees correct path and motivates employee into stabilising or
increasing their efforts to achieve higher returns and attainments.
Promotion: Quite similar to the former type of reward. Promotions tend to effect the
long-term satisfaction of employees. This can be done by elevating the employee to a
higher stage and offering a title with increased accountability and responsibility due
to employee efforts, behaviour and period serving a specific organization. This type
of reward is vital for the main reason of redundancy and routine. The employee is
motivated in this type of reward to contribute all his efforts in order to gain
managements trust and acquire their delegation and responsibility. The issue revolved
around promotion is adverse selection and managers must be fair and reasonable in
promoting their employees.
Other kinds of tangible rewards.
10
Intrinsic rewards: tend to give personal satisfaction to individual
Information / feedback: Also a significant type of reward that successful and

effective managers never neglect. This type of rewards offers guidance to employees
whether positive (remain on track) or negative (guidance to the correct path). This
also creates a bond and adds value to the relationship of managers and employees.
Recognition: Recognition: Is recognizing an employees performance by verbal
appreciation. This type of reward may take the presence of being formal for example
meeting or informal such as a "pat on the back" to boost employees self-esteem and
happiness which will result into additional contributing efforts.
Trust/empowerment: in any society or organization, trust is a vital aspect between
living individuals in order to add value to any relationship. This form of reliance is
essential in order to complete tasks successfully. Also, takes place in empowerment
when managers delegate tasks to employees. This adds importance to an employee
where his decisions and actions are reflected. Therefore, this reward may benefit
organizations for the idea of two minds better than one.
Intrinsic rewards makes the employee feel better in the organization, while Extrinsic rewards
focus on the performance and activities of the employee in order to attain a certain outcome.
The principal difficulty is to find a balance between employees' performance (extrinsic) and
happiness (intrinsic).
The reward also needs to be according to the employees personality. For instance, a sports
fan will be really happy to get some tickets for the next big match. However a mother who
passes all her time with her children, may not use them and therefore they will be wasted.
When rewarding one, the manager needs to choose if he wants to rewards an Individual, a
Team or a whole Organization. One will choose the reward scope in harmony with the work
that has been achieved.
Individual
Base pay, incentives, benefits
Rewards attendance, performance, competence
Team: team bonus, rewards group cooperation
Organization: profit-sharing, shares, gain-sharing
INDUSTRY PROFILE :
1.1 HISTORY INTERNATIONAL SCENARIO:
HR CONSULTING:
Our people management team can provide you with professional advice and practical support
across the full range of HR and training services. From employment law to talent
management, our team can help you keep pace with new legislation and best practice, and
support you in motivating and retaining your people.
11
We offer tailored services ranging from a telephone helpline to full project support for HR
initiatives. Whether you need advice on HR strategy or employment contracts, pay systems or
management development, we can give you timely and accurate information combined with
practical advice that you can use in your business.
Our people management services are:
restructuring and rebuilding your team

HR management review
Pay As You Go' - telephone support
job evaluation pay and reward systems
performance management
recruitment and selection
employment policies and procedures
training and development
specialist pay services for housing associations
Restructuring and rebuilding your team:

People issues are at the heart of any successful change programme, and we are experienced in
advising on change management issues at board level. We work with directors and
management teams to support workforce planning and the development and implementation
of HR and training strategies. We can assist with:
restructuring and building teams
managing redundancy programmes
managing the staff aspects of mergers and take-overs
facilitating Board level away days and training events
team building activities for senior teams including the use of psychometric tools such as
the Myers Briggs Type Indicator
planning, implementing and supporting culture change programmes
coaching for senior managers and directors in people skill areas
board level briefings on employment legislation and its impact on organisations
HR and management review:

Our HR and management review is a health check of the people aspects of your business to
ensure that your HR strategies and procedures are aligned with your business goals, are
compliant with current employment legislation, and are effective in supporting productive
and committed employees.
12
It includes:
a thorough review of your systems and processes
a compliance review in terms of employment legislation
an opportunity for expert feedback and guidance on good practice
a comprehensive report to help with action planning
Pay As You Go' telephone support service:

Our Pay As You Go' service means that you can use us as and when you need to obtain
specialist advice on HR or training matters. Our rates are clear and transparent, so you can
see exactly what costs you are incurring as you go. You can choose to make this available to
selected individuals, or to allow all of your managers and supervisors to use the service.
We guarantee fast response times to your queries, and the latest advice in terms of
employment and staff management issues. We can also come in and work alongside your
existing managers and advisers to provide HR support for the whole of your organisation.
Job evaluation pay and reward systems:
Regular reviews of your reward strategy and systems are essential to ensure that your pay
system supports your organisational goals and to avoid inequalities in pay. Our services
include:
job matching or full analytical job evaluation
pay benchmarking to establish relativity with the market, taking account of your
organisations size, location and sector
designing executive reward packages and longer term incentives
equal pay audits
implementing performance related pay systems
advice and support with the annual pay review process
Recruitment and selection:

We can support you throughout the whole recruitment and selection process for senior roles
in your business. Our aim is to save you time and effort, and to find the right person for your
organisation as soon as possible. Our services include:
writing job descriptions and person specifications
recruitment advertising and use of agencies
dealing with applications, producing shortlists and conducting interviews
taking up references and arranging medical checks
advising you on the selection decision

13
putting together appropriate remuneration packages
preparing contracts of employment
providing effective induction support
Employment policies and procedures:

Over recent years there has been a tremendous increase in the volume of new legislation on
employment and employment related issues. Many businesses find it increasingly difficult to
keep up to date with all of these changes.
Much of our support consists of providing advice on employment legislation and its practical
application in organisations, including the following areas:
implementing effective policies and procedures
setting up terms and conditions of employment
preparing contracts and accompanying documentation
using disciplinary and grievance procedures
avoiding unfair dismissal
negotiating changes to terms and conditions of employment
briefings on employment law changes, including practical advice on implementing

changes in your organisation
collective bargaining with staff or union representatives
dealing with employment tribunal proceedings
1.2 INDIAN SCENARIO:

McKinsey was the first strategy company to enter the Indian market in the early 90's with
their office in Delhi. They were slow to scale up with about 100 odd consultants in India.
McKinsey's Knowledge Center India Private Ltd. (McKC) in Gurgaon is the largest hub of
knowledge management professionals within the firm. Created in 1998, McKC is made up of
a practice research group that supports McKinsey's global industry and functional practices;
an analytics group that works on site and remotely with the firm's consulting teams.
Booz Allen Hamilton entered the Indian market in 1997-98 but exited after 2 years when the
market was tough to crack. They re-entered the market a couple of years ago as Booz & Co.,
the newly formed strategy and operations arm that does work outside government projects.
A strategic orientation to reward means understanding the big pictures- What the
organization is there to do, where it is going, and how it is going to get there. It requires the
development of a longer term vision of the future. Importantly, it requires alignment- of the
reward strategy with the business strategy and of reward strategies with the other aspects of
14
HR strategies. Reward strategies flow from the business strategy and HR strategy and is
based on some fundamental consideration.
Reward strategy is the business focused statement of the incentives of the organization
concerning the development of future reward processes and practices which are align to the
business and human resources strategies of the organization, its culture and the environment
in which it operates.
A more comprehensive description is to be found in Gomez-Mejia and Balkin (1992), who
defined it as: The deliberate utilization of the pay system as an essential integrating
mechanism through which the efforts of various subunits and individuals are directed towards
the achievement of an organizations effective objectives, subject to internal and external
constraints. When properly designed, contingent upon the organizations strategic objective
and constraints, it can be a important contributor to the firms performance.
Armstrong in Employee Reward Says Reward strategies provide a sense of purpose and
direction which will help to establish priorities for developing reward plans which can be
align to business and HR strategies. It will express as clearly as possible the intension of the
organization and form the basis for communicating those intension with employees
It is necessary to recognize that effective reward strategies have three components:
They have to have clearly-defined goals and a well defined linked to business
objectives.
There have to be well designed pay and reward programs, tailored to the need of the
organization and its people, and consistent and integrated with one another.
Perhaps most important and most neglected, effective and supportive HR and reward
processes must be in place.
Reward Strategy and Performance:
From the past decades there was an important link between Reward strategies and
Performance. Employee were rewarded according to there performance. Performance related
Reward allowed the highest performer to be awarded accordingly.
Lyons and Ben-Ora in (2002) gave a new definition for successful performance based
rewards. According to them those rewards which are perfectly start up, implemented and
support the total reward strategy are successful performance based reward. Among several
key component of pay for performance stock is reckoned most pertinent and measurable
way to relate pay to performance. The only way to enhance the employees motivation and
enthusiasm is performance appraisal system especially when efforts directly linked with
rewards through particular and formalized individual objectives (Fay and Thompson, 2001).
Michael Armstrong was the next in the series who explains the relation between reward
strategy and performance. According to him the higher level of organizational, team and
individual performance can be achieved through the reward strategy. This means focusing on
resourcing, organizing, communicating and rewarding for contribution to value added as well
as providing recognition for accomplishment and growth.
15
Recent Trends Used for Reward and Recognition:

Since compensation and rewards is important, HR managers are now realizing that
employees need to be kept happy and satisfied on a daily basis to enhance the productivity,
for that companies need to include Fun Quotient in their Reward strategies. Having fun on
the job the new cool thing? Atul Saxena, head Hr, CHD Developers LTd says, The
management has to ensure that employees get what they want. It is not all about money, it
Resources
Corporate goals
and objectives
Organization design
and management
style
Reward
system
Individual and
organizational
behavior
Environment
must be a good mixture of fun, stress free work environment, compensation, working hours,
rewards and most importantly, employees being a part of common organizational growth.
CHD Developers LTd introduce HQTF (Happiness quotient task force) which is an event
calendar, which includes celebration of various festivals, employee birthdays, sports day,
health camps and csr events which figure out a plan for employee bonding and encourages
strong internal communication between them. Accenture India has introduce a new idea
named Vaahini, for womens networking which supports networking on efforts and
initiatives related to mentoring, communication and counseling. It aims at addressing women
issues proactively by nurturing, sustaining and building the female work force at all levels.
The perception of workplace diversity has changed. Now many organizations are formulating
policies according to their employee feelings to make the work environment more LGBTfriendly. According to recent report, as the flood of change is coming, not only in India but
also Asian companies is now accepting this issues in their reward strategies programs. LGBT
employees in India face several challenges for entering into the new projects, for that they
also hide their identities or even not going for an open discussion about it. To remove such
hesitations from LGBT peoples many progressive organization are formulating policies, so as
to provide ample opportunities for the such groups of peoples at the workplace. At
Accenture, they introduced policies permitted by law to ensure an equal treatment of
employees, regardless of sexual orientation or gender identity. IBM encourages reverse
mentoring to sensitize the workforce on topics pertaining to diversity and inclusiveness.
Thus a diverse workforce is must for enhancing the performance and productivity for every
organization and the right policy decisions will only steer the way forward.
Today workforce is bare to the developed world and want best of everything to utter their
needs, and wants such as - competitive salaries, comfortable lifestyle, job security, career
enhancement option, work life balance etc. To satisfy this fact, companies now designed
16
philosophies, which have helped them to develop innovative, intrinsic ways of motivating
and engaging with their employees. The recently held National Summit on Recent Trends in
compensation and Rewards: Managing from Design to Delivery organized by the AIMA
emphasized that while retaining talent in companies is a major challenge for HR
professionals. R&R is not only an HR policy, but also an important part of companys
business strategy. Apart from that, another area, which most companies neglect while
designing their R&R policy is the element of Emotional Connect. While it is important to
reward employees, but it is more important how we reward him or her.
A new program is developed by Intel net global services named I-versity which is an in
house promotion program based on performance and strategic input designed to integrate
growth path for employees. Under this the following programs are run: Strive towards
excellence programs (for agents to team leader promotions), Leadership Excellence
Accreditation and Development Programs (for team leader to team manager promotion).
Some of the other programs include performance based incentives, transparent promotion
policies, accelerated career growth, employee development programs, incentives programs,
pay for performance, fun at work and employee appreciation week.
Many multinational banks give flexibility to their employees to work from their home. By
that not only employees are benefitted but banks too. This flexibility helps banks in their cost
cutting. Standard Charted, city group, HSBC and DBC many of such banks adopt such
policies known as Teleworking. By adopting such policies employees are ready to work on
low compensation and benefits and maintain good work life balance in their life.
1.3 COMPANY PROFILE:

MAGNES AT A GLANCE:
The word Magnes, derived from Latin meaning magnet. Magnet is primarily known for
showing the right direction. Magnes came into being to show the right career paths to
aspiring candidates and provide the right manpower to our clients. Our slogan "Pool in the
right talent" is coined to add meaning to the name of the organization.
VISION:
To become the Most Trusted Management Consultant in the world.
MISSION:
To play a predominant role in the HR industry by serving our clients 'Human Resource'
needs.
17
BUILDING BLOCKS:
m: magnificent manpower:
Magnes provide best in the industry manpower to our clients. Our Team comes with good
man years of experience and hence can understand the requirements of our clients. Empower
our client with the best Human Resource.
a: adequate acumen:
With an experience from the largest HR Services Company, we have adequate knowledge to
understand your business requirements. With our Business acumen, we provide solutions to
your Human Resource problems. Our members have adequate acumen to identify and
understand your needs and provide you with exact manpower.
g: gradual grooming:
The company strongly believe that any human being needs time to change his or her
behavioral skills. Their trainings are inclined towards behavioral changes and hence
grooming will be gradual which adds value to the money.
n: niche networking:
Magnes can provide some of best leaders required for your organization. We are capable of
sourcing the top management employees for you using our networking skills. We do map
industries and identify niche players in the same industry and fetch candidates through our
professional networks.
e: efficient execution:
By efficient, we mean that the time consumed for us to serve any of your Staffing
requirements will be less and hence you can expect quick solutions.
s: simple strategies:
Magnes do not complicate things while providing solutions to our clients. We believe that,
the simpler, the easier. Hence we practice as well as preach simpler strategies to our clients
and candidates.
STRENGTHS:
Effective client relations and efficient management

Transparency in our operations and confidentiality in our executions
Expertise not only in established sectors. But also in niche sectors such as Education,
Jewellery, Agriculture; Printing to name a few
Access to a wide pool of resources including rural markets
Resource identification through social networking
18
Access to Alumni of various educational institutions and database access through various
campus-connect programmes
MILESTONES ACHIEVED:
Raised 300th invoice - 18th June 2015
Renewed ISO Certification - 22nd March 2015
Received ISO 9001:2008 Certification - 3rd April 2014
Inaugurated Magnes - 12th June 2013
MANAGEMENT:
Board Members:
Ms.Rajalakshmi Kandasamy -- Our Co-Founder and Managing Director has over a
decade's experience in the HR industry. She holds a Masters in Business Administration with
specialization in Human Resource & Marketing from BIM, Trichy and a B.Tech - Electronics
from
Madras
Institute
of
Technology,
Anna
University,
Chennai.
Her portfolio includes varied experiences ranging from a Generalist HR at IT Companies in
Bangalore, Visiting Faculty at BIM, a Top B-Scholl in India to a Senior Consultant for South
TamilNadu at Ma Foi Randstad - World's Second Largest HR Services Provider.
She is also actively involved in CSR activities as a trustee of The Kurinji Trust which was
incorporated in the year 2010.
Manivannan -- Our Founder and Director has a Bachelor degree in Business Administration
from Madurai Kamaraj University. He has 15+ years' experience in Sales and Marketing
across various industries which includes Banking, Insurance, Telecom, Automobiles and Real
Estate. He had been the Project Director for Leading Infrastructure companies based at
Bangalore and Chennai. He is also a free lancer Real Estate Consultant.
Mr.Manivannan is the founder and Managing Trustee of "Kurinji Trust". He does lots of CSR
activities through the trust to help the orphans and under privileged.
1.4 NEED FOR THE STUDY:
Many studies were done in various factor of reward system. Those studies covers promotions,
opportunity for personal growth, increased levels of responsibility and an increase on social
standing. And also argued that the motivation of employees and their productivity can be
enhanced through providing them effective recognition. Hence, there is a lack of this
particular research in the madurai city especially in this organisation. So in order to fill the
research gap, the researcher have undertaken this study.
1.5 STATEMENT OF THE PROBLEM:
In the past, Magnes has had some problems in finding a suitable and functioning reward
system that would motivate the employees in a proper way. One of the main problems has
been the rapid change of the employees. In three years Magnes has had five different
designations. The reward types are decided by the upper management, the employees
19
however decides how to implement the rewards to each position. Hence some problems are
created when the employees changes constantly and each position has its own way of
implementing the rewards into the system. The constant change of the employees also results
in some problems with the development and learning of the employees. Development
discussions between the management and the employees take place in the company each
year. The process of learning and development is however slow due to the fact that the
employees is different almost each time a development discussion is held. The process needs
to be started from zero each time the employee changes and this demotivates the management
and influences their motivation towards the reward system.
1.6 FOCUS ON RESEARCH QUESTION:
What is the impact of effectiveness of reward system with respect to various factors
like productivity, performance, work efforts, job satisfaction and motivation?
What are the strategies to be formulated to improve the effectiveness of reward
system?
1.7 OBJECTIVES:
1. To analyse the effectiveness of the reward system with respect to the various factors like
productivity, performance, work efforts, job satisfaction and motivation.
2. To offer valuable suggestions to the organisation to improve the effectiveness of the
rewards system.
1.8 SCOPE OF THE STUDY:
This study is mainly focused on the employees who are working in the Magnes Management
Consultants Pvt Ltd and analyse the level of effectiveness of reward system. And also getting
various views of employees regarding reward system with respect to various factors like
productivity, performance, work efforts, job satisfaction and motivation. This study is done in
the geographic area of Madurai during the period of November to December 2015.
1.9 LIMITATIONS OF THE STUDY:
The researcher has time constraint to do the project.
Most of the employees are not welcome us and they look like as if the researcher is
disturbing their work schedule.
20
CHAPTER II
2.1 REVIEW OF LITERATURE:

Reward is a broad construct that has been said to represent anything that an employee may
value that an employer is willing to offer in exchange for his or her contributions 1(Chiang
and Birtch, 2008). The lack of rewards will create an unpleasant environment, thus
diminishing employees work efforts and may cause them to with draw from their jobs. For
these reasons, rewards are increasingly important. The main objectives of rewards are to
attract and retain employees, to motivate employees to achieve high levels of performance,
and to elicit and reinforce desired behavior of the employees. Organizations often use
financial rewards to prevent employee dissatisfaction and to motivate employees, although it
may not be the best motivator for the long term 2(Mossbarger and Eddington, 2003).
3
Deeprose (2014) had stated that while the presence of money may not be a very good
motivator, the absence of it is a strong de-motivator. In addition, financial rewards are
significant not only in terms of their instrument value as a medium of exchange, but also a
highly tangible means of recognizing an individuals worth, improving self-esteem, and
symbolizing status and achievement 4(Armstrong, 1996).
Therefore, organizations can best utilize financial rewards in supporting organizational
human resource strategy. Non-financial rewards are tangible rewards provided and controlled
by a firm; which do not necessarily benefit employees in monetary sense (Chiang and Birtch,
2008). Nowadays, individuals require beyond monetary rewards for their effort 5(Millmore
et al, 2007). This means that employees seek for other return in exchange for their
contribution which is of value and meaningful to them, rather than being given just money
6
(Johnson and Welsh, 1999). Given the labor-intensive nature of the hospitality industry and
the rising pressure to control costs, nonfinancial rewards are being used increasingly to
motivate employee performance and to increase employee satisfaction (Chiang and Birtch,
2008).
Rewards have two broad types; extrinsic and intrinsic rewards are also called financial and
nonfinancial rewards and these rewards further divided in so many sub categories. Extrinsic
rewards relates to financial rewards or cash related like formal recognition, fringe benefits,
incentive type payments, pay, promotion and intrinsic relates to nonfinancial or non-cash
rewards like achievement, accomplishment feelings, recognition, job satisfaction and growth
7
(Clifford, 1985).
Today world balance between employees commitment and performance for the
organizations much necessary and rewards are most important tool for employee's
commitment, job satisfaction, and motivation and employees good performance. 8Kalleberg,
21
(1977) explained rewards consist on benefits that employees receive in exchange of their
work during the job.
According to 9Wang (2004), in so many organization rewards plays so many roles in
sustaining and creating commitment among employees for good performance and that better
performance leads to job satisfaction. When employees achieved their desire results from job
so that of desired achievement is called job satisfaction 10(Brief & weiss, 2002).
11
Ali & Ahmad, (2009) investigated that there is positive relationship between recognition
and reward, performance. They stated that if reward and recognition are given to
employee then there is a huge change in their employee performance.
The study conducted to check the relationship between rewards and employee's performance
schools of Pakistan. They use these variables employees performance, job description,
extrinsic reward, intrinsic reward, gender discrimination, and environment; recondition
techniques, and performance bonus. They used cement companies, questionnaire was used
for data collection, and Total two hundred questionnaires were randomly distributed among
the employees of private schools in Khyber Pakhtoonkhawa Province of Pakistan. The results
revealed that there is a direct relation between reward system and employee's performance
12
(Qureshi, Zaman, & Shah, 2010). 13Jehanzeb et al. (2012).
According to 14Mishra and Dixit (2013), financial and non financial rewards and benefits are
highly correlated with employee's performance in an education rewards system. Because of
positive relationship of between rewards and performance also increase the job satisfaction of
workers. Job satisfaction leads to success and feelings of achievement during the job. Also
linked increase productivity, increase workers efforts on job and leads to happiness
enthusiasm, feeling of fulfilment 15(Kaliski, 2007). Rewards promote happiness and job
satisfaction investigated in his research study by 16(Boehm & Lyubomirsky, 2008). Intrinsic
and extrinsic rewards are determinants work satisfaction (Clifford, 1985).
According to 17Andrew & Kent (2004), explained in his research all the employees revolve
around the rewards and recognition so the both aspects have much importance for employees.
Good reward system help to retain high performers in the firm so rewards must be fulfill the
high performers feelings 18(Carraher, Gibson, & Buckley, 2006). 19Bishop (1987)
explained that pay relates to productivity and reward system relate to size of the firm.
Monetary and nonmonetary rewards motivate the workers of any organization and these
rewards also resulted in higher growth and productivity 20(Reio & Callahon, 2004).
Organizations in todays environment seek to determine the reasonable balance between
employee commitment and performance of the organization. The reward and recognition
programs serve as the most contingent factor in keeping employees self esteem high and
passionate. 21Oosthuizen (2001) stated that it is among the function of managers to motivate
the employees successfully and influence their behavior to achieve greater organizational
efficiency. 22La Mott (1995) is of the view that performance at job is the result of ability and
22
motivation. Ability formulated through education, equipment, training, experience, ease in

task and two types of capacities i.e. mental and physical. The performance evaluation and
rewards are the factors that proved to be the bonding agents of the performance evaluation
programs.
According to 23Wilson (1994), the process of performance management is one among the key
elements of total reward system. 24Entwistle (1987) is of the view that if an employee
performs successfully, it leads to organizational rewards and as a result motivational factor of
employees lies in their performance. Majority of the organizations require their employees to
work according to the rules and regulations, as well as, job requirements that comply with
full standards. The investigations that have been conducted to find the relationship between
compensation and individuals were focused to increase the performance of employees
25
(Ciscel, 1974). The highly motivated employees serve as the competitive advantage for any
company because their performance leads an organization to well accomplishment of its
goals. Among financial, economical and human resources, human resources are more vital
that can provide a company competitive edge as compared to others.
According to 26Andrew (2004), commitment of all employees is based on rewards and
recognition. 27Lawler (2003) argued that prosperity and survival of the organizations is
determined through the human resources how they are treated. Most of organizations have
gained the immense progress by fully complying with their business strategy through a well
balanced reward and recognition programs for employee.
28
Deeprose (1994) argued that the motivation of employees and their productivity can be
enhanced through providing them effective recognition which ultimately results in improved
performance of organizations. The entire success of an organization is based on how an
organization keeps its employees motivated and in what way they evaluate the performance
of employees for job compensation. Managing the performance of employees forms an
integral part of any organizational strategy and how they deal with their human capital
29
(Drucker as cited in Meyer & Kirsten, 2005).
Today where every organization has to meet obligations; the performance of employees has a
very crucial impact on overall organizational achievement. In a demotivated environment,
low or courage less employees can not practice their skills, abilities, innovation and full
commitment to the extent an organization needs. 30Freedman (1978) is of the view that when
effective rewards and recognition are implemented within an organization, favorable working
environment is produced which motivates employees to excel in their performance.
Employees take recognition as their feelings of value and appreciation and as a result it
boosts up morale of employee which ultimately increases productivity of organizations.
31
Csikszentmihalyi (1990) Flynn (1998) argued that rewards and recognition programs keep
high spirits among employees, boosts up their morale and create a linkage between
performance and reward of the employees. The basic purpose of recognition and reward
program is to define a system to pay and communicate it to the employees so that they can
23
link their reward to their performance. Rewards play a vital role in determining the
significant performance in job and it is positively associated with the process of motivation.
Lawler (2003) argued that there are two factors which determine how much a reward is
attractive, first is the amount of reward which is given and the second is the weight age an
individual gives to a certain reward.
Deeprose (1994, p. 3) is of the view that Good managers recognize people by doing things
that acknowledge their accomplishments and they reward people by giving them something
tangible. Fair chances of promotion according to employees ability and skills make
employee more loyal to their work and become a source of pertinent workability for the
employee. 32Bull (2005) posits a view that when employees experience success in mentally
challenging occupations Rewards and recognition are the key parameters of todays
motivation programs according to most of the organizations as these bind the success factor
with the employees performance.
33
Robbins (2001) asserts that promotions create the opportunity for personal growth,
increased levels of responsibility and an increase on social standing. Similarly, the
recognition which is a central point towards employee motivation adores an employee
through appreciation and assign as status at individual level in addition to being an employee
of the organization. 34Barton (2002) argued that the factor in Rewards and recognition at
their job. Rewards enhance the level of productivity and performance at job whether its a
first time performance or repeated activity at the job in a progressive way.
35
Eastman (2009) consistently found that intrinsic motivation is conducive to producing

creative work, while extrinsic motivation is unfavorable to producing creative work.
36
Gagne (2009) suggested a new model of knowledge-sharing motivation which provides

suggestion for designing five important human resource management (HRM) practices
including staffing, job design, performance and compensation systems, managerial styles and
training.
Ali and Ahmed (2009) confirmed that there is a statistically significant relationship between
reward and recognition respectively, also motivation and satisfaction.
24
REFERENCES:
1
(Chiang and Birtch, 2008) Reward is a broad construct that has been said to represent
anything that an employee may value that an employer is willing to offer in exchange for his
or her contributions.
2
(Mossbarger and Eddington, 2003) Organizations often use financial rewards to prevent
employee dissatisfaction and to motivate employees, although it may not be the best
motivator for the long term.
3
motivator, the absence of it is a strong de-motivator.
4
(Armstrong, 1996) also stated that financial rewards are significant not only in terms of
their instrument value as a medium of exchange, but also a highly tangible means of
recognizing an individuals worth, improving self-esteem, and symbolizing status and
achievement.
5
(Millmore et al, 2007), individuals require beyond monetary rewards for their effort.
(Johnson and Welsh, 1999). Given the labor-intensive nature of the hospitality industry and
the rising pressure to control costs, nonfinancial rewards are being used increasingly to
motivate employee performance and to increase employee satisfaction.
7
(Clifford, 1985)Extrinsic rewards relates to financial rewards or cash related like formal
recognition, fringe benefits, incentive type payments, pay, promotion and intrinsic relates to
nonfinancial or non-cash rewards like achievement, accomplishment feelings, recognition,
job satisfaction and growth.
8
Kalleberg, (1977) explained rewards consist on benefits that employees receive in exchange
of their work during the job.
9
Wang (2004), in so many organization rewards plays so many roles in sustaining and
creating commitment among employees for good performance and that better performance
leads to job satisfaction.
10
(Brief & weiss, 2002) When employees achieved their desire results from job so that of
desired achievement is called job satisfaction.
11
Ali & Ahmad, (2009) investigated that there is positive relationship between recognition
and reward, performance.
12
(Qureshi, Zaman, & Shah, 2010) The study conducted to check the relationship between
rewards and employee's performance schools of Pakistan.
13
Jehanzeb et al. (2012) The results revealed that there is a direct relation between reward
system and employee's performance.
25
14
Mishra and Dixit (2013), financial and non financial rewards and benefits are highly
correlated with employee's performance in an education rewards system.
15
(Kaliski, 2007) linked increase productivity, increase workers efforts on job and leads to
happiness enthusiasm, feeling of fulfilment.
16
(Boehm & Lyubomirsky, 2008) investigated in his research that rewards promote
happiness and job satisfaction.
17
Andrew & Kent (2004), explained in his research all the employees revolve around the
rewards and recognition so the both aspects have much importance for employees.
18
(Carraher, Gibson, & Buckley, 2006) explained that good reward system help to retain
high performers in the firm so rewards must be fulfill the high performers feelings.
19
Bishop (1987) explained that pay relates to productivity and reward system relate to size of
the firm.
20
(Reio & Callahon, 2004) proves monetary and nonmonetary rewards motivate the workers
of any organization and these rewards also resulted in higher growth and productivity.
21
Oosthuizen (2001) stated that it is among the function of managers to motivate the
employees successfully and influence their behavior to achieve greater organizational
efficiency.
22
La Mott (1995) is of the view that performance at job is the result of ability and motivation.
Ability formulated through education, equipment, training, experience, ease in task and two
types of capacities i.e. mental and physical.
23
Wilson (1994), the process of performance management is one among the key
elements of total reward system.
24
Entwistle (1987) is of the view that if an employee performs successfully, it leads to

organizational rewards and as a result motivational factor of employees lies in their
performance.
25
(Ciscel, 1974) the investigations that have been conducted to find the relationship between
compensation and individuals were focused to increase the performance of employees.
26
Andrew (2004), commitment of all employees is based on rewards and recognition.
27
Lawler (2003) argued that prosperity and survival of the organizations is determined
through the human resources how they are treated.
26
28
Deeprose (1994) argued that the motivation of employees and their productivity can be
enhanced through providing them effective recognition which ultimately results in improved
performance of organizations.
29
(Drucker as cited in Meyer & Kirsten, 2005) managing the performance of employees
forms an integral part of any organizational strategy and how they deal with their human
capital.
30
Freedman (1978) is of the view that when effective rewards and recognition are
implemented within an organization, favorable working environment is produced which
motivates employees to excel in their performance.
31
Csikszentmihalyi (1990) Flynn (1998) argued that rewards and recognition programs keep
high spirits among employees, boosts up their morale and create a linkage between
performance and reward of the employees.
32
Bull (2005) posits a view that when employees experience success in mentally challenging
occupations Rewards and recognition are the key parameters of todays motivation programs
according to most of the organizations as these bind the success factor with the employees
performance.
33
increased levels of responsibility and an increase on social standing.
34
Barton (2002) argued that the factor in Rewards and recognition at their job.
35

36
Gagne (2009) suggested a new model of knowledge-sharing motivation which provides

suggestion for designing five important human resource management (HRM) practices
including staffing, job design, performance and compensation systems, managerial styles and
training.
27
CHAPTER III
RESEARCH METHODOLOGY:
3.1 RESEARCH DESIGN:
Descriptive research:
The Research Design undertaken for the study is Descriptive one. A study, which wants to
portray the characteristics of a group or individuals or situation, is known as Descriptive
study. It is mostly qualitative in nature. The main objective of Descriptive study is to acquire
knowledge. This research includes surveys and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present.
3.2 DATA COLLECTION:
There are two main sources for collecting data. These are:1. Primary Data.
2. Secondary Data.
3.2.1. Primary Data:
It is the data that is collected for the first time. It is fresh and the originally collected by the
surveyor. In this, data are collected through Questionnaire.
3.2.2. Secondary Data:
Secondary data is the one which is collected by someone else and already used in some or the
other form. Here the secondary data are collected from books and websites.
3.3 DATA COLLECTION METHOD:
Census Method:
Census and sampling though both serve the purpose of providing data and information about
a population. In Census, entire population is taken into account and as such it is most
accurate. It is obvious that when whole population is taken into account, data collection is
called Census Method.
28
3.4 PROCESSING OF THE DATA VALIDATION:

TOOLS USED FOR THE STUDY:
Percentage Analysis
Weighted Average Analysis
Chi Square test

One way anova
29
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
4.1 PERCENTAGE ANALYSIS
Percentage is used for data presentation for they simplify numbers, reducing all
for them to a 0 to 100. Though the use of percentages, the data are reduced in the standard
form base equal to 100 which fact facilitates relative comparisons.
FORMULA:
Individual respondents
PERCENTAGE =
* 100
Total number of respondents
TABLE: 4.1.1 CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF

AGE
Table: 4.1.1 show the age wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF AGE
S. NO.
AGE
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
18 23
27%
24- 29
10
33%
30 35
20%
36 41
13%
42 and above 42
7%
TOTAL
30
100
INFERENCE:
The above table showing the respondents 27% of the respondents were of age 18-23, 33% of
the respondents were 24- 29, 20% of the respondents were of age 30-35, 13% of the
respondents were of age above 36-41 and 7% of the respondents were 42 & above 42.
30
FIGURE NO 4.1.1
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF AGE
42 & above 42
36-41
13
30-35
20
24-29
33
18-23
27
0%
20%
40%
60%
80%
100%
INFERENCE:
The above table showing the respondents 27% of the respondents were of age 18-23, 33% of
the respondents were 24- 29, 20% of the respondents were of age 30-35, 13% of the
respondents were of age above 36-41 and 7% of the respondents were 42 & above 42.
31

GENDER
Table: 4.1.2 show the gender wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF GENDER
S. NO
GENDER
NO. OF RESPONDENTS
PERCENTAGE OF
RESPONDENTS
MALE
12
40%
FEMALE
18
60%
TOTAL
30
100
INFERENCE:
The above table showing the 40% of the respondents were male and 60% of the respondents
were female.
32
FIGURE NO 4.1.2
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF GENDER
40
Male
Female
60
INFERENCE:
The above table showing the 40% of the respondents were male and 60% of the respondents
were female.
33

LEVEL OF EDUCATION
Table: 4.1.3 show the level of education wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF LEVEL OF
EDUCATION
S. NO
LEVEL OF
EDUCATION
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
DIPLOMA
17%
UG
24%
PG
11
36%
PH.D
13%
OTHERS
10%
TOTAL
30
100
INFERENCE:
The above table showing that 17% of the respondents were diploma, 24% of the respondents
were UG, 36% of the respondents were PG, 13% of the respondents were Ph.D, and 10% of
the respondents were others.
34
FIGURE NO 4.1.3
EDUCATION
40
36
35
30
25
24
20
17
15
13
10
10
5
0
Diploma
UG
PG
Ph.D
Others
INFERENCE:
The above table showing that 17% of the respondents were diploma, 24% of the respondents
were UG, 36% of the respondents were PG, 13% of the respondents were Ph.D, and 10% of
the respondents were others.
35

DEPARTMENT
Table: 4.1.4 show the department wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DEPARTMENT
S. NO
DEPARTMENT
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
ADMIN
20%
27%
BUSINESS
DEVELOPMENT
HR
14
47%
OTHERS
6%
TOTAL
30
100
INFERENCE:
The above table showing that 20% of the respondents were in admin, 27% of the respondents
were in business development, 47% of the respondents were in HR and 6% of the
respondents were in other department.
36
FIGURE NO 4.1.4
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DEPARTMENT
50
47
45
40
35
30
25
20
27
20
Department
15
10
5
0
Admin
Business
development
HR
Others
INFERENCE:
The above table showing that 20% of the respondents were in admin, 27% of the respondents
were in business development, 47% of the respondents were in HR and 6% of the
respondents were in other department.
37

DESIGNATION
Table: 4.1.5 show the designation wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DESIGNATION
S. NO
DESIGNATION
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
17%
DATA ENTRY
OPERATOR
EXECUTIVE
14
47%
TEAM LEADER
20%
MANAGER
6%
TELECALLER
10%
TOTAL
30
100
INFERENCE:
The above table showing that 17% of the respondents were data entry operator, 47% of the
respondents were executive, 20% of the respondents were team leader, 6% of the respondents
were manager and 10% of the respondents were telecaller.
38
FIGURE NO 4.1.5
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF DESIGNATION
47
50
45
40
35
30
25
20
20
17
15
10
10
5
0
Data entry
operator
Executive
Team leader
Manager
Telecaller
INFERENCE:
The above table showing that 17% of the respondents were data entry operator, 47% of the
respondents were executive, 20% of the respondents were team leader, 6% of the respondents
were manager and 10% of the respondents were telecaller.
39

LEVEL OF EXPERIENCE
Table: 4.1.6 show the experience wise classification of the respondents.
EXPERIENCE
S. NO
EXPERIENCE
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
LESS THAN 1
30%
1-2
20%
2-3
27%
MORE THAN 3
23%
TOTAL
30
100
INFERENCE:
The above table showing that 30% of the respondents were with less than 1yr experience,
20% of the respondents were with 1-2yrs experience, 27% of the respondents were with 23yrs experience and 23% of the respondents were with more than 3yrs experience.
40
FIGURE NO 4.1.6
EXPERIENCE
Experience
23
30
Less than 1
1 - 2yrs
2 - 3yrs
More than 3
27
20
INFERENCE:
The above table showing that 30% of the respondents were with less than 1yr experience,
20% of the respondents were with 1-2yrs experience, 27% of the respondents were with 23yrs experience and 23% of the respondents were with more than 3yrs experience.
41

INCOME
Table: 4.1.7 show the income wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF INCOME
S. NO
INCOME
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
5k - 8k
23%
8k - 10k
13
43%
10k - 15k
20%
ABOVE 15k
14%
TOTAL
30
100
INFERENCE:
The above table showing that 23% of the respondents were paid 5k-8k, 43% of the
respondents were paid 8k-10k, 20% of the respondents were paid 10k-15k and 14% of the
respondents were paid above 15k.
42
FIGURE NO 4.1.7
INCOME
45
40
35
30
25
20
15
10
Income
43
23
20
14
5
0
5k-8k
8k-10k
10k-15k
Above 15k
INFERENCE:
The above table showing that 23% of the respondents were paid 5k-8k, 43% of the
respondents were paid 8k-10k, 20% of the respondents were paid 10k-15k and 14% of the
respondents were paid above 15k.
43

MARITAL STATUS
Table: 4.1.8 show the marital status wise classification of the respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF MARITAL
STATUS
S. NO
MARITAL STATUS
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
SINGLE
14
47%
MARRIED
30%
WIDOWED
13%
SEPARATED/
DIVORCED
TOTAL
10%
30
100
INFERENCE:
The above table showing that 47% of the respondents were single, 30% of the respondents
were married, 13% of the respondents were widowed and 10% of the respondents were
separated/ divorced.
44
FIGURE NO 4.1.8
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF MARITAL
STATUS
Separated/ Divorced
10
Widowed
13
Marital status
Married
30
Single
47
0
10
20
30
40
50
INFERENCE:
The above table showing that 47% of the respondents were single, 30% of the respondents
were married, 13% of the respondents were widowed and 10% of the respondents were
separated/ divorced.
45

LEVEL OF EFFECTIVENESS OF REWARD SYSTEM
Table: 4.1.9 show the level of effectiveness of reward system wise classification of the
respondents.
EFFECTIVENESS OF REWARD SYSTEM
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
LEVEL OF
EFFECTIVENESS
OF REWARD
SYSTEM
HIGHLY
INEFFECTIVE
INEFFECTIVE
7%
NEITHER NOR
30%
EFFECTIVE
17%
HIGHLY EFFECTIVE
14
46%
TOTAL
30
100
INFERENCE:
The above table showing that 7% of the respondents were said ineffective, 30% of the
respondents were said neither effective nor ineffective, 17% of the respondents were said
effective and 46% of the respondents were said highly effective regarding to the reward
system.
46
FIGURE NO 4.1.9
100%
90%
80%
70%
60%
50%
30
17
46
40%
Effectiveness of reward system
30%
20%
10%
0%
INFERENCE:
respondents were said neither effective nor ineffective, 17% of the respondents were said
effective and 46% of the respondents were said highly effective regarding to the reward
system.
47

RANK OF EFFECTIVENESS OF REWARD SYSTEM
Table: 4.1.10 show the rank of effectiveness of reward system wise classification of the
respondents.
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF RANK OF
S. NO
RANK OF EFFECTIVENESS OF
REWARD SYSTEM
MEAN VALUES
5.53
VERBAL & WRITTEN

RECOGNITION
WORK RELATED RECOGNITION
FINANCIAL RECOGNITION
4.33
SYMBOLIC RECOGNITION
7.53
TANGIBLE RECOGNITION
7.73
TOTAL
30
4.88
INFERENCE:
The above table showing that 5.53 of the respondents were said verbal & written recognition,
4.88 of the respondents were said work related recognition, 4.33 of the respondents were said
financial recognition, 7.53 of the respondents were said symbolic recognition and 7.73 of the
respondents were said tangible recognition regarding to the rank of effectiveness of reward
system.
48

LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY VERBAL & WRITTEN RECOGNITION
Table: 4.1.11 show the level of effectiveness of reward system on productivity - Verbal &
written recognition wise classification of the respondents.
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - VERBAL &
WRITTEN RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
LEVEL OF
EFFECTIVENESS
ON
PRODUCTIVITY
HIGHLY
INEFFECTIVE
INEFFECTIVE
17%
NEUTRAL
20%
EFFECTIVE
27%
HIGHLY EFFECTIVE
11
36%
TOTAL
30
100
INFERENCE:
respondents were said neutral, 27% of the respondents were said effective and 36% of the
respondents were said highly effective regarding to the reward system on productivity with
verbal & written recognition.
49
FIGURE NO 4.1.10
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - VERBAL &
WRITTEN RECOGNITION
Highly effective
36
Effective
27
Neutral
20
Ineffective
Verbal & written recognition
17
Highly ineffective 0
0
10
20
30
40
INFERENCE:
50

LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY WORK RELATED RECOGNITION
Table: 4.1.12 show the level of effectiveness of reward system on productivity - Work
related recognition wise classification of the respondents.
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - WORK
RELATED RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
LEVEL OF
EFFECTIVENESS
ON
PRODUCTIVITY
HIGHLY
INEFFECTIVE
INEFFECTIVE
20%
NEUTRAL
17%
EFFECTIVE
10
33%
HIGHLY EFFECTIVE
30%
TOTAL
30
100
INFERENCE:
work related recognition.
51
FIGURE NO 4.1.11
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - WORK
RELATED RECOGNITION
30
Highly effective
33
Effective
17
Neutral
20
Ineffective
Highly ineffective
Work related recognition
0
0
10
20
30
40
INFERENCE:
52

LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY FINANCIAL RECOGNITION
Table: 4.1.13 show the level of effectiveness of reward system on productivity - Financial
recognition wise classification of the respondents.
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - FINANCIAL
RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
LEVEL OF
EFFECTIVENESS
ON
PRODUCTIVITY
HIGHLY
INEFFECTIVE
INEFFECTIVE
13%
NEUTRAL
24%
EFFECTIVE
10
33%
HIGHLY EFFECTIVE
30%
TOTAL
30
100
INFERENCE:
financial recognition.
53
FIGURE NO 4.1.12
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - FINANCIAL
RECOGNITION
35
30
33
25
20
15
13
10
5
0
30
24
Financial recognition
INFERENCE:
54

LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY SYMBOLIC RECOGNITION
Table: 4.1.14 show the level of effectiveness of reward system on productivity - Symbolic
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - SYMBOLIC
RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
LEVEL OF
EFFECTIVENESS
ON
PRODUCTIVITY
HIGHLY
INEFFECTIVE
INEFFECTIVE
10%
NEUTRAL
27%
EFFECTIVE
10
33%
HIGHLY EFFECTIVE
30%
TOTAL
30
100
INFERENCE:
symbolic recognition.
55
FIGURE NO 4.1.13
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - SYMBOLIC
RECOGNITION
35
33
30
30
27
25
20
15
10
10
5
Symbolic recognition
INFERENCE:
symbolic recognition.
56

LEVEL OF EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY TANGIBLE RECOGNITION
Table: 4.1.15 show the level of effectiveness of reward system on productivity - Tangible
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - TANGIBLE
RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
LEVEL OF
EFFECTIVENESS
ON
PRODUCTIVITY
HIGHLY
INEFFECTIVE
INEFFECTIVE
10%
NEUTRAL
12
40%
EFFECTIVE
27%
HIGHLY EFFECTIVE
23%
TOTAL
30
100
INFERENCE:
tangible recognition.
57
FIGURE NO 4.1.14
EFFECTIVENESS OF REWARD SYSTEM ON PRODUCTIVITY - TANGIBLE
RECOGNITION
45
40
40
35
30
27
25
23
20
Tangible recognition
15
10
10
5
0
0
Highly
ineffective
Ineffective
Neutral
Effective
Highly
effective
INFERENCE:
tangible recognition.
58

EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - VERBAL &
WRITTEN RECOGNITION
Table: 4.1.16 show the effectiveness of reward system on performance - Verbal & written
CLASSFICATION OF THE RESPONDENTS ON THE BASIS OF EFFECTIVENESS
OF REWARD SYSTEM ON PERFROMANCE - VERBAL & WRITTEN
RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
PERFORM WELL
IF REWARDED
WITH VERBAL &
WRITTEN
RECOGNITION
STRONGLY
DISAGREE
DISAGREE
13%
NEUTRAL
30%
AGREE
27%
STRONGLY AGREE
30%
TOTAL
30
100
INFERENCE:
The above table showing that 13% of the respondents were said disagree, 30% of the
respondents were said neutral, 27% of the respondents were said agree and 30% of the
respondents were said strongly agree regarding to the reward system on performance with
59
FIGURE NO 4.1.15
OF REWARD SYSTEM ON PERFORMANCE - VERBAL & WRITTEN
RECOGNITION
30
25
20
30
15
30
27
Verbal & written recognition
10
13
5
0
0
Strongly
disagree
Disagree
Neutral
Agree
Strongly
agree
INFERENCE:
60

EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - WORK
RELATED RECOGNITION
Table: 4.1.17 show the effectiveness of reward system on performance - Work related
OF REWARD SYSTEM ON PERFROMANCE - WORK RELATED RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
PERFORM WELL
IF REWARDED
WITH WORK
RELATED
RECOGNITION
STRONGLY
DISAGREE
DISAGREE
13%
NEUTRAL
17%
AGREE
11
37%
STRONGLY AGREE
10
33%
TOTAL
30
100
INFERENCE:
61
FIGURE NO 4.1.16
OF REWARD SYSTEM ON PERFORMANCE - WORK RELATED RECOGNITION
40
35
30
25
20
37
15
10
5
0 0
Strongly
disagree
13
Disagree
33
17
Neutral
Agree
Strongly
agree
INFERENCE:
62

EFFECTIVENESS OF REWARD SYSTEM ON PERFORMANCE - FINANCIAL
RECOGNITION
Table: 4.1.18 show the effectiveness of reward system on performance - Financial
OF REWARD SYSTEM ON PERFROMANCE - FINANCIAL RECOGNITION
S. NO
NO. OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
0%
PERFORM WELL
IF REWARDED
WITH FINANCIAL
RECOGNITION
STRONGLY
DISAGREE
DISAGREE
17%
NEUTRAL
23%
AGREE
30%
STRONGLY AGREE
30%
TOTAL
30
100
INFERENCE:
63
FIGURE NO 4.1.17
OF REWARD SYSTEM ON PERFORMANCE - FINANCIAL RECOGNITION
30
30
30
23
25
20
17
15
10
5
0
0
Strongly
disagree
Disagree
Neutral
Agree
Strongly
agree
INFERENCE:
64
4.2 WEIGHTED AVERAGE ANALYSIS

An average in which each quantity to be averaged is assigned a weight. These
weightings determine the relative importance of each quantity on the average. Weightings are
the equivalent of having that many like items with the same value involved in the average.
FORMULA:
=
FIGURE 4.2.1
WEIGHTED AVERAGE RANKED TOWARDS THE EFFECTIVENESS OF

REWARD SYSTEM ON PRODUCTIVITY
FACTORS
VERBAL
WORK
FINANCIAL
SYMBOLIC
TANGIBLE
&WRITTEN
RELATED
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
WX
WX
WX
WX
WX
HI
45
15
10
30
10
50
20
24
36
32
12
15
10
30
27
16
10
20
18
HE
11
11
TOTAL
30
15
88
30
15
77
30
15
63
30
15
103
30
15
111
WEIGHTED
5.87
5.13
4.2
6.87
7.4
AVERAGE
RANK
INFERENCE:
It is inferred that the highest rank is given to financial recognition and the least rank is given
to tangible recognition with respect to effectiveness of reward system on productivity.
65
FIGURE 4.2.2
REWARD SYSTEM ON PERFORMANCE
FACTORS
PERFORM WELL IF
PERFORM WELL
PERFORM WELL PERFORM NOT
PERFORM NOT
REWARDED WITH
IF REWARDED
IF REWARDED
WELL IF
WELL IF
VERBAL &WRITTEN WITH WORK
WITH
REWARDED
REWARDED
RECOGNITION
RELATED
FINANCIAL
WITH SYMBOLIC WITH TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
WX
WX
WX
WX
WX
SD
45
15
10
30
10
50
20
24
36
32
12
15
10
30
27
16
10
20
18
SA
11
11
TOTAL
30
15
88
30
15
70
30
15
69
30
15
104
30
15
113
WEIGHTED
5.87
4.67
4.6
6.93
7.53
AVERAGE
RANK
INFERENCE:
to tangible recognition with respect to effectiveness of reward system on performance.
66
FIGURE 4.2.3
REWARD SYSTEM ON WORK EFFORTS
FACTORS
VERBAL &WRITTEN WORK RELATED
FINANCIAL
SYMBOLIC
TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
WX
WX
WX
WX
WX
HI
20
15
15
45
11
55
28
16
16
28
32
21
18
24
18
16
18
10
HE
11
11
TOTAL
30
15
85
30
15
74
30
15
69
30
15
108
30
15
117
WEIGHTED
5.67
4.93
4.5
7.2
7.8
AVERAGE
RANK
INFERENCE:
to tangible recognition with respect to effectiveness of reward system on work efforts.
67
FIGURE 4.2.4
REWARD SYSTEM ON JOB SATISFACTION
FACTORS
FINANCIAL
SYMBOLIC
TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
WX
WX
WX
WX
WX
VL
45
15
10
30
10
50
20
24
36
32
12
15
10
30
27
16
10
20
18
VH
11
11
TOTAL
30
15
88
30
15
72
30
15
69
30
15
103
30
15
113
WEIGHTED
5.87
4.8
4.6
6.87
7.53
AVERAGE
RANK
INFERENCE:
to tangible recognition with respect to effectiveness of reward system on job satisfaction.
68
FIGURE 4.2.5
REWARD SYSTEM ON MOTIVATION
FACTORS
GET MOTIVATED
NOT MOTIVATED NOT MOTIVATED
FINANCIAL
SYMBOLIC
TANGIBLE
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
RECOGNITION
WX
WX
WX
WX
WX
SD
20
15
15
45
11
55
28
16
16
28
32
21
18
24
18
16
18
10
SA
11
11
TOTAL
30
15
85
30
15
74
30
15
69
30
15
110
30
15
114
WEIGHTED
GET MOTIVATED
GET MOTIVATED
5.67
4.93
4.6
7.3
7.6
AVERAGE
RANK
INFERENCE:
to tangible recognition with respect to effectiveness of reward system on motivation.
69
4.3 CHISQUARE
A chi-squared test, also referred to as
test (or chi-square test), is any statistical hypothesis
test in which the sampling distribution of the test statistic is a chi-square distribution when
the null hypothesis is true. Chi-squared tests are often constructed from a sum of squared
errors, or through the sample variance. A chi-squared test can then be used to reject the
hypothesis that the data are independent.
CHI - SQUARE 4.3.1
CHI-SQUARE ANALYSIS BETWEEN AGE AND THE EFFECTIVENESS OF
TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.1.1 show the comparison between age and the effectiveness of tangible recognition
on work efforts.
Table 4.3.1.1
Cross tabulation between age and the effectiveness of tangible recognition on work
efforts.
Highly
Effectiveness
of tangible
recognition
Ineffective Neutral
Effective Highly
ineffective
Total
effective
Age
18-23
24-29
30-35
36-41
42 & above 0
14
30
42
Total
Source: Primary data
70
The table above shows that among the 30 respondents, who 9 are belong to the age group of
18-23, 6 respondents belong to 24-29, 7 respondents belong to the age group of 30-35, 4
respondents belong to the age group of 36-41 and 4 respondents belong to the age group of
42 and above 42 in age group.
In order to examine the formulated null hypothesis that there is no significant relationship
between the age and the effectiveness of tangible recognition on work efforts, test was
employed. The computed results are given in Table 4.3.1.2
H0 There is no relationship between age and the effectiveness of tangible recognition on
work efforts.
Table 4.3.1.2
Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
26.296
16
.000
Significant at
5% level
Degrees of Freedom = (R-1) (C-1) = (5-1) (5-1) = (4) (4) = 16.

10.02 < 26.296
INFERENCE:
Comparing the table value and calculated value, table value(critical value) is 26.296 which is
greater than calculated value 8.56. Therefore, the null hypothesis is rejected. Hence there is a
significant association between age and the effectiveness of tangible recognition on work
efforts.
71
CHI - SQUARE 4.3.2

CHI-SQUARE ANALYSIS BETWEEN EDUCATIONAL QUALIFICATION AND
THE EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.2.1 show the comparison between educational qualification and the effectiveness
of tangible recognition on work efforts.
Table 4.3.2.1
Cross tabulation between educational qualification and the effectiveness of tangible
recognition on work efforts.
Highly
Effectiveness of
tangible
recognition
Ineffective Neutral
Effective
ineffective
Highly
Total
effective
Education
Diploma
UG
PG
Ph.d
Others
Total
14
30
72
The table above shows that among the 30 respondents, who 9 are belong to diploma, 6
respondents belong to UG, 7 respondents belong to PG, 4 respondents belong to Ph.d and 4
respondents belong to others in educational qualification.
between the educational qualification and the effectiveness of tangible recognition on work
efforts, test was employed. The computed results are given in Table 4.3.2.2
H0 There is no relationship between educational qualification and the effectiveness of
tangible recognition on work efforts.
Table 4.3.2.2
Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
26.296
16
.000
Significant at
5% level

10.71 < 26.296
INFERENCE:
significant association between educational qualification and the effectiveness of tangible
73
CHI - SQUARE 4.3.3

CHI-SQUARE ANALYSIS BETWEEN DEPARTMENT AND THE EFFECTIVENESS
OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.3.1 show the comparison between department and the effectiveness of tangible
Table 4.3.3.1
Cross tabulation between department and the effectiveness of tangible recognition on
work efforts.
Highly
Effectiveness of
tangible
recognition
Ineffective Neutral
Effective
ineffective
Highly
Total
effective
Department
Admin
Business
HR
Others
Total
14
30
Development
74
The table above shows that among the 30 respondents, who 9 are belong to admin, 6
respondents belong to business development, 8 respondents belong to HR and 7 respondents
belong to others in department.
between the department and the effectiveness of tangible recognition on work efforts, test
was employed. The computed results are given in Table 4.3.3.2
H0 There is no relationship between department and the effectiveness of tangible
Table 4.3.3.2
Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at
5% level

10.24 < 21.026
INFERENCE:
significant association between department and the effectiveness of tangible recognition on
work efforts.
75
CHI - SQUARE 4.3.4

CHI-SQUARE ANALYSIS BETWEEN EXPERIENCE AND THE EFFECTIVENESS
OF TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.4.1 show the comparison between experience and the effectiveness of tangible
Table 4.3.4.1
Cross tabulation between experience and the effectiveness of tangible recognition on
work efforts.
Highly
Effectiveness of
tangible
recognition
Ineffective Neutral
Effective
ineffective
Highly
Total
effective
Experience
Less than 1yr
1-2yrs
2-3yrs
More than 3yrs
Total
14
30
76
The table above shows that among the 30 respondents, who 9 are belong to less than 1yr, 6
respondents belong to 1-2yrs, 8 respondents belong to 2-3yrs and 7 respondents belong to
more than 3yrs in experience.
between the experience and the effectiveness of tangible recognition on work efforts, test
H0 There is no relationship between experience and the effectiveness of tangible
Table 4.3.4.2
Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at
5% level

9.099 < 21.026
INFERENCE:
significant association between experience and the effectiveness of tangible recognition on
work efforts.
77
CHI - SQUARE 4.3.5

CHI-SQUARE ANALYSIS BETWEEN INCOME AND THE EFFECTIVENESS OF
TANGIBLE RECOGNITION ON WORK EFFORTS
Table: 4.3.5.1 show the comparison between income and the effectiveness of tangible
Table 4.3.5.1
Cross tabulation between income and the effectiveness of tangible recognition on work
efforts.
Highly
Effectiveness of
tangible
recognition
Ineffective Neutral
Effective
ineffective
Highly
Total
effective
Income
5k-8k
8k-10k
10k-15k
Above 15k
Total
14
30
78
The table above shows that among the 30 respondents, who 9 are belong to 5k-8k, 6
respondents belong to 8k-10k, 8 respondents belong to 10k-15k and 7 respondents belong to
above 15k in their income level.
between the income and the effectiveness of tangible recognition on work efforts, test
H0 There is no relationship between income and the effectiveness of tangible recognition on
work efforts.
Table 4.3.5.2
Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at
5% level

8.56 < 21.026
INFERENCE:
significant association between income and the effectiveness of tangible recognition on work
efforts.
79
CHI - SQUARE 4.3.6

CHI-SQUARE ANALYSIS BETWEEN MARITAL STATUS AND
EFFECTIVENESS OF TANGIBLE RECOGNITION ON WORK EFFORTS
THE
Table: 4.3.6.1 show the comparison between marital status and the effectiveness of tangible
Table 4.3.6.1
Cross tabulation between marital status and the effectiveness of tangible recognition on
work efforts.
Highly
Effectiveness of
tangible
recognition
Ineffective Neutral
Effective
ineffective
Highly
Total
effective
Marital Status
Single
Married
Widowed
Separated/
14
30
Divorced
Total
80
The table above shows that among the 30 respondents, who 9 are belong to single, 6
respondents belong to married, 8 respondents belong to widowed and 7 respondents belong to
separated/ divorced in their marital status.
between the marital status and the effectiveness of tangible recognition on work efforts,
test was employed. The computed results are given in Table 4.3.6.2
H0 There is no relationship between marital status and the effectiveness of tangible
Table 4.3.6.2
Measure
Value
DF
P Value*
Inference
Pearson Chi-Square
21.026
12
.000
Significant at
5% level

8.56 < 21.026
INFERENCE:
significant association between marital status and the effectiveness of tangible recognition on
work efforts.
81
4.4 ONE WAY ANOVA

One way ANOVA technique is used when the data are classified on the basis of two factors.
One way design may have repeated measurements of each factor or may not have repeated
values.
ONE WAY ANOVA 4.4.1
One way ANOVA between age of the respondents and their effectiveness towards
productivity
Hypothesis: H0: The effectiveness of financial recognition of respondents towards
productivity does not vary with age.
Table 4.4.1
One way ANOVA between age of the respondents and effectiveness towards productivity
Source of
variation
Sum of
squares
df
Mean square
Critical value F(at 5%)

(from the F-table)
Between columns
22.5
5.625
5.357
6.39
Between rows
4.2
1.05
Total
26.7
INFERENCE:
It is obvious from the table above that there is a significant difference (sig = 0.05) in financial
recognition towards productivity among different age of the respondents at 5% level. This
finding indicates that the effectiveness of financial recognition towards productivity do vary
with their age at 5%.
82
ONE WAY ANOVA 4.4.2

One way ANOVA between educational qualification of the respondents and their
productivity does not vary with educational qualification.
Table 4.4.2
One way ANOVA between educational qualification of the respondents and effectiveness
Source of
variation
Sum of
squares
df
Mean square

(from the F-table)
Between columns
20.5
5.125
4.270
6.39
Between rows
4.8
1.2
Total
24.7
INFERENCE:
recognition towards productivity among different educational qualification of the respondents
at 5% level. This finding indicates that the effectiveness of financial recognition towards
productivity do vary with their educational qualification at 5%.
83
ONE WAY ANOVA 4.4.3

One way ANOVA between department of the respondents and their effectiveness
productivity does not vary with department.
Table 4.4.3
One way ANOVA between department of the respondents and effectiveness towards
productivity
Source of
variation
Sum of
squares
df
Mean square

(from the F-table)
Between columns
18.3
6.1
4.784
6.59
Between rows
5.1
1.275
Total
23.4
INFERENCE:
recognition towards productivity among different department of the respondents at 5% level.
This finding indicates that the effectiveness of financial recognition towards productivity do
vary with their department at 5%.
84
ONE WAY ANOVA 4.4.4

One way ANOVA between experience of the respondents and their effectiveness
productivity does not vary with experience.
Table 4.4.4
One way ANOVA between experience of the respondents and effectiveness towards
productivity
Source of
variation
Sum of
squares
Df
Mean square

(from the F-table)
Between columns
23.4
7.8
6.36
6.59
Between rows
4.9
1.225
Total
28.3
INFERENCE:
recognition towards productivity among different experience of the respondents at 5% level.
This finding indicates that the effectiveness of financial recognition towards productivity do
vary with their experience at 5%.
85
ONE WAY ANOVA 4.4.5

One way ANOVA between income of the respondents and their effectiveness towards
productivity
productivity does not vary with income.
Table 4.4.5
One way ANOVA between income of the respondents and effectiveness towards productivity
Source of
variation
Sum of
squares
Df
Mean square

(from the F-table)
Between columns
25.4
8.47
6.27
6.59
Between rows
5.4
1.35
Total
30.8
INFERENCE:
recognition towards productivity among different income of the respondents at 5% level. This
finding indicates that the effectiveness of financial recognition towards productivity do vary
with their income at 5%.
86
ONE WAY ANOVA 4.4.6

One way ANOVA between marital status of the respondents and their effectiveness
productivity does not vary with marital status.
Table 4.4.6
One way ANOVA between marital status of the respondents and effectiveness towards
productivity
Source of
variation
Sum of
squares
Df
Mean square

(from the F-table)
Between columns
21.4
7.13
5.48
6.59
Between rows
5.2
1.3
Total
26.6
INFERENCE:
recognition towards productivity among different marital status of the respondents at 5%
level. This finding indicates that the effectiveness of financial recognition towards
productivity do vary with their marital status at 5%.
87
CHAPTER V
5.1 FINDINGS:
Percentage analysis:
33% of the respondents are between the age group of 24-29.
60% of the respondents are female candidates and 40% of the respondents are male.
36% of the respondents are PG holder.
47% of the respondents are in the department of HR.
47% of the respondents are in the designation of executive.
30% of the respondents are having less than 1 year experience.
43% of the respondents are getting income in the range of 8k-10k.
47% of the respondents are single in their marital status.
46% of the respondents are choosing highly effective in the level of effectiveness of
reward system.
36% of the respondents are choosing highly effective in the level of effectiveness of
verbal & written recognition with respect to productivity.
33% of the respondents are choosing effective in the level of effectiveness of work
related recognition with respect to productivity.
30% of the respondents are choosing agree and strongly agree if they are rewarded
with financial recognition with respect to performance.
37% of the respondents are choosing neutral in the level of effectiveness of tangible
recognition with respect to work efforts.
37% of the respondents are choosing high in the level of effectiveness of work related
recognition with respect to job satisfaction.
30% of the respondents are choosing neutral when they are not getting symbolic
recognition with respect to motivation
Weighted average method:

On the basis of weighted average, highest rank is given to financial recognition with
respect to productivity.
On the basis of weighted average, the second highest rank is given to work related
recognition with respect to performance.
88
On the basis of weighted average, least rank is given to tangible recognition with
respect to work efforts.
On the basis of weighted average, highest rank is given to financial recognition with
respect to job satisfaction.
On the basis of weighted average, least rank is given to tangible recognition with
respect to motivation.
Chi-square test:
There is a significant association between age and the effectiveness of tangible
There is a significant association between educational qualification and the
effectiveness of tangible recognition on work efforts.
There is a significant association between department and the effectiveness of tangible
There is a significant association between experience and the effectiveness of tangible
There is a significant association between income and the effectiveness of tangible
There is a significant association between marital status and the effectiveness of
tangible recognition on work efforts.
One way anova:

There is a significant difference financial recognition towards productivity among
different age of the respondents at 5% level.
different educational qualification of the respondents at 5% level.
different department of the respondents at 5% level.
different experience of the respondents at 5% level.
different income of the respondents at 5% level.
different marital status of the respondents at 5% level.
89
5.2 SUGGESTIONS:
According
to the study, it is important to get praise as part of a team that successfully meets
goals and quotas, everyone needs to be recognized for their individual accomplishments by
the people around them and above them. Anticipating that they will be recognized for
completing a task well is strong motivation and job satisfaction for an individual to go the
extra mile.
According
to the age, educational qualification and marital status of the respondents, the
management can fix the target in order to increase the level of productivity and
performance. If the financial recognition can be changed to fixed amount + variable
amount, it will have great impact on productivity. Variable amount may vary with respect to
the target percentage they achieved. (More than 100%)
According
to the department, experience and income of the respondents, the management
can give out gold coins for a job well done. And for once a year, have a Staff Appreciation
Day where the managers supply, cook and serve food. Also post a large celebration
calendar in the work area. Tack on notes of recognition to specific dates. Can also send
birthday cards to employees homes, signed by HR(Generalist) or director.
Providing
positive recognition and financial recognition of an accomplishment serves to
raise individual productivity, performance, work efforts, job satisfaction, motivation, selfesteem, reinforce their value to the organization, improve their self-image and encourage
them to accomplish even greater results in the future.
The
management can improve work efforts by planning a surprise picnic, creating a hall of
fame wall with photos of outstanding employees, making a photo collage about a successful
project that shows the people that worked on it, its stage of development and its completion
and presentation, find out the person's hobby and buy an appropriate gift, etc.,
The
company has more female employees so they can recruit more male candidates and can
expand their business in other cities too. The management focussed more on women
colleges, clubs & meetings rather they should equally concentrate on other common
colleges, clubs, etc.,
90
CHAPTER VI
CONCLUSION:
This study was conducted in Magnes Management Consultants Pvt Ltd in order to analyze
the effectiveness of various reward system. More specifically it helped the company to
investigate attitudes of their employees towards the reward system and also what other
rewards motivate the employees. As a conclusion it can be seen that the general factors that
affect productivity, performance, work efforts, job satisfaction and motivation of an
employee. A combination of material reward and spiritual encouragement seems be the most
efficient way to maximize productivity, performance, work efforts, job satisfaction and
motivation in Magnes. And also offered valuable suggestions to the company regarding
reward system. Thus all the objectives are achieved successfully.
91
BIBLIOGRAPHY
Research Methodology methods and techniques Third revised edition - C.R.Kothari.
K.Ashwathappa, Human Resource Management.
http://www.aupc.info/wp-content/uploads/2015/01/V7I2-8.pdf
http://www.irbrp.com/static/documents/June/2009/22.Reena.pdf
http://psrcentre.org/images/extraimages/26.%20113535.pdf
http://www.washington.edu/admin/hr/roles/mgr/ee-recognition/award-ideas
(Chiang and Birtch, 2008) Reward is a broad construct that has been said to represent
anything that an employee may value that an employer is willing to offer in exchange
for his or her contributions.
(Mossbarger and Eddington, 2003) Organizations often use financial rewards to
prevent employee dissatisfaction and to motivate employees, although it may not be
the best motivator for the long term.
motivator, the absence of it is a strong de-motivator.
(Armstrong, 1996) also stated that financial rewards are significant not only in terms
of their instrument value as a medium of exchange, but also a highly tangible means
of recognizing an individuals worth, improving self-esteem, and symbolizing status
and achievement.
(Millmore et al, 2007), individuals require beyond monetary rewards for their effort.
(Johnson and Welsh, 1999). Given the labor-intensive nature of the hospitality
industry and the rising pressure to control costs, nonfinancial rewards are being used
increasingly to motivate employee performance and to increase employee satisfaction.
(Clifford, 1985)Extrinsic rewards relates to financial rewards or cash related like
formal recognition, fringe benefits, incentive type payments, pay, promotion and
intrinsic relates to nonfinancial or non-cash rewards like achievement,
accomplishment feelings, recognition, job satisfaction and growth.
Kalleberg, (1977) explained rewards consist on benefits that employees receive in
exchange of their work during the job.
Wang (2004), in so many organization rewards plays so many roles in sustaining and
creating commitment among employees for good performance and that better
performance leads to job satisfaction.
(Brief & weiss, 2002) When employees achieved their desire results from job so that
of desired achievement is called job satisfaction.
Ali & Ahmad, (2009) investigated that there is positive relationship between
recognition and reward, performance.
(Qureshi, Zaman, & Shah, 2010) The study conducted to check the relationship
between rewards and employee's performance schools of Pakistan.
92
Jehanzeb et al. (2012) The results revealed that there is a direct relation between
reward system and employee's performance.
Mishra and Dixit (2013), financial and non financial rewards and benefits are highly
correlated with employee's performance in an education rewards system.
(Kaliski, 2007) linked increase productivity, increase workers efforts on job and
leads to happiness enthusiasm, feeling of fulfilment.
(Boehm & Lyubomirsky, 2008) investigated in his research that rewards promote
happiness and job satisfaction.
Andrew & Kent (2004), explained in his research all the employees revolve around
the rewards and recognition so the both aspects have much importance for employees.
(Carraher, Gibson, & Buckley, 2006) explained that good reward system help to
retain high performers in the firm so rewards must be fulfill the high performers
feelings.
Bishop (1987) explained that pay relates to productivity and reward system relate to
size of the firm.
(Reio & Callahon, 2004) proves monetary and nonmonetary rewards motivate the
workers of any organization and these rewards also resulted in higher growth and
productivity.
Oosthuizen (2001) stated that it is among the function of managers to motivate the
employees successfully and influence their behavior to achieve greater organizational
efficiency.
La Mott (1995) is of the view that performance at job is the result of ability and
motivation. Ability formulated through education, equipment, training, experience,
ease in task and two types of capacities i.e. mental and physical.
Wilson (1994), the process of performance management is one among the key
elements of total reward system.
Entwistle (1987) is of the view that if an employee performs successfully, it leads to
organizational rewards and as a result motivational factor of employees lies in their
performance.
(Ciscel, 1974) the investigations that have been conducted to find the relationship
between compensation and individuals were focused to increase the performance of
employees.
Andrew (2004), commitment of all employees is based on rewards and recognition.
Lawler (2003) argued that prosperity and survival of the organizations is determined
through the human resources how they are treated.
Deeprose (1994) argued that the motivation of employees and their productivity can
be enhanced through providing them effective recognition which ultimately results in
improved performance of organizations.
(Drucker as cited in Meyer & Kirsten, 2005) managing the performance of employees
forms an integral part of any organizational strategy and how they deal with their
human capital.
93
Freedman (1978) is of the view that when effective rewards and recognition are
implemented within an organization, favorable working environment is produced
which motivates employees to excel in their performance.
Csikszentmihalyi (1990) Flynn (1998) argued that rewards and recognition programs
keep high spirits among employees, boosts up their morale and create a linkage
between performance and reward of the employees.
Bull (2005) posits a view that when employees experience success in mentally
challenging occupations Rewards and recognition are the key parameters of todays
motivation programs according to most of the organizations as these bind the success
factor with the employees performance.
increased levels of responsibility and an increase on social standing.
Barton (2002) argued that the factor in Rewards and recognition at their job.
Gagne (2009) suggested a new model of knowledge-sharing motivation which
provides suggestion for designing five important human resource management
(HRM) practices including staffing, job design, performance and compensation
systems, managerial styles and training.
94
ANNEXURE
STUDY ON EFFECTIVENESS OF REWARD SYSTEM WITH RESPECT TO
MAGNES MANAGMENT CONSULTANTS PVT LTD
1. Name:
2. Age:
18 23
24-29
30-35
36-41
42 and above 42
Ph.d
Others __________
HR
Others
3. Gender:
Male
Female
4. Educational qualification of the respondent

Diploma
UG
PG
5. Department
Admin
Business Development
6. Designation
Data entry operator
Executive
Team Leader
1-2
2-3
Manager
Telecaller
7. Experience (in years)

Less than 1
More than 3
8. Income
5k-8k
8k-10k
10k-15k
Above 15k
Widowed
Separated / divorced
9. Marital status of the respondent

Single
Married
10. Mark the level of effectiveness of the reward system?

Highly ineffective
Ineffective
Neither nor
95
Effective
Highly effective
11. Rank the effectiveness of the following rewards from 1 to 5

Methods
Rank
Verbal & written

recognition
Symbolic recognition
Tangible recognition
1 - Most effective ------------------------------- 5 - Least effective

12. Mark the effectiveness of the following rewards on your productivity.
Methods
Highly
ineffective
Ineffective
Neutral
Effective
Highly
effective
Level
Verbal &
Written
recognition
Work
related
recognition
Financial
recognition
Symbolic
recognition
Tangible
recognition
13. Mark the effectiveness of the following rewards on your performance.

Methods
Strongly
disagree
Disagree
Neutral
Level
I perform better if I
am rewarded with
verbal & written
recognition
96
Agree
Strongly
agree
am rewarded with
work related
recognition
am rewarded with
financial
recognition
I will not perform
better if I am
rewarded with
symbolic
recognition
I will not perform
better if I am
rewarded with
tangible
recognition
14. Mark the effectiveness of the following rewards on your work efforts.
Methods
Highly
ineffective
Ineffective
Level
Verbal & Written
recognition
Work related
recognition
Financial
recognition
Symbolic
recognition
Tangible
Recognition
97
Neutral
Effective
Highly
effective
15. Mark the effectiveness of the following rewards on your job satisfaction.
Methods
Very low
Low
Moderate
High
Very high
Level
Verbal &
Written
recognition
Work
related
recognition
Financial
recognition
Symbolic
recognition
Tangible
recognition
16. Mark the effectiveness of reward system on your motivation.
Methods
Strongly
disagree
Disagree
Neutral
Level
I get motivated
when the
organisation
rewards me
verbal &
written
recognition
I get motivated
when the
organisation
rewards me
work related
recognition
I get motivated
when the
organisation
rewards me
financial
recognition
98
Agree
Strongly
agree
I am not get
motivated when
the organisation
rewards me
symbolic
recognition
I am not get
motivated when
the organisation
rewards me
tangible
recognition
17. Any suggestions to improve the effectiveness of the reward system.

__________________
__________________
99

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A study on effectiveness of reward system - with special

reference to Magnes Management Consultants Pvt. Ltd

DEPARTMENT OF MANAGEMENT STUDIES

DEPARTMENT OF MANAGEMENT STUDIES

FATIMA COLLEGE (AUTONOMOUS)

Signature of the Faculty Guide

Signature of the Director

(Dr. Mrs. P. UMA)

DEPARTMENT OF MANAGEMENT STUDIES

FATIMA COLLEGE (AUTONOMOUS)

1.2 INDIAN SCENARIO

1.3 COMPANY PROFILE

1.4 NEED FOR THE STUDY

1.5 STATEMENT OF THE PROBLEM

1.6 FOCUS ON RESEARCH QUESTION

1.8 SCOPE OF THE STUDY

1.9 LIMITATIONS OF THE STUDY

2.1 REVIEW OF LITERATURE

3.1 RESEARCH DESIGN

3.2 DATA COLLECTION

3.3 DATA COLLECTION METHOD

3.4 PROCESSING OF THE DATA VALIDATION

DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE ANALYSIS

4.2 WEIGHTED AVERAGE

4.4 ONE WAY ANOVA

Level of effectiveness of reward system

Rank of effectiveness of reward system

Effectiveness of reward system on productivity - Verbal & written recognition

Effectiveness of reward system on productivity - Work related recognition

Effectiveness of reward system on productivity - Financial recognition

Effectiveness of reward system on productivity - Symbolic recognition

Effectiveness of reward system on productivity - Tangible recognition

Effectiveness of reward system on performance - Verbal & written recognition

Effectiveness of reward system on performance - Work related recognition

Effectiveness of reward system on performance - Financial recognition

Weighted average towards effectiveness of reward system on productivity

Weighted average towards effectiveness of reward system on performance

Weighted average towards effectiveness of reward system on work efforts

Weighted average towards effectiveness of reward system on job satisfaction

Weighted average towards effectiveness of reward system on motivation

Chi-square analysis between age and the effectiveness of tangible recognition

Chi-square analysis between educational qualification and the effectiveness of

Chi-square analysis between department and the effectiveness of tangible

Chi-square analysis between experience and the effectiveness of tangible

Chi-square analysis between income and the effectiveness of tangible

Chi-square analysis between marital status and the effectiveness of tangible

recognition on work efforts

One way ANOVA between educational qualification of the respondents and

One way ANOVA between department of the respondents and their

One way ANOVA between experience of the respondents and their

Level of effectiveness of reward system

Effectiveness of reward system on productivity - Verbal & written recognition

Effectiveness of reward system on productivity - Work related recognition

Effectiveness of reward system on productivity - Financial recognition

Effectiveness of reward system on productivity - Symbolic recognition

Effectiveness of reward system on productivity - Tangible recognition

Effectiveness of reward system on performance - Verbal & written recognition

Effectiveness of reward system on performance - Work related recognition

Effectiveness of reward system on performance - Financial recognition

Gifts: Are considered short-term. Mainly presented as a token of appreciation for an

Intrinsic rewards: tend to give personal satisfaction to individual

Information / feedback: Also a significant type of reward that successful and