Employee Welfare Measures

A STUDY ON EMPLOYEE MOTIVATION
Project Report
on
Employee Motivation
At
Maha Cements
Submitted
By
Syed Kamran Hussian
HT No: 116912684010
0
INDEX
CHAPTER I INTRODUCTION
Research Problem
Significance of the Study
Objectives of the Study
CHAPTER II Research Methodology
CHAPTER III Literature Review
CHAPTER IV Data Analysis & Interpretation
CHAPTER IV Conclusion and Recommendations
BIBLOGRAPHY
Appendix
1
INTRODUCTION
The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special reference to
Maha Cements, Hyderabad is mainly conducted to identify the factors which will motivate
the employees and the organizational functions in Maha Cements, Hyderabad
Management’s basic job is the effective utilization of human resources for achievements of
organizational objectives. The personnel management is concerned with organizing human
resources in such a way to get maximum output to the enterprise and to develop the talent
of people at work to the fullest satisfaction. Motivation implies that one person, in
organization context a manager, includes another, say an employee, to engage in action by
ensuring that a channel to satisfy those needs and aspirations becomes available to the
person. In addition to this, the strong needs in a direction that is satisfying to the latent
needs in employees and harness them in a manner that would be functional for the
organization.
Employee motivation is one of the major issues faced by every organization. It is the major
task of every manager to motivate his subordinates or to create the ‘will to work’ among
the subordinates. It should also be remembered that a worker may be immensely capable
of doing some work; nothing can be achieved if he is not willing to work. A manager has to
make appropriate use of motivation to enthuse the employees to follow them. Hence this
studies also focusing on the employee motivation among the employees of Maha Cements.
The data needed for the study has been collected from the employees through
questionnaires and through direct interviews. Analysis and interpretation has been done by
using the statistical tools and data’s are presented through tables and charts.
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RESEARCH PROBLEM
The research problem here in this study is associated with the motivation of employees of
Maha Cements, Hyderabad. There are a variety of factors that can influence a person’s level
of motivation; some of these factors include
1. The level of pay and benefits,

2. The perceived fairness of promotion system within a company,
3. Quality of the working conditions,
4. Leadership and social relationships,
5. Employee recognition
6. Job security
7. Career development opportunities etc.
Motivated employees are a great asset to any organisation. It is because the motivation and
Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in
the organisation. The research problem is formulated as follows:
“What are the factors which help to motivate the employees?
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SIGNIFICANCE OF THE STUDY
The study is intended to evaluate motivation of employees in the organization. A good

motivational program procedure is essential to achieve goal of the organization. If efficient
motivational programmes of employees are made not only in this particular organization
but also any other organization; the organizations can achieve the efficiency also to develop
a good organizational culture.
Motivation has variety of effects. These effects may be seen in the context of an individual’s
physical and mental health, productivity, absenteeism and turnover. Employee delight has
to be managed in more than one way. This helps in retaining and nurturing the true
believers “who can deliver value to the organization. Proliferating and nurturing the
number of “true believers” is the challenge for future and present HR managers.
This means innovation and creativity. It also means a change in the gear for HR polices and
practices. The faster the organizations nurture their employees, the more successful they
will be. The challenge before HR managers today is to delight their employees and nurture
their creativity to keep them a bloom.
This study helps the researcher to realize the importance of effective employee motivation.
This research study examines types and levels of employee motivational programmes and
also discusses management ideas that can be utilized to innovate employee motivation. It
helps to provide insights to support future research regarding strategic guidance for
organizations that are both providing and using reward/recognition programs.
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OBJECTIVES OF THE STUDY
Primary objective
1. To study the important factors which are needed to motivate the employees.
Secondary Objective.
1. To study the effect of monetary and non-monetary benefits provided by the

organization on the employee’s performance.
2. To study the effect of job promotions on employees.
3. To learn the employee’s satisfaction on the interpersonal relationship exists in the

organization.
4. To provide the practical suggestion for the improvement of organization’s

performance.
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RESEARCH METHODOLOGY.
Research is a systematic method of finding solutions to problems. It is essentially an
investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.
According to Clifford woody, “research comprises of defining and redefining problem,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
reaching conclusions, testing conclusions to determine whether they fit the formulated
hypothesis”
Sampling Design.
A sample design is a finite plan for obtaining a sample from a given population. Simple
random sampling is used for this study.
Universe.
The universe chooses for the research study is the employees of Maha Cements.
Sample Size.
Number of the sampling units selected from the population is called the size of the sample.
Sample of 50 respondents were obtained from the population.
Sampling Procedure.
The procedure adopted in the present study is probability sampling, which is also known as
chance sampling. Under this sampling design, every item of the frame has an equal chance
of inclusion in the sample.
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Methods of Data Collection.

The data’s were collected through Primary and secondary sources.
Primary Sources.
Primary data are in the form of “raw material” to which statistical methods are applied for
the purpose of analysis and interpretations.
The primary sources are discussion with employees, data’s collected through questionnaire.
Secondary Sources.
Secondary data’s are in the form of finished products as they have already been treated
statistically in some form or other.
The secondary data mainly consists of data and information collected from records,
company websites and also discussion with the management of the organization.
Secondary data was also collected from journals, magazines and books.
Nature of Research.
Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, descriptive research cannot be used to create a
causal relationship, where one variable affects another. In other words, descriptive research
can be said to have a low requirement for internal validity.
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Questionnaire.
A well defined questionnaire that is used effectively can gather information on both overall
performance of the test system as well as information on specific components of the
system. A defeated questionnaire was carefully prepared and specially numbered. The
questions were arranged in proper order, in accordance with the relevance.
Nature of Questions Asked.

The questionnaire consists of open ended, dichotomous, rating and ranking questions.
Pre-testing
A pre-testing of questionnaire was conducted with 10 questionnaires, which were
distributed and all of them were collected back as completed questionnaire. On the basis of
doubts raised by the respondents the questionnaire was redesigned to its present form.
Sample
A finite subset of population, selected from it with the objective of investigating its
properties called a sample. A sample is a representative part of the population. A sample of
50 respondents in total has been randomly selected. The response to various elements
under each questions were totaled for the purpose of various statistical testing.
Variables of the Study.

The direct variable of the study is the employee motivation
Indirect variables are the incentives, interpersonal relations, career development
opportunities and performance appraisal system.
Presentation of Data.
The data are presented through charts and tables.
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Tools and Techniques for Analysis.

Correlation is used to test the hypothesis and draw inferences.
CHAPTER 2
2. LITERATURE REVIEW
Rensis Likerthas called motivation as the core of management. Motivation is the core of
management. Motivation is an effective instrument in the hands of the management in
inspiring the work force .It is the major task of every manager to motivate his subordinate
or to create the will to work among the subordinates .It should also be remembered that
the worker may be immensely capable of doing some work, nothing can be achieved if he is
not willing to work .creation of a will to work is motivation in simple but true sense of term.
Motivation is an important function which every manager performs for actuating the
people to work for accomplishment of objectives of the organization .Issuance of well
conceived instructions and orders does not mean that they will be followed .A manager has
to make appropriate use of motivation to enthuse the employees to follow them. Effective
motivation succeeds not only in having an order accepted but also in gaining a
determination to see that it is executed efficiently and effectively.
In order to motivate workers to work for the organizational goals, the managers must
determine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction .If the management is successful in
doing so; it will also be successful in increasing the willingness of the workers to work. This
will increase efficiency and effectiveness of the organization .There will be better utilization
of resources and workers abilities and capacities.
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2.1 The concept of motivation

The word motivation has been derived from motive which means any idea, need or
emotion that prompts a man in to action. Whatever may be the behavior of man, there is
some stimulus behind it .Stimulus is dependent upon the motive of the person concerned.
Motive can be known by studying his needs and desires.
There is no universal theory that can explain the factors influencing motives which control
mans behavior at any particular point of time. In general, the different motives operate at
different times among different people and influence their behaviors. The process of
motivation studies the motives of individuals which cause different type of behavior.
2.2 Definition of Motivation.

What is motivation? It is defined as the processes that account for an individual’s intensity,
direction and persistence of effort towards attaining a goal.
The three key elements in the definition are intensity, direction and persistence.
Intensity is concerned with how hard a person tries. This is the element most of us focus on
when we talk about motivation. However, high intensity is unlikely to lead to favourable job
performance outcomes unless the effort is channelled in a direction that benefits the
organization. Therefore, we have to consider the quality of effort as well as its intensity.
Effort that is directed towards, and consistent with, the organization’s goals is the kind of
effort that we should be seeking. Finally, motivation has a persistence dimension. This is a
measure of how long a person can maintain effort. Motivated individuals stay with a task
long enough to achieve their goal.
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2.3 Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give
their loyalty to the group, to carry out properly the purpose of the organization. The
following results may be expected if the employees are properly motivated.
1. The workforce will be better satisfied if the management provides them with
opportunities to fulfill their physiological and psychological needs. The workers will
cooperate voluntarily with the management and will contribute their maximum towards
the goals of the enterprise.
2. Workers will tend to be as efficient as possible by improving upon their skills and
knowledge so that they are able to contribute to the progress of the organization. This
will also result in increased productivity.
3. The rates of labor’s turnover and absenteeism among the workers will be low.
4. There will be good human relations in the organization as friction among the workers
themselves and between the workers and the management will decrease.
5. The number of complaints and grievances will come down. Accident will also be low.
6. There will be increase in the quantity and quality of products. Wastage and scrap will be
less. Better quality of products will also increase the public image of the business.
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2.4 Motivation Process.

1. Identification of need
2. Tension
3. Course of action
4. Result –Positive/Negative
5. Feed back
2.5 Theories of Motivation.

Understanding what motivated employees and how they were motivated was the focus of
many researchers following the publication of the Hawthorne study results (Terpstra, 1979).
The major approaches that have led to our understanding of motivation are Mcclelland’s
Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need
hierarchy or Deficient theory of motivation, ERG theory of motivation, Herzberg’s
motivation-hygiene theory, J.S. Adam’s Equity Theory, Vrooms Expectation Theory, Two
factor Theory.
2.5.1 McClelland’s Achievement Need Theory.
In his acquired-needs theory, David McClelland proposed that an individual's specific needs
are acquired over time and are shaped by one's life experiences. Most of these needs can
be classed as either achievement, affiliation, or power. A person's motivation and
effectiveness in certain job functions are influenced by these three needs. McClelland's
theory sometimes is referred to as the three need theory or as the learned needs theory.
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Achievement
People with a high need for achievement (nAch) seek to excel and thus tend to avoid both
low-risk and high-risk situations. Achievers avoid low-risk situations because the easily
attained success is not a genuine achievement. In high-risk projects, achievers see the
outcome as one of chance rather than one's own effort. High nAch individuals prefer work
that has a moderate probability of success, ideally a 50% chance. Achievers need regular
feedback in order to monitor the progress of their achievements. They prefer either to work
alone or with other high achievers.
Affiliation
Those with a high need for affiliation (nAff) need harmonious relationships with other
people and need to feel accepted by other people. They tend to conform to the norms of
their work group. High nAff individuals prefer work that provides significant personal
interaction. They perform well in customer service and client interaction situations.
Power
A person's need for power (nPow) can be one of two types - personal and institutional.
Those who need personal power want to direct others, and this need often is perceived as
undesirable. Persons who need institutional power (also known as social power) want to
organize the efforts of others to further the goals of the organization. Managers with a high
need for institutional power tend to be more effective than those with a high need for
personal power.
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Thematic Apperception Test
McClelland used the Thematic Apperception Test (TAT) as a tool to measure the individual
needs of different people. The TAT is a test of imagination that presents the subject with a
series of ambiguous pictures, and the subject is asked to develop a spontaneous story for
each picture. The assumption is that the subject will project his or her own needs into the
story.
Psychologists have developed fairly reliable scoring techniques for the Thematic
Apperception Test. The test determines the individual's score for each of the needs of
achievement, affiliation, and power. This score can be used to suggest the types of jobs for
which the person might be well suited.
Implications for Management
People with different needs are motivated differently.
 High need for achievement - High achievers should be given challenging projects
with reachable goals. They should be provided frequent feedback. While money is
not an important motivator, it is an effective form of feedback.
 High need for affiliation - Employees with a high affiliation need perform best in a
cooperative environment.
 High need for power - Management should provide power seekers the opportunity
to manage others.
Note that McClelland's theory allows for the shaping of a person's needs; training programs
can be used to modify one's need profile.
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2.5.2 Behavioral Modification Theory;

According to this theory people behavior is the outcome of favorable and unfavorable past
circumstances. This theory is based on learning theory. Skinner conducted his researches
among rats and school children. He found that stimulus for desirable behavior could be
strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this
theory may be found in the installation of financial and non financial incentives.
More immediate is the reward and stimulation or it motivates it. Withdrawal of reward
incase of low standard work may also produce the desired result. However, researches
show that it is generally more effective to reward desired behavior than to punish
undesired behavior.
2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.
The intellectual basis for most of motivation thinking has been provided by behavioral
scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of
Motivation”. Although Maslow himself did not apply his theory to industrial situation, it has
wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s theory
to interpret specific problems in personnel administration and industrial relations.
The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of
five categories. The lowest level needs are physiological and the highest levels are the self
actualization needs. Maslow starts with the formation that man is a wanting animal with a
hierarchy of needs of which some are lower ins scale and some are in a higher scale or
system of values. As the lower needs are satisfied, higher needs emerge. Higher needs
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cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This
resembles the standard economic theory of diminishing returns. The hierarchy of needs at
work in the individual is today a routine tool of personnel trade and when these needs are
active, they act as powerful conditioners of behavior- as Motivators.
Hierarchy of needs; the main needs of men are five. They are physiological needs, safety
needs, social needs, ego needs and self actualization needs, as shown in order of their
importance.
Self-
Actualization
Ego Needs
Social Needs
Safety Needs
Physiological Needs
The above five basic needs are regarded as striving needs which make a person do things.
The first model indicates the ranking of different needs. The second is more helpful in
indicating how the satisfaction of the higher needs is based on the satisfaction of lower
needs. It also shows how the number of person who has experienced the fulfillment of the
higher needs gradually tapers off.
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Physiological or Body Needs: - The individual move up the ladder responding first to the
physiological needs for nourishment, clothing and shelter. These physical needs must be
equated with pay rate, pay practices and to an extent with physical condition of the job.
Safety: - The next in order of needs is safety needs, the need to be free from danger, either
from other people or from environment. The individual want to assured, once his bodily
needs are satisfied, that they are secure and will continue to be satisfied for foreseeable
feature. The safety needs may take the form of job security, security against disease,
misfortune, old age etc as also against industrial injury. Such needs are generally met by
safety laws, measure of social security, protective labor laws and collective agreements.
Social needs: - Going up the scale of needs the individual feels the desire to work in a
cohesive group and develop a sense of belonging and identification with a group. He feels
the need to love and be loved and the need to belong and be identified with a group. In a
large organization it is not easy to build up social relations. However close relationship can
be built up with at least some fellow workers. Every employee wants too feel that he is
wanted or accepted and that he is not an alien facing a hostile group.
Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition,
respect and prestige in the work group or work place such as is conferred by the
recognition of ones merit by promotion, by participation in management and by fulfillment
of workers urge for self expression. Some of the needs relate to ones esteem
e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this
means praise for a job but more important it means a feeling by employee that at all times
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he has the respect of his supervisor as a person and as a contributor to the organizational
goals.
Self realization or Actualization needs: - This upper level need is one which when satisfied
provide insights to support future research regarding strategic guidance for organization
that are both providing and using reward/recognition programs makes the employee give
up the dependence on others or on the environment. He becomes growth oriented, self
oriented, directed, detached and creative. This need reflects a state defined in terms of the
extent to which an individual attains his personnel goal. This is the need which totally lies
within oneself and there is no demand from any external situation or person.
If Maslow's theory holds, there are some important implications for management. There
are opportunities to motivate employees through management style, job design, company
events, and compensation packages, some examples of which follow:
 Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient
to purchase the essentials of life.
 Safety Needs: Provide a safe working environment, retirement benefits, and job
security.
 Social Needs: Create a sense of community via team-based projects and social
events.
 Esteem Needs: Recognize achievements to make employees feel appreciated and
valued. Offer job titles that convey the importance of the position.
 Self-Actualization: Provide employees a challenge and the opportunity to reach their
full career potential.
However, not all people are driven by the same needs - at any time different people may be
motivated by entirely different factors. It is important to understand the needs being
pursued by each employee. To motivate an employee, the manager must be able to
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recognize the needs level at which the employee is operating, and use those needs as
levers of motivation.
Limitations of Maslow's Hierarchy
While Maslow's hierarchy makes sense from an intuitive standpoint, there is little evidence
to support its hierarchical aspect. In fact, there is evidence that contradicts the order of
needs specified by the model. For example, some cultures appear to place social needs
before any others. Maslow's hierarchy also has difficulty explaining cases such as the
"starving artist" in which a person neglects lower needs in pursuit of higher ones. Finally,
there is little evidence to suggest that people are motivated to satisfy only one need level at
a time, except in situations where there is a conflict between needs.
Even though Maslow's hierarchy lacks scientific support, it is quite well-known and is the
first theory of motivation to which many people they are exposed. To address some of the
issues of Maslow's theory, Clayton Alderfer developed the ERG theory, a needs-based
model that is more consistent with empirical findings.
2.5.4 ERG Theory of Motivation

To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical
research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory
of motivation. He recategorized Maslow’s hierarchy of needs into three simpler and broader
classes of needs:
 Existence needs- These include need for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs.
 Relatedness needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslow’s social needs and external component of
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esteem needs fall under this class of need.
 Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem
needs fall under this category of need.
The significance of the three classes of needs may vary for each individual.
Implications of the ERG Theory
Managers must understand that an employee has various needs that must be satisfied at
the same time. According to the ERG theory, if the manager concentrates solely on one
need at a time, this will not effectively motivate the employee. Also, the frustration-
regression aspect of ERG Theory has an added effect on workplace motivation. For
instance- if an employee is not provided with growth and advancement opportunities in an
organization, he might revert to the relatedness need such as socializing needs and to meet
those socializing needs, if the environment or circumstances do not permit, he might revert
to the need for money to fulfill those socializing needs. The sooner the manager realizes
and discovers this, the more immediate steps they will take to fulfil those needs which are
frustrated until such time that the employee can again pursue growth.
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2.5.5 Herzberg's Motivation-Hygiene Theory
The studies included interviews in which employees where asked what pleased and
displeased them about their work. Herzberg found that the factors causing job satisfaction
(and presumably motivation) were different from those causing job dissatisfaction. He
developed the motivation-hygiene theory to explain these results. He called the satisfiers
motivators and the dissatisfiers hygiene factors, using the term "hygiene" in the sense that
they are considered maintenance factors that are necessary to avoid dissatisfaction but that
by themselves do not provide satisfaction.
The following table presents the top six factors causing dissatisfaction and the top six
factors causing satisfaction, listed in the order of higher to lower importance.
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Factors Affecting Job Attitudes
Leading to Dissatisfaction Leading to Satisfaction

 Company policy  Achievement
 Supervision  Recognition
 Relationship w/Boss  Work itself
 Work conditions  Responsibility
 Salary  Advancement
 Relationship w/Peers  Growth
Herzberg reasoned that because the factors causing satisfaction are different from those
causing dissatisfaction, the two feelings cannot simply be treated as opposites of one
another. The opposite of satisfaction is not dissatisfaction, but rather, no satisfaction.
Similarly, the opposite of dissatisfaction is no dissatisfaction.
While at first glance this distinction between the two opposites may sound like a play on
words, Herzberg argued that there are two distinct human needs portrayed. First, there are
physiological needs that can be fulfilled by money, for example, to purchase food and
shelter. Second, there is the psychological need to achieve and grow, and this need is
fulfilled by activities that cause one to grow.
From the above table of results, one observes that the factors that determine whether
there is dissatisfaction or no dissatisfaction are not part of the work itself, but rather, are
external factors. Herzberg often referred to these hygiene factors as "KITA" factors, where
KITA is an acronym for Kick In The A..., the process of providing incentives or a threat of
punishment to cause someone to do something. Herzberg argues that these provide only
short-run success because the motivator factors that determine whether there is
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satisfaction or no satisfaction are intrinsic to the job itself, and do not result from carrot and
stick incentives.
If the motivation-hygiene theory holds, management not only must provide hygiene factors
to avoid employee dissatisfaction, but also must provide factors intrinsic to the work itself
in order for employees to be satisfied with their jobs.
Herzberg argued that job enrichment is required for intrinsic motivation, and that it is a
continuous management process. According to Herzberg:
 The job should have sufficient challenge to utilize the full ability of the employee.
 Employees who demonstrate increasing levels of ability should be given increasing
levels of responsibility.
 If a job cannot be designed to use an employee's full abilities, then the firm should
consider automating the task or replacing the employee with one who has a lower
level of skill. If a person cannot be fully utilized, then there will be a motivation
problem.
Critics of Herzberg's theory argue that the two-factor result is observed because it is natural
for people to take credit for satisfaction and to blame dissatisfaction on external factors.
Furthermore, job satisfaction does not necessarily imply a high level of motivation or
productivity.
Herzberg's theory has been broadly read and despite its weaknesses its enduring value is
that it recognizes that true motivation comes from within a person and not from KITA
factors.
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2.5.6 J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If the
employee perceives inequity, she/he will act to correct the inequity: lower productivity,
reduced quality, increased absenteeism, voluntary resignation.
2.5.7 Vrooms Expectation Theory

Vroom’s theory is based on the belief that employee effort will lead to performance and
performance will lead to rewards (Vroom, 1964). Reward may be either positive or
negative. The more positive the reward the more likely the employee will be highly
motivated. Conversely, the more negative the reward the less likely the employee will be
motivated.
2.5.8 Two Factor Theory
. THEORY X AND THEORY Y
Douglas McGregor proposed two distinct views of human beings Theory X and Theory Y.
The theories basically represent two sets of assumptions about human nature and human
behaviour that are relevant to the practice of management. Theory X represents a negative
view of human nature that assumes individuals generally dislike work, are irresponsible,
and require close supervision to do their jobs. Theory Y denotes a positive view of human
nature and assumes individuals are generally industrious, creative, and able to assume
responsibility and exercise self-control in their jobs. One would expect, then, that managers
holding assumptions about human nature that are consistent with Theory X might exhibit a
managerial style that is quite different than managers who hold assumptions consistent
with Theory Y.
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McGregor argued that the conventional approach to managing was based on three major
propositions, which he called Theory X:
1. Management is responsible for organizing the elements of productive enterprise-

money, materials, equipment, and people-in the interests of economic ends.
2. With respect to people, this is a process of directing their efforts, motivating them,
controlling their actions, and modifying their behavior to fit the needs of the
organization.
3. Without this active intervention by management, people would be passive-even
resistant-to organizational needs. They must therefore be persuaded, rewarded,
punished, and controlled. Their activities must be directed. Management's task was
thus simply getting things done through other people.
According to McGregor, these tenets of management are based on less explicit assumptions
about human nature. The first of these assumptions is that individuals do not like to work
and will avoid it if possible. A further assumption is that human beings do not want
responsibility and desire explicit direction. Additionally, individuals are assumed to put their
individual concerns above that of the organization for which they work and to resist
change, valuing security more than other considerations at work. Finally, human beings are
assumed to be easily manipulated and controlled. McGregor contended that both the
classical and human relations approaches to management depended this same set of
assumptions. He called the first style of management "hard" and identified its methods as
close supervision, tight controls, and coercion.
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The hard style of management led to restriction of output, mutual distrust, unionism, and
even sabotage. McGregor called the second style of management "soft" and identified its
methods as permissiveness and need satisfaction. McGregor suggested that the soft style
of management often led to managers' failure to perform their managerial role. He also
pointed out that employees often take advantage of an overly permissive manager by
demanding more but performing at lower levels.
McGregor drew upon the work of Abraham Maslow (1908-1970) to explain why Theory X
assumptions led to ineffective management. Maslow had proposed that man's needs are
arranged in levels, with physical and safety needs at the bottom of the needs hierarchy and
social, ego, and self-actualization needs at upper levels of the hierarchy. Maslow's basic
point was that once a need is met, it no longer motivates behavior; thus, only unmet needs
are motivational. McGregor argued that most employees already had their physical and
safety needs met and that the motivational emphasis had shifted to the social, ego, and
self-actualization needs. Therefore, management had to provide opportunities for these
upper-level needs to be met in the workplace, or employees would not be satisfied or
motivated in their jobs.
Such opportunities could be provided by allowing employees to participate in decision

making, by redesigning jobs to make them more challenging, or by emphasizing good work
group relations, among other things. According to McGregor, neither the hard style of
management based on the classical school nor the soft style of management inspired by
the human relations movement were sufficient to motivate employees. Thus, he proposed
a different set of assumptions about human nature as it pertains to the workplace.
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McGregor put forth these assumptions, which he believed could lead to more effective
management of people in the organization, under the rubric of Theory Y. The major
propositions of Theory Y include the following:
1. Management is responsible for organizing the elements of productive enterprise-

money, materials, equipment, and people in the interests of economic ends.
2. People are not by nature passive or resistant to organizational needs. They have
become so as a result of experience in organizations.
3. The motivation, potential for development, capacity for assuming responsibility, and
readiness to direct behavior toward organizational goals are all present in people-
management does not put them there. It is a responsibility of management to make
it possible for people to recognize and develop these human characteristics for
themselves.
4. The essential task of management is to arrange organizational conditions and
methods of operation so that people can achieve their own goals by directing their
efforts toward organizational objectives.
Thus, Theory Y has at its core the assumption that the physical and mental effort involved in
individuals will actually seek it out under the proper conditions. Theory Y also assumes that
the ability to be innovative and creative exists among a large, rather than a small segment
of work is natural and that individuals actively seek to engage in work. It also assumes that
close supervision and the threat of punishment are not the only means or even the best
means for inducing employees to exert productive effort. Instead, if given the opportunity,
employees will display self-motivation to put forth the effort necessary to achieve the
organization's goals. Thus, avoiding responsibility is not an inherent quality of human
27
nature; the population. Finally, it assumes that rather than valuing security above all other
rewards associated with work, individuals desire rewards that satisfy their self-esteem and
self-actualization needs.
THEORY X AND THEORY Y

IN THE TWENTY-FIRST CENTURY
McGregor's work on Theory X and Theory Y has had a significant impact on management
thought and practice in the years since he first articulated the concepts. In terms of the
study of management, McGregor's concepts are included in the overwhelming majority of
basic management textbooks, and they are still routinely presented to students of
management. Most textbooks discuss Theory X and Theory Y within the context of
motivation theory; others place Theory X and Theory Y within the history of the
organizational humanism movement.
Theory X and Theory Y are often studied as a prelude to developing greater understanding
of more recent management concepts, such as job enrichment, the job-characteristics
model, and self-managed work teams. Although the terminology may have changed since
the 1950s, McGregor's ideas have had tremendous influence on the study of management.
In terms of the practice of management, the workplace of the early twenty-first century,
with its emphasis on self-managed work teams and other forms of worker involvement
programs, is generally consistent with the precepts of Theory Y.
2.6 Types of Motivation.

Intrinsic motivation occurs when people are internally motivated to do something because
it either brings them pleasure, they think it is important, or they feel that what they are
learning is morally significant.
Extrinsic motivation comes into play when a student is compelled to do something or act a
certain way because of factors external to him or her (like money or good grades).
28
2.7 Incentives
An incentive is something which stimulates a person towards some goal. It activates human
needs and creates the desire to work. Thus, an incentive is a means of motivation. In
organizations, increase in incentive leads to better performance and vice versa.
2.7.1 Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fully
satisfied. If one need is satisfied, the other need need arises. In order to motivate the
employees, the management should try to satisfy their needs. For this purpose, both
financial and non financial incentives may be used by the management to motivate the
workers. Financial incentives or motivators are those which are associated with money.
They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non
financial motivators are those which are not associated with monetary rewards. They
include intangible incentives like ego-satisfaction, self-actualization and responsibility.
INCENTIVES
Financial Incentives Non-financial incentives
- Wages and Salaries. - Competition

- Bonus - Group recognition
- Medical reimbursement - Job security
- Insurance - Praise
29
- Housing facility - Knowledge of result

- Retirement benefits. - Workers participation.
- Suggestion system.
- Opportunities for growth
2.8 Motivation is the key to performance improvement
There is an old saying you can take a horse to the water but you cannot force it to drink; it
will drink only if it's thirsty - so with people. They will do what they want to do or otherwise
motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they
must be motivated or driven to it, either by themselves or through external stimulus.
Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated,
for motivation is a skill which can and must be learnt. This is essential for any business to
survive and succeed.
Performance is considered to be a function of ability and motivation, thus:
 Job performance =f(ability)(motivation)
Ability in turn depends on education, experience and training and its improvement is a slow
and long process. On the other hand motivation can be improved quickly. There are many
options and an uninitiated manager may not even know where to start. As a guideline,
there are broadly seven strategies for motivation.
There are broadly seven strategies for motivation.
 Positive reinforcement / high expectations

 Effective discipline and punishment
 Treating people fairly
 Satisfying employees needs
 Setting work related goals
 Restructuring jobs
30
 Base rewards on job performance.

 Essentially, there is a gap between an individual’s actual state and some desired
state and the manager tries to reduce this gap. Motivation is, in effect, a means to
reduce and manipulate this gap.
Industry Profile
CEMENT INDUSTRY
SECTOR ANALYSIS
Indian Economy grew by 5.4 per cent in 2001-02, which is considered to be one of the
highest growth rates in the world for the year. This growth is supported by a growth rate of
5.7 per cent in agriculture and allied sectors, 3.3 percent in industry and 6.5 per cent in
services.
Overall agricultural output is estimated to increase by nearly 7 per cent in 2001-02. Food
grains production is expected to rise to 209 million tons compared with 196 million tons in
2000-01. Prospects of agricultural production in 2001-02 are considered to be bright as a
result of normal monsoon and relatively favorable distribution of rainfall over time and
regions.
While the Indian industry sector grew by 3.3 per cent, with in industry sector segments like
construction showed a lower growth in 2000-01, there was marked improvement in the
growth rates of manufacturing (from 4.2 per cent in 1999-00 to 6.7 per cent in 2000-01)
and mining and quarrying (from 2 per cent to 3.3 per cent during the same period). The
growth rate of electricity, gas and water supply remained almost invariant at around 6.2 per
cent for both 1999-2000 and 2000-01. During 1993-94 to 1999-2000 the service sector had
achieved consistently high growth rates in the range of 7.1 per cent to 10.5 per cent. But for
the first time in 2000-01, the growth rate of the service sector declined to 4.8 per cent due
to poor performance by financial sector, trade hotels and restaurants, and community and
social services.
31
Agriculture
The agriculture sector, for so long the mainstay of the Indian Economy, now accounts for
only about 20 per cent of GDP, yet employs over 50 per cent of the population. For some
years after independence, India depended on foreign aid to meet its food needs, but in the
last 35 years, food production has risen steadily, mainly due to the increase in irrigated
areas and widespread use of high-yield seeds, fertilizers, and pesticides. The Country has
large grain stockpiles (around 45 million tons) and is a net exporter of food grains.
Cash crops, especially tea and coffee, are the major export earners. India is the world's
largest producer of tea, with annual production of around 470 million tons, of which 200
million tons is exported. India also holds around 30 per cent of the world spice market, with
exports around 120,000 tons per year.
With a view to strengthening the sector, building infrastructure for handling,
transportation, and storage of food grains has been granted "infrastructure status" and will
be eligible for a tax holiday. Further, processors of food and vegetables are exempt from
excise duty.
Manufacturing Sector
After a decade of reforms, the manufacturing sector is now gearing up to meet challenges
for the new millennium. Investment in Indian companies reached record levels by 1994 and
many multinationals decided to set up shop in India to take advantage of the improved
financial climate. In an effort to provide a further boost to the industrial manufacturing
sector, Foreign Direct Investment (FDI) has been permitted through the automatic route for
almost all the industries with certain restrictions. Structural reforms have been undertaken
in the excise duty regime with a view to introduce a single rate and simplify the procedures
and rules. Indian subsidiaries of multinationals have been permitted to pay royalty to the
32
parent company for license of international brands, etc. Over the period 1992-93 to 1999-
2000, the manufacturing sector has recorded an average annual growth rate of 6.3 per cent
and in 2001-02; it recorded a growth of 2.8 per cent.
Companies in the manufacturing sector have consolidated around their area of core
competence by tying up with foreign companies to acquire new technologies, management
expertise, and access to foreign markets. The cost benefits associated with manufacturing
in India, has positioned India as a preferred destination for manufacturing and sourcing for
global markets.
Financial Sector
An extensive financial and banking sector supports the rapidly expanding Indian Economy.
India boasts of a wide and sophisticated banking network. The sector also has a number of
national and state level financial institutions. These include foreign and institutional
investors, investment funds, equipment leasing companies, venture capital funds, etc.
Further, the Country has a well-established stock market, comprising 23 stock exchanges,
with over 9,000 listed companies. Total market capitalization, on the two dominant stock
exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), stood
at Rs. 6,926 billion and Rs. 7,604 billion respectively, at the end of December 2000. The
Indian capital markets are rapidly moving towards a market that is modern in terms of
infrastructure as well as international best practices such as derivative trading with stock
index futures, addition to the list of compulsory Demat trading and rolling settlement in
certain specified shares, commencement of internet based trading, etc.
The last year witnessed several Indian companies, mobilizing resources by tapping the
world market through the ADR/GDR route. So as to improve the liquidity in the ADR/GDR
market and to give opportunity to Indian shareholders to divest their shareholding in the
ADR/GDR market abroad, measures such as two-way fungibility in ADR/GDR issues of
Indian companies has been introduced and sponsorship of ADR/ GDR offerings against
existing shareholding. In addition to the above, 26 per cent foreign equity has been allowed
in the insurance sector and investment and divestment by venture capital funds and
companies registered with SEBI has been simplified.
33
FII inflows were USD 2.34 billion (January 2001 to June 2001) compared to USD 1.5 billion
for 2000, showing an upward trend despite depressed stock market indices. Net cumulative
FII inflows crossed USD 14 billion (June 2001).
Services Sector
The main thrust to industrial growth has come from the services sector. Services contribute
to 41 per cent of the GDP. Rapidly, the quality and complexity of the type of services being
marketed is on the rise to match worldwide standards. Whether it is financial services,
software services or accounting services, this sector is highly professional and provides a
major impetus to the Economy . Interestingly, this sector is populated with a range of
players who cater to a niche market.
India is fast becoming a major force in the Information Technology sector. According to the
National Association of Software and Service Companies (NASSCOM), over 185 Fortune 500
companies use Indian software services. The world's software giants such as Microsoft,
Hughes and Computer Associates who have made substantial investments in India are
increasingly tapping this potential. A number of multi-nationals have leveraged the relative
cost advantage and highly skilled manpower base available in India, and have established
shared services and call centers in India to cater to their worldwide needs.
The software industry was one of the fastest growing sectors in the last decade with a
compound annual growth rate exceeding 50 per cent. Software service exports increased
from US$ 4.02 billion in 1999-2000 to US$ 6.3 billion in 2000-01, thereby registering a
growth of 57 per cent. India's success in the software sector can be largely attributed to the
industry's ability to cultivate superior knowledge through intensive R&D efforts and the
expertise in applying the knowledge in commercially viable technologies.
34
1.2 Contribution of Manufacturing Sector towards the Indian Economy
An estimated 100.9 million people were employed in 41.8 million establishments in India,
growing at 2.78 percent and 4.69 percent, respectively from 1998-2005, shows the official
Economic Census for 2005. Non-farm sector continued to be the principal source of
employment, employing 90 million people, compared to 10.9 million in agriculture sector,
said the census released here Thursday.
“Retail and manufacturing establishments continue to be the key employment providers in

India,” said S.K. Nath, director general of the Central Statistical Organisation (CSO), which
compiled the census.
“It is a significant pointer that India has a great deal of potential for growth in these two
sectors,” he said.
Manufacturing sector employed 25.5 million people or 25.25 percent of the total
workforce, followed by 25.1 million or 24.91 percent, respectively for retail trade sector,
showed the survey.
This was the fifth in the series of the economic censuses conducted by CSO, an agency
under the ministry of statistics and programme implementation. The first census of its kind
was launched in 1977.
“This census gives us a complete picture of India’s economic situation. We must interpret
the data intelligently. There has been a rapid growth in small-scale industries,” said
Statistics and Programme Implementation Secretary Pranob Sen.
35
Following are some of the key census findings:
 100.90 million People employed in 41.83 establishments in India.

 41.83 million Establishments, 25.54 million in rural and 16.29 million in urban areas,
operated in 2005.
 39.61 million Establishments under private ownership.
 26.96 million Units were own establishments, without hired workers.
 35.75 million Non-agricultural establishments engaged 89.99 million workers, while
agriculture sector’s 6.08 million units had 10.91 million workers.
 Employment growth rate at 2.78 percent between 1998 and 2005.
 Males accounted for 78.3 million of the workforce; women accounted for 20.2
million, children 2.4 million.
 Manufacturing sector was the largest employer (25.5 million people); the retail
sector came next (25.1 million people); farming was third (9.2 million people).
 95 percent establishments had 1-5 workers; 3.42 percent had 6-9 workers; only 1.51
percent employed 10 or more workers.
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2.1 INDUSTRY BACKGROUND

Pre Independence
The first endeavor to manufacture cement dates back to 1889 when a Calcutta based
company endeavored to manufacture cement from Argillaceous (kankar).
But the first endeavor to manufacture cement in an organized way commenced in Madras.
South India Industries Limited began manufacture of Portland cement in 1904.But the
effort did not succeed and the company had to halt production.
Finally it was in 1914 that the first licensed cement manufacturing unit was set up by India
Cement Company Ltd at Porbandar, Gujarat with an available capacity of 10,000 tons and
production of 1000 installed. The First World War gave the impetus to the cement industry
still in its initial stages. The following decade saw tremendous progress in terms of
manufacturing units, installed capacity and production. This phase is also referred to as the
Nascent Stage of Indian Cement Industry.
During the earlier years, production of cement exceeded the demand. Society had a biased
opinion against the cement manufactured in India, which further led to reduction in
demand. The government intervened by giving protection to the Industry and by
encouraging cooperation among the manufacturers.
In 1927, the Concrete Association of India was formed with the twin goals of creating a
positive awareness among the public of the utility of cement and to propagate cement
consumption.
37
Post Independence
The growth rate of cement was slow around the period after independence due to various
factors like low prices, slow growth in additional capacity and rising cost. The government
intervened several times to boost the industry, by increasing prices and providing financial
incentives. But it had little impact on the industry.
In 1956, the price and distribution control system was set up to ensure fair prices for both
the manufacturers and consumers across the country and to reduce regional imbalances
and reach self sufficiency.
Period of Restriction (1969-1982)
The cement industry in India was severely restrained by the government during this period.
Government hold over the industry was through both direct and indirect means.
Government intervened directly by exercising authority over production, capacity and
distribution of cement and it intervened indirectly through price control.
In 1977 the government authorized higher prices for cement manufactured by new units or
through capacity increase in existing units. But still the growth rate was below par.
In 1979 the government introduced a three tier price system. Prices were different for
cement produced in low, medium and high cost plants.
However the price control did not have the desired effect. Rise in input cost, reduced profit
margins meant the manufacturers could not allocate funds for increase in capacity.
38
Partial Control (1982-1989)
To give impetus to the cement industry, the Government of India introduced a quota
system in 1982.A quota of 66.60% was imposed for sales to Government and small real
estate developers. For new units and sick units a lower quota at 50% was affected. The
remaining 33.40% was allowed to be sold in the open market.
These changes had a desired effect on the industry. Profitability of the manufacturers
increased substantially, but the rising input cost was a cause for concern.
Post Liberalization
In 1989 the cement industry was given complete freedom, to gear it up to meet the
challenges of free market competition due to the impending policy of liberalization. In 1991
the industry was de licensed.
This resulted in an accelerated growth for the industry and availability of state of the art
technology for modernization. Most of the major players invested heavily for capacity
expansion.
To maximize the opportunity available in the form of global markets, the industry laid
greater focus on exports. The role of the government has been extremely crucial in the
growth of the industry.
Cement is one of the core industries which plays a vital role in the growth and expansion of
a nation. It is basically a mixture of compounds, consisting mainly of silicates and
aluminates of calcium, formed out of calcium oxide, silica, aluminium oxide and iron oxide.
39
The demand for cement depends primarily on the pace of activities in the business,
financial, real estate and infrastructure sectors of the economy. Cement is considered
preferred building material and is used worldwide for all construction works such as
housing and industrial construction, as well as for creation of infrastructures like ports,
roads, power plants, etc. Indian cement industry is globally competitive because the
industry has witnessed healthy trends such as cost control and continuous technology
upgradation.
2.2 CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement. Indian
Cement Industry is engaged in the production of several varieties of cement such as
Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace
Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting
Portland Cement, White Cement, etc. They are produced strictly as per the Bureau of
Indian Standards (BIS) specifications and their quality is comparable with the best in the
world.
The Indian cement industry is the second largest in the world. It comprises of 140 large and
more than 365 mini cement plants. The industry's capacity at the beginning of the year
2009-10 was 217.80 million tonnes. During 2008-09, total cement consumption in India
stood at 178 million tonnes while exports of cement and clinker amounted to around 3
million tonnes. The industry occupies an important place in the national economy because
of its strong linkages to other sectors such as construction, transportation, coal and power.
The cement industry is also one of the major contributors to the exchequer by way of
indirect taxes.
Cement production during April to January 2009-10 was 130.67 million tonnes as compared
to 115.52 million tonnes during the same period for the year 2008-09. Despatches were
40
estimated at 129.97 million tonnes during April to January 2009-10 whereas during the
same period for the year 2008-09, it stood at 115.07 million tonnes.
Over the last few years, the Indian cement industry witnessed strong growth, with demand
reporting a compounded annual growth rate (CAGR) of 9.3% and capacity addition a CAGR
of 5.6% between 2004-05 and 2008-09. The main factors prompting this growth in demand
include the real estate boom during 2004-08, increased investments in infrastructure by
both the private sector and Government, and higher Governmental spending under various
social programmes. With demand growth being buoyant and capacity addition limited, the
industry posted capacity utilisation levels of around 93% during the last five years.
Improved prices in conjunction with volume growth led to the domestic cement industry
reporting robust growth in turnover and profitability during the period 2005-09.
2.3 Consumption Growth during 2009-10
Even during the economic slowdown in 2009-10, growth in cement demand remained at a
healthy 8.4%. In the current fiscal (2009-10) cement consumption has shot up, reporting,
on an average, 12.5% growth in consumption during the first eight months with the growth
being aided by strong infrastructure spending, especially from the govt sector. The trends in
all-India consumption and the growth in consumption in the major cement-consuming
States over the last five years are presented in below table:
Growth in Cement Demand
Figures in Million Tonnes

2009-10 Apr-Nov 10
Domestic Consumption 178 100
Year-on-Year Growth (%) 8.4 12.5
Source: Cement Manufacturers Association (CMA), ICRA Research
TABLE 2.1
41
2.4 Key Drivers of Cement Industry

 Buoyant real estate market
 Increase in infrastructure spending
 Various governmental programmes like National Rural Employment Guarantee
 Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana
2.5 Globalization of Indian Cement Industry
The Globalization of Indian Cement Industry has helped the industry to restructure itself to
cope up with the alterations in the global economic and trading system. The Indian cement
industry is one of the oldest industries. It has been catering to India's cement requirements
since its emergence during the British Raj in India. Though the majority of the players in the
Indian cement industry were private sector organizations, the industry was highly
regulated.
With the rapid growth rate of the Indian economy after the 1990s, the infrastructural
developments within the country has been tremendous. The increase in the construction
activities has led to the increase in the demand for updated quality building materials and
other allied products. Cement being one of the major elements in the construction work,
there is a growth in the cement industry in India. The consumption of cement has increased
in India by nearly 7.5%. With the globalization of Indian cement industry many foreign
cement manufacturers are engaging themselves in agreements and deals with their India
counter parts to have a share of the growth.
42
Globalization of Indian Cement Industry includes several foreign companies engaging in

mergers and acquisitions of Indian cement companies, like
 Heidelberg Cement - Indorama Cement Ltd. Heidelberg Cement Company entered

into an agreement for a 50% joint venture with the Indorama Cement Ltd., situated
in Mumbai, originally possessed by the Indorama S P Lohia Group. Heidelberg
Cement Company is the leading German cement manufacturing company. The
Heidelberg Cement was set up in 1873 and has a long and prosperous history. Being
one of the best in the world the Heidelberg Cement Company has its bases in
different countries. The Heidelberg Cement Company has two manufacturing units
in India. A grinding plant in Mumbai and a cement terminal near Mumbai harbor. A
clinker plant is coming up in the state on Gujarat
 Holcim Cement - Gujarat Ambuja Cements (GACL) Holcim Cement signed an

agreement of 14.8% take over with the Gujarat Ambuja Cements (GACL). With new
products, skilled personnel, superb management, and a outstanding market strategy
gives this tie up good edge over the other competitors. Holcim Cement Company is
among the leading cement manufacturing and supplying companies in the world. It
is one of the major employers in the world; having a work force of 90,000.The
Holcim Cement Company has units in excess of 70 countries all over the world.
 Italcementi cement - Zuari Cement Limited Italcementi Cement Company with the
help of the Ciments Français, a subsidiary for its global activities, has acquired
shares of the famous Indian cement manufacturer - Zuari Cement Limited. The
acquisition was of 50% shareholding and the deal was of about 100 million Euros.
Italcementi Cement is the 5th largest cement manufacturing company in the world.
The production capacity of the Italcementi cement company is about 70 million tons
43
in a year. With the construction boom in India the company looks for a stable future.
In 2001 the Italcementi cement entered the Indian market scenario. It took over the
plant of the Zuari Cement Limited in Andhra Pradesh in southern India. The joint
venture earned revenues of around 100 million Euros and an operating profit of 4
million Euros.
 Lafarge India is the subsidiary of the Lafarge Cement Company of France. It was
established in 1999 in India with the acquisition of the Tisco and the Raymond
cement plants. Lafarge Cement presently has three cement manufacturing units in
India. One of them is in Jharkhand which is used for the purpose of grinding and the
other two are in Chhattisgarh used for manufacturing. The Lafarge Cement
Company was set up in the year 1833 by Leon Pavin. Lafarge Cement Company
situated in France is the leading cement producing company in the world. It has
plans for increasing the cement production through technological innovations and
maximization of the capacity of the plant. It has a large network of distributors in
the eastern part of India. The Lafarge Cement Company is presently producing
nearly 5.5 million tons of cement for the Indian cement market.
2.6 STRUCTURE OF THE INDIAN CEMENT INDUSTRY
 It is a fragmented industry. There are 56 cement companies in India, operating 124

large and 300 mini plants, where majority of the production of cement (94%) in the
country is by large plants.
 One of the other defining features of the Indian cement industry is that the location
of limestone reserves in select states has resulted in it’s evolving in the form of
clusters.
 Since cement is a high bulk and low value commodity, competition is also localized
because the cost of transportation of cement to distant markets often results in the
product being uncompetitive in those markets.
 Another distinguishing characteristic comes from it being cyclical in nature as the
market and consumption is closely linked to the economic and climatic cycles. In
44
India, cement production is normally at its peak in the month of March while it is at
its lowest in the month of August and September. The cyclical nature of this
industry has meant that only large players are able to withstand the downturn in
demand due to their economies of scale, operational efficiencies, centrally
controlled distribution systems and geographical diversification.
45
Cement Industries in ANDHRA PRADESH with Production Capacity
16.70 CAPACITY
NAME OF CEMENT LOCATION ANNUAL INSTALLED CAPACITY

COMPANY / PLANT (MILLION TONNES)
ACC Ltd. Macherial 0.34
Orient Cement Rechni Road 1.18
Maha Cement Nalgonda 3.32
Andhra Cement (G) Vijaywada 0.24
Kistna Cement Kistna 0.21
Zuari Cement Tadipatri 1.70
India Cement Yerraguntla 0.40
India Cement Chilamkur 1.00
Madras Cements Jayantipuram 1.10
Rassi Cement Wadapally 1.80
Priyadarshini Cement Ramapuram 0.60
Shri Vishnu Cement Sitapuram 1.00
CCI Ltd. Tandur 1.00
Andhra Cement (G) Visakapatnam 0.50
CCI Ltd. Adilabad 0.40
Andhra Cement Nadikude 0.50
KCP Ltd. Macherla 0.40
Panyam Cements Bugganipalle 0.53
L & T – A.P. Tadipatri 2.00
India Cement – Visaka Tandur 0.90
STATE NUMBER OF PLANTS CAPACITY

(MILLION TONNES)
Madhya Pradesh 20 26.03
Andhra Pradesh 16 18.03
46
Rajasthan 12 15.07
Gujarat 6 12.59
Maharashtra 8 6.41
Karnataka 10 6.92
Tamil Nadu 7 7.59
Bihar 3 4.62
Himachal Pradesh 6 3.47
Uttar Pradesh 3 4.05
Orissa 1 2.66
Punjab 2 1.04
West Bengal 1 1.13
Delhi 1 0.50
Haryana 1 0.17
Kerala 1 0.42
Jammu & Kashmir 1 0.20
Assam 1 0.20
Meghalaya 1 0.20
120 111.03
TOTAL
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Introduction about Company

History
My Home Industries limited (MHIL) is a private limited company originally incorporated as

“Devi Cements limited under the companies act 1956 with the main objectives
manufacturing and selling of cement and cement related products.
In the year 1998 Dr.J .Rameshwar Rao, one of the promoters has acquired the share holding
intrest of other promoters. consequent to the change in the management, the name of the
company was changed to “ My home Cement industries limited’ and since then there was
substantial growth in the operations of the company. The company is an ISO 9001 : 2000
certified company.
Units & Capacity :
The company has three units located at Mellacheruvu village, ,Kodhada Taluka, Nalgonda
District . A.P. Unit I was set up in the year 1998 with a capacity of 1.98 lakhs MT per
annum.Over a period of time the capacity was increased to 8.25 lakhs MT per
annum.Unit=II was established in 2002 with a capacity of 6.60lakh MT per annum and the
same was increased to 10.15 lakhs MT per annum by modifications and additions to plant &
machinery and other assets and also by production of blended cement. Unit III with a
capacity to manufacture 13.60 lakhs MTs of cement per annum was set up during March
200.Thus, the total capacity of 3 units works out to 32.00 lakh MTs per annum
48
Types of Cement
The company manufactures the products :

1.Ordinary Portland Cement(OPC)
43 grade & 53 grade
2.Portland Pozzolana Cement(PPC)
Maha cement offers a product line to suit for every need.
Maha Gold – 53 grade high strength cement
Maha Shakthi- Quality blended cement (PPC)
Maha Cement-43 grade High strength cement
My Home Cement Industry Ltd In India use Thermoteknix
High Temperature Infrared Cameras
My Home Cement Ind. Ltd have just commissioned Thermoteknix’s WinCem 3D Graphic
Kiln Shell Scanning System at their Mellacheruvu Village Nalgonda Dist Plant. The newly
installed system comprises the Thermoteknix Centurion Kiln Linescanner working alongside
WinCem 3D Graphic Software.
Centurion Kiln Shell Scanner Scanner Installed at My Home Cement

Click to Enlarge / Visit Picture Gallery Click to Enlarge / Visit Picture Gallery
49
WinCem is established throughout the industry as the leading kiln scanning system. It
provides three dimensional live displays of kiln shell temperatures, brick work and coating
with virtual reality graphics presenting the kiln from any angle, position or distance. My
Home Cement presented a greater challenge in that that the company’s Head Office in
Hyderabad needed to be able to view the scan, live, with the data being transmitted on-line
from the kiln some 200km away from the plant in Nalgonda District.
The commissioning, which was carried out by Thermoteknix Indian agents SB Engineers at
the beginning of September, involved the system being made available via an internet
connection based in the
Hyderabad Office. Real time kiln shell scan data is now being relayed live from the plant to
My Home Cement HQ, meaning that at HQ, information can be viewed, monitored and
assessed at any time.
200km away in Hyderabad, My Home

Keyur Shah of SB Engineers views Kiln Shell Technical Director Mr. V.S. Narang views the
Data Live at the plant in Nalgonda District data
Click to Enlarge / Visit Picture Gallery Click to Enlarge / Visit Picture Gallery
50
It is now possible for decisions to be made and discussed between sites and HQ based on
up-to-date live data, as and when necessary, saving time and money for My Home Cement.
WinCem 3D Graphics alarms and outputs give a configurable, flexible user interface
ensuring continuous coating monitoring for all kiln conditions and improved control via
client-server fully networked software with multiple screen display capabilities. WinCem is
the only scanning system on the market to provide data as it is scanned from the kiln –
during each revolution of the kiln. Other systems update at the end of every revolution.
Keyur Shah of SB Engineers with My Home

Centurion Kiln Scanner Installation
Cement Ind. Ltd staff at Nalgonda District
(Scanner circled in Red)
Plant
Click to Enlarge / Visit Picture Gallery
Click to Enlarge / Visit Picture Gallery
51
My Home Cement Industries Ltd manufactures MAHA cement and is headed by Chairman
Dr. J. Rameswar Rao, a well known industrialist who attended the commissioning and was
delighted with the capabilities of the system.
SB Engineers was established by Mr Subodh Bhatt in 1991. The company represents

manufacturers both from within India and overseas and markets a range of industrial
products and services. They have a strong established presence in the Indian Cement
Industry and their technical expertise and after sales service are second to none.
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CHAPTER-4
ANALYSIS AND INTERPRETATION OF DATA

4.1 DESCRIPTIVE STATISTICS
4.1.1 Response about the support from the HR department
SL NO NUMBER OF
PARTICULAR RESPONDENTS PERCENTAGE
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
Total 50 100
(Table 4.1)
(Chart 4.1)
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the support they are getting
from the HR department.
4.1.2 Management is interested in motivating the employees
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SL NO NUMBER OF
1 Strongly Agree 27 54
2 Agree 20 40
3 Neutral 3 6
4 Disagree 0 0
5 Strongly Disagree 0 0
Total 50 100
(Table 4.2)
(Chart 4.2)
INTERPRETATION
The table shows that 54% of the respondents are strongly agreeing that the management is
interested in motivating the employees.
4.1.3 The type of incentives motivates you more
SL NO NUMBER OF
54

1 Financial Incentives 15 30
2 Non financial Incentives 9 18
3 Both 26 52
Total 50 100
(Table 4.3)
(Chart 4.3)
INTERPRETATION
The table shows that 52% of the respondents are expressing that both financial and non
financial incentives will equally motivate them.
4.1.4 Satisfaction with the present incentives scheme
SL NO NUMBER OF
55
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
Total 50 100
(Table 4.4)
(Chart 4.4)
INTERPRETATION
The table shows that 58% of the respondents are satisfied with the present incentive
scheme of the organization.
4.1.5 The company is eagerness in recognizing and acknowledging employee’s work
SL NO NUMBER OF
2 Agree 29 58
3 Neutral 3 6
4 Disagree 0 0
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Total 50 100
(Table 4.5)
(Chart 4.5)
INTERPRETATION
From the study, 58% of employees agreed that the company is eager in recognizing and
acknowledging their work, 36% strongly agreed and only 6% showed neutral response.
4.1.6.1 Periodical increase in salary
SL NO NUMBER OF
2 Agree 23 46
3 Neutral 3 6
4 Disagree 9 18
Total 50 100
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(Table 4.6)
(Chart 4.6)
INTERPRETATION
The table shows 46% of employees agree that there is a periodical increase in the salary.
4.1.6.2 Job Security existing in the company.
SL NO NUMBER OF
2 Agree 18 36
3 Neutral 11 22
4 Disagree 3 6
Total 50 100
(Table 4.7)
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(Chart 4.7)
INTERPRETATION
The table shows 35% of employees agree with good job security exist in the company.
4.1.6.3 Good relations with the co-workers.
SL NO NUMBER OF
2 Agree 27 54
3 Neutral 8 16
4 Disagree 0 0
Total 50 100
(Table 4.8)
59
(Chart 4.8)
INTERPRETATION
The table shows 54% of the respondents agree that they have good relations with co-
worker.
4.1.6.4 Effective performance appraisal system.
SL NO NUMBER OF
2 Agree 23 46
3 Neutral 8 16
4 Disagree 6 12
Total 50 100
(Table 4.9)
60
(Chart 4.9)
INTERPRETATION
The table shows 46% of the respondents agree to effective performance appraisal system
existing in the company.
4.1.6.5 Effective promotional opportunities in present job,
SL NO NUMBER OF
2 Agree 26 52
3 Neutral 9 18
4 Disagree 3 6
Total 50 100
(Table 4.10)
61
(Table 4.10)
INTERPRETATION
The table shows 52% of the respondents agree with effective promotional opportunities in
their present job.
4.1.6.6 Good safety measures existing in the organization.
SL NO NUMBER OF
2 Agree 23 46
3 Neutral 3 6
4 Disagree 6 12
Total 50 100
(Table 4.11)
62
(Chart 4.11)
INTERPRETATION
The table shows 46% of the respondents agree that there is a good safety measure existing
in the company.
4.1.6.7 Performance appraisal activities are helpful to get motivated.
SL NO NUMBER OF
2 Agree 23 46
3 Neutral 6 12
4 Disagree 3 3
Total 50 100
(Table 4.12)
63
(Chart 4.12)
INTERPRETATION
The table shows 46% of the respondents agree that the performance appraisal activities are
helpful to get motivated.
4.1.6.8 Support from the co-worker is helpful to get motivated
SL NO NUMBER OF
2 Agree 29 46
3 Neutral 0 0
4 Disagree 6 12
Total 50 100
(Table 4.13)
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(Chart 4.13)
INTERPRETATION
The table shows 58% of the respondents agree that the support from the co-worker is
helpful to get motivated.
4.1.6.9 Career development opportunities are helpful to get motivated
SL NO NUMBER OF
2 Agree 26 52
3 Neutral 2 4
4 Disagree 4 8
Total 50 100
(Table No.4.14)
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(Chart 4.14)
INTERPRETATION
The table shows 52% of the respondents agree that the career development opportunities
are helpful to get motivated.
4.1.7 Factors which motivates you the most.
SL NO NUMBER OF
1 Salary increase 21 42
2 Promotion 15 30
3 Leave 3 6
4 Motivational talk 5 10
5 Recognition 6 12
Total 50 100
(Table 4.15)
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(Chart 4.15)
INTERPRETATION
The table shows that the 42% of the respondent is responding that increase in salary will
motivate them the most.
4.1.8 Incentives and other benefits will influence your performance
SL NO NUMBER OF
1 Influence 32 64
2 Does not influence 12 24
3 No opinion 6 12
Total 50 100
(Table 4.16)
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(Chart 4.16)
INTERPRETATION
The table shows 64% of the respondents responded that incentives and other benefits will
influence their performance.
4.1.9 Management involves you in decision making which are connected to your
department.
SL NO NUMBER OF
1 Yes 47 94
2 No 0 0
3 Occasionally 3 6
Total 50 100
(Table 4.17)
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(Chart 4.17)
INTERPRETATION
The table shows 94% of the respondents agree that they the Management involve them in
decision making which are connected to your department.
SUMMARY
This document aims at providing employees and management members with the
information that can be beneficial both personally and professionally. Every business
enterprise has multiple objectives including of adequate profit for payment of a reasonable
rate of return to the owners and for investment in business through satisfaction of
customers, maintenance of a contended workforce and creation of a public image. The
basic job of management of any business is the effective utilization of available human
resources, technological, financial and physical resources for the achievement of the
business objectives.
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This project entitled as “Employee motivation” was done to find out the factors which will
motivate the employees. The study undertakes various efforts to analyze all of them in
great details. The researcher in this project at the outset gives the clear idea of the entire
department existing in the company. From the study, the researcher was able to find some
of the important factors which motivate the employees. Factors like financial incentives and
non financial inventive, performance appraisal system, good relationship with co-workers,
promotional opportunities in the present job, employee participation in decision making
are very much effect the level employee motivation. It is also clear from the study that the
company is so eager in motivating their employees and their present effort for it so far
effective.
The human resources can play an important role in the realization of the objectives.
Employees work in the organization for the satisfaction of their needs. If the human
resources are not properly motivated, the management will not be able to accomplish the
desired results. Therefore, human resources should be managed with utmost care to
inspire, encourage and impel them to contribute their maximum for the achievement of the
business objectives.
FINDINGS
The findings of the study are follows
 Maha Cements has a well defined organization structure.

 There is a harmonious relationship is exist in the organization between employees
and management.
 The employees are really motivated by the management.
 The employees are satisfied with the present incentive plan of the company.
 Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.
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 The study reveals that there is a good relationship exists among employees.
 Majority of the employees agreed that there job security to their present job.
 The company is providing good safety measures for ensuring the employees safety.
 From the study it is clear that most of employees agrees to the fact that
performance appraisal activities and support from the coworkers in helpful to get
motivated.
 The study reveals that increase in the salary will motivates the employees more.
 The incentives and other benefits will influence the performance of the employees.
SUGGESTIONS
The suggestions for the findings from the study are follows
 Most of the employees agree that the performance appraisal activities are helpful to
get motivated, so the company should try to improve performance appraisal system,
so that they can improve their performance.
 Non financial incentive plans should also be implemented; it can improve the
productivity level of the employees.
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 Organization should give importance to communication between employees and

gain co-ordination through it.
 Skills of the employees should be appreciated.
 Better carrier development opportunities should be given to the employees for their
improvement.
 If the centralized system of management is changed to a decentralized one, then

there would be active and committed participation of staff for the success of the
organization
LIMITATIONS OF THE STUDY
The limitations of the study are the following
 The data was collected through questionnaire. The responds from the respondents
may not be accurate.
 The sample taken for the study was only 50 and the results drawn may not be
accurate.
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 Since the organization has strict control, it acts as another barrier for getting data.
 Another difficulty was very limited time-span of the project.
 Lack of experience of Researcher.
CONCLUSION
The study concludes that, the motivational program procedure in MAHA CEMENTS is found
effective but not highly effective. The study on employee motivation highlighted so many
factors which will help to motivate the employees. The study was conducted among 50
employees and collected information through structured questionnaire. The study helped
to findings which were related with employee motivational programs which are provided in
the organization.
The performance appraisal activities really play a major role in motivating the employees of
the organization. It is a major factor that makes an employee feels good in his work and
73
results in his satisfaction too. The organization can still concentrate on specific areas which
are evolved from this study in order to make the motivational programs more effective.
Only if the employees are properly motivated- they work well and only if they work well the
organization is going to benefit out it. Steps should be taken to improve the motivational
programs procedure in the future. The suggestions of this report may help in this direction.
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Employee Welfare Measures

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A STUDY ON EMPLOYEE MOTIVATION

Syed Kamran Hussian

CHAPTER II Research Methodology

CHAPTER III Literature Review

CHAPTER IV Data Analysis & Interpretation

CHAPTER IV Conclusion and Recommendations

1. The level of pay and benefits,

3. Quality of the working conditions,

4. Leadership and social relationships,

7. Career development opportunities etc.

“What are the factors which help to motivate the employees?

SIGNIFICANCE OF THE STUDY

The study is intended to evaluate motivation of employees in the organization. A good

OBJECTIVES OF THE STUDY

1. To study the effect of monetary and non-monetary benefits provided by the

2. To study the effect of job promotions on employees.

3. To learn the employee’s satisfaction on the interpersonal relationship exists in the

4. To provide the practical suggestion for the improvement of organization’s

Methods of Data Collection.

Nature of Questions Asked.

Variables of the Study.

Tools and Techniques for Analysis.

2.1 The concept of motivation

2.2 Definition of Motivation.

2.3 Significance of Motivation

2.4 Motivation Process.

2.5 Theories of Motivation.

2.5.1 McClelland’s Achievement Need Theory.

Thematic Apperception Test

Implications for Management

People with different needs are motivated differently.

2.5.2 Behavioral Modification Theory;

2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

Implications for Management

Limitations of Maslow's Hierarchy

2.5.4 ERG Theory of Motivation

esteem needs fall under this class of need.

Implications of the ERG Theory

2.5.5 Herzberg's Motivation-Hygiene Theory

Factors Affecting Job Attitudes

Leading to Dissatisfaction Leading to Satisfaction

 Relationship w/Peers  Growth

Implications for Management

2.5.6 J.S Adams Equity Theory

2.5.7 Vrooms Expectation Theory

2.5.8 Two Factor Theory

. THEORY X AND THEORY Y

1. Management is responsible for organizing the elements of productive enterprise-

Such opportunities could be provided by allowing employees to participate in decision

1. Management is responsible for organizing the elements of productive enterprise-

THEORY X AND THEORY Y

2.6 Types of Motivation.

2.7.1 Need for Incentives

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

- Housing facility - Knowledge of result

Performance is considered to be a function of ability and motivation, thus:

 Job performance =f(ability)(motivation)

There are broadly seven strategies for motivation.

 Positive reinforcement / high expectations

 Base rewards on job performance.

1.2 Contribution of Manufacturing Sector towards the Indian Economy

“Retail and manufacturing establishments continue to be the key employment providers in