1.

1 Introduction

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 study also focuses on the
employee motivation among the employees of ETPL.

1.2 Scope 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 policies 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.

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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.

1.3. Research Problem:

The research problem here in this study is associated with the

motivation of employees of Endurance Technologies Pvt. Ltd.,
Aurangabad. 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 organization. It is

because the motivation and Job satisfaction is clearly linked. Hence
this study is focusing on the employee motivation in the organization.

1.4 Objective of the Project:

• To study the existing system of motivational activities for

employees at ETPL.

• To study the effect of monetary and non-monetary benefits

provided by the organization on the employee’s performance.

• To study the effect of job promotions on employees.

2
 • To study the important factors which are needed to motivate the
employees.
• To provide the practical suggestion for the improvement of
organization’s performance.

1.5 Research methodology

o Understood the theoretical aspects of Motivation through

various documents and articles.

o Understood the existing system of motivational activities

for employees at ETPL.

o Analyzed questionnaire to understand the effect of existing

motivational scheme.

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Industry Profile

Driving the most luxurious car has been made possible by the
stiff competition in the automobile industry in India, with overseas
players gathering the same momentum as the domestic participants.

Every other day, we have been hearing about some new launches,
some low cost cars – all customized in a manner such that the common
man is not left behind. In 2009, the automobile industry is expected to
see a growth rate of around 9%, with the disclaimer that the auto
industry in India has been hit badly by the ongoing global financial
crisis.

The automobile industry in India happens to be the ninth largest

in the world. Following Japan, South Korea and Thailand, in 2009, India
emerged as the fourth largest exporter of automobiles. Several Indian
automobile manufacturers have spread their operations globally as
well, asking for more investments in the Indian automobile sector by
the MNCs.

The Indian Automobile industry is the seventh largest in the world with
an annual production of over 11 million vehicles and exports of about
1.5 million. In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand. By 2050, the
country is expected to top the world in car volumes with approximately
611 million vehicles on the nation's roads

India has emerged as one of the world's largest manufacturers of

small cars. According to New York Times, India's strong engineering
base and expertise in the manufacturing of low-cost, fuel-efficient cars
has resulted in the expansion of manufacturing facilities of several
automobile companies like Hyundai Motors, Nissan, Toyota,
Volkswagen and Suzuki. In 2008, Hyundai Motors alone exported
240,000 cars made in India. Nissan Motors plans to export 250,000
vehicles manufactured in its India plant by 2011. Similarly, General
Motors announced its plans to export about 50,000 cars manufactured
in India by 2011.

In September 2009, Ford Motors announced its plans to setup a

plant in India with an annual capacity of 250,000 cars for US$500
million. The cars will be manufactured both for the Indian market and
for export. The company said that the plant was a part of its plan to

4
make India the hub for its global production business. Fiat also
announced that it would source more than US$1 billion worth auto
components from India.

5
2. Company Profile:

2.1 Endurance Technology Pvt. Ltd.

ENDURANCE was established in 1985 as Anurang Engineering Co. Pvt.
Ltd. to manufacture Aluminum Die Casting products at Aurangabad,
Maharashtra (India). The Endurance Group is a global force in
Aluminum Casting (including Alloy Wheel), Suspension, Transmission
and Braking products with an annual sale of €251 Million (RS. 1634
Crores) from domestic operations and approx. €104 Million (RS. 674
Crores) from overseas operations for the year 2008-2009. Endurance
Group has 19 Plants across India, Italy & Germany.

ENDURANCE is a name that spells strength and the will to perform. A

name that finds expression in our expression. A part of corporate
India’s leading automotive business houses, ENDURANCE have created
four entities having holistic approach and capabilities that include
Designing, R&D and Manufacturing. These entities are:
• Anurang Engineering Co. Pvt. Ltd.
• Endurance Systems (India) Pvt. Ltd.
• Endurance Transmission Systems (India) Pvt. Ltd.
• High Technology Transmission Systems(India) Pvt. Ltd

2.2 Mission:
To achieve and maintain leadership with focus on Technology, Quality,
Price and Delivery in an environment of honesty, transparency and
fairness.

2.3 Objectives:
• To be number 1 in terms of tonnage in India in Aluminium Die
Casting products by 2006.
• To be amongst Top Two Auto component manufacturers in terms
of sales value in India in Endurance’s range of products for 2
wheelers by 2007

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 • To be a major manufacturer in India for four wheeler struts and
shock absorbers by 2010.
• To achieve 3500 Crores of sales by 2010.
• To achieve 15% of sales value in exports by 2010.

2.4 Focus Areas:

TPM: Focus on PQCDSM (Productivity, Quality, Cost, Delivery, Safety,

Morale), with full focus on "QUALITY.

Customer: Organic and inorganic Growth

Technology: Strong In-house R & D and Strong Foreign Collaborations

Strong Vendor Partner: Selection of Best Vendors in terms of 'QCD'

with Right Attitude to support Endurance in this competitive
environment.

People: Organizational and individual success at Endurance will

depend on the caliber and capability of its' People, and its' ability to
retain them.

2.5 Products:
• Telescopic Front Forks
• Shock Absorbers (Hydraulic and Gas filled)
• Clutch Assemblies and CVT’s (Disc Brakes)
• Aluminium Die Castings ( High pressure Die castings)
• Low pressure Die Castings
• Gravity Die Castings

Casting Suspension

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 Transmission Breaking

2.6 Clients of Endurance Company

• Bajaj Auto Ltd.

• TATA Motors
• LML
• Mahindra and Mahindra
• MICO
• FIAT India
• Hyundai India
• Kinetic Engineering
• The Royal Enfield
• New Holland Tractors
• Suzuki Motorcycles India Pvt. Ltd.
• PIAGGIO Vehicles-India
• Honda Motorcycles and Scooters India Pvt. Ltd.

2.7 Facts and Figures

More then 8000 employees (direct & indirect) work at 19 plants in
various locations across India & Abroad.

8
2.8 Policies

Quality Policy
Our Policy is to Design and Manufacture Automobile Products of
Excellent, Consistent and Reliable Quality to meet Customer
Satisfaction. This will be achieved through continuous Improvement in
Technology, Systems, Methods and Resource Management.

TPM Policy
We at Endurance are committed to practice TPM to improve product
reliability and the working culture, to eliminate losses of all types in a
continual manner, to maximize the operational efficiency and
accomplish total internal and external customer satisfaction, safe and
hygienic working environment through total employee involvement

Environment, Occupational Health and Safety Policy

We shall maintain and continuously improve the Environment,
Occupational Health & Safety Management System by providing
adequate resources and technological up gradation. As a responsible
member of society and a caring corporate citizen, we accord highest
importance to the protection of the environment & health.

To achieve this we are committed to:

• Maintain a clean, green, safe and healthy environment.
• Comply with current legal and other requirements pertaining to
the environment, occupational health & safety.
• Be proactive and innovative in taking measures to protect the
environment & health.
• The identification & elimination/reduction/control of non-tolerable
hazards pertaining to all our activities.
• Periodically monitor and review EOHS performance, objectives
and targets.

• Encourage and train our personnel and suppliers to create

awareness about the impact of their action on the EOHS..

• Prevent pollution & health hazards by instituting sound EOHS

practices..

• Conserve resources, recycle and reduce waste as well as

minimize hazards & risks in all processes of operation.

We shall communicate this EOHS policy to employees and make it

available to the public & all other interested parties.

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3. Literature Review

3.1 Conceptual and theoretical review

Rensis Likert has called motivation as 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.

3.1.1 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.

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3.1.2 Definition of Motivation:

According to Edwin B Flippo, “Motivation is the process of attempting

to influence others to do their work through the possibility of gain or
reward.”

3.1.3 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.

An organization is made of people and working with people is very

difficult. Ask top management and they will tell you that besides doing
their own work, they have to set time aside to manage people.

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Being a people’s person is very difficult. You have to adjust to their
moods and at the same time be stern when the water goes above your
nose. If your past experience with people have not been great you
cannot deduce that all people are bad. What applies to one need not
apply to the other. Hence you have to change your tactics with
different people.

If you maintain a good balance as a person i.e. not being too sweet and
at the same time not being too bitter more and more people would like
to talk to you. At the same time you have to learn when to motivate
people. You must see beyond the presentation that is placed on your
table. As to how much effort has gone in making it there on your table.

Motivating at the right time and for the right reasons puts the
employee in 5th gear. They feel good and that pat on their back boosts
more confidence making them deliver what was impossible some time
ago. In other words their productivity increases. This is an underlying
reason in the importance of motivating employees.

Besides motivation leads to waking up with a fresh mind and a feeling

to come to office every day. Motivation leads to working effortlessly
notwithstanding the hour unlike those who shut down their PC for
lunch time and disappear when it is time to leave. Motivation leads to
pulling through in tough times. For instance if it is season time and
nobody has the time to breathe, here as much as the person is
stressed out he can carry on as he knows his boss is backing him.
Motivation leads to neutralising a heated situation as the motivated
employee knows that an argument will lead to nowhere. Basically
motivation means making a person hold his head on his shoulders.

But to motivate employees, the motivator has to develop a sense of

trust among people such that they know they can fall back on him
whenever an issue arises. They know that they can tackle a
wrongdoing and take up the situation in their own hands if need arises.
If the motivator can build up this kind of trust then employees feel
more compelled to give their best to the organization.

3.1.4 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.

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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).

Every individual needs motivation to work- be it intrinsic motivation

that he/she generates himself/herself or extrinsic motivation that
he/she gets from an external environment. Nonetheless, motivation is
a huge factor in an organization especially for employees to work
harder and put in their best.

Intrinsic, meaning internal motivation is a technique to feel a driving

force which will lead towards accomplishment of your goals. In
common terms, intrinsic motivation is a passion or interest in doing a
good job. On the other hand, extrinsic motivation comes from outside,
i.e., from the environment. Money, competition, awards, appreciation
and praise are all examples of extrinsic motivation. While both forms of
motivation are important for employees to put in their best in an
organization, employees who are intrinsically motivated will work
because they derive pleasure from their work. If they do not like a
particular job they will not be motivated to do it even if they are
offered better salary than other employees.

HR managers trigger the intrinsic motivation in employees by giving

them a definite purpose or a goal which they are passionate about.
They fill their employees with passion and make them believe in what
the company sells. Presenting challenging jobs to employees who are
internally motivated can help the organization to perform better.
Creative visualization is a technique that can be used to motivate
employees intrinsically. Creative visualization gives an individual that
power through which one can see their ideas and images related to the
goal.

Most organizations strive to motivate their employees extrinsically. All

employees are motivated to work harder for their rewards, incentives,
bonus etc. However, managers must remember that money is not
everything. One needs to understand the need of the employee and
reward him or her accordingly. Along with rewards, recognition is
something that can be a huge source of motivation for most
employees. Recognition and appreciation is greatly valued when it is
received on time. You can keep your employees motivated by simply
saying “good work”. Organization is a place that is full of opportunities
for employees to grow and widen their knowledge. Employee
development is as important as rewards and recognition to motivate
your employees.

3.1.5 Incentives:

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An incentive is something which stimulates a person towards some
goal. It activates human needs and creates the desire to work. Thus,
an incentive is a means of motivation. In organizations, increase in
incentive leads to better performance and vice versa.

Need for Incentives:

Man is a wanting animal. He continues to want something or other. He
is never fully satisfied. If one need is satisfied, the other need 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.

It is said that incentives play a major role in motivating your

employees and encouraging them to achieve higher goals. In any
organization, incentives work because employees are then goal-driven
and push themselves to achieve their targets.

Each organization has a reward system in place to motivate their

employees. This reward system is based on incentives like an increase
in the salary, cash, gift or a holiday. Compensation is offered to each
employee based on his or her performance on the job. Incentives are
usually seen as short term motivators for employees. Hence,
incentives are used a lot to motivate sales employees so that they
achieve their targets.

The role of incentives is not to overload the employees with excess

work but to realize their accomplishments and make them feel an
important part of the business. Incentives allow the employees to take
on responsibilities and in turn increase their job satisfaction. However,
along with incentives, appreciation, positive feedback and praises are
also important to motivate employees.

One should also take care that employees don’t just work for financial
incentives. One should create an environment where employees love
to come to work because they enjoy their jobs. HR managers and
bosses should use incentives to motivate employees but should do so
judiciously. Incentives also motivate the employees when you want
them to go that extra mile to achieve your targets.

Incentives:
Financial Incentives Non-financial incentives

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- Wages and Salaries.
- Bonus
- Medical reimbursement
- Insurance
- Housing facility
- Retirement benefits.
- Suggestion system.
- Competition
- Group recognition
- Job security
- Praise
- Knowledge of result
- Workers participation.
- Opportunities for growth

3.1.6 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.

1. Positive reinforcement /high expectations

2. Effective discipline and punishment

3. Treating people fairly

4. Satisfying employees needs

5. Setting work related goals

6. Restructuring jobs

7. Base rewards on job performance

15
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.

3.1.7 Motivating Employees & Leadership styles:

It is said that people tend to develop certain leadership styles from the
environment that they live in and the culture that they are brought up
in. These styles which are derived from certain motivational drives
affect humans in their thinking pattern, actions and behavior. There
are three drives that dominate leadership styles. These drives are
Achievement motivation, affiliation motivation and power motivation.

Different leaders have different motivational drives. In the first style,

achievement, goal setting and success is very important to these
leaders. If they are given a project, they work not just for the rewards
that are associated with it but for the challenge that the project poses.
Leaders who are high on achievement motive want to receive personal
credits for their efforts. Such leaders find it difficult to delegate work to
their team members because they often feel that they will not be able
to complete the task the way they will complete it. Such leaders strive
for excellence and performance. As leaders, these people expect their
employees to also be achievement driven.

Affiliation motivation is a drive to relate to people on a social basis.

When you compare people with high achievement motivation in
relation to people with high affiliation motivation it is seen that the two
patterns of behavior diverge significantly. Leaders who are high on
affiliation motivation work harder when they are complemented for
their friendly attitude and co-operation with their team. These set of
people value relationship and tend to be sensitive. These leaders want
job freedom to develop the relationships at work place. These leaders
are great while handling a team and getting work done from each
employee.

3.1.8 Motivating Employees to increase productivity:

In any organization, human resource is one of the biggest resources

that an organization has which contributed to its overall growth and
profitability. To maximize employee productivity, organizations need to
focus on two areas i.e. personal employee motivation and the work
environment. Motivation is one of the key factors that lead to
employee productivity. Challenging goals, incentives, rewards and
recognition, appreciation and accolades, salary, bonus, increments are

16
all types of employee motivation that have known to increase
employee productivity at work place.

If team leaders and managers are able to motivate the employees

through their goals, projects and interesting work, one can sure see an
increase in the enthusiasm of employees to accomplish that work.
Along with this, it is also important to recognize each and every
employee who is involved in accomplishing a project. Rewards and
verbal appreciation have known to boost the morale of an employee
and in turn increase their productivity.

In an organization, the work environment must also encourage

employees. A motivating work environment is one where no employee
is treated in an unfair manner. All employees must be treated
respectfully. It is essential for a manager to give each employee a
feeling of playing an important role in the organization or social media.

One important tool for increasing productivity is praising your

employees for the good work done. Praises have known to be very
effective in raising employee productivity. Even simple words like ‘well
done’, ‘good job’, and ‘perfectly executed’ can go a long way in
motivating your employees and increasing their productivity. Praises
are something that many managers tend to ignore but if used wisely
can benefit a lot.

3.1.9 Motivating Employees during Recession:

The economic downturn faced by world economy is extremely vicious.

Many people lost their jobs, unemployment rate was into double figure,
many companies had to shut their doors and the resources became
hard to come by. The period of 2008-09 took a heavy toll on finances.
Customers started to cut back on their expenses, demand for products
and services hit an all time low and the fall in stocks prices led to
depleted bank balance. It was an extremely tough period for
employees because many of them got laid off and the rest had to
adjust with reduced salaries. Retaining a job became more important
than earning high salaries. Management had a hard time convincing
employees that situation is under control. These types of situations
lead to increased anxiety levels in the company. How could employee
productivity be maintained to its optimum when they don’t have the
job security? Motivating employees during recession is a tough task
but definitely not impossible.

Recession tests the real ability of organization to stay afloat and keep
the flock together. More often not, management thinks of downsizing
the organization and that takes place only by terminating certain

17
number of employees. The second option favored by companies is of
restructuring the business to a small size. Company is hard pressed to
take tough decisions but for the survival of the business, these
decisions become mandatory.

Management needs to be honest with the workforce. It should explain

why things are happening, what are the consequences and how can we
overcome the troubled times ahead. Because of recession, priorities of
the organization changes and these changes must be conveyed to the
team. Hiding the real facts won’t help the cause. To maintain the
workplace motivation, management need to state things as it is and
should also present its expectations. Employees are lot more co-
operative than you might give them credit for.

Management should never display panic or make gloomy forecasts. It

is important to let the employees know that you are in control of the
situation. Management should lead by example. Employee motivation
during recession is very much a handiwork of able leaders. The leaders
can create a positive environment even during downturn and keep
employees motivated. Other significant steps to motivate employees
during recession are, creating suitable strategies, keeping lines of
communication open, focusing on the future and finally, nipping
gossips in the bud.

3.1.10 Motivating Employees at work place:

One of the most important assets of any organization is its employees.

Keeping employees motivated is one of the key roles of any
organization as it leads to increase in overall productivity and
profitability of that company. It is mainly the department of Human
Resource that takes care of employee motivation. Salary, incentives,
good working atmosphere, appreciation, healthy environment are
some of the common aspects that motivate an employee at work.

Every individual needs motivation to work- be it intrinsic motivation or

extrinsic motivation. Nonetheless, motivation is a huge push in an
organization especially for employees. It is the job of the main
manager in an organization to get the work done through the
employees working under him. Hence it is important for a manager to
motivate his/her employees to perform. However, motivation is a
concept that is not tangible and so it is not as easy to measure the
same.

Team days are essentially a good way to motivate your employees.

Team days means fixing on a day where all the employees are called

18
to be present at a particular location preferably not office, but a
location like a resort. Team days are essential because it gives them a
chance to interact with one another and know their roles and
responsibilities and clear out in case any misunderstanding exists. It is
important for the employer and the employee to know what is
expected out of them and what is the framework in which they are
suppose to operate.

During team days, a personal feedback is also given to the employees

and they get a chance to discuss their problems and factors that de-
motivate them, if any. Sometimes, the structure of the organization is
such that it does not allow employees to bond and live and work like a
family. If team day is a reality check for the company and its
employees, it is also a celebration of what the employees have
achieved so far for the company and it is time that they receive their
due appreciation.

There are many organizational behavior experts who have written and
formulated many theories on motivation. Enormous research is done in
this field and a typical organization keeps coming up with new ideas
and programs that motivate the employees of that organization. What
is important is to understand that motivation is not something that a
manager can achieve in a day or two. It is more of an ongoing habit
and only after years of practicing it, an organization would be capable
of motivating its employees effectively. Surprisingly, a simple smile
can also be a great motivator for many employees to feel better and
perform even better. Through effective leadership and management,
employee motivation can be achieved.

3.1.11 Some theories of Motivation:

1) Contribution of Robert Owen:

Though Owen is considered to be paternalistic in his view, his

contribution is of a considerable significance in the theories of
Motivation. During the early years of the nineteenth century, Owen’s
textile mill at New Lanark in Scotland was the scene of some novel
ways of treating people. His view was that people were similar to
machines. A machine that is looked after properly, cared for and
maintained well, performs efficiently, reliably and lastingly, similarly
people are likely to be more efficient if they are taken care of. Robert
Owen practiced what he preached and introduced such things as
employee housing and company shop. His ideas on this and other
matters were considered to be too revolutionary for that time.

2) Jeremy Bentham’s “The Carrot and the Stick Approach”:

19
Possibly the essence of the traditional view of people at work can be
best appreciated by a brief look at the work of this English philosopher,
whose ideas were also developed in the early years of the Industrial
Revolution, around 1800. Bentham’s view was that all people are self-
interested and are motivated by the desire to avoid pain and find
pleasure. Any worker will work only if the reward is big enough, or the
punishment sufficiently unpleasant. This view - the ‘carrot and stick’
approach - was built into the philosophies of the age and is still to be
found, especially in the older, more traditional sectors of industry.

The various leading theories of motivation and motivators seldom

make reference to the carrot and the stick. This metaphor relates, of
course, to the use of rewards and penalties in order to induce desired
behavior. It comes from the old story that to make a donkey move, one
must put a carrot in front of him or dab him with a stick from behind.
Despite all the research on the theories of motivation, reward and
punishment are still considered strong motivators. For centuries,
however, they were too often thought of as the only forces that could
motivate people.

At the same time, in all theories of motivation, the inducements of

some kind of ‘carrot’ are recognized. Often this is money in the form of
pay or bonuses. Even though money is not the only motivating force, it
has been and will continue to be an important one. The trouble with
the money ‘carrot’ approach is that too often everyone gets a carrot,
regardless of performance through such practices as salary increase
and promotion by seniority, automatic ‘merit’ increases, and executive
bonuses not based on individual manager performance. It is as simple
as this: If a person put a donkey in a pen full of carrots and then stood
outside with a carrot, would the donkey be encouraged to come out of
the pen ?

The ‘stick’, in the form of fear–fear of loss of job, loss of income,

reduction of bonus, demotion, or some other penalty–has been and
continues to be a strong motivator. Yet it is admittedly not the best
kind. It often gives rise to defensive or retaliatory behavior, such as
union organization, poor-quality work, executive indifference, failure of
a manager to take any risks in decision making or even dishonesty. But
fear of penalty cannot be overlooked. Whether managers are first-level
supervisors or chief executives, the power of their position to give or
with hold rewards or impose penalties of various kinds gives them an
ability to control, to a very great extent, the economic and social well-
being of their subordinates.

20
3) Abraham Maslow’s “Need Hierarchy Theory”:

One of the most widely mentioned theories of motivation is the

hierarchy of needs theory put forth by psychologist Abraham Maslow.
Maslow saw human needs in the form of a hierarchy, ascending from
the lowest to the highest, and he concluded that when one set of
needs is satisfied, this kind of need ceases to be a motivator.

As per his theory these needs are:

(i) Physiological needs:

These are important needs for sustaining the human life. Food, water,
warmth, shelter, sleep, medicine and education are the basic
physiological needs which fall in the primary list of need satisfaction.
Maslow was of an opinion that until these needs were satisfied to a
degree to maintain life, no other motivating factors can work.

(ii) Security or safety needs:

These are the needs to be free of physical danger and of the fear of
losing a job, property, food or shelter. It also includes protection
against any emotional harm.

(iii) Social needs:

Since people are social beings, they need to belong and to be accepted
by others. People try to satisfy their need for affection, acceptance and
friendship.

(iv) Esteem needs:

According to Maslow, once people begin to satisfy their need to

belonging, they tend to want to be held in esteem both by themselves
and by others. This kind of need produces such satisfaction as power,
prestige, status and self-confidence. It includes both internal esteem
factors like self-respect, autonomy and achievements and external
factors such as status, recognition and attention.

(v) Need for self-actualization:

Maslow regards this as the highest need in his hierarchy. It is the drive
to become what one is capable of becoming; it includes growth,
achieving one’s potential and self-fulfillment. It is maximize one’s
potential and to accomplish something.

21
As each of these needs are substantially satisfied, the next need
becomes dominant. From the standpoint of motivation, the theory
would say that although no need is ever fully gratified, a substantially
satisfied need no longer motivates. So if you want to motivate
someone, you need to understand what level of the hierarchy that
person is on and focus on satisfying those needs or needs above that
level.
Maslow’s need theory has received wide recognition, particularly
among practicing managers. This can be attributed to the theory’s
intuitive logic and ease of understanding. However, research does not
validate these theory. Maslow provided no empirical evidence and
other several studies that sought to validate the theory found no
support for it.

4) “Theory X and Theory Y” of Douglas McGregor:

McGregor, in his book “The Human side of Enterprise” states that

people inside the organization can be managed in two ways. The first
is basically negative, which falls under the category X and the other is
basically positive, which falls under the category Y. After viewing the
way in which the managers dealt with employees, McGregor concluded
that a manager’s view of the nature of human beings is based on a
certain grouping of assumption and that he or she tends to mold his or
her behavior towards subordinates according to these assumptions.

Under the assumptions of theory X:

• Employees inherently do not like work and whenever possible,

will attempt to avoid it.
• Because employees dislike work, they have to be forced, coerced
or threatened with punishment to achieve goals.
• Employees avoid responsibilities and do not work till formal
directions are issued.
• Most workers place a greater importance on security over all
other factors and display little ambition.

In contrast under the assumptions of theory Y:

• Physical and mental effort at work is as natural as rest or play.

• People do exercise self-control and self-direction and if they are
committed to those goals.

22
 • Average human beings are willing to take responsibility and
exercise imagination, ingenuity and creativity in solving the
problems of the organization.
• That the way the things are organized, the average human
being’s brainpower is only partly used.

On analysis of the assumptions it can be detected that theory X

assumes that lower-order needs dominate individuals and theory Y
assumes that higher order needs dominate individuals. An organization
that is run on Theory X lines tends to be authoritarian in nature, the
word “authoritarian” suggests such ideas as the “power to enforce
obedience” and the “right to command”. In contrast Theory Y
organizations can be described as “participative”, where the aims of
the organizations and of the individuals in it are integrated; individuals
can achieve their own goals best by directing their efforts towards the
success of organization.

5) Frederick Herzberg’s motivation-hygiene theory:

Frederick has tried to modify Maslow’s need Hierarchy theory. His

theory is also known as two-factor theory or Hygiene theory. He stated
that there are certain satisfiers and dissatisfiers for employees at work.
In- trinsic factors are related to job satisfaction, while extrinsic factors
are associated with dissatisfaction. He devised his theory on the
question : “What do people want from their jobs ?” He asked people to
describe in detail, such situations when they felt exceptionally good or
exceptionally bad. From the responses that he received, he concluded
that opposite of satisfaction is not dissatisfaction. Removing
dissatisfying characteristics from a job does not necessarily make the
job satisfying. He states that presence of certain factors in the
organization is natural and the presence of the same does not lead to
motivation. However, their nonpresence leads to demotivation. In
similar manner there are certain factors, the absence of which causes
no dissatisfaction, but their presence has motivational impact.

23
3.2 Research review

Employee Motivational Activities at ETPL

3.2.1 Objective:

The company is committed to recognize outstanding contributions and

rewarding special efforts by its employees. These awards/
appreciations have been instituted in order to recognize and
encourage sustained achievement beyond the normal call of duty.

3.2.2 Motivation for Employees at ETPL:

Long Service Award: This award is given for appreciation for long
service in the group. HR & Admin department at each plant will
keep a track of number of years of service put in by employees.
After completion of 5, 10 & 15 years, Plant Head/ SBU Head/
President/ MD will hand over a certificate of appreciation & gift in a
special function. Also work is still in progress for benefits such as
increment in salary up to some percentage for such employees.

Best Suggestion Award: This award is given in order to inculcate

creativity & innovative talents of the employees, by encouraging
them to give suggestions for improvements in product, processes,
quality & cost. Suggestions can be given by individuals or a group.

24
 • Awards / Appreciation: A pen (with logo) shall be given for
every acceptable suggestion. Apart from this following
Awards/ Appreciation shall be given.

• Best Implementable Suggestion of the month: The best

suggestion of the month will be declared every month & it will
be displayed on the notice board. For that suggestion
concerned employee will be appreciated by gift worth
Rs.1000/- along with the Best Suggestion certificate.

• Best Implemented Suggestion of the year: The best

implemented idea/ suggestion of the year (April/May) will be
declared every year & concerned employee will be
appreciated by gift worth Rs.5000/- along with the certificate
of appreciation.

Top 3 plantwise:

1. Rs.5000/-

2. Rs.3000/-

3. Rs.2000/-

Top 3 group level:

1. Rs.10000/-

2. Rs.7500/-

3. Rs.5000/-

Attendance Award: Employees are given bonus as per monthly,

quarterly & yearly presence in the organization. If an employee is
present for the complete month without any leave, then he is given
a bonus of Rs.125 for that month. If an employee is present for 3
months in continuation without any leave, then he is given a bonus
of Rs.150 for that quarter. If an employee has not taken any leave
for the entire year, then he is given a bonus of Rs.500 for that
particular year.

25
Education for employees: The organization also offers higher
education to the employees who are capable & not able to bear the
cost of education by their own. Such education is sponsored by the
organization & every year atleast two employees are given up to
Rs.40, 000 for the same.

Orientation: The organization provides a good basis for a fresher,

which is positive side for both the concerns. For example, when any
new employee starts, he/she receives a thorough welcome
orientation & introduction to the colleagues & other people in the
organization so that he/she feels belongingness to the organization.
The orientation program of 3 days is carried out in the organization.
The employees are made familiar with different departments as well
as plants of ETPL.

Best Managed Plant Award: This award will be declared

annually. All plants which are operational are eligible for this award.
The criteria for this award will be as under:

i. Housekeeping

ii. Productivity

iii. % of Rejection

iv. Customer satisfaction rating

v. Manpower turnover

vi. Safety

vii. Cost reduction

viii. Regularity in schemes introduced

ix. Multiplicity & complexity

The best plant of the year will be awarded with Rolling Trophy.
Corporate Selection committee for best managed plant & best
implemented suggestion will be formed every year.

Best Department in the Plant Award: This award is given on the

basis of safety, cleanliness of the work place, space saving efforts,
improvement in the environment or existing system, etc. This award
will be declared quarterly & the best department will be awarded

26
with Rolling Trophy. A committee at the plant level will be formed
which will initiate & monitor the scheme.

Team Outings: Plant Head will select a team of employees for

outings such as movies/ dinners/ picnics/ exhibitions etc. The
following will be the procedure:

• Each team will have atleast 5 people in each function, across

the plant.

• The team will not have more than 2 persons from the same
department.

• The quarterly budget amount available= Rs.200 per head *

Number of employees (O1 & above) in the plant.

• The outings will be once in 3 months.

• Monitoring of this policy will be done by HR & Admin Manager.

• No liquor will be allowed in such meets.

House Magazine- SUWARTA: This is bi-annual house magazine

released in April & October of each year. To highlight the
achievements accomplished & to highlight the talents of the
employees, SUWARTA has been initiated. This book talks about the
achievements of the employee and gives them the peer recognition
in this form. As every employee loves to be recognized at his
working place and amongst the people he works with, this is a very
effective form and way of recognizing ones performances. It
includes:

• Detailed information about the employees who have achieved

some milestone during working period. The detail of the day
and month of the achieved milestone.

• Birthday wishes are sent to the employees through this book.

• Various articles or precious experiences of employees.

• Motivational thoughts for the employees.

E-info: All important announcements shall be made on E-info. All

employees are advised to access E-info regularly to keep them

27
 updated with the latest development in the organization, like new
joinees, induction & orientation, new projects, achievements etc.

Notice Board: Notice boards placed in designated areas shall

provide employees access to important information &
announcements. The employee is advised to read necessary
information posted on the bulletin boards. This will give information
to the employees who do not have access to E-info.

Annual Day Celebration: This is one of the important events in

the organization. During the annual day function, the families of the
employees are invited. Cultural programs are organized & the
employees/ family members are rewarded for various
achievements. The event focuses on developing culture of
belongingness among the employees of the company. This is
organized at Aurangabad, Pune & Manesar.

Annual day celebration is organized in the following months, every

year:

Plants/ Locations Dates

All plants in Pune Between 15th Dec to 31st Dec

All plants in Aurangabad Between 15th Jan to 31st Jan

Plant in Manesar Between 15th Feb to 31st Feb

A committee will be formed at Pune, Aurangabad & Manesar which

will decide about the venue, activities to be conducted, prizes to be
distributed & other details regarding the annual day event.

28
Chapter 4: Data Analysis and Interpretation

Q1. There are best suggestion award, best department in plant

award as Rewards, Recognition and motivation schemes
running currently in your organization. Is every employee in
the organization aware of these schemes?

Response Percentage

Yes 91.66
No 8.33

100

80

60 Yes
No
40

20

0
Interpretation:
The chart above shows that 91.66% of the employees were aware of
the Rewards, Recognition and motivation schemes; while 8.33% were
not aware.

Q2. Is performance appraisal & support from co-workers

effective in getting motivation?

Response Percentage
Yes 95.83
No 4.16
 100

80

60 Ye s
No
40

20

Interpretation:
The chart above shows that 95.83% of the employees think that
performance appraisal & support from co-workers are effective in
getting motivation; while 4.16% said no.

Q3. Is the system fair & just to all employees?

Response Percentage
Yes 87.5
No 12.5

100

80

60 Ye s
No
40

20

0
Interpretation:
The chart above shows that 87.5% of the employees agreed that the
system is fair & just while 12.5% did not agree.
Q4. Is the grievance management system in the organization
satisfactory according to you?

Response Percentage
Yes 66.66
No 25
Partly 8.33

100

80
Yes
60
No
40 Partly

20

0
Interpretation:
The chart above shows that 66.66% of the employees were satisfied
with the grievance management system in the organization; 25% were
not satisfied while 8.33% had a mixed reaction to it.

Q5. What do you personally feel, are the organizational as well

as personal goals achieved simultaneously?

Response Percentage

Yes 91.66

No 8.33
 100

80

60 Yes
No
40

20

0
Interpretation:
The chart above shows that 91.66% of the employees feel that the
organizational as well as personal goals can be achieved
simultaneously; while 8.33% feel not at all.

Q6. What particular form of reward and recognition is more

successful and meaningful to employees in order to motivate
them?

Response Percentage
Monetary 67.5
Non-monetary 32.5

100

80

60 Monetary
Non-monetary
40

20

0
Interpretation:
The chart above shows that 67.5% employees feel monetary is
better form for motivation while 32.5% feel non-monetary is better
form for motivation.
Q7. Are employees really motivated by the management?

Response Percentage
Yes 87.5
No 12.5

100

80

60 Ye s
No
40

20

0
Interpretation:
The chart above shows that 87.5% of the employees feel motivated by
the management while 12.5% do not feel motivated.

Q8. Do you think any improvement can be done in the existing

schemes?

Interpretation:
The survey conducted reveals that employees had some suggestions
for the organization. These were as follows:

1. Employees feel that though employees are motivated, all

employees are not motivated by management. Focus must be
given on the same.
2. Motivational awards must be increased & regularized.
3. Monthly measures must be taken so that more & more
employees are motivated to give suggestions.
4. Incentive must be given quarterly if the extra (profit) amount is
achieved than the estimated target.
5. Department wise quarterly outing for one day should also be
included.
6. According to the Employees, birthday wishes were given
previously in the organization which is currently not done.
Employees suggest that birthday wishes are required to be
started again.
Chapter 5: Conclusions

5.1 Findings :

1. From the above interpretation it is found that majority of the

employees are aware of the Rewards, Recognition and motivation
schemes.

2. Majority of the employees are of the opinion that performance

appraisal & support from co-workers is effective in getting motivation.

3. More than one third of the employees are satisfied with the existing
Motivational system.

4. More than half of the employees are satisfied with the grievance
management system in the organization.

5. Majority of the employees feel that the organizational as well as

personal goals can be achieved simultaneously.

6. Most of the employees are motivated by monetary form of

motivation.

7. Management is successful in motivating almost all employees.

8. The employees feel that still some additions are to be included in

the existing Motivational scheme.
5.2 Recommendations:

1. “Employee of the Month” award must be given to the employee

who has achieved more than his/ her target & performed better.
This type of motivation will not only help employee to improve
the performance but also contribute to organizational goals &
periodic review of employee performance.

2. Employee retention is very important to the organization. As per

employee opinion & company records (since 5 years) it was
found that employee retention rate is about 97%. This can
further be increased by considering following points:
• Employees at the higher level can be motivated by
providing career planning, personal goal setting etc, so
that employees feel that organization is concerned about
the employees & to create a feeling of belongingness, in
the employee, towards the organization so that he/she
must never think of leaving the job.
• The rewarding system should be such that the reward
being given to the employee means something to him/her,
i.e. the reward should have meaning for the recipient.
• Provide opportunities within the organization for cross
training. Cross-train employees to do more, and different,
job responsibilities.
• Introduce humor & try to reduce stress at the work place.

3. Award can be given to the employees who have done a

considerable work at the peak times or in the time of urgency by
the particular departments. This award can be given to the
employees for their on the spot attitude towards some particular
situation, presence of mind and quick actions or decisions taken
by the employee to achieve the targets.

4. Although there is a notice board available for employees, many

employees do not check it regularly. In addition to the
notification displayed on the notice board, some changes can be
done in the existing one. Changes such as displaying the names
of superiors who undertake certain measures by themselves for
safety & benefit of employees working under them, weekly small
motivational articles, motivational pictures, etc can also be
displayed to encourage employees. Employees can also be
encouraged to write articles & if approved by the seniors can be
displayed on the notice board.
5. The recognitions like congratulatory cards, public applause,
public recognition is of great importance.

6. The organization can organize some motivational seminar

sessions for employees apart from training given to them related
to their nature of job. Seminars can also be given to the
employees for stress management, food precautions to be taken
by employees working in continuous shifts or overtime etc.

7. Counseling can be done related to personal matters in addition

to work.