INTRODUCTION TO EMPLOYEE MOTIVATION

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 organisation In the new economy, information, education, and motivation are everything. The Key for an individual success is MOTIVATION which in turn up shorts in organization success. Managements basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization. Analysis and interpretation has been done by using the statistical tools and datas are presented through tables and charts. When people can see which direction the leaders are going in it becomes easier to motivate them. Leaders are made, not born. You learn to become a leader by doing what other excellent leaders have done before you. You become proficient in your job or skill, and then you become proficient at understanding the motivations and behaviors of other people. The way to get started is to quit talking and begin doing.
Management is nothing more than motivating other people.

NEED AND IMPORTANCE OF THE STUDY

The research problem here in this study is associated with the motivation .Each individual person is very important. Each person has tremendous potential. She or he alone can influence the lives of others within the communities, nations, within and beyond her or his own time.

Motivated employees are a great asset to any organization. It is because the motivation and Job Satisfaction is clearly linked. 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.

Motivation has variety of effects. These effects may be seen in the context of an individuals 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.

This study helps the researcher to realize the importance of effective employee motivation .It provides strategic guidance for both providing and using reward/recognition programs.

If efficient motivational programs of employees are made not only in this particularly organization but also any other organization; the organizations can achieve efficiency also to develop a good organizational culture.

SCOPE OF THE STUDY

The present study on employee motivation helps to get clear picture about the factors which motivates the employees. This in turn helps the management to formulate suitable policy to motivate the employees. Hence, the motivational level of the employees may also change; the factors that motivate the employees may change with change in time because the needs of employees too change with change in time. So continuous monitoring and close observation of factors that motivate the employees is necessary to maintain a competent work force. Only with a competent work force an organization can achieve its objective. Moreover, human resource is the most valuable asset to any organization. A further study with in dept analysis to know to what extent these factors motivate the employees is required.

OBJECTIVES OF THE STUDY

To study the important factors which are needed to motivate the employees. To study the effect of monetary and non-monetary benefits provided by the

organization on the employees performance. To study the effect of job promotions on employees.
To learn the employees satisfaction on the interpersonal relationship exists in the

organization.

RESEARCH METHODOLOGY
Research is a systematic method of finding solutions to problems. 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 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 LIC employees. Sampling Procedure: The procedure adopted in the present study is probability sampling, which is also known as chance sampling.

Methods of Data Collection The datas were collected through Primary and secondary sources. Primary Sources: Primary data are in the form of raw material to which statistical methods are applied for the purpose of analysis and interpretations. The primary data is collected through Questionnaire, Interview Method. Secondary Sources:

Secondary datas are in the form of finished products as they have already been treated statistically in some form or other. Secondary data is gathered from the following.
Organization Charts, Website of Organization, Text Books, Magazines.

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. Time limitation. Since the organization has strict control, it acts as another barrier for getting data.

Company profile

INTRODUCTION: Every day we wake up to the fact that more than 250 million lives are part of our family called LIC. We are humbled by the magnitude of the responsibility we carry and realise the lives that are associated with us are very valuable indeed. Though this journey started over five decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 52 years has been a process called TRUST. A true saga Of Trust.
Brief HISTORY:

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance

Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 nonIndian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each

district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LICs Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire

10

us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National

11

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

OBJECTIVES Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

12

Company MISSION and VISION

Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

13

Members On The Board Of The Corporation Shri D.K. Mehrotra, (Current-in-Charge & MD, LIC ) Shri T. S. Vijayan, (Managing Director, LIC ) Shri Thomas Mathew T. (Managing Director, LIC ) Shri A.K. Dasgupta, (Managing Director, LIC ) Shri R. Gopalan, (Secretary, Department of Economic Affairs, Ministry of Finance, Govt. of India.) Shri Shashi Kant Sharma, (Secretary, Department of Financial Services, Ministry of Finance, Govt. of India.) Shri Rakesh Singh, (Addl. Secretary, Department of Financial Services, Ministry of Finance, Govt. of India.) Shri Yogesh Lohiya, (Chairman Cum Managing Director, GIC of India ) Shri S. Sridhar, (Chairman & Managing Director, Central Bank of India ) Dr. Sooranad Rajashekhran Shri Monis R. Kidwai Lt. General Arvind Mahajan (Retd.) Shri Anup Prakash Garg Shri Sanjay Jain Shri Ashok Singh Shri K.S. Sampath

14

Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC. It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges. For more details, please contact our branch or divisional office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during:

The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.

15

By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the lifepath of every person: 1. That of dying prematurely leaving a dependent family to fend for itself. 2. That of living till old age without visible means of support. Life Insurance Vs. Other Savings Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable. Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary.

16

In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions. Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan. Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise. Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can

17

insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholders state of health, the proponent's income and other relevant factors are considered by the Corporation. Insurance For Women Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time. At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax. Medical And Non-Medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions. With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.

18

In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy. Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman. INFORMATION TECHNOLOGY AND LIC LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years. 1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950s were phased out in 1980s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies. FRONT END OPERATIONS With a view to enhancing customer responsiveness and services , in July 1995, LIC started a drive of On Line Service to Policyholders and Agents through Computer. This on line service enabled policyholders to receive immediate policy status report , prompt acceptance of their premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of address can be done on line. Quicker completion of proposals and dispatch of policy documents have become a reality. All our 2048 branches across

19

the country have been covered under front-end operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch computerisation. New payment related Modules pertaining to both ordinary & SSS policies have been added to the Front End Package catering to Loan, Claims and Development Officers Appraisal. All these modules help to reduce time-lag and ensure accuracy.
METRO AREA NETWORK
A

Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in

November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The System has been working successfully. More than 10,000 transactions are carried out over this Network on any given working day. Such Networks have been implemented in other cities also. WIDE AREA NETWORK All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network (WAN). This will enable a customer to view his policy data and pay premium from any branch of any MAN city. As at November 2005, we have 91 centers in India with more than 2035 branches networked under WAN. INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS) IVRS has already been made functional in 59 centers all over the country. This would enable customers to ring up LIC and receive information (e.g. next premium due, Status, Loan Amount, Maturity payment due, Accumulated Bonus etc.) about their policies on the telephone. This information could also be faxed on demand to the customer.

LIC ON THE INTERNET Our Internet site is an information bank. We have displayed information about LIC &

20

its offices . Efforts are on to upgrade our web site to make it dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal Training Centers, Management Development Center, Overseas Branches, Divisional Offices and also all Branch Offices with a view to speed up the communication process. PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET (You have to register for these services) LIC has given its policyholders a unique facility to pay premiums through Internet absolutely free and also view their policy details on Internet premium payments.There are 11 service providers with whom L I C has signed the agreement to provide this service.

INFORMATION KIOSKS We have set up 150 Interactive Touch screen based Multimedia KIOSKS in prime locations in metros and some major cities for dissemination information to general public on our products and services. These KIOSKS are enable to provide policy details and accept premium payments. INFO CENTRES We have also set up 8 call centres, manned by skilled employees to provide you with information about our Products, Policy Services, Branch addresses and other organizational information.

21

22

INDUSTRY PROFILE
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sector The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act,1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

23

Insurance sector reforms In 1993, Malhotra Committee headed by former Finance Secretary and RBI Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms

In 1994, the committee submitted the report and some of the key recommendations included: i) Structure Government stake in the insurance Companies to be brought down to 50% Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations.
All the insurance companies should be given greater freedom to operate

ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity.

24

 Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state

iii) Regulatory Body The Insurance Act should be changed An Insurance Regulatory body should be set up Controller of Insurance (Currently a part from the Finance Ministry) should be made independent iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50% GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days Insurance companies must be encouraged to set up unit linked pension plans Computerization of operations and updating of technology to be carried out in the Insurance industry

25

The committee emphasized that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crore. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body.

The Insurance Regulatory and Development Authority (IRDA) Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDAs online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products, which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 12 life insurance and 6 general insurance companies have been registered.

26

REVIEW

LITERATURE

27

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

The concept of motivation

28

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

Definition of Motivation
According to Edwin B Flippo, Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.

Significance of Motivation
Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated. 1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise. 2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity. 3. The rates of labors turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease.

29

5. The number of complaints and grievances will come down. Accident will also be low. 6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.

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

Theories of Motivation
Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979).Six major approaches that have led to our understanding of motivation are Mcclellands Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation,J.S. Adams Equity Theory, Vrooms Expectation Theory, Two factors Theory.

1. McClellands Achievement Need Theory.

According to McClellands there are three types of needs;

Need for Achievement (n Ach) This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts .They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement.

30

Need for Power (n Pow) It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style.

Need for affiliation (n Aff) It is the related to social needs and creates friendship. This results in formation of informal groups or social circle.

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.

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

31

Motivation. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific problems in personnel administration and industrial relations. The crux of Maslows theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators. Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.

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

32

indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off.
Physiological or Body Needs: - The individual move up the ladder responding

first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job.
Safety: - The next in order of needs is safety needs, the need to be free from

danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foresee able feature . The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements.
social needs: - Going up the scale of needs the individual feels the desire to work

in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group.
Ego or Esteem Needs: - These needs are reflected in our desire for status and

recognition, respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals.

33

 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.

4. J.S Adams Equity Theory

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

Vrooms Expectation Theory

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

5. Two Factors Theory

Douglas McGregor introduced the theory with the help of two views; X assumptions are Conservative in style Assumptions are modern in style. X Theory

34

Individuals inherently dislike work. People must be coerced or controlled to do work to achieve the objectives. People prefer to be directed Y Theory People view work as being as natural as play and rest People will exercise self direction and control towards achieving objectives they are Committed to People learn to accept and seek responsibility.

TO MEASURE EFFECTIVENESS OF EMPLOYEE MOTIVATION Questionnaire Q-1) Is management really interested in motivating the employees? Strongl y Agree Agree Neither Agree Nor Disagre e Disagree Strongl y Disagre e Total

No. of respondent s

27

20

12

50

35

Percentage of respondent s (%)

54

40

100

INTERPRETATION Most of the respondents are strongly agreeing that the management is interested in motivating the employees.

Q-2) What type of incentives motivates you more? Financi al incentiv es No. of respondent s NonFinanci al incentiv es Both Total

15

26

50

36

Percentage of respondent s (%)

30

18

52

100

INTERPRETATION The respondents are expressing that both financial and non-financial incentives will equally motivate them.

Q-3) How far you are satisfied with the incentives provided by the organization? Highly Satisfie d Satisfie d Neither Satisfied Nor Dissatisfi Highly ed Dissatisfi Total

37

Dissatisfi ed No. of responden ts

ed

30

12

50

Percentag e of responden ts (%)

16

60

24

100

INTERPRETATION The respondents are satisfied with the present incentive scheme of the organization.

Q-4) Does the company shows eagerness in recognizing and acknowledging employees work?

38

strongl y Agree

Agree

Neither Agree Nor Disagre e

Disagree

Strongl y Disagre e

Total

No. of respondent s

18

29

50

Percentage of respondent s (%)

36

58

100

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.

39

Q-5)Is performance linked with motivation? strongl y Agree Agree Neither Agree Nor Disagre e Disagree Strongl y Disagre e Total

No. of respondent s

18

20

12

50

Percentage of respondent s (%)

36

40

24

100

INTERPRETATION Motivation always leads to good performance of individual which in turn to the organization

40

Q-6) Did company treating employee problems fairly? strongl y Agree Agree Neither Agree Nor Disagre e 13 Disagree Strongl y Disagre e Total

No. of respondent s

22

15

50

Percentage of respondent s (%)

44

30

26

100

INTERPRETATION The management should focus more on employee problem areas.

41

Q-7) Are you satisfied with the quality of work in your organization? Much too much No. of respondent s 0 Too much Just right Too little Much too little 0 Total

10

40

50

Percentage of respondent s (%)

20

80

100

INTERPRETATION The quality of work is appropriate in the organization.

42

Q-8)Which factors motivates you the most? Salary increase No. of responden ts Promotion Leave Motivatio nal Talk Recognition Total

21

15

50

Percentag e of responden ts (%)

42

30

10

12

100

43

INTERPRETATION Most of the respondents, responded that increase in salary will motivate them the most.

Q-9)Do you think Incentives and other benefits will influence your performance? Yes No. of respondent s No Total

37

13

50

Percentage of respondent s (%)

74

26

100

INTERPRETATION

44

The respondents responded accepted that incentives and other benefits will Influence their performance.

Q-10)Is fair relationship exist between the amount of compensation you receive and your performance? Excelle nt No. of respondent s 15 Very Good 25 Good Average Poor Total

50

Percentage of respondent s (%)

30

50

12

100

45

INTERPRETATION The employees are satisfied with the compensation they receive for their performance.

Q-11)Do you think motivation is the key for job satisfaction and performance appraisal? strongl y Agree Agree Neither Agree Nor Disagre e Disagree Strongl y Disagre e Total

No. of respondent s

36

12

50

Percentage of respondent s (%)

72

24

100

46

INTERPRETATION Yes, most the employees believe that motivation is the key factor for job satisfaction and performance appraisal

Q-12)Are you satisfied with the working environment provided by organization to you? Highly Satisfi ed Satisfi ed Neither Dissatisfi Satisfied ed nor Dissatisfi ed 8 4 Highly Dissatisfi ed 0 Tot al

No. of responde nts

12

26

50

Percentag e of responde nts (%)

24

52

16

100

47

INTERPRETATION The employees are not much satisfied with the working environment, needs to improve a little.

Q-13)Do you get the opportunity to give your best at work? strongl y Agree Agree Neither Agree Nor Disagre e Disagree Strongl y Disagre e Total

No. of respondent s

30

13

50

Percentage of

48

respondent s (%)

14

60

26

100

INTERPRETATION Most of the employees agree that they get the opportunity to do their best in the organization.

Q-14) Is fairness among all the employees is important in the organization? Very importa nt Importa nt Unimporta nt Very unimporta nt Neither Important Nor Unimporta nt 0 Total

No. of responde nt

37

10

50

49

Percentag e of responde nt (%)

74

20

100

INTERPRETATION Fair treatment is very important, else it leads to demotivation.

Q-15)what is your opinion on motivational practices in your organization(satisfied) INTERPRETATION The employees are satisfied with the motivational practices adopted by the organization .

50

FINDINGS
The findings of the study are follows . Factors like financial incentives and non financial inventive are given to employees There is a harmonious relationship is exist in the organization between employees and management.

51

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

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.

52

Skills of the employees should be appreciated. 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. Training programs should be conducted constantly to improve performance. Rewards, recognition, incentives should be given for effective performance.

CONCLUSION
The study concludes that, the motivational programs procedures in the LIFE INSURANCE CORPORATION is found effective but not highly effective. The study on employee motivation highlighted so many factors which will help to motivate the employees.

53

The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his satisfaction too.

If we stop learning, we stop growing. In order to truly grow as an individual, we must constantly stretch beyond our comfort zone. Just doing the same, mundane things everyday is the definition of being in a rut. Get out of whatever rut you may be in by setting new challenges for yourself everyday! Start by asking yourself better questions. Instead of "Why me?" and "Why now?" ask "Why not me?" and "Why not now?". No one gets through life without setbacks. However, its important to remember that those setbacks are there for us to learn from - not focus on. In other words, put your trust in your beliefs, not your fears. There is need to improve employee morale, productivity, and quality of work .The suggestions of this report may help in this direction.

QUESTIONNAIRE
Respected Sir / Madam

54

I Mr. pursuing MBA 2nd year (HR) from jntu COLLEGE,. Doing a project on EMPLOYEE MOTIVATION as part of my curriculum requesting you to co-operate and fill the questionnaire, this information provided will be used for academic purpose. NAME OF THE EMPLOYEE DESIGNATION : : Kindly fill the following: (Please put a tick mark in the appropriate)

Q-1) Are you satisfied with the support from the HR department? Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied 2)Is management really interested in motivating the employees? A)Strongly Agree B)Agree C)Neither agree Nor Disagree D)Disagree E)Strongly Disagree. Q-3)What type of incentives motivates you more? A)Financial incentives B)Non- Financial incentives C)Both. Q-4) How far you are satisfied with the incentives provided by the organization? A)Highly Satisfied B)Satisfied C) Neither Satisfied Nor Dissatisfied D)Dissatisfied E)Highly Dissatisfied. Q-5)Does the company shows eagerness in recognizing and acknowledging employees work?

55

A)Strongly Agree B)Agree C)Neither agree Nor Disagree D)Disagree E)Strongly Disagree. Q-6)Is performance linked with motivation? A)Strongly Agree B)Agree C)Neither agree Nor Disagree D)Disagree E)Strongly Disagree. Q-7)Did company treating employee problems fairly? A)Strongly Agree B)Agree C)Neither agree Nor Disagree D)Disagree E)Strongly Disagree. Q-8)Are you satisfied with the quality of work in your organization? A)Much Too Much B)Too Much C)Just Right D)Too Little E)Much Too Little. Q-9)Which factors motivates you the most? A)Salary Increase B)Promotion C)Leave D)Motivational Talk E)Recognition. Q-10)Do you think Incentives and other benefits will influence your performance? A)Yes B)No Q-11)Is fair relationship exist between the amount of compensation you receive and your performance? A)Excellent B)Very Good C)Good D)Average E)Poor Q-12)Do you think motivation is the key for job satisfaction and performance appraisal? A)Strongly Agree B)Agree C)Neither agree Nor Disagree D)Disagree E)Strongly Disagree.

56

Q-14)Are you satisfied with the working environment provided by organization to you? A)Highly Satisfied B)Satisfied C) Neither Satisfied Nor Dissatisfied D)Dissatisfied E)Highly Dissatisfied. Q-15)Do you get the opportunity to give best at work? A)Strongly Agree B)Agree C)Neither agree Nor Disagree D)Disagree E)Strongly Disagree. Q-16)Is fairness among the employees is important in the organization? A)Very Important B)Important C)Unimportant D)Very Unimportant E)Neither Important Nor Unimportant. 17. Does the management involve you in decision making which are connected to your department? Yes No Occasionally 18)which of the following factors which motivates you the most i.Salary increase ii.Promotion iii.Leave iv.Motivational talks v.Recognition 19) Overall how satisfied are you with the organization? a) Very satisfied b) Satisfied c) Neutral d) Somewhat satisfied Dissatisfied 20)Is recognition given for good work you do? e)

57

a) Often

b) Usually

c) Sometimes

d) Occasionally

e) Never

21)Do your superiors keep a friendly working atmosphere in the organization? a) Strongly Agree b) Agree c) Somewhat Agree d) Disagree e) Strongly Disagree

Q-22)What is your opinion on motivational practices in your organization(.) 23). Any other suggestions if you want? --------------------------------------

THANK YOU!

58

BIBLIOGRAPHY
BOOKS

Chabra T N Human Resource Management (2005) revised edition Gangan Kapur, Delhi. Venugopal edition. & Aziz Abdul Human Resource Management (2004) revised

Prasad L.M, Human Resource Management, second edition (2005), Sultan Chand & Sons- New Delhi. Kothari C.R Research Methodology- Methods and Techniques2nd revised edition (2007) New Age International Publishers- New Delhi.

REFERENCES

http://www.allbusiness.com/human-resources/employee-development-employeeproductivity/601547-1.html

www.Hil.in

http://www.licindia.com.com/

59

60