A SUMMER PROJECT REPORT ON

INTERNAL CUSTOMER SATISFACTION AND CONCEPTS OF MOTIVATION TO IMPROVE THE PERFORMANCE OF EMPLOYEES.

Prepared in partial fulfillment of two-year M.B.A Programme [2003-2005] Of Gujarat University, Ahmedabad. Project Venue: DELUX BEARINGS LTD. AHMEDABAD.

NAME: Palak Himanshu Gandhi. COURSE: M.B.A from L.J Institute of Management Studies.

ACKNOWLEDGEMENT I am highly grateful to the managing directors of the Delux Bearings Ltd for giving me an opportunity to carry out this project in their Ahmedabad Branch. It was indeed an exhilarating experience to work on this project under the able guidance of Sarvashri Vipul Vora Sir and Ashwin Bhatt Sir. I express my heartful gratitude to them as well as the whole staff of Delux Bearings Ltd for their wholehearted cooperation and support in the successful conduct of this project.

CONTENTS:

1 2

INTRODUCTION TO DELUX BEARING LTD. DILEMMAS AND CHALLENGES FACING HUMAN RESOURCE MANAGEMENT IN THE 21ST CENTURY.

3 4 5

BASIC CONCEPTS AND THEORIES OF MOTIVATION. INTERNAL CUSTOMER REVIEW. ANALYSIS OF REVIEW DATA.

6 CONCLUDING REMARKS AND RECOMMENDATION.

PREFACE: This study on aspects of employee satisfaction level, motivation and its practical application was undertaken as a summer project study in partial fulfillment of two-year full-time M.B.A. [2003-2005] programme of Gujarat University, Ahmedabad. The subject of motivation was selected for this study because few other concepts have received as much attention as motivation in H.R philosophy. Broad structure of this report is as follows: Chapter 1 gives an overview of general introduction to the Delux Bearings Ltd group of companies. Chapter 2 projects the drastic changes that have come about in our business and that our economic environment has revolutionized H.R management. In this chapter I have tried to enumerate a brief account of Dilemmas and Challenges facing H.R managers in the present century. Chapter 3 furnishes a brief summary of the basic concepts and theories of motivation [the material presented in chapters 2 and 3 has been obtained from modern literature on H.R motivation.] Chapters 4 and 5 furnish details of Internal customer review conducted in the Ahmedabad Office of Delux Bearings Ltd. Concluding remarks along with recommendations are presented in the final chapter-chapter 6.

CHAPTER 2 DILEMMAS AND CHALLENGES FACING H.R MANAGERS IN THE 21ST CENTURY. The current decade has brought a drastic change in our business and environment. In consequence H.R.managers are facing new challenges. A brief review of the external as well as the internal environmental factors, which have a direct bearing on H.R Management, is attempted below. EXTERNAL FACTORS: The more important external factors can be classified into four categories viz Political, economical, social and technological.
1. POLITICAL AND LEGAL:

There are a large number of labor acts which relate to aspects like working conditions, payment of wages, reservation of jobs for weaker sections, maternity leave etc. All these factors affect H.R activities such as recruitment, selection, placement, training, remuneration etc.
2. ECONOMIC :

Some of the economic forces which have a bearing on H.R function are globalization, population growth, national and per capita income and markets. The following economic factors are highly relevant to H.R activities: a. Demand and Supply of Human Resource. b. Improvement in the status of workers.

c. Increasing diversity in culture, religion, languages, education and skills. d. Changes in the employment patterns of industrial labor. e. Composition of industrial employment. f. Growth of trade union.
3. TECHNOLOGICAL :

Technological advancements have drastically affected the H.R function. Demand for educated and skilled workers has increased. Introduction of new technologies requires that H.R management train those that can be trained and rehabilitate those that cannot be trained Jobholders are becoming highly professionalized and knowledgeable.
4. CULTURE :

The term culture refers to the complex whole which includes knowledge, beliefs, art, morale, laws, customs and host of other capabilities and habits acquired by an individual as a member of the society. When people with different cultural backgrounds own and manage an organization they tend to acquire a distinct culture. Thus we have a distinct culture of TATA group of companies, BIRLA group of companies etc. Culture influences H.R functions. Their cultural backgrounds influence workers attitude towards work. Similarly work ethics are the result of culture only.

INTERNAL FACTORS: In addition to the external factors, there are internal factors, which influence H.R activities. The main internal factors can be grouped under three heads namely, Unions

Organizational culture Professional bodies. Every organization has its own culture and often there is a conflict between organizational culture and employees attitude. Awareness of the various challenges facing H.R management enables the H.R experts to successfully tackle issues encountered in personnel problems. CHAPTER 3: BASIC MOTIVATION CONCEPTS AND THEORIES: There is a saying- YOU CAN TAKE A HORSE TO DRINK BUT YOU CANNOT MAKE HIM DRINK WATER. The problem with employees is similar. After the employees are appointed, trained and remunerated they need to be motivated for better performance. The H.R experts are paying special attention to the subject of motivation. Studies undertaken by these experts reveal that employees if properly motivated can be encouraged to improve their performance in the work that they are doing. There are several theories of employee motivation. These theories can be broadly classified into two categories: Early theories and Contemporary theories. A brief account of these theories is attempted below: Early theories include Scientific Management and Human Relations Model. Scientific management: This theory is generally associated with F.W Taylor who is remembered as the Father of Scientific Management. Taylors theory states that Physical work could be scientifically studies to determine optimal method of doing a job. Workers could be made more effective by teaching them how best to do their jobs and workers would be willing to adhere to optimal methods if they are paid on differential piecework basis. Human Relations Model: Elton Mayo and other human relation researchers found that motivation is reduced by boredom and repetitive tasks and social contact of the workers at the work place was important for better performance.

Contemporary theories include the following: Maslows Need Based Theory: According to Abraham .H. Maslow human being have wants and desires and unsatisfied needs act as motivators. Arranged in the order of importance these needs are: 1. Physiological Needs 2. Safety Needs 3. Belongingness Needs 4. Self esteem Needs 5. Self Actualization Needs Most important needs are satisfied first and so on. Maslows theory is the simplest and most widely discussed theory of motivation. Herzbergs two-factor theory: This theory divides various factors affecting motivation into two categories namely Intrinsic factors such as achievement, recognition, advancement, responsibility, growth etc. These factors are Extrinsic factors such as company policy, supervision, working conditions, salary, security etc are called dissatisfiers or hygiene factors. According to Herzberg to achieve motivation H.R managers should improve extrinsic factors by removing dissatisfiers and provide satisfaction by intrinsic called motivators or satisfiers. Alderfers E.R.G Model: In this theory the set of needs are existence, relatedness and growth. The E.R.G theory hypothesizes that one of more needs may be operative at the same time. This is a newer theory and has not gained much acceptance. McClellands Achievement Motivation Theory: This theory is also known as three-need theory and these three needs are power, affiliation and achievement. This theory envisages that each person has need for all the three needs but people differ in the degree to which the various needs motivate their behavior.

 Victor .H. Vrooms Expectancy theory: This theory is also known as Instrumentality theory. According to Vroom a person would be motivated towards superior performance because he expects that improvement in his performance will lead to promotion.

CHAPTER: 4 INTERNAL CUSTOMER REVIEW Knowledge of various theories of motivation is no doubt useful, but this knowledge is not enough to motivate employees at work situation. An H.R manager should also know specific ways, which would enable him to motivate his subordinates. H.R experts have designed several techniques that can be profitably used by the H.R managers. The more important among these are job-rotation, job-enrichment, behavior modification, improvement in quality of work life, recognition, appreciation grievances of employees etc. On the basis of these considerations an Internal Customer Review was conducted in the Ahmedabad branch of Delux Bearings Ltd. For this purpose a structured questionnaire was designed in consultation with the chief executive officer of the company. All the employees of the company were covered in this study. However peons were excluded. A pilot study to test the efficacy of this questionnaire was undertaken for collecting information A format of the structured questionnaire which was designed for the study is annexed: QUESTIONNAIRE: 1. Do you feel that there is a need for a grievance-handling cell in your organization?

2. What changes do you feel if made in the working system would help you improve your performance?

3. What do you expect from your organization apart from remuneration you get?

4. What is your dream job?

5. Do you feel that your qualifications and skills are fully utilized in your job? Yes/ No [why].

6. How would you rate Delux Bearings Ltd? Rate on the scale of 1 to 5, [1 being the lowest and 5 the highest]. Management Culture Integrity Remuneration Communication Corporate Leadership Local Leadership Immediate H.O.D.

7. Do you feel that your job is motivating and challenging? Yes / No [Why].

8. Do you feel that your job is secured? Yes / No [Why].

9. Are you comfortable with your immediate H.O.D.? Yes / No [Why].

10.Are you comfortable with your branch head? Yes / No [Why].

11.What do you feel is the most important for good administration?

12.Do you feel overburdened by your job? Yes / No [Why].

13.Do you feel that Job Rotation will help you to prove your efficiency more effectively? Yes / No [Why].

14.Where do you want to see yourself after 2 to 3 years?

It is a fact that no orthodox textbook type survey and the analysis of the data collected thereon employing sophisticated statistical technique was undertaken in the present study. But the verbal information volunteered by the employees has thrown up many good ideas for taking steps, which would motivate the employees to improve their work. The main suggestions are as follows: Devolution of powers, responsibilities and duties No organization can function effectively without a proper and effective delegation of duties and responsibilities. An organization in order to perform successfully needs to maintain its strong areas and should critically examine its areas of improvement. Annual Appraisal of employees performance: In practically all the organizations appraisal report in respect of each employee is prepared every year [ending 31st December of 31st march]. These are also known as Confidential Reports. Adverse remarks if any are communicated to the person concerned only. Some of the criteria on the basis of which these annual reports are prepared are: quality, quantity, timeliness, cost-effectiveness of work, attendance, relations with colleagues, integrity, technical knowledge and ability, initiative, leadership quality etc.

Generally the appraisal reports of employees are prepared either by the immediate head of the department or by a rating committee. These reports are referred to on the occasion of promotion, deputation, training etc. Seniority Lists: Each employee should know what are his/her prospects of promotion to a higher post. If the prospects are bleak, the motivation for improving his performance would not be strong. This need can be fulfilled if there is seniority lists for different categories of employees. In fact appraisal reports would have little value if an employee has no prospects for advancement. Periodical staff meetings: Many organizations have established a practice of holding periodical meetings of all staff employees and executives. Such meetings are arranged every month or every three months. Important issues concerning employees and policy matters are discussed in these meetings. These meetings are also utilized to appreciate employee for his/her commendable efforts in the discharge of his duties. Annual get-together functions: A popular practice of arranging annual get-together functions is followed by many organizations. Generally such functions have proved to be very effective in promoting spirit of brotherhood among the various categories of staff members of the organization. The important characteristics of these gettogether functions are: 1. There is absolute equality among the members whether he is a director, smployee of peon. There is no discrimination of status of gender. 2. The staff members themselves display entertainment items. Once in a while get-together function can be arranged in the form of a picnic. Monthly News Bulletin: Some organization follows the practice of issuing a monthly news bulletin for the convenience of their employees. The bulletin should provide all the important news regarding administrative activities and developments such as new appointments, transfers, promotion, deputation, visits of VIPs etc. This news bulletin is to be circulated among staff members only. The main objective of this news bulletin is to keep the employees informed about important administrative matters and events. But the news bulletin also

fulfils another important function i.e. limiting the spreading of rumors and gossips through the means of grapevine. Grapevine means spreading of rumors through the medium of gossiping. Bus Transportation for office employees Some companies have made arrangement for transportation of their employees by bus. It would be worth exploring feasibility of providing bus facility to the company employees. The proposed bus/buses can ply between fixed pick-up points and the office so as to benefit the optimum number of employees.