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SYNOPSIS

PROPOSED TILE OF STUDY


STUDY ON FINANCIAL AND NON-FINANCIAL BASED INCENTIVES AS MOTIVATION FACTOR FOR SALES PERSONNEL
INTRODUCTION
The project work entitled a STUDY ON FINANCIAL AND NON-FINANCIAL BASED INCENTIVES AS MOTIVATION FACTOR FOR SALES PERSONNEL with special reference to Malcolm Pharmaceuticals is mainly conducted to identify the factors which will motivate the employees. 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. 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 Galaxy Malcolm Pharmaceuticals. The data needed for the study has been collected from the employees through questionnaires. Analysis and interpretation has been done by using the statistical tools and datas are presented through tables and charts.

OBJECTIVES OF THE STUDY


(a) Primary objective
To study the effect of cash and non cash based incentives as factors to motivate the employees.

(b) Secondary Objective.


1. To study the effect of monetary and non-monetary benefits provided by the organization on the employees performance. 2. To study the effect of job promotions on employees. 3. To learn the employees satisfaction on the interpersonal relationship exists in the organization. 4. To provide the practical suggestion for the improvement of organizations performance.

COMPANY PROFILE
MALCOLM PHARMACEUTICALS - One of the most reputed pharmaceutical companies of Northern India, has established itself as a highly quality conscious professional organization. MALCOLM PHARMACEUTICALS has delivered results on all fronts because of its meticulous planning and marketing over the last 25 years. Malcolm Pharmaceuticals is ISO 9001-2000 certified company with WHO-GMP compliance manufacturing units. It has nine sections and is manufacturing more than 400 products. It is one of the fastest growing companies of India. MALCOLM PHARMACEUTICALS one of the most reputed pharmaceutical companies of Northern India, has established itself as a highly quality conscious professional organization Mr. B.P.S. Bhatia, Chairman-cum-Managing Director, is an entrepreneur with great vision. He made modest beginning in 1984 after gaining 16 years marketing experience from Pharma companies like E-Merck (I) Limited, Unique Pharmaceutical & Ranbaxy Labs in Marketing. Today, the company has created a strong base in its area of operations with a marketing field force of around 350 personnel. Company has two state-of-the-art production units at BADDI in Himachal Pradesh conforming to G.M.P.,Schedule M and ISO 9001 specifications. Unit I has facility to manufacture small volume parenteral (injectables), Ointments, Creams and Lotions. Unit II has facility to manufacture Tablets, Capsules & Oral Liquid Formulations. Malcolm Group has two Divisions with separate Marketing teams under the banner of a) MALCOLM PHARMACEUTICALS (INDIA) LIMITED b) ALTIUS PHARMACEUTICALS

Malcolm Group is geared up to face the challenges of World Trade Organization (WTO) norms implementation in India. Its units have huge capacity to produce various formulations which are widely accepted by the Medical fraternity. The Company is also in a process of strengthening its product portfolio. Strategic partners are being scouted from across the world for innovative products. Malcolm Pharmaceuticalss focus segments are DERMATOLOGY, ORTHOPEDICS, PHYSICIAN, GYNAECOLOGY, PAEDIATRICS & DENTAL products We shall pursue world class standards in our team & products. To continually strive to be recognized as reliable source of health care Products To become the most admired pharma company in India Inculcating high performance culture

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. The advanced learners dictionary of current English lays down the meaning of research as a careful investigation of enquiry especially through search for new facts in any branch of knowledge. The systematic approach concerning generalization and the formulation of a theory is also research. The purpose of research is to discover answers to questions through the application of scientific procedures. (a) RESEARCH DESIGN A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The descriptive research design is adopted for this project. (b) (c) SAMPLE SIZE The study sample constitutes 30 respondents in the research area. SAMPLE PROCEDURE In this study, convenient sampling method was adopted. (d) COLLECTION OF DATA The study was based on questionnaire method. There are two types of data collection : Primary Data The primary data are those, which are collected a fresh and for the first time happen to be original in character. It has been collected through a questionnaire. Secondary Data Primary Data Secondary Data - JOHN.W.BEST

Secondary data are those which have already been collected by someone else and which have already been passed through the stratified process. It has collected through the books, journals, company literature and Internet. (e) RESEARCH INSTRUMENT The researcher has used a structured questionnaire as a research instrument tool which consists of open ended questions, multiple choice and dichotomous questions in order to get data. All the questions in the questionnaire are organized in such a way that elicits all the relevant information that is needed for the study. (f) STATISTICAL TOOLS The statistical tools used for analyzing the data collected are bar diagrams and pie diagrams. (g) ANALYSIS OF DATA The data are collected through survey and books, reports, newspapers and internet etc. The data collected by the researcher are tabulated and analyzed in such a way to make interpretations. Various steps, which are required to fulfill the purpose, i.e., editing, coding, and tabulating. The collected data are analyzed and interpreted using statistical tools and techniques.

LITERATURE REVIEW
Rensis Likerthas 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 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 The word motivation has been derived from motive which means any idea, need or emotion that promots a man into 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. MEANING OF MOTIVATION

Motivation has been variously defined by scholars. Usually one or more of these words are included in the definition: desires, wants, aims, goals, drives, movies and incentives. Motivation is derived from the Latin word Move on which means to move. Human motives are internalized goals within individuals. A motive is an inner

state that energies activates, or moves and directs or channels behavior towards goals.

DEFINITION (a) Motivation is the complex forces starting and keeping a person at work in the organization. (b) Motivation is the various drives within or environmental forces surrounding individual that stimulate or attract them in a specific manner. (c) Motivation is the art of understanding motives satisfying them to direct and sustain behavior towards the accomplishment of organization goals. (d) Motivation is the process of operating organizational conditions which will impel employees of any emotion or desire operation ones will and prompting or driving at it to action. Motivation consists of the three interaction and interdependent elements of needs, drives and goals. NEEDS These are the deficient, and create whenever there is a physiological or psychological imbalance. DRIVE OR MOTIVES

These are set to alleviate needs. These are action oriented and provide an energizing thrust toward goal accomplishment. They are the very heart of the motivation process. GOAL Goals are anything which will alleviate a need and reduce a drive. NATURE OF MOTIVATION Following are some of the characteristics of motivation derive from the definitions given by various authors. 1. Based on motives: Motivation is base on individuals motive which are internal to individual. These motives are in the form of feeling that the individual lacks something. 2. Goal directed behavior: Motivation Leads to goal directed behavior. A goal directed behavior is one which satisfied the causes for which behavior takes place. Motivation has profound influence on human behavior. 3. Related to satisfaction: Motivation is related to satisfaction. Satisfaction is refers to the contentment experiences of an individual which we derives out of needs fulfillment. 4. Complex process: Motivation is a complex process; complexity emerges because of the nature if needs a types of behavior that need attempted to satisfied those needs. 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 labours turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers 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. business. TYPES OF NEEDS There are many needs which an individual may have and there are various ways in which may be classified? Needs may be natural, biological phenomenon in an individual or these may develop over the period of time through learning. Thus, need may be grouped into three categories: 1. Primary need 2. Secondary need 3. General needs Better quality of products will also increase the public image of the themselves and between the workers and the management will

1) Primary needs: These are also known as physiological, biological, basic, or unclear needs. These needs are common in human beings through their intensity differs. 2) Secondary needs: As contrast to primary needs, these are not natural but are learned by the individual through experience and interaction. Emergency of these needs depends in learning. 3) General needs: Through a separate classification for general needs is not always given, such a category seems necessary because there are a number of needs which lie in the grey area between the primary and secondary needs. In fact, there are certain needs such as need for competence, curiosity, manipulation, affection, etc. 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 factor Theory. McClellands Achievement Need Theory: According to McClelland 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. 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. 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. 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.

Abraham Maslow's hierarchy of human needs :


This theory is the most widely discussed theory of motivation.

The theory can be summarized as thus: Human beings have wants and desires which influence their behavior; only unsatisfied needs can influence behavior, satisfied needs cannot. Since needs are many, they are arranged in order of importance, from the basic to the complex. The person advances to the next level of needs only after the lower Level need is at least minimally satisfied. The further the progress up the hierarchy, the more individuality, humanness and psychological health a person will show. The needs, listed from basic (lowest, earliest) to most complex (highest, Latest)
are as follows:

Self actualization Self esteem Social Safety & security Physiological


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. Two Factor 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 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.

TYPES OF MOTIVATION There are two types of motivation. They are 1. Positive motivation. 2. Negative motivation.

Positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward. Incentive motivation is the pull mechanism. Negative motivation or fear motivation is based force or fear. Fear causes person to act in a certain way because they are afraid of the consequences if they dont Fear motivation is the push mechanism. The objective of motivation is to create condition in which people are willingly to work with zeal, initiative, interest and enthusiasm, with a high personal and group. Moral satisfaction is a sense of responsibility, loyalty and discipline and with pride and confidence in a most cohesive manner so that the goals of an organization are achieved effectively.

RESEARCH PROBLEM
The research problem here in this study is associated with the motivation of employees of GALAXY MALCOLM PHARMACEUTICALS. There are a variety of factors that can influence a persons level of motivation; some of these factors include 1. The level of pay and benefits, 2. 3. The perceived fairness of promotion system within a company, Quality of the working conditions,

4. Leadership and social relationships, 5. Employee recognition 6. Job security 7. career development opportunities etc. Motivated employees are a great asset to any organisation. It is because the motivation and Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation

in the organisation. The research problem is formulated as follows:

What are the factors which help to motivate the employees?

SIGNIFICANCE OF THE STUDY


The study is intended to evaluate motivation of employees in the organization. A good motivational program procedure is essential to achieve goal of the organization. If efficient motivational programmes of employees are made not only in this particular organization but also any other organization; the organizations can achieve the efficiency also to develop a good organizational culture. Motivation has variety of effects. These effects may be seen in the context of an 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 is the challenge for future and present HR managers. This means innovation and creativity. It also means a change in the gear for HR polices and practices. The faster the organizations nurture their employees, the more successful they will be. The challenge before HR managers today is to delight their employees and nurture their creativity to keep them a bloom. This study helps the researcher to realize the importance of effective employee motivation. This research study examines types and levels of employee motivational programmes and also discusses management ideas that can be utilized to innovate employee motivation. It helps to provide insights to support future research regarding strategic guidance for organizations that are both providing and using reward/recognition programs.

CONTRIBUTION FROM THE STUDY


The study will help the organization to understand about the influence of various motivational factors. The study shall help the organization to motivate the employees more effectively , thereby increasing productivity. The study shall help the organization in motivate employees. using better ways of resources to

LIMITATION OF STUDY
Everything has some pros and cons and so certain limitations of this study are as follows: The area of project work is a small company in pharma sector so, the data or result may be approximate. The response of the employees may be biased or under pressure and the conclusion is based on the same.

DIRECTION OF FUTURE RESEARCH


Futures research may include sales force of different sectors like banking, insurance , FMCG etc. Within the pharma sector future research may be done including the employees from other fields like research, quality assurance, production etc. the study may further be divided to know the influence among the employees at different levels of the hierarchy.