A

SUMMER INTERNSHIP PROJECT

ON
The Impact of Reward & Recognition on Employee Motivation at Prime coOperative Bank

Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide

Company Guide

Ms. Parinaz Todiwala

Mr. Manoj Kamalia

Assistant Professor

Assistant General Manager

(Prime Co-operative Bank Ltd)

Submitted by

Miss. Komal Sompura [Batch No. 2015-17, Enrollment No. 158050592102]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT 805

MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
July, 2016

Students Declaration

I, Miss Komal Sompura, hereby declare that the report for Summer Internship
Project entitled The Impact of Reward & Recognition on Employee
Motivation at Prime Co-operative Bank Ltd. is a result of my own work and
my indebtedness to other work publications, references, if any, have been duly
acknowledged.

Place: Surat

Date: _____________

__________________
(Komal Sompura)

Institutes Certificate

Certified that this Summer Internship Project Report Titled The Impact of
Reward & Recognition on Employee Motivation at Prime Co-operative Bank
Ltd

is

the

bonafide

work

of

Miss.

Komal

Sompura

(Enrollment

No.158050592102), Who has carried out the research under my supervision I

also certify further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of which
a degree or award was conferred on an earlier occasion on this or any other
candidate.

Place: Surat

Date: ________________

___________________
Parinaz Todiwala
Assistant Professor

__________________
J. M. Kapadia
Director

PREFACE
As MBA students our Aim should not be only to learn theoretical concept in
classrooms, but it becomes more important as how we apply those concepts in
practical.
Each & every activity is started for accomplished of goals & for this purpose
management is required. As being Student of MBA a Management stream, we
have to go in different types of analysis for practical knowledge & practical
training.
A project is a study of The Impact of Reward & Recognition On employee
motivation as practical aspects, the purpose of to select this study is want to
know about Reward and Recognitions program of Prime co-operative bank and
their Impact on employee motivation.
The successful completion of this project was a unique experience for me
because by visiting bank and many interacting various person, I achieved a better
knowledge about banking sector.
Prime co-operative Banks gave me the golden opportunity to carry out my visit in
such great co-operative bank. I have prepared the details report regarding the
potential and future of financial industry. I have tried my best to collect all
necessary information relating to the project work.
During this whole training I got a lot of experience and came to know about the
management practices in real and how it differs from the theoretical knowledge.

ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and Bank. I would like to
extend my sincere thanks to all of them.
I am highly indebted to Mr. Manoj Kamalia, Assistant General Manager and Mr.
Niren Mehta, Senior Manager of Prime co-operative Bank Ltd for their guidance
and constant supervision as well as for providing necessary information regarding
the project & also for their support in completing the project.
I am very much thank full to Ms. Parinaz Todiwala, Assistant Professor, SRLIM
for her continuous guide and co-operation.
I would like to express my gratitude towards Employees and all other staff of
Prime Co-operative Bank Ltd, for their kind co-operation and encouragement
which help me in completion of this project.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.
My thanks and appreciations also go to my friends in developing the project and
people who have willingly helped me out with their abilities.

EXECUTIVE SUMMARY
In the age of globalization Banks have realized the importance of their human
resources and become increasingly interested in managing employees in such a
way that can enhance business performance. To ensure competitive advantage,
people who are working for the Bank should be motivated by providing a wellbalanced reward and Recognition system.
The purpose of this study is to identify the relationship between rewards (extrinsic
and intrinsic) and their impact on employee performance and actions to motivate
the employees of Prime co-operative bank Ltd, to determine the impact of reward
and recognition on employee motivation.
The data was collected from 116 employees of different 13 branches of Prime cooperative Bank Ltd. in surat city with the help of structured likert scale
questionnaire and analysis using mean values and frequency percentage tables
and correlations between variables and work Motivation and Satisfaction.
The result concludes that, with the advancement in the Compensation, Job
security, Leadership and works itself intrinsic rewards become the vital factor for
the employee motivation. However, Bank should redesign recognition system
because employees are dissatisfied to get Recognition, consider for a more
structured reward system that considers both intrinsic and extrinsic rewards
which in turn prospers high performance culture in the financial industry.

TABLE OF CONTENTS

Companys Certificate

Students Declaration

Institutes Certificate

Preface

Acknowledgement

Executive Summary

Sr. No.

Page No.

Particulars

1.

Introduction

2.

Banking Industry Profile

3.

a. Global

b. National

c. State

10

d. PESTEL

12

e. Current trends

15

f. Major Players

18

g. Major Offerings

20

Prime Co-operative Bank Profile

24

a. Company Profile

24

b. Organogram

33

c. Divisions/ Departments

34

d. SWOT

35

e. Market Position

36

4.

Review of Literature

37

5.

Research Methodology

44

6.

Data Analysis & Findings

48

7.

Conclusions and Recommendations

73

8.

Bibliography

76

9.

Annexure

80

LIST OF TABLES
Table
No.

Page
No.

List of co-operative banks in Gujarat with respect to

their deposits advances and profit
List of Board of Directors of Prime Co-operative
Bank Ltd

2.1

11

3.1

25

Charges list of Real Time Gross Settlement

3.2

30

Charges list of National Electronic Fund Transfer

3.3

30

List of Fixed Deposit Duration and Interest rate

3.4

31

Designation information of Employees

6.1

48

Department information

6.2

49

Gender Information of Employee

6.3

50

Salary Package Information of Employee

6.4

51

10

Age Group information of Employee

6.5

52

11

Experience of Employees with Prime Co-operative

Bank Ltd

6.6

12

Impact of Compensation on Employees Motivation

level
Impact of Leadership, Support/ Direction on
Employees Motivation level
Impact of Work Itself on Employees Motivation level

6.7

54

6.8

55

6.9

57

Impact of Promotional Opportunity on Employees

Motivation level
Impact of Awards on Employees Motivation level

6.10

59

6.11

61

Impact of Recognition & Appreciation on Employees

Motivation level
Descriptive statistics for the Factors of work

6.12

63

motivation

6.13

19

Correlations between factors and work motivation

6.14

20

The relationship between rewards, recognition and

Sr. No.

Particulars

1
2

13
14
15
16
17
18

work motivation and satisfaction

6.15

53

65
67
68

LIST OF FIGURES
Sr. No.

Particulars

Figure
No.

Page
No.

Intrinsic Rewards and Employee Motivation

1.1

Extrinsic Rewards and Employee Motivation

1.2

Organogram of Prime Co-operative bank Ltd.

3.1

33

Designation information of Employees

6.1

48

Department information

6.2

49

Gender Information of Employee

6.3

50

Salary Package Information of Employee

6.4

51

Age Group information of Employee

6.5

52

Experience of Employees with Prime Cooperative Bank Ltd

6.6

10

Impact of Compensation on Employees

Motivation level
Impact of Leadership, Support/ Direction on
Employees Motivation level
Impact of Work Itself on Employees Motivation
level
Impact of Promotional Opportunity on Employees
Motivation level
Impact of Awards on Employees Motivation level

6.7

54

6.8

55

6.9

58

6.10

59

6.11

61

6.12

63

11
12
13
14
15

Impact of Recognition &

Employees Motivation level

Appreciation

on

53

CHAPTER: 1
INTRODUCTION

10

Cooperative bank have been pillared on social purpose of providing benefit to

people who are somewhere or other deprived of banking facilities provided by
private players and thus main purpose of cooperative banks is to provide people
economically not strong and facilitate them with banking service and what creates
hurdle in this is end user is not aware about many of ultra- modern facility and
thus even educating their consumers first is also something which cooperatives
should focus on.
Cooperative Banking industry has gone through many problems with the
reference to its functions and working with changing times and it has forced this
industry to cope up with new fresh private players who have created all together
a new pool of services and has also given them a tough competition this has
forced cooperative to upgrade the tag of least efficient to modern and 21st
century bank.
Apart from their traditional way of working what cooperative need to also
understand is that now they have to come out of their comfort zone and have a
fresh look on their way of working. Agreed that every service has some cost
incurred and in doing this banks social objective is somewhere lost but bank has
to even land upon some model which accommodates this new avenues of
services which will further add on to banks position and strengthen its presence
in market. Apart from basic core banking which is part of bank, innovation with
the respect to services and operations should also be thought upon,
customization and personalization is something which now every customer looks
forward to and thus even cooperatives should enter this untapped area of
facilities which it has not yet thought.
They have now started looking to even different avenues where they can provide
services to people and be near to consumer which will further help them to
increase their market space, but problem is that this cooperative banks have
somewhere or other faced problems in this as they have been not able to
effectively convert their performance to the expected efficiency level thats where
they have to improve.

11

1. Motivation
The word motivation was originally derived from the Latin word mover which
means to move. However, over time various researchers have attempted to
have a more comprehensive definition of the word and motivation has been
defined in different ways, most of them agree that it is a goal directed Behavior.
Motivation is key factor of employee. Motivation is psychological process that
gives behavior purpose and direction. We can define motivation as Internal and
external factors that stimulate desire and energy in people to be continually
interested in and committed to a job, role or subject and to exert persistent effort
in attaching a goal.
All employees of bank are very important but motivated employees are more
productive and help to bank survive. The main objective of reward system is to
attractive, retain high performance employees, get maximum employees
performance and satisfy legal standard see. There are three most motivating
factors as: interesting work, good wages and job security. The aim of this study is
identify main factors of employee motivation of Prime co-operative Bank.
2. Reward
Reward system is very important tool that all banks can use to strait employees
motivation in different ways. In other words, banks give rewards to employees
and rewards system seek to attract employees to join the bank to keep than
coming to work and also motivate them to perform to high level. A reward system
is scheme perform of HR management which provides increases of those
individual or group who perform well in any organization.
Basically all types of rewards motivate to employees to perform well by attracting
with well-designed compensate package by bank. All employees of bank must
believe effective performance will lead to certain rewards. We can define of
reward system as reward system is formal or informal program used to
recognize individual employee achievements, such as accomplishment of goal or
project. We can says that pay and thing such as pension, health insurance,
salary, bonus, promotion that you get from being employed.

12

There are two types of reward system

i)

Intrinsic rewards

ii)

Extrinsic Rewards

Figure 1.1: Intrinsic Rewards and Employee Motivation

Fringe
benefits

Salary

Motivation

Promotion

Job security

Opportunity for
career growth
and
Development

Challanging
and intresting
Task

Motivation

Recognition
and
Apperication

Empowerment
and autonomy

Figure 2: Extrinsic Rewards and Employee Motivation

13

Organizations are under constant pressure to enhance and improve their

performance and are realizing that relationship exists between organizational
Performance and employee performance. Rewards may or may not enhance the
employees financial well-being. If they do, they can do this directly through
wages, bonuses or profit sharing or indirectly, through employer-subsidized
benefits such as retirement plans, paid vacations, paid sick leaves and purchase
discounts. Non-financial rewards do not directly increase the employees financial
position but emphasizes on making the life on the job more attractive. Rewards
and recognition programs honor both individuals and teams who go the extra mile
to service their organizations.
Rewards can be extrinsic or intrinsic. Extrinsic rewards are the tangible rewards
which one gets from the employer. External rewards can be in terms of
salary/pay, incentives, bonuses, stock options, promotions, job security, flex-time,
etc. Intrinsic rewards are intangible rewards or psychological rewards which one
receives from the job itself. These are the self-initiated rewards. Such as- pride in
ones work, a feeling of accomplishment, appreciation, meeting the new
challenges, positive and caring attitude from employer, and participation in
decision making, or being part of a team.
Recognition
Recognition can be Peer to Peer Thank you note or Appreciation form Manager
and co-worker, Awards for best performance, long year of services, regularity
awards can motivate more than financial rewards because on some of stage
employees wants recognition instated of Money.
The aim for select this topic is to determine the impact of reward and recognition
on employee motivation at prime co. operative bank. Bank is successfully
working from last 23rd year. To understand how they motivate their employee to
work more by giving them different types of reward and by recognize employee
front of others.

14

CHAPTER 2
BANKING INDUSTRY PRFILE

15

A Bank is a financial institution that provides banking and other financial services
to their customers. A bank is generally understood as an institution which
provides fundamental banking services such as accepting deposits and providing
loans. There are also nonbanking institutions that provide certain banking
services without meeting the legal definition of a bank. Banks are a subset of the
financial services industry.
A banking system also referred as a system provided by the bank which offers
cash management services for customers, reporting the transactions of their
accounts and portfolios, throughout the day. The banking system in India should
not only be hassle free but it should be able to meet the new challenges posed by
the technology and any other external and internal factors.
For the past three decades, Indias banking system has several outstanding
achievements to its credit. The Banks are the main participants of the financial
system in India. The Banking sector offers several facilities and opportunities to
their customers.
All the Banks safeguard the money and valuables and provide loans, credit, and
payment services, such as checking accounts, money orders, and cashiers
cheques. The banks also offer investment and insurance products. As a variety of
models for cooperation and integration among finance industries have emerged,
some of the traditional distinctions between banks, insurance companies, and
securities firms have diminished. In spite of these changes, banks continue to
maintain and perform their primary role accepting deposits and lending funds
from these deposits.

16

a. Global
Todays banking industry is facing the effects of a deep economic recession and
is set to suffer additional losses in credit portfolios. Meanwhile, governments and
financial authorities have announced stricter banking rules and more stringent
supervision at an international level. Capital and solvency requirements for banks
will be tightened, and improved risk management will be required. Moreover,
stringent policy measures to safeguard the stability of the financial system are
underway the global turbulence shook up the banking sector and led to new rules
of the game. Banks had to rethink their strategy and adjust their business
principles and structures. The new financial system will maintain a tighter focus
on customer centricity, while integrity and ethics will play a more important role in
retail banking than in the past. International controls will be improved, and the
corporate governance and compensation schemes of banks must be adjusted to
provide adequate incentives for a responsible balance between risks and their
capital position.
Banks have to apply a long-term perspective instead of a dominant focus on
short-term profit. A distinction is drawn in this study on co-operative banks. The
fundamental difference between them is their corporate governance: shareholder
versus member ownership. This difference entails numerous consequences in
term of their business orientation and principles. The characteristics and
achievements of co-operative banks in the past few years have remained notably
underexposed in recent publications, the press and various reports. But the
success of co-operative business model is abundantly evident in the figures they
have posted.
Average market shares of European co-operative banks as well as member-topopulation ratios have increased over the last decade. This is one of the
strongest proofs of the vitality of the co-operative business model. But one has to
bear in mind that co-operative banking is not by definition better than other
banking models and after all, past performance is no guarantee of future
success. For instance, co-operative banks were and are not sheltered from
extraordinary events resulting from the crisis. They too suffered losses and
incurred write-downs directly related to the financial crisis. But they appear to
have been hit less hard than private banks and they did not need large-scale

17

government support. They feel the effects of the general loss of confidence in the
banking sector and face competitors on a sharply tilted playing field. Owing to
their strong position in there tail markets, they will feel the negative impact of the
deep economic recession. Looking further ahead, the unique features and natural
core competences of co-operative banks provide clear-cut opportunities in this
new banking environment.
The new characteristics of the financial system have been part of co-operative
banks DNA from the start and are considered to be their main competitive
advantage. As member-owned institutions, co-operative banks now have the
opportunity to leverage the new banking rules and ethics to their advantage in a
well-designed public relations campaign. In addition, their strong capital base,
balanced corporate governance structure and large yet finely-meshed branch
networks enable them to maintain a more pronounced external focus than many
of their competitors, which may translate into market share gains.
The opportunity steams from the origin of most co-operative banks they were
often establish more than a century ago in rural areas where people were
deprived of financial service. Co-operative bank are eminently well-equipped to
help these countries in setting up sustainable financial infrastructures, visibly
contributing to economic and social development. With a presence in these
emerging of developing countries, co-operative bank can clearly demonstrate
their presence value, which is virtually impossible to show in western countries
is not right way forward.
Adjustments are necessary to allow for historical and cultural difference.
Microfinance is a natural fit for co-operative banks in emerging and developing
countries and they should make it their business to claim this promising area of
banking. When the financial sectors in these countries mature, co-operative
banks will possess a strong foot hold based on a long-term commitment. The
governments, regulators and financial sectors of developing countries should also
embrace co-operative banks, since they would provide the necessary access to
finance for enterprising poor people.

18

b. National
Co-operative Banks in India have become an integral part of the success of
Indian Financial Inclusion story. They have achieved many landmarks since their
creation and have helped a normal rural Indian to feel empowered and secure.
The story has not been smooth and has its share of procedural glitches and woes
placed at various pockets.
A cooperative bank is an institution which is owned by its members. They are the
culmination of efforts of people of same professional or other community which
have common and shared interests, problems and aspirations. They cater to
services like loans, banking; deposits etc. like commercial banks but widely differ
in their values and governance structures. They are usually democratic set-ups
where the board of members are democratically elected with each member
entitled to one vote each. In India, they are supervised and controlled by the
official banking authorities and thus have to abide by the banking regulations
prevalent in the country. The basic rules, regulations and values may differ
amongst nations but they have certain common features:

Customer-owned

Democratic structures

Profits are mainly pooled to

Involved in community
development

Foster financial inclusion by

form reserves while some

bringing banking to the

amount is distributed to

doorstep of the lowest

members

segment of society

These banks are small financial institutions which are governed by regulations
like Banking Regulations Act, 1949 and Banking Laws Cooperative Societies Act,
1965. They operate both in urban and rural areas under different structural
organisations. Their functions are decided by the level at which they operate and
the type of people they cater to.
They greatly differ from the commercial banking entities. These are established
under specific acts of cooperative societies operating in different states unlike
mainstream commercial banks which are mainly joint-stock companies. They
have a tiered network with a bank at each level of state, district and rural.

19

c. State
The term Urban Co-operative Banks (UCBs), though not formally defined, refers
to primary cooperative banks located in urban and semi-urban areas. These
banks, till 1996, were allowed to lend money only for non-agricultural purposes.
This distinction does not hold today. These banks were traditionally centred on
communities, localities work place groups. They essentially lent to small
borrowers and businesses. Today, their scope of operations has widened
considerably.
The origins of the urban cooperative banking movement in India can be traced to
the close of nineteenth century when, inspired by the success of the experiments
related to the cooperative movement in Britain and the cooperative credit
movement in Germany such societies were set up in India. Cooperative societies
are based on the principles of Co-operation, mutual help, democratic decision
making and open membership.
Co-operatives represented a new and alternative approach to organization as
against proprietary firms, partnership firms and joint stock companies which
represent the dominant form of commercial organization.
The following table shows the clear picture of co-operative banks functioning in
Gujarat state.
The list below has some of well-known and well-established co-operative banks
of Gujarat which are functioning in their respective cities since a long time.
The table has supporting data about the total deposits advance and Total profit of
various banks having its operations in Gujarat state under Co-operative umbrella.

20

TOP TEN BANKS IN GUJARAT--31-03-2015 (Rs in Crores)

Table 2.1 List of co-operative banks in Gujarat with respect to their Deposits
Advances and profite

Sr.No

Name Of the Bank

Total

Total

Total

Deposit

advance

Profit

Rs

Rs.

Rs

Kalupur Com.co-op.Bank Ltd.

4756

2729

75

Rajkot Nagrik Sahakari Bank Ltd.

3242

2017

52

Mahesana Urban Co-op. Bank

2753

2006

50

Ltd.
4

Surat Peoples Co-op. Bank Ltd.

2637

1777

30

Co-operative Bank of Rajkot Ltd.

1656

1012

27

Sutex Co-op. Bank Ltd. Surat

1248

841

25

Ahmedabad Mer. Co-op. Bank

1126

707

16

Ltd.
8

Nutan Nagrik Sah. Bank Ltd.

1039

589

Prime Co-op. Bank Ltd.

790

507

10

Varachha Co-op. Bank Ltd., Surat

621

385

21

d. PESTEL

1. Political factors
Here you have to look at the overall restrictions and support that your new
investment should anticipate from the government. Essentially, determine how
stable the political environment is and what government policies will impact laws
that regulate banking industry and apparent taxes. Check whether the
government is involved in any trading agreements that control the banking
market.

Government organization/attitude

Monetary policy

Regulatory Framework

Budget & Budget measures

Changes in interest rates

2. Economic factors
This is other critical PESTLE analysis for a bank that will help determine the
economic condition of the marketplace. Here, consider the general shape of the
market, interest rates and inflation. Your goal here is to check whether there is
another financial institution that has been able to thrive in the present economic
climate.

Economic growth

Unemployment policy

Consumer confidence

More savings

More capital formation

Increase in production of goods & Services

Banking channels

22

3. Social factors
It is wise to look at the socio-cultural factors that may affect your venture into the
banking sector. Determine cultural attitude of the market towards money-related
issues. Look at how savings are approached and how effective are the available
loans. Determine the markets attitudes towards foreign services and products.

Income distribution

Demographic changes

Lifestyle changes

Increase in population

Changes in lifestyle

Easy way of lending money

Exploring banking facilities in rural areas

4. Technological factors
Technology is imperative in the banking industry. It is vital for the competitive
advantage and it also a core driver for globalization. In your PESTLE analysis
consider whether technology allows sell of quality services and products and at
affordable rate. Ascertain more on the internet services that most of the banks
are utilizing and whether they have been effective.

New inventions & development

Rate of technology transfer

Changes in information technology

Internet banking

It services & Mobile banking

Credit cards

Improvement in efficiency

23

5. Environmental factors
Here consider the location of countries impact on the trades conducted by
banking sector. Climatic changes alter bank operations and the way consumes
respond to the market.
The banking sector is a great source of revenue that governments rely on to
improve peoples well-being. To excel in this sector, it is wise to understand how
a PESTLE analysis on the field will impact your goals and objectives of your
business.

Environmental regulation & protection

Geographical location

6. Legal factors
Legal issues have matchless impact on the banking sector. Here consider the
securities law, trade structures and bank note regulation among other legal
necessities. Check whether the legal frameworks in the market are reliable and
facilitate discovery of economic tools that link a local venture into the international
economy.

Tax policies

Employment laws

Competition regulations

Health & safety standards

24

e. Current trends
1. Customer Focus
Hectic competition in the banking sector put the customers on the drivers seat by
getting their required products and services. As the business environment
changes across industries, the customers expectations are also growing. The
facilities and options put forth by banks to customers made the present
customers demand more through customer service. Customer service is the main
guiding factor to enhance banks reputation and ensure their survival in the
competitive environment. Increased competition, technology driven services,
lower entry barriers leading to new entrants, less protective regulation, increased
autonomy for the banks etc. are some of the features of the new trend.

2. Branch Banking
Expansion of branch network is one of the means to augment business. The new
generation private sector banks and foreign banks have started exploiting
business potential through other strategies as well. Traditionally public sector
commercial banks have been able to augment the business level by increasing
their branch network.

3. Best Practices code

The best practices code represents details rules for entering into transactional
relation within the banks. The objective of BPC is to endure that all procedures,
especially in sensitive are well documented, compared with national and
international best practices and improved upon in the light of the experience
gained. Best practices code involves examination of all procedures, products,
activities and systems.

4. Differentiating brands
The digitalization of the industry is further commoditizing our brands, with fewer
face-to-face interactions limiting our ability to set banks apart. Banks and credit
unions will begin to find ways to stand out in a crowded competitive marketplace
in 2014, leveraging all channels to make their message heard.

25

5. Business process Re-engineering

Business process Re-engineering represents transformation of select processes
and procedures with a view to empower the bank with contemporary
technologies, business solutions and innovations that enhances the competitive
advantage. It seeks to enhance the value of services to the customer.
Four Important aspects are
1. Customer (to give him enhanced value)
2. Competition (to meet successfully)
3. Change (to meet it)
4. Cost (to reduce)
There are three key parameters
1. Customer service
2. Product innovation
3. Operational excellence

6. Improving contextual experiences

According to Aide Group senior analyst, Ron Shevlin, a new type of marketing
will emerge in 2014 activity based marketing or marketing within the context of an
activity being performed by a customer or prospect. Activity based marketing will
change the point of interaction, moving that point closer to the point of customer
need. New merchant-funded reward platforms will emerge that improve the
targeting of offers and social media channel insight will be used to improve
service and delivery. Finally, banks will continue to improve real-time alerts and
notifications that will strengthen loyalty and engagement.

7. Global innovation perspective

Unfortunately, some of the most exciting banking innovations over the past
several years have occurred in the Asia Pacific region, Eastern Europe and not in
the U.S. or U.K. In 2014, banks and credit unions will begin to look beyond our
shores for innovative ideas, learning from overseas organizations that in some
cases are far ahead of our domestic offerings.

26

8. Liberalized branch authorization policy

RBI has liberalized and rationalized the policy for authorization of branches and it
has put in place a framework for branch authorization policy which would be
consistent with the corporate strategy of banks. While considering applications for
opening branches, RBI shall give weightage to the nature and scope of banking
facilities provided by banks to common persons, credit flow to priority sector,
pricing of products and banks efforts towards promotion of financial inclusion and
enhanced services. The system of granting authorization for opening individual
branches from time to time is replaced by a system of giving aggregated
approvals, on an annual basis, through consultative and interactive process.

9. Electronic Banking
One of the most exciting growth phases for the banking sector is the emergence
of technology enabled business models, which led to geographic expansion,
wider product offering and newer revenue streams. Electronic banking means
banking done electronically. Transaction handling, cash management, account
reporting is done through electronic media. Banks today reach their customers
through ATMs, point of scale devices, telephone banking. Internet banking etc.
electronic banking comprises of the following

Electronic funds transfer

Electronic Clearing system

Tele-Banking

Automated teller machines

Shared payment network system

Credit cards/ Debits cards

Corporate Banking terminals

Point of scale terminal

Electronic dad interchange

27

f. Major Players
1. Adinath Co-operative Bank Ltd.,

12. Sachin Industrial Co-operative

2.

Bank Ltd.

Akhand

Aanand

Co-operative

Bank Ltd.

13. Sarvodaya Sahakari Bank Ltd.,

3. Associate Co-operative Bank Ltd.

Surat

4. Bardoli Nagrik Sahakari Bank Ltd.

14. Surat Mercantile Co-operative

5. City Co-operative Bank Ltd.,

Bank Ltd.

6. Financial Co-operative Bank Ltd.,

15. Surat Nagrik Sahakari Bank Ltd.

7. Kosamba Mer. Co-operative Bank

16. Varachha Co-operative Bank

Ltd.

Ltd., Surat

8. Mandvi Nagrik Sahakari Bank Ltd.

17. Surat Peoples Co-operative Bank

9. Panchsheel Mer. Co-operative

Ltd.

Bank Ltd.

18. Sutex Co-operative Bank Ltd.

10. Prime Co-operative Bank Ltd.

19. Textile Co-operative Bank of

11. Rander Peoples Co-operative

Surat Ltd.

Bank Ltd.

20. Udhna Citizen Co-operative Bank

Ltd.

i.

Surat peoples Co-operative Bank

The surat peoples co-operative bank ltd. Is serving since last 90 years to the
people of surat having network of 23 computerized branches out of them 21 in
surat and 1 in vapi and 1 in navsari. The bank is the first registered urban cooperative bank of India and among the first 13 co-operative banks to get the
scheduled bank status. It is the first bank to provide the depository participant
servives in south gujrat.

ii.

Sutex Bank

Sutex Banks proud journey started with its establishment on 15th May, 1972. At
the prime time of opening Sutex Bank its name was the surat textile traders coop. bank ltd. In the year 1972 Banks Establisher chairman late shri Ashabhai
shankarbhai patel having a prosperous vision to provide a golden & profitable
market to surattextile industry, registered the bank at a co-op. level. Sutex bank
28

provided services with a view to help surat textile market shop keepers with
banking facilities and help them start and manage their businesses. Sutex bank
in the intial stage started with only 270 shareholders and Rs. 1.10 laces share
capital. Sutex bank has in total 14 branches and a administrative office.

iii.

Kalupur Co-operative Bank

The bank is founded by late shri baldevbhai dosabhai patel, late shri gopaldas
shivlal patel and shri arvindbhai jivanlal saheba. The bank has nurtuted its
traditional values in business practices and in serving the small businessmen.
These were the people with deep and abiding ideas, faith, vision, optimism and
entrepreneurial skills with commendable sense of service and duty. The bank has
38 branches of which 33 are situated in banks own premises. These branches
are spread over Ahmedabad, Anand, khambhat, vadodara, surat, gandhinagar
and Mumbai.

29

g. Major Offering

1. Current Account
A Current Account is a common type of bank account used to store money that is
needed on a regular, day-to-day basis. It is a handy way to manage your money
in the short-term. It allows you to

Receive money such as your

salary or other types of income

Pay for things using your Laser

Card or by writing cheque

Withdraw cash by using your

Transfer money to other accounts

ATM (Automated Teller Machine)

Bank using the internet or the

or Laser Card or at the bank

telephone

counter

Pay bills

2.Savings account:
A savings account is a type of bank, building society, credit union or An Post
account that is used for accumulating money. Funds saved can be for both
short and long-term needs. Short-term needs include things like holidays,
weddings and Christmas presents or just for a rainy day. Longer-term needs
include things like saving for college or a house. There are many different
types of savings accounts available. When deciding on a savings account you
should consider how much you want to save and what access you want to the
money. Generally speaking, savings accounts can be opened with a small
sum of money and you can save either regular amounts or lumps sums, or
sometimes both.

3.Recurring Deposit
Recurring Deposit is a special kind of Term Deposit offered by banks in India
which help people with regular incomes to deposit a fixed amount every
month into their Recurring Deposit account and earn interest at the rate
applicable to Fixed Deposits.

30

4. Fixed deposit
A fixed deposit (FD) is a financial instrument provided by banks which
provides investors with a higher rate of interest than a regular savings
account, until the given maturity date. It may or may not require the creation of
a separate account.

5. Online banking
Online banking refers to carrying out certain banking transactions over the
internet. Banking online is very convenient and can save you time and money.
All the major banks offer online banking. There are a number of things you
can do online such as

View balances and statements

Transfer money

Top up your mobile phone

Pay bills

Some banks online banking services

Apply for certain products, such as credit cards, loans and savings
accounts

Set up, amend and cancel standing orders.

Share deal - buy and sell shares online.

6. Loans
A loan is the act of giving money, property or other material goods to another
party in exchange for future repayment of the principal amount along with
interest or other finance charges. A loan may be for a specific, one-time
amount or can be available as open-ended credit up to a specified ceiling
amount.

1. Student Loan
Student loans are offered to college students and their families to help cover
the cost of higher education. There are two main types: federal student loans
and private student loans. Federally funded loans are better, as they typically
come with lower interest rates and more borrower-friendly repayment terms.
31

2. Mortgages
Mortgages are loans distributed by banks to allow consumers to buy homes
they cant pay for upfront. A mortgage is tied to your home, meaning you risk
foreclosure if you fall behind on payments. Mortgages have among the lowest
interest rates of all loans.

3. Auto Loan
Like mortgages, auto loans are tied to your property. They can help you afford
a vehicle, but you risk losing the car if you miss payments. This type of loan
may be distributed by a bank or by the car dealership directly but you should
understand that while loans from the dealership may be more convenient,
they often carry higher interest rates and ultimately cost more overall.

4. Personal Loan
Personal loans can be used for any personal expenses and dont have a
designated purpose. This makes them an attractive option for people with
outstanding debts, such as credit card debt, who want to reduce their interest
rates by transferring balances. Like other loans, personal loan terms depend
on your credit history.

5. Loans for Veterans

The Department of Veterans Affairs (VA) has lending programs available to
veterans and their families. With a VA-backed home loan, money does not
come directly from the administration. Instead, the VA acts as a co-signer and
effectively vouches for you, helping you earn higher loan amounts with lower
interest rates.

6. Small Business Loans

Small

business

loans

are

granted

to

entrepreneurs

and

aspiring

entrepreneurs to help them start or expand a business. The best source of

small business loans is the U.S. Small Business Administration (SBA), which
offers a variety of options depending on each businesss needs.

32

7. Cash Advances
A cash advance is a short-term loan against your credit card. Instead of using
the credit card to make a purchase or pay for a service, you bring it to a bank
or ATM and receive cash to be used for whatever purpose you need. Cash
advances also are available by writing a check to payday lenders.

8. Home Equity Loans

If you have equity in your home the house is worth more than you owe on it
you can use that equity to help pay for big projects. Home equity loans are
good for renovating the house, consolidating credit card debt, paying off
student loans and many other worthwhile projects.
7.Services
1. Safe Deposit Locker
A Locker usually located inside a bank which is used to store valuables.
A safe deposit box is rented from the institution and can be accessed with
keys, pin numbers or some other security pass.

2. Demand draft
Demand

draft

is

method

used

by

individuals

to

make transfer

payments from one bank account to another. Demand drafts are marketed as
a relatively secure method for cashing checks. The major difference between
demand drafts and normal checks is that demand drafts do not require a
signature in order to be cashed.

3. ATMs
There are two primary types of automated teller machines, or ATMs. The
basic units allow the customer to only withdraw cash and receive a report of
the account's balance. The more complex machines will accept deposits,
facilitate credit card payments and report account information. To access the
advanced features of the complex units, you will usually need to be a member
of the bank that operates the machine

33

CHAPTER 3
PRIME CO-OPERATIVE BANK PROFILE

34

Prime is a name of the bank where the bank is ready to serve its banking
services to all customers under the slogan of YOUR BANK FOR YOU Prime
co-operative bank ltd was promoted by an experienced and visionary
entrepreneur named Mr. GOKUL BAKSHI, he is the Founder Chairman of the
bank and continues to supervise its growth and development.
The Bank started off with exemplary combination of talented Board & potential
staff team, stuffed with extreme professionalism and well-designed contours
of working method. The bank started as a paperless unit employing telebanking, remote banking, off-time banking, Sunday banking, holiday banking
and many more allied methodologies from the very beginning right from the Dday.
Prime Co-operative Bank Ltd. known as a Fully Equipped High Tech Banking
Super Market in South Gujarat Area, There are so many products & services
we have launched first in South Gujarat Area. Therefore, we are trendsetter to
others for our unique, extraordinary, high tech, speedy services & products;
So far bank has got 61 awards/certificate/appreciation from various
organizations. During current year FOUR more awards are added as under
Bank is awarded by Surat District Co-op. Union for the overall performance of
the bank among co-operative banks registered in Surat District. And recently
three more awards have been conferred on us by SCOBA. Under following
category among very large banks located in South Gujarat (Vapi to Bharuch)

35

Vision & Mission

Vision
To make brand Prime Bank synonymous to trust and reliability to be a leader
among the co. operative Banks in the whole central and south Gujarat, to
render excellent and personalized service and to contribute to co-operative
moments, making credit available to customers, more particularly to
individuals, SMEs, thereby contributing to their growth and striving to maintain
net NPAs at 0% level throughout.
A fully equipped one-stop high tech Banking Super Market

Mission
Our mission is to be a preferred financial service provider with a special focus
on innovative quality products, technical expertise & efficient services for
customer achieve their objectives and goals.

Board of directors
Table 3.1 List of Board of Directors of Prime Co-operative Bank Ltd
Name

Designation

Shri Gokul bakshi

Founder chairman

Shri Anand bakshi

Chair man

Smt.Champaben makwana

Vice chairman

Shri Mukesh bombaywala

Director

Shri Rajnikant kapadiya

Director

Shri Dhiraj shah

Director

Shri Dharmesh chorawala

Director

Shri Kanubhai tailor

Director

Shri Parimal vyas

Director

Shri Kishor brahmbhatt

Director

Shri vijay parekh

Executive Director

36

History of Bank
Bank was incorporated under the chairmanship of Mr. Gokul Bakshi. Bank
commenced business from a rented location. Retail banking was the initial
activity of the bank. Focus of strategy was stability, market penetration;
resources build up and steady growth.
Product development strategy initiated. Bank started financing small scale
industries as recommended by RBI from Goiporia Committee and Narsimha
committee in 1994.
Customer is a king approach initiated concept of information technology was
used like TELE Banking/Remote Banking with the advent of computerized
operations. Off time banking concept were introduced i.e. evening 6:00 p.m.
to 8:00 p.m. were provided for banks retail customer to reduce their Cash risk
and continue as on date in 1995.
Branch Expansion Strategy initiated and bank started its first branch Bhulka
Bhavan Branch at Adajan in August 1997 with in the very next month i.e.
Sept.97 bank had started another Branch at Katargam GIDC. Branch
Expansion had continued during the year and 3rd branch was opened in June
98 at M.G.Road, 4th branch was opened in oct 98 at new sardar market & 5th
branch was opened in Dec 98 at bhatar char rasta.
Bank has taken permission from RBI to accept the NRI deposits. Introducing
smart cash a smart alternative of cash named as prime purse. It is useful
at 143 places in the entire Surat area and response encouraging received
from valuable class of people of Surat. Bank started with opening of a new
millennium branch at navsari (millennium branch in feb.2000 first bank in
south Gujarat to open its out city branch. Bank has opened another outstation
branch at Bharuch in sep2000, starting to open DMAT a/c in November 2000
Prime completed its 10th anniversary in the year 2004 and introduced
schemes like Prime Sarasvatee, Prime Health Card and Prime Citizen for its
valued customers.Prime Introduced Schemes like Loan for Gold in
partnership with ICICI Bank in year 2006. Also opened a Bill Collection Centre
at its Bharuch Branch for collecting Gas Bills of Gujarat Gas Co. Ltd. To make
payment system quicker RBI has launched RTGS scheme for scheduled
bank, Prime has joined hands with Kalupur Commercial Bank to help its
37

customers to have the advantages of RTGS.Prime has done a remarkable job

as Baroda District Industrial Cooperative Banks merger with Prime Cooperative Bank, placing its management on its 7 branches, which has
increased area of its working upto Chotta Udaipur in Gujarat just 72 km away
from the MP border.Prime started the process of Franking on 21st Nov. at
Surat & Baroda, whire customers can bring in their blank papers and convert
them to a stamp paper without paying additional fees.
In the year 2007 Prime has done a remarkable job as Adajan Nagrik CoOp.
Bank's merger with Prime Cooperative Bank, placing its management on it,
which has increased area of its working in Surat city. Prime Bank has started
business of Mutual Funds on a referral basis. Bank has tied with Principal
PNB Mutual Fund, UTI, Benchmark, ICICI Prudential, Reliance, SBI, Lotus,
Birla, Kotak, Sundaram ETC. Prime Bank has received Category2 License to
carry out Foreign Exchange Business Prime Bank had done Hattrick in
Merger of week Banks In June 2006 Vadodara's 50 year old bank with its 7
branches, 'Baroda Industrial Co.op. Bank. In June 2007 Surat's Adajan Nagrik
Co-op. Bank In June 2008 Nadiad's 38 year old bank with its 3 branches
'United Mercantile Co-op. Bank. In 2009 Tie up with Paul Merchants for
foreign inward remittance facility through Western Union Money Transfer. Two
branches opened on 1062009 one at Bodeli dist. Bodeli and another one at
Vyara Dist. Tapi Fourth merger taken place on 220909. Sanand Urban Coop.
Bank Ltd., Sanand taken into merger. In the year 2010 Implementation of
100% Core Banking Solutions. In the year 2011 5th merger The Mercantile
Coop. Bank Ltd., Godhra merged with the bank with two branches. In the year
2012 Implementation of Disaster Recovery Site,Bardoli Branch. Launching of
ATM Card. Merger of Bayad Nagarik Sahakari Bank Ltd., Bayad Dist.
Sabarkantha in 2013 1st Rank best banking among urban co-operatives of all
over in Gujarat awarded by Gujarat rajya sahakari sangh. Rupay card facility
through sarwatra tie-up with ICICI bank in 2014.Own training Centre at city
light branch new premises in 2015. Provide E-commerce facility to customer
in 2016.

38

Awards

The Bank Conferred with three awards among large category CoOperative banks as under by South Gujarat Co-Op. Bank Association.

Winner for total Business Continuity & Growth.

Winner for Public Relations & Social Activities.

Runners up for Profitability.

The Bank conferred with three national level awards among Medium
category co-operative banks by Banking Frontier.

Best Fee based income.

Best Data Centre Innovation.

Best IT Head Manager-Shailesh Joshi

Ranked by Gujarat State Co-Op. Union as First among all Co-Op banks of
Surat Dist.

Bank conferred with two awards among very large category co-operative
banks as under by South Gujarat Co-op. Bank Association.

Public Relations & Social Activities (Runners up)

Corporate Governance and Modern Banking Technology. (Runners up)

Best Paperless Banking Initiative

Best Youth Customer Acquisition

Best Physical Security Initiative

The Bank Conferred with three awards among large category CoOperative banks as under by South Gujarat Co-Op. Bank Association
2014-2015.

Total Business Continuity & Growth (Runners Up)

Profitability Management & Corporate Governance (Runners Up)

Public Relation & Social Activities (Runners Up)

The Bank Conferred with Two National Leval awards in Medium category
Co-Operative banks by Banking Frontiers.

Best Chairman In India (2014-2015) Shri Gokul Bakshi

Best Marketing Initiative (2014-2015).

Best chairman- Shri Gokul Bakshi among urban co-operative banks all
over in India awarded by banking frontier.(2016)
39

Services of Prime Co-operative Bank Ltd

1. ATM
To provide flexibility and access to account 24X7 to the customers bank has
tied up with NPCI for Rupay card. Through Rupay card customer can
withdraw money up to Rs. 10,000.00 per day, can make balance enquiry, can
get short statement for their account and can change their accounts PIN
anywhere in INDIA.

2. Life Insurance
We are first Co-operative Bank of South Gujarat Area who has tie up & start
Life Insurance Products Business with Aviva Life Insurance Co. India Ltd. as a
Bank Assurance. (Corporate Basis)

3. General Insurance
We are first Cooperative Bank of South Gujarat Area who has tie up & start
Life Insurance Products Business with as a Bank Assurance. We have tie up
with corporate agent of New India Assurance Company.

4. Real Time Gross Settlement (RTGS)

RTGS stands for Real Time Gross Settlement. RTGS system is a funds
transfer mechanism where transfer of money takes place from one bank to
another on a real time and on gross basis. This is the very quickest
possible money transfer system through the banking channel. Settlement in
real time and the transactions are settled as soon as they are processed.
Gross settlement means the transaction is settled on one to one basis
without clustering with any other transaction. As this money transfer takes
place in the books of the Reserve Bank of India, the payment is considered as
final and irrevocable.

The minimum amount to be remitted through RTGS is 2.00 laces. There is no

upper ceiling for RTGS transactions. RTGS eliminates settlement risk. The
volume of RTGS transactions is increasing rapidly.

40

Table 3.2 Charges list of Real Time Gross Settlement

Charges for Real Time Gross Settlement
Value Of Transaction

Charges

Rs 2 lakhs to Rs 5 lakhs

Rs 28.00 per transaction Inclusive of

Service tax

Above Rs 5 lakhs

Rs 57.00 per transaction Inclusive of

Service tax

5. National Electronic Fund Transfer (NEFT)

Prime Co Operative Bank has direct membership for NEFT with RBI.
NEFT is an electronic payment system to transfer funds from one account to
another, between NEFT participant bank branches in India. in which
transactions are settled in batches. It is a risk free, secure and reliable mode
for transfer of funds of any amount.

Table 3.3 Charges list of National Electronic Fund Transfer

Charges for National Electronic Fund Transfer
NEFT Value Of Transaction

Charges

Inward

Nil

Outward

Up to Rs. 1.00 lakh Rs 6.00 per

Transaction
Rs. 1.00 Lakh to 2 Lakhs Rs.17.00 per
Transaction Inclusive of Service Tax

41

6. Deposit

Table 3.4 List of Fixed Deposit Duration and Interest rate

Previous

Existing

6.50%

6.50%

91 days To 180 days

7.00%

7.00%

181 days To 365 days

7.50%

7.50%

Above 1 Year

8.50%

8.50%

13 Months

9.50%

9.00%

7 90 days
(minimum Rs.15 Lakhs Single Deposit)

GET MORE THAN DOUBLE IN JUST 99 MONTHS

Deposit of Rs.15.00 Lakhs & above & get 0.50% extra Interest.
Deposit of Rs. 5 corers and above - 60% extra interest extra interest to
Senior citizens

i.

Prime Citizen 60% extra interest on Deposit or Recurring Account of

Senior Citizen of 60 Year & more. Get your interest of fixed deposit
monthly, quarterly, Half Year or Yearly to your Savings Account (If in
other bank also) facility.

ii.

Prime Gem A scheme to get flexible interest monthly, quarterly, half

yearly or yearly.

iii.

Prime Gold A cumulative interest scheme. To get Rs.1,000/- on

maturity for deposit Rs.900/- for 15 months or Rs.657/- for 60 months.

iv.

Prime plus Get more than double in 99 months @8.50 rate of

interest. Effective Yield 10.72% (limit for TDS Rs. 69,700/-) more
than double

v.

Prime Flexi Floating Interest Recurring Scheme offer you to decide

your instalment and period Rate of Interest is Bank Rate + 1% (Bank
Rate is subject to RBI Policy)
Flexi Recurring scheme 27 Months to 120 Bank rates + 1%

42

7. Foreign Exchange
We can cater Foreign Exchange (Letter of Credit & Bank Guarantee) through
IndusInd Bank. Now, we have been doing the business of Money
Exchange/Changing Business. We have tie up with Axis bank, ICICI bank for
foreign currency.

43

a. Organogram

Figure 3.1 Organogram of Prime Co-operative Bank Ltd.

44

b. Department
1. Current Department
Business related transaction can be done in to this account.

2. Cash Department
All cash transaction can be done in the cash department. Cash withdraw and
cash deposit.

3. Clearing Department
In this account two types of clearing can be done:
1. Inward Clearing.
2. Outward Clearing.

4. Human Resource Department

All the management of the bank can be done through the HR Department.

5. Fixed Deposit Department

Long term fixed deposit and short term fixed deposit.

6. Saving Department
Saving can be Regular saving and basic saving.
Regular saving requires pan no and require balance for regular saving is
500RS.
Basic saving not requires pan no and require balance for basic saving is 0Rs.

7. Loan Department
Bank Provide Home loan, Study loan, Business loan, Car loan, etc.

8. Forex Department
It Provide International credit/debit card, Currency Exchange, and Money
transfer through Western Union.

45

c. SWOT analysis
Strength
Dedicated and well trained staff.
Long standing clients.
Excellent customer relationship.
Effective front end service.
Trend setter in high-tech banking.
Any branch banking.
Internet banking.

Weakness
Inadequacy of initiative and innovation among the staff and members.
High operating cost.

Opportunity
Penetrating into market due to increase in industry banking.
Increase the economy of scale by reducing the per capital cost of
operation.

Threats
Economic slowdown
Highly competitive environment
Low speed of the recovery loan
Bank has to face So much competition in present time.

46

d. Market Position

As per the present scenario the market position of prime co-operative bank
stands at 3rd position preceded by top players like surat peoples cooperative bank and varacha co-operative bank. The prime co-operative
bank has its own customer base and so it hardly gets affected because of
its market position.

Prime co-operative bank had gained good position in the market. From the
last 23year, it has improved the services, profitability and position. It had
earns loyalty, preference and trust of the customer.
The deposit from customers has been increasing over a year, which
enhances the capacity to provide credit to individual, company etc.
Bank has tie up with the companies involving in general insurance and life
insurance. Prime co-operative bank provides non-banking services such
as stamp franking, pan card, insurance services, mutual fund, etc.
The branches of the prime co-operative banks are situated at different
place, so customer can approach the bank at nearest branch. Further, it
provides scholarship to shareholders students having first class. It will lead
to motivate the shareholders. The initiative of ECS services in relation to
the shareholders benefit by transferring dividend to their preference
account proven to be essential.

47

CHAPTER 4
REVIEW OF LITERATURE

48

Ali and Ahmed (2009) Determine that Organization like banking sector have
determined a balance between the performance of the employees and their
commitment to the work which in result of job satisfaction. Reward and
motivation are the two main factors that have an effect on the job satisfaction
and motivation of employees. In reference to statistics, there is a significant
relationship between reward and recognition, and between motivation and job
satisfaction they established that there is a substantial affiliation between
reward and recognition, and similarly in employee motivation and job
satisfaction. Study exposed that if rewards and recognition offered to
employees then there would be a substantial modification in work motivation
and satisfaction.
Amabile et al. (1994) suggested that employee who reveals high job
satisfaction is motivated by rewards, and rewards supported work
engagement. Job satisfaction of rewards in public and private sector
employee has been established certainly associated with job satisfaction.
Preceding research found that job satisfaction is associated with the monetary
compensation (pay, promotion, and bonus) and non-monetary compensation
is one of the most important explanatory variables in both sectors.
Beer et al. (1984) investigate that employees expect the organization to
provide fair pay, safe working Conditions and fair treatment. Like
management, employees often expect more, Depending on the strength of
their needs for security, status, involvement, challenge, Power and
responsibility. Just how ambitious for expectations of each party are vary from
organization to organization. For organizations to address these expectations
an understanding of employee motivation is required.
Bishop (1987) Search that, pay is directly related with productivity and reward
system depends upon the size of an organization. Firms reward system plays
a critical role in motivating employees to perform creatively. Effective reward
and recognition system can be a good motivator but inappropriate reward and
recognition program increase de-motivation of the employees.

49

(Bowen & Radhakrishna, 1991) indicate that motivated employees are

needed in our rapidly changing workplaces. Employees are the sole strategic
assets that make organizations alive. To be effective, managers need to
understand what motivates employees within the context of the roles they
perform. Managers have to play different functions but motivating employees
is arguably the most complex. This is due, in part, to the fact that what
motivates employee changes constantly.
Brun and Biron et al. (2003) investigate that reveal that lack of recognition
constitutes the second-largest risk factor for psychological distress in the
workplace. Among managers, for instance, it would appear to constitute a
stress-tolerance factor and a key element in their ability to handle difficult
professional situations; One of the most important sources of organizational
mobilization and engagement, recognition plays a key role in the success and
continuity of organizational change. Moreover, it promotes on-the-job learning
and is a building block of learning organizations, finally, by contributing to
employee job satisfaction; recognition has a positive impact on organizational
productivity and performance.
(Bursch, 1999) Suggest that increasingly organizations are looking towards
non-traditional recognition and rewards systems to retain and motivate
employees. An effective recognition and rewards program can achieve this by
creating a positive environment that encourages workers to thrive ''business
benefits as these basic values translate into happier, more productive
workplaces which report high retention rates of skilled staff.''
Carnegie (1975) emphasizes that the human aspects of management. They
postulate that as it is people who make a business succeed or fail it is the
organizations chief responsibility to motivate their people so that they will
assure success. The authors believe that each human being has the potential
for creativity and for achieving goals. The infinite question is how
organizations reach this potential and how they stimulate creativity and foster
in their people the desire to succeed and to achieve self-fulfillment through
their work. The common theme of the above authors is the belief that people

50

need to be respected and treated as precious human capital, more essential

to an organizations effectiveness than its financial capital.
(Deeprose and Bull, 1994) said that Good managers recognize people by
doing things that acknowledge their accomplishments and they reward people
by giving them something tangible. Fair chances of promotion according to
employees ability and skills make employee more loyal to their work and
become a source of pertinent workability for the employee. Bull posits a view
that when employees experience success in mentally challenging occupations
which allows them to exercise their skills and abilities, they experience greater
levels of job satisfaction. Incentives, rewards and recognition are the key
parameters of todays motivation programs according to most of the
organizations as these bind the success factor with the employees
performance.
(Hackman and Oldham 1976) Determine that extrinsic rewards are the
physical benefits provided by the organization such as pay, bonus, fringe
benefits and career development opportunities. Intrinsic rewards refer to the
rewards that come from the content of the job itself, and encompass
motivational characteristics of the job such as autonomy; role clarity and
training Social rewards arise from the interaction with other people on the job
and may include having supportive relationships with supervisor and coworkers.
(Kreitner, 1995) Reward and recognition programs come within the
discussion on extrinsically motivated behavior that occurs when an activity is
rewarded by incentives not inherent in the task; the concept of motivation has
been defined as; the psychological process that gives behavior purpose and
direction; a tendency to behave in a purposive method to achieve specific,
unmet desires; an inner force to gratify an unsatisfied need and the will to
accomplish; motivation is operationally defined as the inner force that drives
individuals to achieve personal and organizational goals.

51

La Motta (1995) is of the view that performance at job is the result of ability
and motivation. Ability formulated through education, equipment, training,
experience, ease in task and two types of capacities i.e. mental and physical.
The performance evaluation and rewards are the factors that proved to be the
bonding agents of the performance evaluation programs.
Lawler (2003) Described that there are two aspects that decide how much a
reward is attractive, the quantity of reward which is provided and the weight
age an employee gives to a specific reward. Employees are certainly closer to
their organizations and perform better job, while they receive healthier reward
and recognition in their organizations. Rewards increase the level of efficiency
and performance of the employees on their jobs and in the result thereof
increase the success of the organization. Generally employees job description
and job specification determines rewards to maintain fairness among
employees within an organization and competitive in the marketplace,
organizational reward means all the benefits i.e. financial and non-financial
that an employee receives through their employment relationship with an
organization.
Maire and Nick (2002) investigate that Organizations can motivate the
workforce most through introducing appropriate reward and recognition
programs and other benefits. Referred that, compensation systems deliver
other objectives such as legal compliance, labor cost control, perceived
fairness towards employees and enhancement of employee performance to
achieve high level of productivity and customer satisfaction. Pay is directly
related with productivity and reward system depends upon the size of an
organization. Effective reward and recognition system can be a good
motivator but inappropriate reward and recognition program increase demotivation of the employees. Reward is the benefit received for performing a
task. Rewards can be extrinsic or intrinsic. Extrinsic rewards are the tangible
rewards which one gets from the employer. External rewards can be in terms
of salary/pay, incentives, bonuses, stock options, promotions, job security,
and flex-time.

52

(Robbins et al., 2001) conclude that the recognition which is a central point
towards employee motivation adores an employee through appreciation and
assigns a status at individual level in addition to being an employee of the
organization; recognition the most important factor of their reward system.
The conditional recognition is that type of recognition which one has to earn
by his own efforts and which is gained by some sense of achievement of an
action or result. Employees are definitely closer to their organization as their
job can become the major satisfaction in their life after having a proper
rewards and recognition at their job. Rewards enhance the level of
productivity and performance at job whether its a first time performance or
repeated activity at the job in a progressive way.
Roberts (2005) Define that Reward system is very important tool that all
banks can use to strait employees motivation in different ways. In other
words, banks give rewards to employees and rewards system seek to attract
employees to join the bank to keep than coming to work and also motivate
them to perform to high level. A reward system is scheme perform of HR
management which provides increases of those individual or group who
perform well in any organization. Basically all types of rewards motivate to
employees to perform well by attracting with well-designed compensate
package by banks. All employees of any bank must believe effective
performance will lead to certain rewards. We can define of reward system as
reward system is formal or informal program used to recognize individual
employee achievements, such as accomplishment of goal or project. There
are two types of reward system, one is extrinsic rewards (salary, bonus,
commission, status and promotion) second is intrinsic rewards (opportunity to
completion, training, skills, meaningful work and work kind condition).
Organizations are under constant pressure to enhance and improve their
Performance and realizing that relationship exists between organizational
Performance and employee performance.

53

From the study of all the above this literature review, the Factors find for this
survey The Impact of Reward & Recognition on employees motivation is
Compensation, Benefits, Autonomy, Promotional Opportunity, Challenging
Task, Awards, Appreciations, Recognition can motivate Employees and they
satisfied with their work.

54

CHAPTER 5
RESEARCH METHODOLOGY

55

a. Problem Statement
Employees being the most important assets of the Bank and it is very
important to be retained by various ways, even that the workload is increasing
day by day due to which employees may be demotivated and that provokes, it
is necessary to motivate them through Reward and Recognition program, by
the organize program employees can be retained and productivity can be
increased.
This survey is to identify the impact of Reward and recognition on employee
motivation at prime co. operative bank. This survey measures the Motivation
level of employee. What is actual Motivate employee and what they want from
bank and what they get from their job this kind of questions answer can be
found by this survey, the reason for select this topic to determine the reward
and recognition system.

b. Objectives of the Study

1) To determine the impact of rewards on motivation.
2) To determine the impact of recognition on motivation.
3) To suggest ways in which reward and recognition programme in Prime coOperative bank can be improved upon in order to increase employee
motivation.

c. Research Design
1. Types of Design
The Research design adopted for this Survey is Descriptive Research
Design. A descriptive study tries to discover answers to the questions like
who, what, when, where, and sometimes, how. The Research attempts to
describe or define a subject, often by creating a profile of group of problem,
people or events.

56

2. Sampling Design

Scope of the study: All the branches of Prime Co-operative Bank of Surat
city is scope of this survey. The list of branches are described in the sample
frame.

Population size: The employees (from different age groups, genders,

education backgrounds, Department, income level and designations) from the
all branches of Prime co-operative Bank have been taken as population;
approximately 130 employees are in the Surat city branches.

Sample frame: For this study all 13 branches of Prime co. operative Bank in
Surat city covered

1. Prime House

7. Bhatar Branch

2. Udhna Branch

8. Sardar Market Branch

3. Khatodara (Main Branch)

9. City light Branch

4. Bulka Bhavan Branch

10. Palanpur patia Branch

5. Katargam GIDC Branch

11. Udhana pandesara Branch

6. Lalgate Branch

12. Jahangirpura Branch

13. Amroli

Sample size: 116 Employees.

Sampling Method
For this Survey used a Non-probability Convenient Sampling technique is
used for recording the responses of 116 respondents. The convenience sampling
is used because the information gathered from those employees who were
accessed quite easily and conveniently.

57

3. Data Collection

Primary data collection

Primary data collection has been done by communication approach, personal
interview and survey.
Questionnaire Design: The questionnaire was designed to determine employee
motivation. To make the questionnaire understandable, it was divided into two
parts. The first part of the questionnaire contained questions regarding employee
Demographic Profile. The Second part was about reward and recognition system.
Here, a five point Likert Scale ranging from 1 (Highly Satisfied) to 5 (Highly
Dissatisfied) was used to measure responses.

Secondary data collection

For the Secondary data, use of the available literature, Internet, Magazines,
Published data other Journal publications has been made to find out the
theoretical framework and also to know what early research mentioned regarding
the given the survey.

4. Tools for analysis: For Analysis the Data of survey SPSS software used,
Frequency, present Details Tables done in SPSS Software and Pie charts and
Bar chart Made in Use MS Excel.

5. Limitations of the study

1. Employees are not willing to give response regarding their personal details
like salary.
2. Many of the Employees are newly joining prime co. operative Bank so they
dont have much knowledge about the systems and they may not receive all
benefits.
3. As the employee busy with their work, absenteeism of employee so cannot
get their response.
4. Some employees are Hesitate to gives right information.

58

CHAPTER 6
DATA ANALYSIS & FINDINGS

59

Analysis of Demographic Profile

To study the Designation of Employees
Table 6.1 Designation information of Employees
Designation
Frequency

Percent

Manager

6.0

Assistant general Manager

5.2

Officer

27

23.3

Clerk

74

63.8

Branch Head

1.7

Total

116

100.0

Designation
2%

5%
6%
Manager
23%

Assistant general Manager

Officer

64%

Clerk
Branch Head

Figure 6.1 Designation information of Employees

Interpretation: this Figure 6.1 show the data of designation in prime co-operative
Bank Ltd, Here we can observe from the above chart that there are 64% of the
employees Designation is clerk; 23% of employees Designation is officer,
Managers are 5% in the bank, Assistant General Manager is 5% and branch
head is 2% in the Bank.

60

To examine that under the which Department employees work

Table 6.2 Department information
Department
Number of Employee

Percent

2
17
18
12
2
17
20
17
2
2
4
3
116

1.7
14.7
15.5
10.3
1.7
14.7
17.2
14.7
1.7
1.7
3.4
2.6
100.0

All
Saving
Current
Fixed Deposit
Franking
Loan
Clearing
Cash
Non-Banking
Forex
Human Resource
Audit
Total

Department
Number of Employee
17

18

20

17

17

12
2

Figure 6.2 Department information

Interpretation: The graph show the Data of Departments and employees work in
department, there are total 11 department in prime co-operative bank, majority of
employees work in operational level, there are less employees in medium level
and higher level.

61

To Study the Gender of Employees

Table 6.3 Gender Information of Employees
Gender
Frequency

Percent

Male

55

47.4

Female

61

52.6

Total

116

100.0

Gender

Male
47%

Female
53%

male
female

Figure 6.3 Gender Information of Employees

Interpretation: The above graph provide information about gender in prime cooperative bank, here female employees are more than male employees, female
employees are 53% and the male employees are 47%

62

To study the Salary Package of Employees

Table 6.4 Salary Package of Employees
Salary (PA) (Approximately)
Frequency

Percent

Less than 1Lakh

10

8.6

1Lakh to 3Lakh
3Lakh to 5Lakh

68
32

58.6
27.6

5.2

116

100.0

More than 5Lakh

Total

Salary (PA) (Approximately)

5%

9%

28%

Less than 1Lakh

1Lakh to 3Lakh
58%

3Lakh to 5Lakh
More than 5Lakh

Figure 6.4 Salary Package of Employees

Interpretation: The graph provide information about salary package of the prime
co. operative bank, there are majority of employees salary package is between 1
lakh to 3 lakh, 28% employees salary package is between 3 lakh to 5 lakh, 9%
employees salary package is less than 1 lakh and most of them are fresher or
trainee, only 5% of employees salary package is more than 5 lakh, maximum
salary package is 6.5 lakh in the bank.

63

To study the Age group of Employees

Table 6.5 Age group Information of Employees
Age
Frequency

Percent

20 - 30 Year

43

37.1

31 - 40 Year
41 - 50 Year

62
10

53.4
8.6

Above 51 Year

.9

Total

116

100.0

Age
1%
9%
37%
20 - 30 Year
31 - 40 Year
41 - 50 Year

53%

Above 51 Year

Figure 6.5 Age group Information of Employees

Interpretation: The graph provide the information about Age group in prime cooperative Bank, here the majority of the employees age between 30 to 40 year
that is 53%, there are 37% employees are in young age group, 95 of the
employees age group is 41 to 50 year, there only one 1% of employees are age
is more than 51 year.

64

To study the Employees Job experience with Prime Co-operative Bank Ltd
Table 6.6 Experience of Employees with Prime Co-operative Bank Ltd
Year of Experience with Prime co. Operative Bank
Frequency
1 to 5 Year
5 to 10 Year
10 to 15 Year

55
33
13

present
47.4
28.4
11.2

15 to 20 year

12

10.3

20 to 25 year

2.6

116

100.0

Total

Year of Experience with Prime co. Operative Bank

10%

3%

11%

47%

1 to 5 Year
5 to 10 Year
10 to 15 Year
15 to 20 year

29%

20 to 25 year

Figure 6.6 Experiences of Employees with Prime Co-operative Bank Ltd

Interpretation: the graph provide information about the year of experience of

employees with prime co- operative bank, here 47% of employees have 1 to 5
year of experience with Bank, 29% of employees have a 5 to 10 year of
experience, 11% of the employees have a 10 to 15 year of experience, 10% of
employees have 15 to 20 year of experience and only 35 of employees have 20
to 23 year of experience with bank.

65

To Study the Impact of Compensation on Employees Motivation level

Table 6.7 Impact of Compensation on Employees Motivation level
Compensation
Benefits Pay is coAll Task
i
responding Associated
receive
with
with
performan
bonuses
ce
and
incentives
9
14
4

The
Amount
of pay i
receive

Highly
Satisfied
Satisfied
Neutral
Dissatisfied
Highly
Dissatisfied

3
85
21
7
0

70
32
5
0

63
33
4
2

Bonuses
and
profit
sharing
plans

Leave
policies

19

20

56
34
7
0

78
12
6
0

64
38
9
1

Compensation
Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

85
78
70
64

63

56
38

33

32

34

21
3

7
0

20

19

14
4 2

12

7
1

6
0

The Amount of Benifts i receive

Pay is
All task
Bonuses and
pay i receive
corresponding associated with profit sharing
with
bonuses and
plans
performance
incentives

0
Leave policies

Figure 6.7 Impact of Compensation on Employees Motivation level

66

Interpretation:

The

Figure

6.7

provides

information

about

Impact

of

Compensation of Prime co-operative Bank Ltd, here we can observe that there
are 85 employees are satisfied with their basic pay, 20 employees are highly
motivate because of leave polices, 70 employees are satisfied with benefits they
receive. From the year 2015 the bank change their pay system and now it is
Based on performance 63 employees satisfied with their new performance based
system, Bank giving bonuses and incentives to motivate their employees once in
year, 38 employees neutral about bonuses and incentives based on their task
which they performed, but overall majority of employees are satisfied and
motivate by their financial reward system.

67

To Study the Impact of Leadership & Support on Employee motivation

Table 6.8 Impact of leadership & support on employee motivation
Leadership Support/Direction
Manager
Informed
about
goals

Manager
encoura
ges me

Encourag
ed to think
of new
ideas

Supported to
make
improvements

Clear how
I can
contribute
to goals

32
64
18
1
1

37
57
20
1
1

28
55
32
0
1

26
62
27
0
1

42
52
17
4
1

Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly
Dissatisfied

Leadership Support/Direction
Highly Satisfied

Satisfied

Neutral

Dissatisfied

64

Highly Dissatisfied

62
57

55

52
42

37
32

28

32
26

27

20

18

1 1
Manager Informed
about goals

17
1 1

Manager
encourages me

0 1

0 1

Encouraged to think Supported to make Clear how I can

of new ideas
improvements
contribute to goals

Figure 6.8 Impact of leadership & support on employee motivation

Interpretation: The Figure 6.8

provide the information about Impact of

leadership & support on employee motivation at Prime co-operative Bank Ltd

from their Manager, 64 Employees are motivated by manager informed about
goals, 62 employees are satisfied to make them improve, 57 employees are

68

motivate by encourage them, 55 employees are motivate because manager

encourage them to think about new ideas and 32 employees are neutral about
that so manager should encourage those employee, 52 employees are
motivated by themself that they are clear how they contribute for goals, Managers
are successfully motivate employees.

To Study the Impact of Work itself on employee motivation

Table 6.9 Impact of Work itself on employee motivation
Work Itself
A

Amount

Security

There is

Duties and

Satisfied

Possibility

Schedule

sense

of job

Related to

Personal

responsibili

with

for

my own

of pride

security

future

growth

ty are

current

training,

work and

to do

I receive

prospects

and

allocated

recognition

seminar

make job

in bank

developm

on

system

and

related

ent

individual

further

Decision

interest

education

my job.

Highly

38

16

18

12

12

24

15

Satisfied

61

72

59

57

61

54

35

60

Neutral

16

24

32

24

39

41

34

34

Dissatisfi

11

17

22

Satisfied

ed
Highly
Dissatisfi
ed

69

Work Itself
Highly Satisfied

Satisfied

Neutral

59

57

Dissatisfied

Highly Dissatisfied

72
61

61
41

39

38

60

54
3534

32
24
16
9
10

18

16

11

24
17

24
12

9
0

12
4

34

22
15

9
0

7
0

Figure 6.9 Impact of Work itself on employee motivation

Interpretation: The Figure 6.9 provide to information about The Impact of work
itself and autonomy on employee motivation at Prime co-operative Bank, we can
see that 72 employees motivated and satisfied by job security, 61 employees are
motivated by duties and responsibility on their own interest and they feel pride to
do their job, also Bank provide autonomy to their employees, 54 employees are
satisfied with recognition system and 41 employee are neutral about the same,
here we can see that there are less employees who feel that bank can
development in them so many of employees are on neutral stage, here is the
main problem of the bank is their training, seminar and further education so its
create low impact on employee motivation, 22 employees are dissatisfied by that
so bank should provide them benefits for further study.

70

To Study the Impact of Promotional opportunity on employee motivation

Table 6.10 Impact of Promotional opportunity on employee motivation
Promotional opportunity
Opportunit
Increase Opportunitie
y for
level of
s for
Career
responsibil
growth/
developm
ity
advanceme
ent
nt

Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

21
54
35
5
1

14
68
30
4
0

21
57
31
7
0

opportunitie
s to learn
and update
with
emerging
skills and
knowledge
23
61
29
3
0

opportuniti
es to
leverage
their skills
through
training
programs
20
54
36
6
0

Promotional opportunity
Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

68
61

57

54

54

36

35

31

30
21

29

23

21

20

14
5

Opportunity for
Career development

7
0

Increase level of
responsibility

6
0

Opportunities for
Learn and update Leverage their skills
growth/advancement with emerging skills
through training
and knowledge
programmes

Table 6.10 Impact of Promotional opportunity on Employee motivation

71

Interpretation: The Figure 6.10 Provide the Detail about Impact of Promotional
Opportunity on employee motivation at prime co-operative Bank, there are 68
employees are motivate and satisfied with their increase level of Responsibility,
Bank motivates there employees by providing them learning updated and
emerging skill and knowledge, here 36 employees have neutral responds on skill
development program, 57 employees are motivated by their growth, 21
employees are highly motivate by their growth, the overall response of
employees on promotional opportunity is Satisfactory but bank have to do some
seminars for Develop their employees.

72

To study the Impact of Award system on Employee motivation

Table 6.11 Impact of Award system on Employee motivation
Awards
Receive
Long years
Best
Receive
award for
of service
performer
Award from
my
Award
award
bank in front
Regularity
of family and
staff member
Highly
Satisfied
Satisfied
Neutral
Dissatisfied
Highly
Dissatisfied

12

19

47
35
24
3

43
44
17
4

32
50
20
2

54
25
14
4

Awards
Highly Satisfied

Satisfied

Neutral

Dissatisfied

54

50

47

43 44
35

32
25

24

20

17
7

Highly Dissatisfied

8
3

Receive award for my

Regularity

19

14

12
4

Long years of service

Award

2
Best performer award

Receive Award from

bank in front of family
and staff member

Figure 6.11 Impact of Award system on Employee motivation

73

Interpretation: The Figure 6.11 provide information about the Impact of Award
system on Employee motivation of Prime Co-operative Bank ltd, Award system
as a one of most attractive way to motivate and satisfied employee without
money, Here we can observe the overall scenario of employee satisfaction by
award system, some of employees are dissatisfied with this award system, only
47 employees satisfied by get regularity award, there are so many employees
have long year experience with bank but still they do not got Long year service
award, majority of employee dissatisfied because of they never got best
performance award, annually bank organize annual program and invite
employees family members also and give awards and gifts front of them its
motivate employee to work more.

74

To Study the Impact of Recognition & Appreciation on Employee Motivation

Table 6.12 Impact of Recognition & Appreciation on Employee Motivation
Recognition & appreciation
An article

"thank you"

Appreciation

Getting

Individual

Pastry

by you is

or Note of

from the

vehicle as

photo, name,

cutting

published

appreciation

manager in

a gift for

&

ceremony

in the

from

front of the

best

achievement

on

Banks

supervisor,

colleagues

performanc

for best

individuals

magazine

manager, or

performance

birthday or

on bank

success at

notice board

bank

co-worker
Highly

22

30

24

10

16

15

Satisfied

40

40

56

45

48

43

Neutral

42

35

31

43

32

37

Dissatisfie

12

11

15

19

18

Satisfied

d
Highly
Dissatisfie
d

Recognition & appreciation

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

56
40 42

48

45 43

40

43
37

35

32

31

30
24

22
12

11

19

15

18

10
5

16

15
0

An article by you A personal "thank Appreciation Getting vehicle as Individual photo, Pastry cutting
is published in you" or Note of
from the
a gift for best
name, and
ceremony on
appreciation from manager in front performance achievement for
the Banks
individuals
magazine
supervisor,
of the colleagues
best performance
birthday or
manager, or coon bank notice success at bank
worker
board

Figure 6.12 Impact of Recognition & Appreciation on Employee Motivation

75

Interpretation: The Figure 6.12 provide information about Impact of Recognition

& Appreciation on Employee Motivation at The Prime co-operative Bank Ltd, this
is best way to motivate employee through non-financially, 56 employee are
motivated because manager appreciate them in front of their colleagues,
employees can motivate when their Article in Banks magazine, Bank give vehicle
to Best performance in the year but mostly employees neutral on that it mean
very less employee get vehicle because target is very high so its difficult to
complete it, 30 employees highly motivate receiving thank you or appreciation
note from their colleagues and officers, they are motivate when their achievement
and photos on notice board it motivate them also others to work more and
achieve targets, bank organize small party on individuals birthday or success to
motivate and satisfied them, overall recognition system is average employees are
neither motivate nor demotivate by system.

76

Table 6.13 Descriptive statistics for the Factors of work motivation

Descriptive statistics for the Factors of work motivation

Variables

Mean

Standard
Deviation

Ranking

Compensation

2.27

.50

Leadership, Support/ Direction

1.96

.62

Work Itself

2.28

.59

2.20

.64

2.64

.82

2.41

.65

Promotional Opportunity
Awards
Recognition & Appreciation

2
6
5

* Where high variables correspond to low motivation

Interpretation: With respect to the Factors of work motivation assessed by the

work motivation, Table 6.13 indicates that the means for the Compensation,
Leadership, Work itself, Promotional Opportunity, Awards, Recognition &
appreciation ranged from a low of 1.96 to a high of 2.64.
It therefore appears that Employees in the sample are relatively motivated;
however, the mean values for Awards and Recognition were the Highest. These
mean values indicate the areas that employees are like to motivate but current
scenario indicate that employees demotivated and dissatisfied by that Factors.
Thus shows that employees in the sample are mostly motivated due by their
Leadership, promotional opportunity, and compensation, work itself. They are
least motivated by the Awards they receive and recognition as determined by the
Work Motivation and Satisfaction.

77

Hypothesis
Hypothesis 1
H0: There is no significant relationship between Compensation and work
motivation and satisfaction.
H1: There is significant relationship between Compensation and work motivation
and satisfaction.
Hypothesis 2
H0: There is no significant relationship between Leadership, support/Direction
and work motivation and satisfaction.
H1: There is significant relationship between Leadership, support/Direction and
work motivation and satisfaction.
Hypothesis 3
H0: There is no significant relationship between Work itself and work motivation
and satisfaction.
H1: There is significant relationship between Work itself and work motivation and
satisfaction.
Hypothesis 4
H0: There is no significant relationship between Promotional Opportunity and
work motivation and satisfaction.
H1: There is significant relationship between Promotional Opportunity and work
motivation and satisfaction.
Hypothesis 5
H0: There is no significant relationship between Awards and work motivation and
satisfaction.
H1: There is significant relationship between Awards and work motivation and
satisfaction.
78

Hypothesis 6
H0: There is no significant relationship between Recognition & appreciation and
work motivation and satisfaction.
H1: There is significant relationship between Recognition & appreciation and
work motivation and satisfaction.
Hypothesis 7
H0: There is no significant relationship between Reward, Recognition and work
motivation and satisfaction.
H1: There is significant relationship between Reward, Recognition and work
motivation and satisfaction.

Table 6.14 Correlations between factors and work motivation

Factors correlations with work Motivation
Work motivation and satisfaction
Pearson

Significance

Variables

correlation

(2-tailed)

Compensation

0.58

0.000

Leadership, Support/ Direction

0.64

0.000

Work Itself

0.69

0.000

Promotional Opportunity

0.68

0.000

Awards

0.62

0.000

Recognition & Appreciation

0.58

0.000

Detail Calculation mention in annexure 2

Interpretation: The results indicates that Compensation correlates significantly

with work motivation and satisfaction (r=0.58) (p<0.01).This supports the
hypothesis that there is significant relationship between Compensation and work
motivation and satisfaction.
79

A significant correlation is shown to exist between Leadership, support/ Direction

and work motivation and satisfaction (r=0.64) (p<0.01), supporting the hypothesis
that there is a significant relationship between Leadership, support/ Direction and
work motivation and satisfaction.
Work itself correlates significantly with work motivation and satisfaction(r=.0.69),
(p<0.01).This supports the hypothesis that there is significant relationship
between Compensation and work motivation and satisfaction.
There was also a significant relationship between promotional and work
motivation and satisfaction (r=0.68) (p<0.01). Hence, this supports the hypothesis
that promotional opportunities are significantly related to work motivation and
satisfaction.
A significant correlation also exists between Awards and work motivation and
satisfaction(r = 0.62) (p < 0.01), supporting that Awards is significant in explaining
the variance in work motivation and satisfaction.
There was a significant relationship between Recognition and work motivation
and satisfaction (r=0.58) (p<0.01). Hence, the hypothesis that there is a
relationship between Recognition and work motivation and satisfaction is
supported.
Table 6.15 the relationship between rewards, recognition and work motivation
and satisfaction
Work Motivation and Satisfaction
Rewards

0.85

Recognition

0.71

*Correlation is significant at the 0.01level (2 tailed)

Interpretation: There is a statistically significant, direct and positive relationship

between rewards and work satisfaction and motivation (r = 0.85). Hence, if
rewards offered to employees were to be altered, then there would be a
corresponding change in work motivation and satisfaction.
80

The results indicate that there is a statistically significant, direct and positive
relationship between recognition and work satisfaction and motivation (r = 0.71).
This implies that if the recognition accorded to employees were to change, there
would be a change in work motivation and satisfaction.

81

Findings
The Prime co-operative Bank is successfully working from the Last 23year as
financial industry, to motivate their employees there are Reward and Recognition
Programs, Employees of the Bank are getting financial rewards more than nonfinancial rewards, some of them are very satisfied with that reward but some of
them want to grow their carrier.
Employees said
We receive all benefits, Insurance and Pay is on Basis of our Knowledge and
skill, Salary and Other Benefits are based on Experience, Authority, and
Designation, how long we are with Bank. We are highly Motivate to Leadership
and supportiveness and autonomy. We want to learn something new and we felt
that we need to improve our skill but we dont get any opportunity to learn.

Prime co-operative bank has Average Recognition Plan motivate employees,

According to survey, there are 24 employees who want to get awards for their
regularity and 17 employees want long year services with bank but they dont
achieve it, some employees are not willing to response about awards because
they are not satisfied so they are demotivate, best performance award
motivate most to employees.

only 32 employee received it, the prime co-operative bank celebrate one day
every year for their success, they invite family members of employees and
they give awards front Family members, it is best way to motivate but most of
the employees 54 employees are satisfied with is system.

40 employees satisfied and 42 natural about A personal "thank you" or mail of

appreciation from supervisor, manager, or co-worker when they done their
best performance, 56 employee satisfied with Appreciation from the manager
Employees become motivated most if they get Leadership, Support and
Direction. Maximum respondents, 52employees satisfied with they are Clear
how they can contribute to goals and 78 employees are motivate and

82

satisfied with the Leave polices, 57 employees responded that they are given
managers encourage them.

Promotional opportunity is become most attractive way to retain employees.

That is their Bank is well aware of this factor and giving enough opportunity
for their growth and development. Whereas, maximum respondents 72
employees answered they feel that their Bank provides Job Security, there
are autonomy to work there with minimum supervision its motivate
employees.

62 employees feel that Manager encourage them to think about new ideas,
from this factors employees things that bank value there employee, its can
increase employees knowledge and skill, Managers supported employees to
Make improvement, Managers and employees are Contribute same to
achieve goal . Prime co-operative bank should be concerned about increasing
the harmonious relationship among the employees and managers at
workplace.

Financial Reward are Basic necessary of life, 85 Employees are Satisfied with
The Amount of Pay I Receive, from the year 2015 the bank incentives plan
on the Bases of Performance, Employees Expect salary on the Basis of their
abilities, knowledge, Skill. All tasks are not associated with bonuses and
incentives, Bonuses and Profit sharing Plan motivate employees to achieve
their Target, additionally Holidays, Family tour, Health Insurance Policy Keeps
Employees Motivated.

61 employees satisfied with All task and responsibility based on their interest,
34 employees neither satisfied and nor dissatisfied with the Bank provide less
Benefits like seminar, Refreshment training, and further study plan that is why
employees are dissatisfied and not motivated.

in front of the colleagues, 45 employees motivate by vehicle gift as a best

performance for this year.
83

According to Study Correlation Between Reward and Recognition and Work

motivation and Job satisfaction, if Prime Co-operative Bank Ltd. Give Reward
to employee Employees are Motivate and satisfied, Recognition give more
motivation to employee, There are correlation between Recognition and Work
motivation.

According to Descriptive Study Employee are now Motivated by Leadership,

Support, Promotional Opportunity, Compensation, Work it Self, Awards and
Recognition, All this Variable are correlated to Work motivation and
Satisfaction.

43 employees are not giving any respond on it, 16 employee is highly satisfied
19 employees Satisfied with every month best performance or target achiever
Individual photo, name on bank notice board, 43 employees motivate and 18
employees not motivated by small party of a Pastry cutting on individuals
birthday or success at bank this all things are done by bank to motivate their
employees.

Employees said.
Every time financial reward is not motivate us but some of the stage we want
recognition, and we want to receive award, we perform our best, when we
receive it, it will be pried moment for us.

84

CHAPTER 7
CONCLUSION & RECOMMENDATIONS

85

The study concludes that a reward has positive effect on motivation and
satisfaction. Thus reward plan plays vital role in enhancing the value delivered
to

the

employees.

Form

this

study

Leadership,

support,

direction

compensation and promotional opportunity, job security, work itself,

Interesting work is the most attracting way to motivate employees.

Financial reward is not possible to give all time so that time Bank should give
recognition to employee to motivate although many Factors of work and job
motivation are related to motivation and satisfaction, there is a positive effect
of recognition on employee.

The mean values of Recognition and Awards, shows that employees are less
motivated with those aspects. Hence rewards and recognition plans programs
given to the employees of Prime co-operative bank in Surat city has to
Revised and need to good implementation, in such a way that it has to
motivate and satisfy employees.

The impact of non-financial rewards is

instrumental

in

improving

the

employee morale. Employees expect recognition and encouragement their

service because nobody likes to be unappreciated for the efforts he or she
made.

The results in reflect that there is a statistically significant relationship

between reward and recognition respectively, and motivation and satisfaction.
The study revealed that if rewards or recognition offered to employees were to
be altered, then there would be a corresponding change in work motivation
and satisfaction.

The results of this study also indicated that employees were less motivated by
Awards and Recognition than some of the other Factors of the Work
Satisfaction and Motivation. By implication, this means that if more focus is
placed on rewards and recognition, it could have a resultant positive impact
on motivation and thus result in higher levels of job performance.

According to Descriptive study, Employees of Prime Co-operative Bank Ltd

are Satisfied with Reward and Less Satisfied with Recognition, All variables of
this study are correlated with Work Motivation and Satisfaction.

86

Recommendations
Prime co-operative bank should redesign the reward and Recognition system.

Trainings and Seminar Sessions Can Be Organized for Enhancing Employee

Motivation

According to the survey findings the employees need Training

and seminar and also for further study because employee have poor Skill and
less knowledge so they need Refreshment program in order to motivate them.

Target should have realistic so employees can achieve it; some employees
are demotivated by higher target.

All tasks have to be associated with bonuses and incentives.

Bonus, Holiday pay, Overtime pay, Pension Benefits, Proper training and
promotion also to be given to the employees of Prime co-operative Bank in
order to they will be highly satisfied with their job.

Bank should revise Awards program, according to study many employees are
not receive at least one awards.

87

BIBLIOGRAPHY

88

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Websites

http://www.gujfed.com
http://www.primebankindia.com

91

ANNEXURE

92

Annexure 1
QUESTIONNAIRE
I am Komal Sompura pursuing MBA from S. R. Luthra Institute of Management, Surat. As
a part of the curriculum I am doing research on The Impact of Reward and Recognition
on Employee Motivation at Prime Co-operative Bank Kindly help me in the same by
filling the Questionnaire. Your response would be kept strictly confidential and would be
used only for academic research.

Demographic Profile

Designation: ____________________________ Department: _________________

Gender: _____________

Salary (PA) (Approximately): __________ Age: ______

Years of experience with Prime Co-operative Bank: ________

Which amongst the following do you feel as creating an impact on your motivation
level?
Highly
Satisfied
1

Statements
Compensation
The Amount of Pay I receive
Benefits I receive
Pay is corresponding with performance
All tasks to be accomplished are
associated with bonuses and incentives
Bonuses and profit sharing plans
Leave policies

Leadership Support/Direction
Manager Informed about goals
Manager encourages me
Encouraged to think of new ideas
Supported to make improvements

93

Satisfied
2

Neutral
3

Dissatisfied
4

Highly
Dissatisfied
5

Clear how I can contribute to goals

Work itself
A sense of pride to do my job.
Amount of job security I receive
Security Related to future prospects in
bank.
There is Personal growth and
development
Duties and responsibility are allocated on
individual interest
Satisfied with current recognition system
Possibility for training, seminar and
further education, supported by the Bank
Schedule my own work and make job
related Decision with minimum of
supervision

Promotional opportunity
Opportunity for Career development
Increase level of responsibility
Opportunities for growth/advancement
opportunities to learn and update with
emerging skills and knowledge
opportunities to leverage their skills
through training programs

Awards
Receive award for my Regularity

Long years of service Award

Best performer award

Receive Award from bank in front of

family and staff member

Recognition & appreciation

An article by you is published in the Banks
magazine
A personal "thank you" or Note of
appreciation from supervisor, manager, or
co-worker
Appreciation from the manager in front of
the colleagues

94

Getting vehicle as a gift for best

performance
Individual photo, name, and achievement
for best performance on bank notice
board
Pastry cutting ceremony on individuals
birthday or success at bank

Annexure 2
Correlation between Variables and work Motivation

Correlations between compensation and work motivation

Compensation
Compensation

Pearson Correlation

Work Motivation
1

Sig. (2-tailed)

.000

N
Work Motivation

.576**

Pearson Correlation

116

116

.576**

Sig. (2-tailed)

.000

116

116

**. Correlation is significant at the 0.01 level (2-tailed).

Correlations between Leadership, Support and work motivation

Work
Motivation
Work Motivation

Pearson
Correlation

Leadership,
Suppoort/ Direction
1

Sig. (2-tailed)

.000

N
Leadership, Suppoort/
Direction

.643**

Pearson
Correlation

116

116

.643**

Sig. (2-tailed)

.000

116

**. Correlation is significant at the 0.01 level (2-tailed).

95

116

Correlations between Work itself and work Motivation

Work Motivation
Work Motivation

Pearson Correlation

Work Itself
.692**

Sig. (2-tailed)

.000

N
Work Itself

Pearson Correlation

116

116

.692**

Sig. (2-tailed)

.000

116

116

**. Correlation is significant at the 0.01 level (2-tailed).

Correlations Between promotional opportunity and work motivation

Work
Motivation
Work Motivation

Pearson Correlation

promotional
opportunity
1

Sig. (2-tailed)

.686**
.000

N
permotional opportunity Pearson Correlation

116

116

.686**

Sig. (2-tailed)

.000

116

**. Correlation is significant at the 0.01 level (2-tailed).

96

116

Correlations between Awards and work motivation

Work Motivation

Work Motivation

Awards

.620**

Pearson Correlation
Sig. (2-tailed)

Awards

.000

116

116

Pearson Correlation

.620**

Sig. (2-tailed)

.000

116

116

**. Correlation is significant at the 0.01 level (2-tailed).

Correlations between Recognition & Appreciation and Work Motivation
Work
Motivation
Work Motivation

Pearson Correlation

Recognition &
Appreciation
1

Sig. (2-tailed)

.583**
.000

N
Recognition & Appreciation Pearson Correlation

116

116

.583**

Sig. (2-tailed)

.000

116

116

**. Correlation is significant at the 0.01 level (2-tailed).

Correlations Between Reward & work motivation

Reward
Reward

Pearson Correlation

Work Motivation
1

Sig. (2-tailed)

.000

N
Work Motivation

.851**

Pearson Correlation

116

116

.851**

Sig. (2-tailed)

.000

116

**. Correlation is significant at the 0.01 level (2-tailed).

97

116

Correlations between Recognition & work motivation

Work Motivation
Work Motivation

Pearson Correlation

Sig. (2-tailed)

.712**
.000

N
Recognition

Recognition

Pearson Correlation

116

116

.712**

Sig. (2-tailed)

.000

116

**. Correlation is significant at the 0.01 level (2-tailed).

98

116