PROJECT REPORT ON

EMPLOYEE MOTIVATION IN LIC

Submitted in partial fulfillment of the requirement for the degree of Bachelor of Business

Administration

SUBMITTED TO: SUBMITTED BY:

Mrs. Anjali Ahuja Vipul Kapoor
Asst. professor (BBA DEPT.) BBA (gen) 3rd SEM
02812401714

DELHI INSITITUTE OF RURAL DEVELOPMENT

Affiliated to G.G.S.I.P University sector-16C Dwarka, Delhi 110078
 STUDENT DECLARATION

This is to certify that I have completed the Project titled employee motivation in Life
Insurance Corporation of India under the guidance of Ms. ANJALI AHUJA in the partial
fulfilment of the requirement for the award of the degree of Bachelor in Business
Administration from DELHI INSTITUTE OF RURAL DEVELOPMENT, New Delhi.

This is an original work and I have not submitted it earlier elsewhere.

NAME OF THE STUDENT:- VIPUL KAPOOR

ENROLLMENT NO.-02812401714
 CERTIFICATE OF GUIDE

This is to certify that the project titled EMPLOYEE MOTIVATION IN LIC is an academic
work done by VIPUL KAPOOR submitted in the partial fulfillment of the requirement for the
award of the degree of Bachelors in Business Administration from DELHI INSTITUTE OF
RURAL DEVELOPMENT. under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him / her in the
project has not been submitted earlier elsewhere.

Teacher signature :

Ms. Anjali Ahuja

Assistant Professor

DIRD
STUDENT UNDERTAKING

I hereby declare that the Summer Training Report conducted at STUDY OF EMPLOYEE
MOTIVATION IN LIFE INSURANCE CORPORATION submitted in partial fulfilment of
the requirement of bachelor of business administration (BBA) Delhi Institute of Rural
Development Affiliated to: Guru Gobind Singh Indraprastha University, Delhi. It is my original
work and the same has not been submitted for the award of any other Degree/diploma /
fellowship or other similar titles or prizes.

VIPUL KAPOOR

Student signature
ACKNOWLEDGEMENT

I have prepared this study paper for the STUDY OF EMPLOYEE MOTIVATION IN LIFE

INSURANCE CORPORATION. Quite frankly, I have derived the contents and approach of

this study paper through discussions with colleagues who are also the students of this course as

well as with the help of various Books, Magazines and Newspapers etc.

I would like to give my sincere thanks to a host of friends and the teachers who, through their

guidance, enthusiasm and counselling helped me enormously. As I think there will always be a

need of improvement. Apart from this, I hope this study paper would stimulate the need of

thinking and discussion on the topics like this one.

VIPUL KAPOOR
Enrolment No.: 02812401714
BATCH: 2014-2017
 TABLE OF CONTENT

Chapter 1- Introduction

Chapter 2- Literature Review

Chapter 3- Company Profile

Chapter 4-

Objective of study

Scope of study

Limitation of study

Chapter 5- Suggestions

Chapter 6- Conclusion

Bibliography
EXECUTIVE SUMMARY

Motivation is defined as a persons internal drive to act on situations and modify it to serve his
own purposes which form the basis for all human development. It is primarily a psychological
function the mechanics of which is very sparsely understood hence not completely controllable.
This study attempts to increase this understanding to help managers control motivation affecting
factors to increase shareholder value.

This report looks specifically at the insurance sector as this is one sector which is anachronistic
to the rest of the India growth story and in other ways driving it. This sector is characterised by
low penetration and spends by Indian industry on one end but a strong and vibrant sector serving
global requirements using labour arbitrage as well as cost advantages from an excellent
manpower base. This lends to unique problems in how to build a large manpower base to serve
the global corporations, motivate and retain young professionals who know their worth in the
global marketplace.

The author envisaged that a discernable relationship is possible to be detected and documented
between key organizational attributes like respect for the individual, transparency, timeliness of
rewards and other such factors, the degree of motivation and drive that the individual felt
towards carrying out her responsibilities and the measures that managers and human resources
professionals could take to control and positively influence these factors to attain organizational
objectives.

All literature was studied to capture, understand and document the entire body of work by
management theorists and human resource experts around motivation including McGregor,
Maslow, Alderfer, Adams, Vroom, McClelland, and Herzberg. The first phase of primary
research study design consisted of building hypotheses based on the secondary research
conducted in earlier phases which showed the presence of around ten different motivational
models all of which appear to be prima facie correct in espousing relationships between factors
and motivation.

The second step consisted of building a questionnaire, which explored the relationship between
these factors and motivation as captured in the hypotheses for testing. Also an essential part of
the design were the assumptions governing the design which are validated and listed as
limitations if they are out of line with what was found to be practiced therefore introducing a
skew in the findings of the study.

The conclusions mostly support the current understanding of motivation inducing practices but
the author definitely sees room for incorporating a deeper understanding and insights obtained on
some issues that HR managers in organizations grapple with on an ongoing basis.
INTRODUCTION

In the organizational setting the word Motivation is used to describe the drive that impels an
individual to work. A truly motivated person is one who wants to work .Both employees and
employers are interested in understanding motivation if employees know what strengthens and
what weakens their motivation, they can often perform more effectively to find more satisfaction
in their job. Employers want to know what motivates their employees so that they can get them
to work harder. When people speak of motivation or ask about the motives of person, they are
really asking Why the person acts, or why the person acts the way he does .The concept of
motivation implies that people choose the path of action they follow. When behavioral scientists
use the word motivation, they think of its something steaming from within the person
technically, the term motivation has its origin in the Latin word mover which means to
move. Thus the word motivation stands for movement. One can get a donkey to move by using
a carrot or a stick; with people one can use incentives, or threats or reprimands. However, these
only have a limited effect. These work for a while and then need to be repeated, increased or
reinforced to secure further movement. If a manager truly understands his subordinates
motivation, he can channel their inner state towards command goals, i.e., goals, shared by both
the individual and the organization. It is a well known fact that human being have great potential
but they do not use it fully , when motivation is absent .Motivation factor are those which make
people give more than a fair days work and that is usually only about sixty-five percent of a
persons capacity .Obviously , every manager should be releasing hundred percent of an
individuals to maximize performance for achieving organizational goals and at the same to
enable the individual to develop his potential and gain satisfaction. Thus every manager should
have both interest and concern about how to enable people to perform task willingly and to the
best of their ability. At one time, employees were considered just another input into the
production of goods and services. What perhaps changed this way of thinking about employees
was research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932
(Dickson, 1973). This study found employees are not motivated solely by money and employee
behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human
relations approach to management, whereby the needs and motivation of employees become the
primary focus of managers (Bedeian, 1993). Motivation Theories Understanding what motivated
employees and how they were motivated was the focus of many researchers following the
publication of the Hawthorne Study results (Terpstra, 1979). Five major approaches that have led
to our understanding of motivation are Maslow's need-hierarchy theory, Herzberg's two- factor
theory, Vroom's expectancy theory, Adams' equity theory, and Skinner's reinforcement theory.
According to Maslow, employees have five levels of needs (Maslow, 1943): physiological,
safety, social, ego, and self- actualizing. Maslow argued that lower level needs had to be satisfied
before the next higher level need would motivate employees. Herzberg's work categorized
motivation into two factors: motivators and hygienes (Herzberg, Mausner, & Snyderman, 1959).
Motivator or intrinsic factors, such as achievement and recognition, produce job satisfaction.
Hygiene or extrinsic factors, such as pay and job security, produce job dissatisfaction. Vroom's
theory is based on the belief that employee effort will lead to performance and performance will
lead to rewards (Vroom, 1964). Rewards may be either positive or negative. The more positive
the reward the more likely the employee will be highly motivated. Conversely, the more negative
the reward the less likely the employee will be motivated. Adams' theory states that employees
strive for equity between themselves and other workers. Equity is achieved when the ratio of
employee outcomes over inputs is equal to other employee outcomes over inputs (Adams, 1965).
Skinner's theory simply states those employees' behaviors that lead to positive outcomes will be
repeated and behaviors that lead to negative outcomes will not be repeated (Skinner, 1953).
Managers should positively reinforce employee behaviors that lead to positive outcomes.
Managers should negatively reinforce employee behavior that leads to negative outcomes.
WHAT IS MOTIVATION? A basic principle is that the performance of an individual depends
on his or her ability backed by motivation. Stated algebraically the principle is: Performance =f
(ability motivation) Ability refers to the skill and competence of the person to complete a given
task. However, ability alone is not enough. The persons desire to accomplish the task is also
necessary. Organizations become successful when employees have abilities and desire to
accomplish given task. Motivation in simple terms may be understood as the set of forces that
cause people to behave in certain ways. 6 Reassess needs deficiencies 5 Receives either rewards
or punishment 4 Performs 3 Engages in goal directed behavior 2 Searches for ways to satisfy
needs theory 1 Identifies needs EMPLOYEE.
FRAMEWORK OF MOTIVATION

Framework of motivation The framework comprises six steps. (step1) Motivation process begins
with the individuals needs. Needs are telt deprivations which the individual experiences at a
given time and act as energizers. These needs may be psychological (e.g., the needs for
recognition), physiological (e.g., the needs for water, air or foods) or social (e.g., the needs for
friendship). (step2) Motivation is goal directed. (step3) A goal is a specific result that the
individual wants to achieve .An employees goal are often driving forces and accomplishing
those goals can significantly reduce needs. (step4) Promotions and raises are two of the ways that
organizations seek to maintain desirable behavior. They are signals to employees that their needs
for advancement and recognition and their behaviors are appropriate. (step5) Once the employee
have received either rewards or punishments. (step6) They reassess their needs. DEFINITIONS
Some definitions on motivation: how behavior gets started is energized, is sustained, is
directed, is stopped, and what kind of subjective reaction is present in the organism while all this
is going on jones, 1955). the term motivation refers to a process governing choices made by
person or lower organisms among alternative forms of voluntary activity motivation is the
result of process, internal or external to the individual that arouse enthusiasm and persistence to
pursue a certain course of action. motivation is a process that starts with a physiological or
psychological deficiency or need that activates behavior or a drive that aimed at a goal or an
incentive Obviously, the first definition covers all stages shown in the motivation model. The
Role of Motivation: Why do we need motivated employees? The answer is survival (Smith,
1994). Motivated employees are needed in our rapidly changing workplaces. Motivated
employees help organizations survive. Motivated employees are more productive. To be
effective, managers need to understand what motivates employees within the context of the roles
they perform. Of all the functions a manager performs, motivating employees is arguably the
most complex. This is due, in part, to the fact that what motivates employees changes constantly
(Bowen & Radhakrishna, 1991). For example, research suggests that as employees' income
increases, money becomes less of a motivator (Kovach, 1987). Also, as employees get older,
interesting work becomes more of a motivator.
IMPORTANCE OF MOTIVATION

Probably, no concept of HRM receives as much attention of academicians, researchers and

practicing managers motivation. The increased attention towards motivation is justified by
several reasons 1. Motivated employees are always looking for better ways to do a job. This
statement can apply to corporate strategists and to production workers. It is the responsibility of
managers to make employees look for better ways of doing their jobs. 2. A motivated employee
generally is more quality oriented. This is true whether we are talking about a top manager
spending extra time on data gathering and analysis for a report or a clerk taking extra care when
filing important document. 3. Highly motivated worker are more productive than apathetic
worker .The high productivity of Japanese worker and the fever worker are needed to produce an
automobile in Japan than elsewhere is well known. An appreciation of the nature of motivation is
highly useful manager. 4. Every organization requires human resources in addition to financial
and physical resources for it to function .Three behavioral dimensions of HR are significant to
organizations (i) people must be attracted not only to join the organizations but also to remain it
(ii) people must perform he tasks for which they are hired and must do so in a dependable
manner and (iii) people must go beyond this dependable role per performance and engage in
some form of creative, spontantaneous, and innovative behavior at work. 5. Motivation as a
concept represents a highly complex phenomenon that affects. and is affected by .a multitude of
factors in the organizational milieu .an understanding of the topic of motivation is thus essential
in order to comprehend more fully the effects of variations in other reaction as they relate to the
performance, satisfaction, and so forth 6. Why increasing attention is paid towards motivation
can be found in the present and future technology required for production, as technology
increases in complexity, machines tend to become necessary, yet insufficient, vehicles of
effective and efficient operation .Consider the example of the highly technologybased space
programmed in our country. The polar Satellite Launch Vehicles (PSLV) lift-off has been the
result of 12 years of developmental work, transfer of technology to the private industry,
smoothening the manufacture of components and subsystem .complex project management, and
dedicated work by literally thousands in ISRO. Industry other national laboratories and research
institutes. With this feat, India has joined the exclusive club of half a dozen nations that can build
and, more importantly, launch its own satellites. The secret behind the success of ISRO has been
its employees who are both capable of using and are willing to use the advanced technology to
reach the goals.
MOTIVATIONAL CHALLENGES

The framework of motivation indicates that motivation is a simple process. But in reality , the
task is more daunting One reason why motivation is a difficult task is that the workforce is
changing. Employees join organizations with different needs and expectations. Their values,
beliefs, background, lifestyles, perceptions and attitudes are different. Not many organizations
have understood these and not many HR experts are clear about the ways of motivating such
diverse workforce. Motivating employees is also more challenging at a time when firms have
dramatically changed the jobs that employees perform, reduced layers of hierarchy, and
jetusoned large numbers of employees in the name of right-sizing or downsizing .These actions
have considerably damaged the level of trust and commitment necessary for employee to put in
efforts above minimum requirements some organization have resorted to hire and fire and pay
for- performance strategies almost giving up motivational efforts. Such strategies may have some
effects (both positive and negative) but fail to make and individual overreach him or her Third,
motives can only be inferred, but not seen. The dynamic nature of needs offend poses challenge
to any manager in motivating his or her subordinate. An employee, at any given time, has a
various needs, desire, and expectations. Employees who put in extra hours at work to fulfill their
needs or accomplishment may find that these extra hours conflict directly with needs for
affiliation and their desire to be with their families However, there is no shortage of models,
strategies, and tactics for motivating employees. As a result, firms constantly experiment with
next motivational programmed and practice. Work Motivation Craig Pinder echoing the basic
definition of motivation, define it as follows: Work motivation is a set of energetic force that
originate both within as well as beyond and individuals being, to initiate work related behavior,
and to determine its form, direction, intensity, and duration. While general motivation is
concerned with effort towards any goal, Stephen Robbins narrow the focus to organizational
goals in order to reflect singular interest in work related behavior the effort element is a measure
of intensity. The need means some internal state that makes certain outcomes appear attractive.
And unsatisfied need creates tension that stimulates drives within the individual. This drives
general a search behavior to find particular goals, if attend, will satisfied the needs and lead to
the reduction of tension.
Mechanism of motivation

Motivation is the process that starts with physiological or psychological deficiency or need that
activate behavior or a drive that is aimed at a goal or incentive. The following diagram depicts
the motivation process. Mechanism of Motivation Needs Drives Goal Deprivation Deprivation
Reduction With of Drives Direction Thus, the key to understanding motivation lies in the
meaning of, and relationship between needs, drives and goals, Needs: Needs are created
whenever there is a physiological or psychological imbalance For example: A need exists when
cells in the body are deprived of food and water or when the personality is deprived of other
people who serve friends or companions. Although psychological may be based on a deficiency,
sometimes they are not. For instant, and individuals with a strong need to get ahead may have a
history of consistent success Drives: Drives (Or motives) are set up to alleviate needs.
Psychological needs can be simply defined as a deficiency with direction. Physiological or
psychological drives are action oriented and provide energizing thrust towards reaching an
incentive or goals. They are at the very heart of the motivational process. The needs for food and
water are translated into hunger and thrust drives, and the need for friend becomes a drives
affiliation. Thus, a drive is a psychological state which moves an individuals satisfying a needs
Goals: At the end of the motivational cycle is the goal or incentive. It is anything that wills that
will alleviate a need and reduce a drive. Thus, attaining a goal will tend to restore physiological
or psychological balance and will reduce or cut off the drive. Eating food, drinking water and
obtaining friends will tend to restore the balance and reduce the corresponding drives food, water
and friends are the incentive are the goals in this example Conceptual clarification: (motives,
motivation and motivating) The terms motives, motivation and motivating which are derived
from the Latin word Mover (to move) are important concept which have distinct connotation.
In order to steer the energies of the employees towards organizational goals accomplishment, it
is essential to grasp the meaning and significance of this concept and also to learn how to apply
them intelligently Motives: Motive is defined as a inner state that energizes, activates (Or moves)
and directs (or channels) the behavior of individuals towards certain goals the strong motives or
needs are fulfill. In order to minimize the restlessness, and keep it under control, the individual is
propelled into action. Thus motive induce individual to channel their behavior towards such type
of actions as would reduce their state of restlessness are inner disequilibrium. Thus motives can
be thought of as drives that energize people to action. Motivation: while motives are energizers
of action, motivation is the actual action that is work behavior itself. For instance, when a
employee work hard, his level of motivation may be consider as low. Thus, the level of
motivation of employee is judged by his actual work behavior Motivating: Motivating it is the
term that implies that one person induces another to engage in action or work. Behavior by
ensuring that a channel to direct the motive of the individuals become available and accessible to
the individual. Managers play a significant role in channeling the strong motive in a direction
that he satisfying to both the organization and the employees. Additionally, managers are also
responsible for awakening or activating latent motives in individuals- that is the needs that are
less strong and somewhat dormant and harness them in a manner that would be functional for the
organization.
Theories of Motivation

A Wide Array of Needs Employees May Have A Look at the Various Motivation Theories:

Manager
Behaviour Consequences for
Job employers
Design Employee And employees

Organization
Motivation Improved
Employee individual and
Context
Satisfaction team performance
Individual
Differences Satisfied Customers
High Morale
Reduced turnover
Herzbergs Two-Factor Theory

The absence of dissatisfiers is not enough to motivate employees. There should be a presence
of satisfiers to motivate them. Dissatisfiers denote things that dissatisfy the employee at the
work place and could be anything ranging from a stressful work culture to unhygienic conditions
at work to incorrect expectation setting at the time of recruitment. Satisfiers may include a
flexible work environment, a flat organizational structure or a good performance appraisal and
recognition mechanism.

We need to identify the dissatisfiers and eliminate them. We need to identify the satisfiers and
enhance them. Feedback should be sought about possible satisfiers from department heads.

McClellands Need Theory:

Employees have three needs that when fulfilled, become drivers for the employees to perform
well within the organization, keep them motivated and loyal to the organization: (a) Affiliation
need, that is, the need to share a sense of belonging, (b) the need for positive achievement,
through successful work accomplishment - the sense of worthwhile achievement at the
organization, and (c) the need for power - employees need to be empowered enough to take
certain decisions on their own without always seeking consent of their superiors.

Maslows Need Hierarchy:

Maslow explains that, all humans have a hierarchy of needs, and, as the lower level needs are
met, the individual is motivated to achieve each successive level of need:

1. The lowest level needs are biological and physiological needs. These are required for the
basic sustenance of life basic minimum wages.

2. Following, is by the need for safety - people would not like to work in environments that
are unsafe, or if the travel to their respective work place endangers them in any way.

3. Next is the need for belongingness. People need to belong to an organization or to a

culture that is how the fabric of human society is built.

4. Once these are achieved, individuals seek esteem people desire that those, whom they
admire, should admire them in return, and work towards achieving that aim. People have
a need to lay claim to dignity and respect in the society they belong.

5. Once all these four needs are met, employees finally turn to the need for self-
actualization. This means that people need challenges to help them grow and achieve at
their workplace this will enable them to realize their own potential.

Alderfers ERG Theory:

Employees have the need to Exist, the need to feel Related to the organization and the need for
personal and career Growth. These, when collectively satisfied, keep them motivated.
Management By Objectives:

This means that the human resources of an organization be managed and motivated via setting
purposeful objectives. These goals/objectives must be specific to the employees and aligned with
organizational goals. They:

o Must be set in concurrence with the employees

o Should have a pre-specified time period

Evaluation on the goal progress must be done regularly and according to predefined measures

Victor Vrooms Expectancy Model:

This encompasses three steps:

1. Expectancy this refers to the probability assigned by the employee that an effort on his
part will lead to a certain level of task performance.

2. Instrumentality refers to the probability assigned by the employee that a certain level of
task performance from him, will lead to various work outcomes like quarterly bonuses.

3. Valence refers to the value attached by the employee to various work outcomes,
meaning the value attached to the quarterly bonus by the employee.
 Individual 1 Individual 2 Organizational
Effort Performance Rew ards

1. Effort-performance relationship
Personal
2. Performance-rewards
Goals
relationship
3. Rewards-personal goals
relationship

REINFORCEMENT THEORY

Positive employee behavior should be met with positive reinforcements like rewards or
recognition. Negative employee behavior, which the firm wishes to discourage, should be met
with negative reinforcement or punishment, like withdrawal of expected bonus etc.

Response of Consequences for Likelihood of

Stimulus Employee Behaviour
Employee
(Behaviour X) X in a Similar Future
Situation
Employee Experiences a
Reward
(Positive Reinforcement)
or
Employee Avoids a
Negative Consequence
A Situation Employee (Negative
Experienced Reacts Reinforcement)
or
By Employee By Exhibiting Employee Experiences a
Behavior X Negative Consequence
(Punishment)
or
Employee Experiences
No Consequences
(Extinction)
Adams Equity Theory:

Adams Equity Theory

Ratio Employees
Comparison Perception
*
Outcomes
<
Outcomes
A B Inequity (Under-Rewarded)
Inputs A Inputs B
Outcomes Outcomes
= Equity
A B
Inputs A Inputs B
Outcomes Outcomes
> Inequity (Over-Rewarded)
A B
Inputs A Inputs B

*Where A is the employee, and B is a relevant other or referent.

McGregors Theory X and Theory Y

Two distinct views of people:

o Negative (Theory X) (lower needs)

o Positive (Theory Y) (higher needs)

Theory X Workers: Theory Y Workers:

a) Dislike work g) View work as natural
b) Must be threatened with h) Self-directed
punishment i) Exercise self-control
c) Avoid responsibilities j) Accept responsibility
d) Seek formal direction k) Seek responsibility
e) Require security l) Make innovative decisions
f) Little ambition
Intrinsic Motivation Theory

Employees need the following elements to be present in their work environment for them to feel
motivated: (a) choice employees should have some say in the kind of work they do, (b)
competence employees should be able and competent and working in an environment where
people are efficient and competent, (c) meaningfulness employees should be made to
understand that what they are doing is useful for the organization and (d) purpose employees
must have a purpose and that purpose must be aligned with that of the organization. Once they
see their purpose/goal getting fulfilled through their work, they will automatically be motivated
to continue working and reach newer levels of achievement through challenging roles and
greater responsibilities.
 Power & Achievement (McLelland)
Affiliation (McLelland)
Intrinsic

Growth
(Alderfer) Motivation Factors
(Herzberg)

Relatedness
(Alderfer)
Extrinsic

Existence Hygiene
(Alderfer) factors
(Herzberg)
Hierarchy of Needs
(Maslow)

Motivational Practices

Strong fundamentals embedded within the company. The company works by a set of values or
operating principles. This has helped in maintaining the organisation as an integrated whole. The
teams that went from Delhi to commence operations in Mumbai and Chennai and from Mumbai
to start in Navi Mumbai and Pune, were already deeply entrenched in the value system, which
helped in spreading a uniform culture across the different centres.

The values laid down in the companys preamble are Intensity to win, Integrity and Honesty,
Teamwork, Respect and Dignity, Accountability, Fun, Customer Centricity, Innovation
and Excellence. Compensation is directly linked to these operating principles. Increase in salary
is based on how dedicatedly the employees follow these values, including the value of fun.
The willingness of the employees to follow these operating principles is because of the
importance that the company has empowered them with. It has identified that people are the most
important resource in the industry and therefore the significance of effectively managing the
asset. As a result all efforts are directed in meeting that objective. The HR policies of the
company are designed in terms of what employees want and not what the company wants.

At the time of induction, the employees are trained on global culture and all the other different
aspects of their job. They are also given soft skills and English language training since they have
interaction with clients globally. The training ensures that they speak grammatically correct,
clear and unaccented English so that it is understood clearly by all. The employees thus do not
feel the pressure or discomfort of a new accent. They eventually pick up the accent on their own
as they interact with customers. This allows the employees to grow comfortably.

Team heads and managers recognise the development needs of their team members and training
is accordingly imparted. The performance is regularly gauged through a performance
management system, which involves a one-to-one personal contact. Counselling is also provided
on the basis of shortcomings. Still the challenge of finding the right set of people for a job is very
pressing.

One of the means of motivation is through instilling a sense of belonging. While compensation is
an important motivational factor it is not the only one. Making employees participate and
contribute in different activities helps in keeping them engaged in the organisation and brings
about a sense of belonging. In fact, there are even rewards for participation.
The HR department only acts as a facilitator of employee initiatives rather than driving them.
The initiatives are largely driven by the employees themselves. For instance, the colour schemes
used in the workplace and canteen. The employees initiate all parties, fun activities, etc. Teams
can suddenly come up with an idea of a movie, pizza party, disco or picnic for which they do not
need to come to HR department for sanction or approval. The team leader and his/her team
drives the entire planning and execution keeping their own work schedule in mind. There is an
annual budget allocated to each of the teams for all the extra curricular activities.

This is well complemented by an open and transparent culture, with any employee free to move
into the CEOs cabin and discuss their problems.
While ensuring fun at workplace the company also takes care of its employees health with the
work environment being designed keeping the ergonomics in mind. The whole idea is to have
comfortable and spacious work environment for the employees so that they do not feel stressed
out. The workstations are also with ergonomic features. In addition to this, there is a health
centre in each location, with a nursing assistant and a doctor on call. Further, all the employees
are covered under medical insurance.

The company also keeps in mind the significance of meeting employees career growth
aspirations. The company recognises that career development is not only vertically but there is
also a lot of scope for horizontal growth opportunities in terms of moving up the value-chain and
handling more difficult and critical clients and processes.
Employees are allowed to move out from one process to another if he or she does not want to
continue with it any longer. There is also the provision for moving internally between the
different LIC companies. A recent study conducted by the company measured its employee
satisfaction level at 70 percent.
Employee Motivation at LIC

Professional growth activities, comprising of:

1. Personal Business Commitments

At the start of each year, every Employee is expected to set personal business goals that align
directly with LIC's overall business goals and values. These goals should guide the Employee
throughout the year. At the end of the year the Employee manager will evaluate how well the
defined goals are achieved, compared to peers, and give the Employee a PBC rating to reflect the
overall performance. This rating will be a key factor in determining performance bonus, pay
increase, and career opportunities.

2. Individual Development Plan

Once PBC business and development goals are defined, it's time to add details to the plan of
action the Employee will take to ensure he/she meets his/her business objectives. It provides a
clear layout of short-term objectives as well as long-term goals. To complete , the Employee and
his/her manager agree together that goals and aspirations are realistic, and that the identified
actions support continued development and contributions to LIC.

3. Understanding skills and competencies the Learning Roadmaps

It is important that each employee understands the skills and competencies his/her business unit
or profession expects him/her to assess and master. Learning Development Models provide a
concise view of the learning activities and resources available to develop expertise within a given
profession, organization, business unit, technical environment or geography. Some learning tools
available to all employees within LIC, irrespective of the country or business unit that they are
in:

o Learning LIC Portlet

o Foundational Competencies

o e-Learning
Periodically, the competencies of employees are mapped according to their job role and market
demand, and opportunities are outlined for each employee. Employees also have access to the
LIC internal job market through a tool called Best Person for the Job. It matches skills to open
vacancies and new work demands.

Value Diversity in the Workforce and Provide Equal Opportunity for all Employees
LIC embraces diversity in our workforce. Diversity brings richness to our teams, which better
enables us to reflect the interests and demands of our customers and to reflect the characteristics
of the communities in which the employees live. LICs work environment is inclusive of
individuals regardless of race, sex, sexual orientation, religion, disability or any other
characteristic. LIC is fully committed to equal opportunity for all employees.

Reward and Profit Sharing

Rewarding employees financially improves levels of employee motivation and thus improves
productivity, which ultimately shows up in the 'bottom line'. LIC believes that part of the
increased profits must be circulated back to the workforce responsible for it.

Staff Welfare Policy

LIC firmly believes, that creating an environment that promotes excellence coupled with a
feeling of caring and concern towards individual employees, will contribute towards improving
morale and reducing attrition. While there is a system in place to reward / award employees on
the basis of performance, we need to focus on building team work and a feeling of belonging.

Employee Assistance Programme - MITR

The Employee Assistance Programe stems from our emphasis on the physical and emotional
well-being of our employees to ensure a fit, healthy, productive workforce. MITR is constitutes a
team of emotional health experts - to provide free counseling services to employees.

The Employee Assistance Programme (EAP) offers free, confidential counseling and referral
services designed to help employees and their immediate family members resolve personal,
emotional and behavioral problems / issues that may be interfering with their work or home life.
Counseling may be done face to face or appointments taken for telephone counseling. Options of
e-counseling are also available. The overall objective is to improve employee well-being and
enhance their work / life balance. Issues dealt with include:
o Anger management

o Dealing with stress

o Difficult life changes

o Relationships

o Work related problems

o Parenting concerns
LITERATURE REVIEW

Literature review Bartol and Martin (1998) consider motivation a powerful tool that reinforces
behavior and triggers the tendency to continue. In other words, motivation is an internal drive to
satisfy an unsatisfied need and to achieve a certain goal. It is also a procedure that begins through
a physiological or psychological need that stimulates a performance set by an objective. As
compared to financial resources, human resources have the capability to create competitive
advantage for their organizations. Generally speaking, employee performance depends on a large
number of factors, such as motivation, appraisals, job satisfaction, training and development and
so on, but this paper focuses only on employee motivation, as it has been shown to influence to a
significant degree the organizational performance. As Kalimullah (2010) suggested, a motivated
employee has his/her goals aligned with those of the organization and directs his/her efforts in
that direction. In addition, these organizations are more successful, as their employees
continuously look for ways to improve their work. Getting the employees to reach their full
potential at work under stressful conditions is a tough challenge, but this can be achieved by
motivating them. On the other hand, Mary (1996) explains organizational effectiveness as the
extent to which an organization fulfills its objectives, by using certain resources and without
placing strain on its members. The goal model defines organizational effectiveness referring to
the extent to which an organization attains its objectives (Zammuto, 1982), while the system
resource model defines it in terms of the bargaining power of the organization and its ability to
exploit the environment when acquiring valuable resources (Yuchtman, 1987).
RATIONALE FOR THE STUDY

The project is borne from the need to understand the dynamic business environment in India
today, especially in the insurance sector, what it means for organizations in terms of human
resources and motivating them to derive maximum benefits through growth in value. This
section covers the background of motivation, the current HR issues facing the industry, the
objectives derived and the rationale behind it finally ending in the project plan.

This study was conducted with the objectives as described below with the intent of
understanding the factors that govern motivation and the issues surrounding it, their effect on the
organizational effectiveness and productivity as well as the common malaises like attrition,
which are the eventual outcomes such issues. The author envisaged that a discernable
relationship is possible to be detected and documented between key organizational attributes like
respect for the individual, transparency, timeliness of rewards and other such factors, the degree
of motivation and drive that the individual felt towards carrying out her responsibilities and the
measures that managers and human resources professionals could take to control and positively
influence these factors to attain organizational objectives.
 Organizational
Factors Motivation
Effectiveness

Intervention
by HR and
Managers

To be able to carryout the intervention as shown above it is necessary to completely understand

the factors and their influence on the environment within the organization. This study attempts to
do precisely that and hereby give managers and human resources professionals an insight into the
workings of employee motivation to aid him in this effort.

Motivation Background

In essence, motivation is the internal impulse to take action. It is the feeling triggered within that
compels you to do something. Motivation is the root of every action a person takes, from simple
day-to-day activities to lifelong goals and ambitions. Without motivation, the progress of the
world would come to a grinding stop. Nothing could improve if every individual capable of
working toward change lacked the motivation to move forward with their plans. Motivation is
the internal drive to continuously improve.

The most difficult job that faces a supervisor is learning how to effectively motivate and keep
his/her employees motivated. The average person when asked how to motivate someone will tell
you what motivates him or her. Unfortunately, everyone is different and what motivates one
employee may only make another employee angry. They must offer them something valuable as
an incentive to work harder and better towards a goal.

In today's fast paced world, work pressure is increasing and work-life balance is becoming
increasingly difficult to achieve. In this scenario, individuals either burn out quickly or keep
switching jobs to manage stress, motivation and pressure along with their finances. Companies
today cannot afford the high attrition rates because as competition increases, they need to cut
costs as well as innovate. This requires them to stem attrition costs and retain and grow talent for
sustained competitive advantage. Therefore they need to understand employee motivation and its
linkage to productivity, performance, innovation and attrition. They also must understand all the
factors that affect and motivate their employees in varying measures.

Current HR Issues

Globalization Increased Opportunities War for talent

Attrition

Work Intensification Emphasis on Talent

Retention, Motivation,
Performance and
Development

As the Indian economic climate has been dynamically changing since 1991, the Human
Resources Personnel of the corporate world are grappling with a wide range of challenges along
with an increasing pressure to show results in terms of profits and measurable benefits. Due to
globalization and a flattening of the world, issues like Mergers and Acquisitions, Cultural and
Structural changes, Workforce Diversity, Work-life Balance are increasingly gaining importance.
To sustain their competitive advantage in an era where technology is transferable, organizations
must depend on their human resources for sustained competitive advantage because it is the
employees, collectively and individually, who shape and grow the company through their vision,
ideas and efforts. The companies must therefore, attract, retain and develop their talent pool, as
talented, motivated and committed employees perform better, stay longer and make the company
grow.

With globalization and advances in different sectors, markets have become more competitive and
companies are expanding across the globe global markets with a physical as well as electronic
distribution network. This means there are more jobs and only a handful of qualified people for
those jobs. Therefore, there isincreasing war for talent. This talent crunch leads also to a high
attrition rate due to competitors poaching talent. This means that existing talent needs to be
developed and nurtured while new talent acquired and/or trained, thus more costs. It also calls
for leadership identification and development programmes and a planned periodical succession
planning activity.

To make matters worse, the existing employees become increasingly difficult to manage in case
of mergers, acquisitions, organizational restructuring and technological changes due to an
unwillingness to come out of the comfort zone to embrace and adapt to change. The existing
employees in such scenarios either join unions to oppose change, look for exit options, become
de-motivated and under perform or grudgingly accept change. So, the costs of change rise as
productivity and efficiency lounge on the back seat.

Increasing competition and talent crunch also lead to work intensification, which leads to issues
like stress, burn out and the need for work-life balance. This again spirals down to more attrition
due to de-motivation to perform and motivation to search for new jobs that either pay more or
are less stressful and fulfill their needs and ultimately result in job satisfaction as well as work-
life balance.

Work intensification is not the only contributor to stress and burnout. Contributions are also
made by outsourcing which leads to a change in lifestyle, quick job switches, as well as
absenteeism, which all adds to stress. Greater competition amongst the workforce to get better
jobs and climb up the social-economic ladder, add to the workplace stress and burnout. This is
due to the increase in workforce diversity as more women continue to join the workforce and as
recruiters desperately scout Thomas Friedmans shrunken-flattened world for talent. This leads
to people from different cultures, genders and generations working together simultaneously. So
now the Human Resources Personnel need to ensure that all these different individuals, work
collaboratively in teams to increase profits, and then evaluate them on a common platform. Thus
comes in the need for fostering a cohesive organizational culture based on a sense of belonging
cultivated through shared values, vision, beliefs and attitudes to encourage activities and
behaviors aimed towards accountability (ownership of work), creativity, innovation, learning,
openness, transparency, originality and ideation.

A diverse workforce in terms of gender, age and cultural background, also means a different set
of needs, expectations and aspirations along with different styles of working. Thus integrating
them and collectively motivating them is essential for effective and efficient performance.

All these HR issues boil down to the words sustained profitability, which depends on three
requirements a) improve performance and make if more efficient and effective b) retain high
performing individuals, and c) grow them to become visionary leaders and change agents to
make the company grow exponentially.

Now all these are linked inextricably to motivation. Performance-on-the-job, is a function of the
ability to perform and the willingness or motivation to perform. Inability to perform may be
overcome by training. However, for training too, the individual needs to be motivated enough to
learn. A motivated high performing individual would be less inclined to quit if he/she has sense
of belonging with the organization and is aware of the career growth opportunities within the
company.
PROFILE OF THE ORGANIZATION AT LIC

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

The first two decades of the twentieth century saw lot of growth in insurance business. From 44
companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total
business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed miserably. The Insurance Act
1938 was the first legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business. The demand for nationalization of life
insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However,
it was much later on the 19th of January, 1956, that life insurance in India was nationalized.
About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India
was created on 1st September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate
office in the year 1956. Since life insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need was felt in the later years to expand
the operations and place a branch office at each district headquarter. re-organization of LIC took
place and large numbers of new branch offices were opened. As a result of re-organisation
servicing functions were transferred to the branches, and branches were made accounting units.
It worked wonders with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year
1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But
with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the Corporate office. LICs Wide Area Network covers 100 divisional offices
and connects all the branches through a Metro Area Network. LIC has tied up with some Banks
and Service providers to offer on-line premium collection facility in selected cities. LICs ECS
and ATM premium payment facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance
and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued
over one crore policies during the current year. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the
corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance
records in various aspects of life insurance business. The same motives which inspired our
forefathers to bring insurance into existence in this country inspire us at LIC to take this message
of protection to light the lamps of security in as many homes as possible and to help the people
in providing security to their families.
Mission
"Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering resources
for economic development."

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

Board of Director
Members On The Board Of The Corporation
Shri. T.S. Vijayan (Chairman)
Shri. D.K. Mehrotra (Managing Director - LIC)
Shri. Thomas Mathew T. (Managing Director - LIC)
Shri. A.K. Dasgupta (Managing Director - LIC)
Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)
Shri. G.C. Chaturvedi (Additional Secretary, Department of Financial Services, Ministry of
Finance, Govt. of India.)
Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)
Shri. T.C. Venkat Subramanian (Chairman & Managing Director. Export Import Bank of
India)
Dr. Sooranad Rajashekhran
Shri. Monis R. Kidwai

1. Most of the banks take into account the brand name of the insurance company before
entering as an agent. Thus one sees a congruence of objectives between both the insurance
company and the bank.
2. Most of the banks have found out that the interest income which was the driver earlier is
slowly decreasing- hence most of them believe that fee based income is the biggest reason
for them to sell insurance products.

3. Most of the banks mentioned no operational problems but there were problems mentioned
like that the bank employees have not as yet recognized that selling insurance as one of their
duties they tend to sell them only if the customers ask for the same.

4. Most of the banks promote the insurance products only through advertisements (banners,
pamphlets kept in the bank premises). In most cases there is no role of the bank the
insurance company designs the same and the role of the bank is limited to just showing them
in their premises. In cases where the initiative is taken by the bank there has been a huge
rise in the income from the bancassurance model. For e.g.: Andhra bank does sell the
insurance products by conducting demos to people who are not even their customers.
5. Most of the banks do not participate in the designing of the products. This is one major
drawback as the bank happens to be the front end for the customer to interact, it should
ideally be the bank which should be giving the ideas for designing of the products.

6. In most cases, the training given is product specific training the 100 hour mandatory
product training (IRDA norm) is given. In very few cases training is given to exactly identify
the potential candidate, understand his needs and then sell him the insurance product.
Refresher training is mostly once in a year. This has to change as the insurance have to be
dynamic and evolve new products according to the needs of the customers, they will have to
constantly update the bankers of the changes occurring; one of the best ways to do the same
would be like how ICICI Prudential is doing by having an online coaching system called E
Matrix.

7. Most of the banks also agreed that bancassurance is going to be the main driver for them in
future. In many cases the top management of the banks has already taken steps for the same
by allotting special bank officers for studying insurance in detail and for selling the same
For eg.this is the case for the State bank of Hyderbad. But in most cases the insurance
 companies felt that there are no operational problems. Another reason for this would be that
most of the private insurance companies have just started to function and the operational
aspect such as the claims raised havent as yet risen. But the problem lacks of selling culture
in case of banks have become to be major worry for the insurance companies. It has become
a prerogative of the insurance companies to give pep talks for the same. Some high profile
exits also from bancassurance tie ups have happened because of this problem Allahabad
ICICI bank tie up was broken mid way.

Operations
ORGANIZATIONAL STRUCTURE CHART

MANAGING DIRECTOR

ZONAL VICE PRESIDENT

MANAGING PARTNER

PARTNER

ASSOCIATE PARTNER

ASSOCIATE SALES MANAGER/SALES

MANAGER

AGENTS
 SELECTION PROCESS

R PRELIMENARY INTERVIEW

E
SELECTION TEST
J

E EMPLOYMENT INTERVIEW

C
REFERENCE AND
T BACKGROUND ANALYSIS

E SELECTION DECISION

D PHYSICAL EXAMINATION

JOB OFFER

EMPLYMENT CONTRACT

EVALUATION
PROBLEMS OF THE ORGANIZATION AT LIC
Marketing is not the art of finding clever way to dispose that you make, it is an art of creating
genuine customer value so far the purpose of creating a genuine customer we should know what
they need & when term knowing comes, there comes the needs of experience in that field & an
understanding of the concept of customer value & satisfaction. The basic problem involved in
this project is to know how a consumer chooses among various range of product available to
him/her, in the present case the companies concerned are LIC
In todays highly competitive, unpredictable and fast-changing marketplace, organizations are
challenged with improving market share and operational efficiency with ever-shrinking budgets.
Many executives find that running the enterprise consumes the bulk of their energy. They lack
the time and resources to manage non-core, resource-intensive functions properly. LIC is an
upcoming Organization with an amazing repute and network, however it will be a huge task for
the company to make its mark and snatch market share from LIC

LIC is one of the largest employers in India. The organization is headed by 4 officers, namely the
Chairman and three Managing Directors. LIC of India spreads Life Insurance widely and in
particular to the rural areas and to the socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them adequate financial cover against
death at a reasonable cost. LIC maximizes mobilization of people's savings by making insurance-
linked savings adequately attractive.
Objectives of the Study

The objectives of this study are:

o To understand the Human Resources related problems faced

o To study the linkages of those problems to employee motivation

o To analyze the solutions adopted by the company

o To suggest alternatives if any

The purpose of this study was to describe the importance of certain factors in motivating
employees at the Piketon Research and Extension Center and Enterprise Center. Specifically, the
study sought to describe the ranked importance of the following ten motivating factors: (a) job
security, (b) sympathetic help with personal problems, (c) personal loyalty to employees, (d)
interesting work, (e) good working conditions, (f) tactful discipline, (g) good wages, (h)
promotions and growth in the organization, (i) feeling of being in on things, and (j) full
appreciation of work done. A secondary purpose of the study was to compare the results of this
study with the study results from other populations
SUGGESTIONS

Strategies adopted to motivate employees could be as follows:

1. Greater challenges and responsibilities should be entrusted to employees at regular

intervals with their consent. They will thus step out of thinking within their comfort

2. zones in their every-day tasks. This would stimulate interest in their work, stimulate their
thought process and broaden their horizons. This will let him know that his managers are
aware of his abilities and repose a confidence in him. It will motivate him/her to perform
better and also take care of development and career growth needs.

3. Thanks personally, timely, often & sincerely

4. At Staff meeting announcements should include rewards and recognitions

5. Free massage therapy during a stressful work period

6. Reward late night with early departures

7. Honor your promises in terms of psychological contract

8. Provide career coaching

9. Establish goals that are SMARTER: specific, measurable, acceptable, realistic, timely,
extending of capabilities, and rewarding to those involved.

10. Empowerment employees must be empowered to take certain decisions on their own

11. Transparency in HR policies and processes

12. Give your employees respect. Example, if your salespeople enjoy their encounters with
you, they are much more likely to greet customers with a positive attitude. They are also
much more likely to enjoy their work when they don't a boss observing every move they
make. Also, a respected employee feels cared for and will thus tend to stay for longer
within the organization. Thus it helps improve performance and stem attrition.

13. Opportunities to socialize: quarterly parties or dinners. Club membership to senior

management. Contests like , singing competition etc. Or inculcating a sense of belonging
 by celebrating milestones in the employees life such as marriage, birth of baby and even
annual events like birthdays and anniversaries.

14. Quality of supervision is critical to employee retention. People leave managers and
supervisors more often than they leave companies or jobs.

15. Profit-Sharing Based on Employee Contribution

16. Flexible Salary Benefits for minimum tax liability

17. Medi-Claim/Insurance Cover

18. Annual Pay Hike (Performance Based)

19. Annual Retention Bonus

20. Skill enhancement and Training and Development at the organization through
workshops, lectures etc.

21. Equality at work and absence of arbitrariness in decisions: for that we need formalized
processes and guidelines for all HR functions so that bias or arbitrariness do not creep in.

22. Counseling to manage stress at work (as practiced by LIC)

23. Information: At any time, all of your employees should have a pretty good idea of how
business has been and the issues that the company is dealing with.

24. Treat your employees as stakeholders in your company a sense of shared fate and
shared benefits.

25. Set Clear Expectations:

a. Companys expectations from each employee and

b. Scope of the job and growth in the company for the employee.

26. Resources utilization in the organization is a must. How many people could contribute far
more than they currently do? You just need to undertake competency mapping and
training needs identification.
27. Senior Managers Presidents of small companies or Department/Division heads in larger
companies must meet employees periodically to keep a tab on the pulse of their
organization and to help employees feel their presence acknowledged.

28. Employee Suggestion Schemes for a) idea generation and b) employee participation in
management.

29. REWARDS:

a. Build a high degree of recognition value into every reward you offer.

b. Rewards should be performance based.

c. Reward only desired output.

d. Tell the employee what he is being rewarded for.

e. Dont confuse employees with too many rewards.

f. Rewards should be given immediately after the performance has taken place,
because time delay makes them lose their meaning.

g. Make sure the reward is something that the employee would like. Personalizing
rewards shows that a company cares enough to discover what "interests" each
employee, rather than just distributing generic items, which might be considered
worthless by the employees.

h. Non-cash rewards:

ESOPs
Gift for not taking more than one off in two months to curb absenteeism
Giving one Friday as half-day to the 5 highest performers
Certificates of recognition with a nominal cash reward of Rs. 1000 for
income bands up to 6 LPA.
Merchandise Vouchers (Bowling, Shoppers Stop, Spa, Clubs)
Movie Tickets
Dinner for highest performer along with spouse.
Party for highest performer at the work place where subordinates,
colleagues and managers acknowledge the contribution.
Points: Similar to a frequent flyer program, reward winners accumulate
points that can be redeemed
Merchandise, example, Tickets to a cricket match
One-day vacation to Agra or to some resort for top performing teams.
Employee of the Month reward.
i. Employees should be allowed to choose a preferred reward from a range of
rewards that we offer them.

j. HR needs to decide whether the rewards programme is being offered as a

recognition or as an incentive.
 LIMITATIONS

Following are the different problems that have been traced at the time collecting the data:-

There was too much of uncertainty and doubts surrounding its benefits,

The company was very farther from my place which made it tiring to complete the

internship.

There was lack of coordination among the interns due to less support of seniors.

In reality, training is done relatively out of fear, of the consequence of not doing it.

Managers lack the tools and understanding for the implementation of planned approaches

of learning,

Long term effectiveness is difficult to evaluate, assessment is more likely to be linked to

short term training result..

There was lack of time with the interns as the training time was less in comparison to

what was needed for internship.

Colleagues in the company were not very supportive and helpful because of which there

was lack of motivation.

 CONCLUSIONS

Motivation is an important concept that has been receiving considerable attention from
academicians, researchers and practicing HR managers. In its essence, motivation comprises
important elements such as the need or content, search and choice of strategies, goal-directed
behavior, social comparison of rewards reinforcement, and performance-satisfaction. The
increasing attention paid towards motivation is justified because of several reasons. Motivated
employees come out with new ways of doing jobs. They are quality oriented. They are more
productive. Any technology needs motivated employees to adopt it successfully. Several
approaches to motivation are available. Early theories are too simplistic in their approach
towards motivation. For example, advocates of scientific Management believe that money is the
motivating factor. The Human Relations Movement posits that social contacts will motivate
workers. Mere knowledge about the theories of motivation will not help manager their
subordinates. They need to have certain techniques that help them change the behavior of
employees. One such technique is reward. Reward, particularly money, is a motivator according
to need-based and process theories of motivation. For the behavioral scientists, however, money
is not important as a motivator. Whatever may be the arguments, it can be stated that money can
influence some people in certain circumstance. Being an outgrowth of Herzbergs, two factor
theory of motivation, job enrichment is considered to be a powerful motivator. An enriched job
has added responsibilities. The makes the job interesting and rewarding. Job enlargement refers
to adding a few more task elements horizontally. Task variety helps motivate job holders. Job
rotation involves shifting an incumbent from one job to another. This reduces boredom and
disinterest. OB Mod uses the reinforcement principle of B.F. skinner to give the management a
powerful technique to change employee behavior. Several reputed organizations in a America
have used OB Mod programmes successfully to achieve positive results. Recommendation
Motivation is essential for each and every organization because its helps in avoiding the
frustration and it also create the healthy work environment. . This concern for, and investment in,
future scenarios will ingrain unshakable trust and loyalty towards the company. The word
motivation stands for movement. Every manager should have both interest and concern about
how to enable people to perform task willingly and to the best of their ability. Motivation is
essential for any company because employee is Asset of company. Motivation is important for
the growth of employees as well as growth of the organization. Motivated employees help
organizations survive. Motivated employees are more productive. To be effective, managers
need to understand what motivates employees within the context of the roles they perform.
Motives can only be inferred, but not seen. The dynamic nature of needs offend poses challenge
to any manager in motivating his or her subordinate. An employee, at any given time, has a
various needs, desire, and expectations. Employees who put in extra hours at work to fulfill their
needs or accomplishment may find that these extra hours conflict directly with needs for
affiliation and their desire to be with their families
 BIBLIOGRAPHY

BOOKS-

Philip kotler Marketing Management (9th edition) S H.W. Boyd, R.Westfall and S F. Stasch,

Marketing Research- Text and Cases(7th Edition)

Richard Tedlow, New and improved: The story of Mass communication in America

C.R.Kothari Methodology (2nd edition)

Britannica Enclyclopedia

MAGAZINES

Business World (Issue 04-10DEC,2007)

A & M (Issue Jan 2008)

Business India (Issue 11-17,2007)

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