Documente Academic
Documente Profesional
Documente Cultură
PROJECT REPORT
Submitted by
ARYA R NAIR
MLM16MBA11
ETTUMANOOR-KOTTAYAM
MAY 2018
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ACKNOWLEDGEMENT
Through this acknowledgement I express my sincere gratitude towards all those people who
helped me in this project, which has been a learning experience.
I express my sincere thanks to Dr. M.M Paulose, MTECH, phD principal of Mangalam college
of Engineering for giving me the opportunity to do the project work.
I sincerely express my deep sense of gratitude and profound thanks to Dr. SIBU C.
CHITHRAN, MBA, MPHIL, phD (Management), FDP(IIMK), AMT (AIMA), MAIMSI
(USA), Professor and head, Department management studies, Mangalam college of Engineering,
whole hearted co-operation and suggestions throughout the completion of this project.
I sincerely express my deep sense of gratitude and profound thanks to project guide Mrs.
RESHMA RAVEENDRANATH (Assistant Prof Department of Management Studies)
Mangalam College of Engineering, Ettumanoor for her valuable guidance, co-operation and
suggestions throughout the completion of my project.
ARYA R NAIR
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LIST OF TABLES
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5.13 Employees opinion about most motivating type of benefit 63
motivating factor
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List of Figures
5.8 Employees opinion about welfare and safety measures provided by the
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organisation
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5.12 Employees opinion about the motivation factors 62
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List of Symbols/Abbreviations
Symbol/ Explanation
Abbreviation
FACT LTD. Fertiliser and Chemicals Travancore
Limited.
Pvt Private
MT Metric Tonne
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TABLE OF CONTENTS
Sl No Topic Page No
1 INTRODUCTION
1.1 Background of the study 2
1.2 Need and Significance of the study 3
1.3 Statement of problem 3
1.4 Objectives of the study 3
1.5 Scope of the study 4
1.6 Limitations of the study 4
1.7 Organization of the report 4
2 LITERATURE REVIEW
2.1 Industry profile 8
2.2 Company profile 13
2.3 Product profile 17
3 THEORITICAL FRAMEWORK
3.1 Meaning 21
3.2 Various definitions of motivation 21
3.3 Theories of motivation 22
3.4 Types of motivation 26
4 RESEARCH METHODOLOGY
4.1 Objectives 35
4.2 Hypothesis 35
4.3 Research Design 35
4.4 Sources of data 36
4.5 Primary and secondary data 36
4.6 Population 39
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4.7 Sample design 39
4.8 Sampling method 39
4.9 Method of data collection 41
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EXECUTIVE SUMMARY
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CHAPTER 1
INTRODUCTION
INTRODUCTION
Motivation is an effective instrument in the hand of the management to inspiring the work
force. It is the major task of every manager to motivate this subordinates or creates willing to
work among the subordinates. It should also be remembered that the worker immensely
capable of doing some work, nothing can be achieved if he is not willing to work. Creation of
a will to work is motivation in simple but true sense of term.
Motivation is an important function which every manager performs for actuating the people
to work for accomplishment of objective of the organisation. Issuance of well conceived
instructions and order does not mean that they will be followed. A manager has to make
appropriate use of motivation to enthuse the employee to follow them. Effective motivation
succeeds not only in having an order accepted but also in gaining determination to see that it is
executed efficiently and effectively.
In order to motivate workers to work for the organisational goal, the manager must
determine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction. If the management is successful in
doing so; it will also be successful in increasing the willingness of workers to work. This will
increase efficiency and effectiveness of the organisation. There will be better utilisation of
resource and workers abilities and capabilities.
Motivation has variety of effects. These effects may be seen in the context of an
individual‟s physical and mental health, productivity, absenteeism and turnover. Employee
delight has to be managed in more than one way. This helps in retaining and nurturing the true
believers.
The study help to realise the importance of motivation and its impact on employee
performance. The research study types and level of employee motivational programme and
also discuss management ideas that can be utilised to innovate employee motivation. It help to
provide insight to support future research regarding strategic guidance for the organisation that
are both providing and using reward recognition programme.
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1.2 NEED AND SIGNIFICANCE OF STUDY
FACT, Ltd is a largest central public sector undertaking and employing around 3500
peoples. The company has two production units in Udyogamandal and Ambalamedu. Its
employees are working in different fields like production, marketing , finance, personal
management etc. The study intended to study how the management motivate workforce and its
impact on employees performance at this organisation . A good motivational programme is
essential to inspire the work force for achieving the goal of the organisation. Higher
motivation lead to job satisfaction ,employee loyalty, employee efficiency and motivation is
also useful to reduce absenteeism, labour turnover and labour unrest. The study help to
understand importance of motivation in an organisation and how far motivation is influencing
employees performance in FACT.
The present study entitled on “A study on employee motivation and its effectiveness on
employee performance at FERTILISERS AND CHEMICALS TRAVANCORE
LTD,UDYOGAMANDAL.
Primary objective
Find out the effectiveness of employee motivation in performance.
Secondary objective
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1.5 SCOPE OF THE STUDY
This study aims at finding the relationship between employee motivation and employee
performance
To find out whether the financial or non- financial motivation will influence employee
performance
In order to identify factors which motivate the employee more
In order to identify various motivation techniques used by the organisation.
CHAPTER 1 : INTRODUCTION
This chapter contains introduction to the study, statement of problem, significance of the
study, objective of the study, Scope of the study, hypothesis, and methodology, period of the
study, chapter scheme, assumptions and limitation of the study.
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CHAPTER 3 : RESEARCH METHODOLOGY
This Chapter Contains Research design, study approach, techniques of data collection,
sampling techniques, techniques used for data analysis
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CHAPTER 2
REVIEW OF LITERATURE
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LITERATURE REVIEW
Employees' motivation is "The heart of giving the people what they really want most from work"
(Dell, 1988). The more you are able to provide what they want, the more you should expect what
you really want, namely: productivity, quality, and service. Jones and George (2010) argue that
employees' motivation is as the "psychological forces that determine the direction of a person's
behaviour in an organisation, a person's level of effort, and a person's level of persistence." The
behavioural direction of a person is described as "the many possible behaviours that a person
could engage in." Effort indicates how hard people work. Persistence on the other hand refers to
whether, when dealing with roadblocks and obstacles, employees keep trying or give up. When
employees follow an effective and efficient direction, contribute in high levels of effort and are
persistent, then high motivation occurs.
Maslow (1943) sets money at the lowest hierarchy level and shows that other needs work as
better motivators to staff. Herzberg (1959) based on Maslow's' pyramid supports that money
tends to have a motivating effect on employees that lasts only a short period of time (two-factor
model of motivation). McGregor (2002) places money in his Theory X category and feels it is a
poor motivator. Praise and recognition are placed in the Theory Y category and are considered
stronger motivators than money.
If money is the only reward that someone receives by doing his job right, this undoubtedly will
have a negative reflect on the organisation. The employee will react each time by thinking of his
pocket and ignore about the operations goals and the promotion of them. The rewards must have
the form of influencing the employee to feel better concerning his/her achievements inside the
company and from this success to feel as a part of this business and not as "just a worker" who
simply gets paid for his/her services (Rollinson, 2004). Opportunities for job development, skills
improvement, and job commitment are excellent examples of making an employee stop thinking
of himself as just an employee and motivate him/her to start feeling as a real member of the
company that he belongs too and perform better (Armstrong and Baron, 2004).
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2.1 INDUSTRY PROFILE
Fertilizer is generally defined as “any material organic or inorganic, natural or synthetic which
supplies one or more”.
The most necessary requirements of human being are food. The accelerated growth in a nation
needs remarkable expansion of food production from time to time. Agriculture must rely upon a
primary source for increase in food production.
The fertilizer industry has played a significant role in the development of agriculture in India.
Majority of the rural population in India still depend on agriculture for their livelihood and allied
activities contribute about 30% of GDP in India. Growth and development of agriculture in India
derives a significant stimulus in fertilizer industry. Development and growth of this vital industry
is crucial for their sustainable growth of agriculture and to ensure food security of the nation.
The main issue confronting the fertilizer industry in India is the volatility in the process of food
stock or raw material coupled with the limited availability and uncertain policy environment.
In India, there has been a surge in the demand for fertilizers in the past few years. However the
robust growth in consumption propensity has not been met with the required surge in the
fertilizer production. This has widened the gap between demand and supply of fertilizers.
Therefore India has depended on import of large quantity of fertilizer to meet domestic demand.
India is the third largest producer and consumer of chemical fertilizers in the world and account
for about 12% of world fertilizers‟ consumption. The country produces several straight
nitrogenous fertilizers such as Urea, Ammonia, Sulphate, Calcium, Ammonium, Nitrate etc. As
well as fertilizers such as DAP and several NPK complexes. Urea and DAP are the main
fertilizers produced in India.
Agriculture is the backbone of Indian economy still holds its relative importance for more than a
billion people. The government of India from time to time has taken considerable steps for the
upliftment of agriculture sector. Here we have analyzed the performance of fertilizer industry
being one of the vital parts in agriculture production and government policy initiatives for the
same.
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Six industries in India have been identified as energy intensive industry. Aluminum,
Cement, Fertilizer, Iron & Steel, Glass and Paper together they account for 16.8% of
manufacturing value of output (V0) and consume 38.8% of all fuels consumed in the
manufacturing sector. The fertilizer sector holds a considerable share within these energy
intensive industries. In 1993, it accounted for 23% of value of output within the six industries
and for 3.8% in the manufacturing sector.
The Indian fertilizer industry has succeeded in meeting almost fully the demand of all chemical
fertilizers except for MOP. The industry had a very humble beginning in 1906, when the first
manufacturing unit of Single Super Phosphate (SSP) was set up in Ran pat here Chennai with an
annual capacity of 6000 MT. Fertilizers And Chemicals Travancore of India Limited (FACT) at
Cochin in Kerala and the Fertilizers Corporation of India(FCI) in Sandra in Bihar were the first
large sized fertilizers plants set up in the forties and fifties with a view to establish an industrial
base to achieve self- sufficiency in food grains. Subsequently, green revolution in the late sixties
gave an impetus to the growth of fertilizer industry in India. In seventies and eighties they
witnessed a significant addition to the fertilizer production capacity.
The installed capacity as on 30-01-2013 has reached level of 121.10 lakh MT of nitrogen
(inclusive of installed capacity of 2008.42 lakh MT of Urea after reassessment of capacity) and
53.60 lakh MT of Phosphate Nutrient, making India the third largest fertilizer producer in the
world rapid build-up of fertilizer production capacity in the country has been achieved as a result
of a favorable policy environment facilitating large investment in the public, co-operative and
private sectors. Recently, there are 57 large sized fertilizers plant in the country manufacturing a
wide range of nitrogenous, phosphate and complex fertilizers. Out of these, 29 unit produce
Urea, 20 unit produce DAP and complex fertilizers, 13 plants manufacture Ammonium Sulphate
(AS), Calcium Ammonium Nitrate (CAN) and other low analysis nitrogenous fertilizers.
Besides, there are about 64 medium and small-scale units in producing SSP.
Fertilizer production is capital intensive and presently the cost of production of indigenous
material is high and returns on investment are low. The Indian fertilizer industry, which achieved
phenomenal growth in eighties, witnessed decline in the growth rate during the nineties. In the
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recent past, the fertilizer industry has not attracted any significant investment. No multinational
has invested in fertilizer sector in India.
Due to sufficient indigenous capacity and low international prices of Urea, the government of
India in February 2000 decided that no new grassroots project will be allowed during the next 3
years in public, private or co-operative sector. So even if the government reviews its decision the
earliest a project could start would be by 2004-05. Government is also considering dis-
investment of its equity of public sector fertilizer units up to 51% or even more. This handover
the management control of the company to a strategic buyer. The dis-investment in National
Fertilizer Limited (NFL), a major Urea producer in the country is underway. Lack of availability
of natural gas in the country had prompted investors to collaborate for joint ventures abroad for
urea production. Gulf countries due to abundant availability of gas, nearness to Indian shores and
investment friendly environment, are becoming the first choice for joint ventures.
Among the Public Sector Units, the Fertilizer Corporation of India Limited (FCI), Hindustan
Fertilizer Corporation Limited (HFC), Projects &Development India Limited (PDIL), and
Pyrites, Phosphates & Chemicals Limited (PPCL) were declared sick. They are under
consideration of Bureau of Industrial and Financial Restructure (BIFR).
As India does not have potential rock phosphate reserve, it is completely dependent on import of
either rock phosphate or phos acid or DAP. There has been new capacity addition by way of
importing rock phosphate and converting it into phos acid and then to DAP/NPK or conversion
of phos acid at rock phosphate mines abroad in JV and importing phosphoric acid for further
conversion to DAP/NPK. It is heartening to know that apart from the operating joint venture for
phosphoric acid in Senegal, Jordan and Morocco some more projects and expansions are being
contemplated by the Indian companies.
INTERNATIONAL SCENARIO
When there are large area of unused frontier land in the world, it was often more economical
for farmers to move on to new unfarmed land then to invest additional money in fertilizers
for the land they were then farming, a practice continued in second half of the 20th century
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in some underdeveloped areas of the world. The use of manure and composites are probably
as old as agriculture itself and many other material such as ground bones, wood ash
from burning the fallen trees, dried blood and fish were employed long before the chemistry
of soil and crops was understood. The disappearance of fertilizers combined with
NATIONAL SCENARIO
India is one of the world‟s largest producers and consumer of fertilizers, both Phosphorescent
and Nitrogenous. The fertilizer industry in the country is also among the fast growing sector in
the world. There are around 25 chemical fertilizers used in the country at present. They fall
under four broad categories namely Nitrogenous, Phosphate and Potassium and Complex
fertilizers.
71% of the total fertilizer consumption during 1994-1995 was of the Nitrogenous variety
whereas the Phosphorescent and fertilizers accounted for 22% and 7% in the same order. While
Urea, Calcium and Ammonium Phosphate are the major Nitrogenous fertilizers, Single Super
Phosphate falls under the Phosphate category. Ammonium Phosphate is the main Complex
fertilizer are nine public sector under takings and two co-operative societies under the
administrative control of the Department of Fertilizers. At present, there are 63 large size
STATE SCENARIO
Kerala has a high degree of the land and cropping industry. The states agriculture
productivity is decreasing year by year. The production and cultivation of rice is decreasing and
the farmers are attached to the cultivation of commercial crops like rubber etc. due to the
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decrease in the cultivation of rice, the consumption of Nitrate and Potash has come down. Kerala
is one of the low ranking states in the consumption of fertilizers.
The state has good fertile land and suitable climate for agriculture. Even though the states
agricultural productivity is decreasing year by year. Especially production and cultivation of
commercial crops like rubber shows declining trend in production. Industry's production had
shown increasing trend during past few years. Industry leaders sought Governances support in
reducing the time period for mandatory environmental.
It is feared that several fertilizer units will be closed down in the process of switch over from the
present administrated pricing mechanism to a market based regime. This would mean substantial
loss of domestic fertilizer production and corresponding increase in import of raw material
(Urea) to meet the demand. Even under the present circumstances health of the industry is not
good and several units have become loss making. According to Expenditure Reform Committee
(ERC) recommendations, instead of unit wise retention price there will be a group wise lump
sum concession per ton of urea based on feed stock which will harm some units and benefit
others and there will be wide spread sickness in the Urea industry.
India has become third largest country with a total capacity of 14.07 million tonnes of P205in the
year 2000-2001 further capacity addition for N now been started for the time being due to very
narrow demand supply gap at present and costly feed stock. However there will be some addition
to the Phosphatic capacity. Domestic production of Nitrogen fertilizers were 11.004 million
tonnes in 2000-2001 whereas production of Phosphatic fertilizers were 4.703 million tonnes
which are marginal higher compared to the last year production.
All India capacity utilization has gradually improved over the years and was maintained at most
cent percentage level for N, however, during 2000-2001 Vestrichous were imposed on capacity
utilization of Urea at 92%. The increase in production of total Nis observed due to previous year.
The capacity utilization for P205 fertilizers were cent percentage.
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2.2 COMPANY PROFILE
Establishment : 1944
Listing : NSE
VISION
“With a decade FACT will emerge as a leader in the business of agricultural inputs,
industrial intermediaries and engineering consultancy and construction of industrial
infrastructure facilities”.
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MISSION
“FACT‟s mission is to function as a dependable and competitive producer of fertilizers and other
allied products and to develop self-reliance in the field of engineering and technology especially
in the field of fertilizers, chemicals and petrochemicals, oil and gas industries”.
FACT DEPARTMENTS
The Human Resource Department of FACT consists of three sections. They are:
1. Establishment
2. Training and Industrial Engineering
3. Industrial Relation
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2. 2. MATERIALS DEPARTMENT
Deputy General Manager heads Materials Department. Material Department is divided into three
sections. They are:
3. PRODUCTION DEPARTMENT
Annual production targets for the next year are prepared based on installed production
capacity of the plant and production data for the previous year. Necessary feedback is also taken
from marketing while fixing the production targets. The production targets is presented to the
corporate office for the review and approval by CMD, the Plant Manager are informed the same.
1. Ammonia Plant
2. Sulphuric Acid Plant
3. Phosphoric Acid Plant
4. Ammonium Complex Plant
4. MARKETING DEPARTMENT
The Marketing Division is headed by a GM who reports to the Director (Marketing). FACT
has two Marketing Departments namely: Petrochemical Marketing and Fertilizers Marketing
Departments. The Marketing Department consists of various sections organized on the basis of
their functions. They are:
1. Sales Department
2. Distribution Department
3. Marketing Research Department
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5. FINANCE DEPARTMENT
The functions within the Finance Department are diverse with distinction procedure for
accounts related to personnel, purchase, costing, budgets, tax and duties, audit, general accounts,
bank and payrolls, bills, etc.
At FACT, quality has always been articles of faith and strictest international standards are
adhered to tin producing the various products. The sophisticated micro processors based digital
distribution control system brings about efficiency in information management and process
optimization. The process control based on time analysis, assures consistency in quality
throughout the manufacturing process and in the finished products.
Board of Directors manages FACT. The Chairman of the Board is the Managing
Director. They have a full time Finance Director, a Technical Director, and a Managing .
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. There are also six part time directors on the Board, nominees of Central and State
Government. 97% of shares of the company are owned by Central and State Government and the
remaining 3% by public.
COMPETITORS OF FACT
PRODUCT AT GLANCE
Petrochemicals : Caprolactum
FACT manufactures Straight fertilizers, Complex fertilizers, Fert mixtures and Chemicals.
They are:
Straight Fertilizers
Ammonium Sulphate
Urea
Complex Fertilizers
Factamfos 20-20-0-13
Di- Ammonium Phosphate
Fertilizer Mixtures
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NPK Mixtures
Rose Mixtures
Vegetable Mixtures
Garden Mixtures
Chemicals
Anhydrous Ammonia
Sulphuric Acid
Caprolactum
Nitric Acid
FINISHED PRODUCTS
BYPRODUCTS
INTERMEDIARY PRODUCTS
Ammonia - Udyogamandal and Cochin Division
Sulphuric Acid - Udyogamandal and Cochin Division
Synthesis Gas - Udyogamandal Division
Phosphoric Acid - Udyogamandal and Cochin Division
So2 Gas - Udyogamandal Division
Nitric Acid and Soda Ash – Petrochemical Division
EXPORTED PRODUCTS
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CHAPTER 3
THEORETICAL FRAMEWORK
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THEORITICAL FRAMEWORK
3.1 MEANING
The word motivation is derived from the Latin word “movere”, meaning to “move”. In simple
term, the term may be used as the state or condition of being induced to do something.
Essentially, motivation involves individual needs and the extent to which they are met by the
organisation or the extent to which they are met by the organisation or the extent to which the
workers perceive that his or her needs are met by the organisation. Motivation is an important
way of promoting productivity of employees.
Dubin has defined motivation as,” complex of forces starting and keeping a person at
work in an organisation”.
According to Dalton E. McFarland,” motivation refers to the way in which urges,
drisers, aspirations, strivings or needs direct, control or explain the behaviour of
human beings”
Management can do its job effectively through motivating people to work for the
accomplishment of organisational objectives. But according to authors like McGregor, Maslow,
Herzberg etc, it is difficult to motivate the people without considering what they want and expect
from the work. Maslow‟s theory is considered an important theory of motivation because it
highlights the need of people.
Some of the psychological need are food, water, sleep, air to breath, sex, clothing and shelter.
These need arise out of the basic physiology of life and are important for the survival of people.
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Secondary motivation related to mind and spirit rather than the psychology of life. Many of
these need develop as one mature. Instances are belongingness, recognition, self –esteem, sense
of duty, self-assertion and so on.
The theories of motivation which explain human behaviour in terms of human needs are
called „content theories‟. For instance, Maslow‟s and Herzberg‟s models propose that human
beings are engaged in certain activities to satisfy their needs. But theories which explain how
motivation occur are known as process theory. For instances, Vroom‟s theory identifies the
variables that go into motivation and their relationship with each other.
This theory was developed by Abraham Maslow. He was a clinical psychologist in U.S.A.
Abraham Maslow saw human needs in the form of a hierarchy starting in an ascending order
from the lowest to the highest needs and concluded that when one set on need is satisfied, it
ceases to be a motivator. Therefore the next set of needs in the hierarchy takes its place. The
basic human needs as identified by Maslow in the ascending importance are as follows:
Psychological Need.
These are the basic needs for sustaining human life- food, clothing, shelter, sleep and
sexual satisfaction. Until these needs are satisfied to the required extent, other need do not
motivate a person.
Security or Safety Need
These are the needs to be free from physical dangers and fear of loss of job, property,
food, clothing, or shelter.
Affiliation or Acceptance Need
Since human beings are social animals, they desire to belong to others and to be
accepted by others. Every person wishes to be affiliated to a particular social group.
Esteem Need.
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Once a person gets satisfied his needs to belong, he expected to be held in esteem both
by himself and by others. This kind of need produces satisfaction as power, prestige, status and
self-confidence.
Need for self-actualisation
Maslow regarded this as the highest level need in his hierarchy. It is the desire to
become what one is capable of becoming to maximise one‟s potential and to accomplish
something in the life as cherished goal.
Herzberg further stated that managers have hitherto been very much concerned with
Hygienic factors. As a result, they have not been able to obtain the desired behaviour from
employees. In order to increase the motivation of employees, it is necessary to pay attention to
satisfiers or motivational factors.
Herzberg also said that to-day‟s motivators are tomorrow‟s hygienes because they stop
influencing the behaviour of persons when they get them. When a person gets one thing, then
something else will motivate him and the need which has been fulfilled will have only negative
significance in determining his behaviour.
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VROOM’S VALENCE-EXPECTANCY THEORY
This theory was offered by Vroom. According to him, a person‟s motivation towards an action at
any time would be determined by an individual‟s perception that a certain type of action would
lead to a specific outcome and his personal preference for this outcome.
There are three variables in Vroom‟s model given in the form of an equation. Since the
model is multiplicative, all the three variables must have high positive values to imply motivated
performance choices. If any of the variables approaches zero, the probability of motivated
performance approaches zero.
Valence is the strength of an individual‟s preference for a reward, expectancy is the probability
that a particular action will lead to a desired reward and instrumentality denotes an individual‟s
estimate that performance will result in achieving the reward. Thus, if an individual has a
particular goal, some behaviour has to be produced in order to achieve that goal. He will weigh
the likelihood that various behaviours will achieve the desired goal and if certain behaviour is
expected to be more successful than other, that particular behaviour will be preferred by the
individual.Motivation is the product of valence, expectancy, and instrumentality. These three
factors in the expectancy model may exist in an infinite number of combinations depending upon
the range of valence and degree of expectancy and instrumentality. The combination of that
produces the strongest motivation is high positive valence, high expectancy and high
instrumentality. If all the three are low, the resulting motivation will be weak. In other cases,
motivation will be moderate similarly the strength of avoidance behaviour will be determined by
the negative valence and expectancy and instrumental factors.
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PORTER AND LAWLER EXPECTNCY MODEL
Porter and Lawler applied there model to study the behaviour of managers and concluded that
there exist a complex relationship between job attitude and performance.
Motivation is an important function which every manager performs for actuating the people to
work for the accomplishment of objectives of the organisation. In order to motivate workers to
work for the organisational goals, the manager must determines the need of the workers.
1. Financial motivation
2. Non financial motivation
FINANCIAL MOTIVATION
1) Bonus
2) Salary increment
3) Incentives
4) Welfare measures
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NON FINANCIAL MOTIVATION
1. Recreation
2. Workers participation in management
3. Communication
4. Suggestion
INCENTIVE SCHEMES
Following are the incentive schemes provided by FACT;
Attendance bonus
Incentives schemes for employees acquiring higher qualifications while in service
Incentive schemes for employee passing Hindi and Hindi type writing/Hindi stenography
examination
Schemes for utilisation of the service of employee acquiring specialised qualification
Incentive bonus
Incentive scheme for promoting “small family “norms
Production incentives
ATTENDANCE BONUS
This scheme cover all non-managerial employees who have punch card attendance. Calculation
of attendance bonus will be based on the attendance of an employee during a leave year.
Attendance bonus of a leave year will be computed and paid during the succeeding leave year.
Leave year computed as per calendar year.
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INCENTIVE SCHEME FOR EMPLOYEES PASSING HINDI AND HINDI TYPE
WRITING /HINDI STENOGRAPHY EXAMINATION.
An incentive scheme for managerial and non-managerial employees passing Hindi and Hindi
typewriting /Hindi stenography examination.
To increase output
To increase production
To reduce production cost
To improve material efficiency‟
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The scheme cover all managerial employees .
ANNUAL INCREMENT AND PROMOTION
Annual increment is provided for both managerial and non-managerial employees. Grand of
increment is conscious and positive acting of management .It is not automatic. The performance
and conduct of the personnel concerned is taken into account by the recommending and
sanctioning authority. In FACT increment are sanctioned only within scale of pay.
WELFARE ACTIVITIES.
Welfare activities can be classified into two
Statutory schemes
Non-statutory schemes
STATUTORY SCHEMES
Dispensary
Canteen
Locker for employees
Dispensary.
These are well equipped dispensaries within the factory premises managed by qualified
staff for administrating first aid ,and medicines for minor ailments.
Canteen
Vegetarian cafeterias cater to employees in all the 3 shifts. Tiffin items are supplied to those
who worked in the night shift(12-8)
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Locker for employees
Lockers for employees working in the shift are given for keeping their working uniform and
tools.
NON –STATUTORY SCHEMES
Following are the non statutory welfare schemes;
Benefits for medical treatment.
Normally workers who are covered under the Employees State Insurance or contributory Health
Scheme should avail medical facilities and other benefits offered by the scheme.
Financial aid from the fund shall be given only on loan. Loan above Rs.500 shall be give
only recommendation of WFA committee or at the direction of Chairman.
Benefits for education.
Members shall be eligible for loan from the fund for their own or their dependants
education.
Pre-degree course –Rs.300 p.a
Degree-Rs.400 p.a
diploma -Rs 300 p.a
Post graduation course- Rs.500 p.a
Professional course-Rs750 p.a
ITI-Rs.200 p.a
Education in outside university (other than Kerala state) shall be given Rs.450 loan for graduate.
Application fee for education should be submitted in the prescribed form supported by the
certificate from the Head of the institution concerned.
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The member shall be eligible for Rs.4000 as ex-gratia from the welfare fund when he \she
retires on superannuation irrespective of whether the member receive any benefit or from the
welfare fund during his /her service .the amount shall be paid one month prior to retirement.
Benefit of death while in service.
The dependants of member shall be eligible for Rs. 2000 as ex-gratia from the fund when
the member dies while in service.
Benefits for family planning.
The amount of Rs.151will be given as ex-gratia benefit towards family planning
operation adopted by member or their spouse.
Benefit on special cases.
Benefit from welfare fund shall be given to member‟s on special cases. Who actually
deserve aid on genuine ground. This shall be only given on the advise of welfare fund advisory
committee.
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The FACT Lalithakala Kendra setup in 1966 with the object of promoting fine arts and
cultural activities.
The objectives of Kalakandra are as follows;
Arranging music, drama programme
Organise meeting, competition, seminar, lectures, discussion, classes etc on fine arts and
other allied subjects
Organise and conduct exhibition and film shows
Running well equipped library and reading room.
Consumer co-operative society
FACT Co-operative Society is dealing provisions ,textiles, stationery, and routine good.
It as also running a medical store and a flour mill. The company is providing rent free
accommodation, free power, and water to the society. The society gives credit to the employees
which are settled by monthly payroll deduction.
School facilities
The company has setup schools to educate the children of employees.
Uniform and food wear
It is given to all non- managerial employees. They also given washing allowance, switching
charge and food wear as well
Aid facilities for funeral expense
RS.300 to family of those employees who died while in service.
Aid for family planning
Rs.50 to family planning operation to employees. The company also will give additional
increment if he/ she or spouse undergo family planning operation
Special leave for Blood Donation
One day special leave for donating blood to meter employees who undergo medical
treatment
Sleeping shed
Sleeping shed have 100 birth for employees who work in shift
.
Free milk supply
31
The employees who are working in the hazardous area in the factory are given quarter litre
milk at free of cost in all the 3 shifts.
Calcium Tablet Supply
The employees who working in certain plants like phosphate plant are supplied calcium tablets
every day. It is issued through company dispensaries.
Meals Subsidy
It is provided to workmen who are not provided with canteen facility will be given meals
subsidy.
Other welfare facilities include Provision for Sleeping Centres, Temples and other places for
worship, Waiting Shed,
SUGGESTION SCHEME
The suggestion scheme is to encourage creative potential of employees, in order to effect
economy improvement in production and productivity in material and labour and to improve
working condition. The suggestion scheme offer recognition and reward for constructive ideas
which can be effectively translated into practice. Managerial and non- managerial employees can
participate in the suggestion scheme.
Suggestion are accepted if they are anonymous and deposited in the suggestion box.
PARTICIPATIVE MANAGEMENT
FACT is a government of India undertaking and one of the leading companies in this sector. The
company has two production units at Udhyogamandal and Ambalamedu. FACT is the producer
of Fertiliser, Chemicals and Petrochemicals.
FACT always gives importance to the welfare of employees and workers
participation in management. Some of the common form of workers participation in management
is Working Committee, Joint Management Council, Joint Labour Management Action Group,
Shop Committee
32
CHAPTER 4
RESEARCH METHODOLOGY
33
RESEARCH METHODOLOGY
4.1 OBJECTIVES
4.2 HYPOTHESIS
The word hypothesis is a compound of two words “hypo” and “thesi”. Literally hypo means
under or below and thesis means a reasoned theory or rational viewpoint. Accordingly,
hypothesis would mean a theory which is not fully reasoned. In other words, hypothesis is a
theory entertained in order to study the facts and examine the validity of the theory
To determine there is any relationship between Job satisfaction and employee performance.
Alternative Hypothesis
After selecting the topic and problems, defining concepts, and frame hypothesis, a researcher has
to think about the research design.
34
4.4 SOURCES OF DATA
For the study purpose both primary and secondary data are used. The primary data collected
from sales men of the companies, customers and dealers dealing in the products of the company.
The secondary data collected from records of the company, retailers and dealers. The data of past
sales also have been collected. The primary and secondary data have been collected to cover
every aspect of the study. The primary data are related to behaviour and response of employees,
dealers and customers. The secondary data shows the sales of the company product wise. These
data used in combination as per need of the study. These data having different merits and
demerits and have serves our purpose of the research study. The sources of data are:
35
• Moreover, primary data is current and it can better give a realistic view to
the researcher about the topic under consideration.
• Reliability of primary data is very high because these are collected by the
concerned and reliable party.
(ii) Disadvantages of primary data
Following are the disadvantages of primary data:
• For collection of primary data where interview is to be conducted the
coverage is limited and for wider coverage a more number of researchers are
required.
• A lot of time and efforts are required for data collection. By the time the
data collected, analysed and report is ready the problem of the research
becomes very serious or out dated. So the purpose of the research may be
defeated.
• It has design problems like how to design the surveys. The questions must
be simple to understand and respond.
• Some respondents do not give timely responses. Sometimes, the
respondents may give fake, socially acceptable and sweet answers and try to
cover up the realities.
• With more people, time and efforts involvement the cost of the data
collection goes high. The importance of the research may go down.
• In some primary data collection methods there is no control over the data
collection. Incomplete questionnaire always give a negative impact on
research.
• Trained persons are required for data collection. In experienced person in
data collection may give inadequate data of the research.
Secondary data are the data collected by a party not related to the research study but collected
these data for some other purpose and at different time in the past. If the researcher uses these
data then these become secondary data for the current users. These may be available in written,
36
typed or in electronic forms. A variety of secondary information sources is available to the
researcher gathering data on an industry, potential product applications and the market place.
Secondary data is also used to gain initial insight into the research problem. Secondary data is
classified in terms of its source – either internal or external. Internal, or in-house data, is
secondary information acquired within the organization where research is being carried out.
External secondary data is obtained from outside sources. There are various advantages and
disadvantages of using secondary data.
• The primary advantage of secondary data is that it is cheaper and faster to access. •
Secondly, it provides a way to access the work of the best scholars all over the
world.
• Thirdly, secondary data gives a frame of mind to the researcher that in which
direction he/she should go for the specific research.
• Fourthly secondary data save time, efforts and money and add to the value of the
research study.
37
4.6 POPULATION
A population is the entire set of cases in which a study is interested. It is the full set of individual
or of objects having some common characteristics
The target population shall comprise of all the 150 employees in FACT.
Sampling is a subset of the total population. It is the act, process or techniques of selecting a
suitable sample, or a representative part of population for the purpose of determining parameters
or characteristics of whole population.
Sample Unit
In this study the sample unit is taken from the different department of FACT
Sample size
Probability Sampling
Non-probability Sampling
38
PROBABILITY (RANDOM/CHANCE) SAMPLING
It is also known as random sampling or chance sampling. Under this sampling design, every
item of the universe has an equal chance of inclusion in the sample. Probability sampling is
based on the concept of random selection; the sample may be either unrestricted or restricted.
The most frequently used probability samples are:
Stratified Sampling: In this method, population is divided into different sub populations
known as strata such that the items in each strata are homogeneous.
Systematic Sampling: This method is popularly used where complete list of the
population from which sample is to be drawn is available.
Cluster Sampling: In this, sample is chosen from the population in groups or clusters
rather than singly.
Area Sampling: Under this, total geographical area (when it is large) is divided into a
number of smaller non-overlapping areas and then some of the smaller areas are selected and all
units of the selected areas constitute the sample.
Quota Sampling: In this method, the investigator engaged in the primary collection of
data is assigned a quota for investigation.
Sequential Sampling: This method is adopted in acceptance with the sampling plans in
Statistical Quality Control
NON-PROBABILITY SAMPLING
Non-probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the sample.
39
Purposive (Judgement / Deliberate) Sampling: Under this method, the investigator
exercises his discretion in the matter of selecting the items that are to be included in the sample.
Haphazard Sampling: In this method, the investigator selects the sample without
following a structured technique.
In this study convenient sampling is used to form the sample for conducting the study.
(a) Questionnaire
Questionnaire is a set of questions has been prepared to ask a number of questions and collect
answers from respondents relating to the research topic. A number of questions usually in printed
or electronic form are to be answered by the individuals. The forms often have blank spaces in
which the answers can be written. Sets of such forms are distributed to groups and the answers
are collected relating to research topic. A questionnaire is a series of questions asked to
individuals to obtain statistically useful information about a given topic. When properly
constructed and responsibly administered, questionnaires become a vital instrument by which
statements can be made about specific groups or people or entire populations. Inappropriate
questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire format can
make the survey valueless.
(b) Telephone
40
Mobile Phone and Facsimile Telephone and other devices can be used for collecting data
verbally and written on fax from respondents located away from the researcher and having these
facilities plus the researcher having their contact numbers. Use of interviewers encourages
sample persons to respond, leading to higher response rates. Interviewers can increase
comprehension of questions by answering respondents' questions. It is fairly cost efficient,
depending on local call charge structure. It is good for large national or international respondents
and gives wider coverage. It cannot be used for non-audio information (graphics,
demonstrations, taste/smell samples) this instrument is not suitable for the respondents where the
telephone facility is not available.
(c) Mails
Mail For collection of data from the respondents who are located at a long distance and do not
have any communication facility. They can be contacted through mailed questionnaire. Only
thing is required that the researcher should have the postal addresses of the respondents. The
questionnaire may be handed to the respondents or mailed to them, but in all cases they are
returned to the researcher via mail. The cost involved is very less but no clarification can be
given to the respondents if required. Respondents can answer at their own convenience. The
respondents cannot be biased by the researchers and the detail information can be collected 12
for the research purpose. Only one disadvantage this instrument gives is that the response rate is
very less due to lack of interest in the topic of respondents and low literacy rate.
(d)Interview
In this method the interviewer personally meets the informants and asks necessary questions to
them regarding the subject of enquiry. Usually a set of questions or a questionnaire is carried by
him and questions are also asked according to that. The interviewer efficiently collects the data
from the informants by cross examining them. The interviewer must be very efficient and tactful
to get the accurate and relevant data from the informants. Interviews like personal
interview/depth interview or telephone interview can be conducted as per the need of the study.
41
The production process in the company is come into view through method of observation. The
healthy relationship between the workers and the managers is also an example of observation
method of data collection.
Questionnaires are commonly used to gather first-hand information from a large audience,
in the form of a survey. There are different types of questionnaires in practice and the type
of questionnaire to be used usually depends on the purpose of the survey and the type of
data that has to be collected.
Questionnaires are highly practical and can be carried out by any number of people, and
the results can be quickly quantified as well. Over the years, this form of conducting
research has also been proven to be more scientifically accurate, as compared to other
quantitative research tools.
Questionnaire Formats
Depending upon the nature of the questions in a questionnaire, there can be different types
of questions in questionnaire -
42
answer set is provided, these are ideal for calculation of statistical information and
percentages of various types. Closed-ended questions help to arrive at opinions about a
product or service, and sometimes, about a company, in a more efficient manner.
Closed-ended questions which are aimed at collecting accurate statistical data can be
classified into the following seven types:
Leading Questions
A question forcing the target audience to opt for a specific kind of answer is calle d a
leading question. All answers for a leading question are almost similar. Leading
questions are usually prepared to derive audience opinion within a set of limited words.
Importance Questions
Questions which ask respondents to rate the importance of some specific matter on a
rating scale of 1 to 5 are called importance questions. Such questions facilitate drawing
what respondents consider significant - enabling vital business decision-making.
Likert Questions
The degree to which respondents agree to a specific statement can be ascertained using
Likert questions. Customers' feelings about a topic, product or service can be easily
gauged by asking them these questions.
Dichotomous Questions
Questions that make respondents answer with a simple "yes" or "no" are called
dichotomous questions. These questions carry one disadvantage-there is no other way of
analyzing the answer between a "yes" and "no". A middle perspective is not possible.
Bipolar Questions
Questions that have two answers with different levels of extremities, written at opposite
ends of a scale, are called bipolar questions. Respondents have to mark their response
anywhere between these two extremities, showing their opinion.
43
Rating Scale Questions
Questions that ask respondents to provide a rating on a specific matter on a scale of 1 to
10 or on a scale of "poor" to "good" are called rating scale questions. Normally, these
questions have an even number of choices, so as to prevent respondents to choose a
middle way out.
A pilot survey is a strategy used to test the questionnaire using a smaller sample compared to the
planned sample size. In this phase of conducting a survey, the questionnaire is administered to a
percentage of the total sample population, or in more informal cases just to a convenience
sample.
Conducting a pilot survey prior to the actual, large-scale survey presents many benefits and
advantages for the researcher. One of these is the exploration of the particular issues that may
potentially have an antagonistic impact on the survey results. These issues include the
appropriateness of questions to the target population.
A pilot survey also tests the correctness of the instructions to be measured by whether all the
respondents in the pilot sample are able to follow the directions as indicated. It also provides
better information on whether the type of survey is effective in fulfilling the purpose of the
study. Practically speaking, pilot surveys save financial resources because if errors are found in
the questionnaire or interview early on, there would be a lesser chance of unreliable results or
worse, that you would need to start over again after conducting the survey.
44
All in all, the main objective of a pilot study is to determine whether conducting a large-scale
survey is worth the effort.
A. According to Organization
There are two types of pilot survey according to organization – external and internal. An external
pilot survey intends to administer the questionnaire to a small group of target participants who
will not be included in the main survey. On the other hand, an internal pilot survey will consider
the respondents in the pilot as the first participants in the main survey.
There are two types of pilot survey according to the participation of the respondents – undeclared
and participatory. In an undeclared pilot survey, you administer the survey to a certain number of
respondents as if it is the real and full scale survey, not a pretest one. On the other hand,
participatory pilot surveys involve informing the respondents that they are in the pre-test phase.
The respondents are to be asked what they can say about the questionnaire, specifically their
reactions, comments and suggestions.
Validity and reliability are two factors which any researcher should be concerned about while
designing a study, analyzing results and judging the quality of the study.
validity , explain that validity determines whether the research truly measures that which it was
intended to measure or how truthful the research results are. It estimates how accurately the data
obtained in the study represents a given variable or construct in the study. The questionnaire will
be given to other experts in research to seek their opinion about the adequacy and
representativeness of the instrument to ensure it covers all the variables being measured as a way
of eliminating content validity. The study has ensured reduction of construct validity by deriving
the research variables from existing theoretical frameworks. The study has adequately reviewed
related literature and modelled the study on sound theoretical models. 30 A pilot study will also
45
be conducted on the data collection instrument to pre-test the instrument before the main survey.
Saunders et al, (2009), agree that in any research, it is expedient as a matter of validity and
reliability to check that the instrument is pre-tested before the final administration. The pilot
study will enable the researcher to assess the clarity of the questionnaire so that those items
found to be redundant and misunderstood will be either discarded or modified to improve the
quality of the research instrument, thus increasing its validity.
Reliability, assert that reliability is the extent to which results are consistent over time and an
accurate representation of the total population under study. Cronbach‟s Alpha will be used as a
measure of reliability and internal consistency. Cronbach‟s Alpha is a reliability coefficient that
indicates how well items in a set are positively correlated to one another. It measures the
intercorrelations among test items, with a measure of 1 being higher in terms of internal
consistency and reliability and 0.7 to 0.9 being acceptable.
The following mathematical formula for Cronbach‟s alpha will be used to measure the
reliability and internal consistency.
Where: K is the number of test items is the average variance, and is the average of all covariance
between the components across the current sample.
After tabulation of data research have used the following quantitative technique.
Percentage analysis
Chi-square analysis
Correlation coefficient,
Percentage Analysis
46
A percentage is a way of expressing a number, especially a ratio, as a fraction of 100.
Percentages are used to express how large/ small one quantity is relative to another quantity. The
first quantity usually represents a part of, or a change in, the second quantity, which should be
greater than zero and one, any ratio can be expressed as a percentage. The present value is
computed by multiplying the numeric value of the ratio by 100. To calculate a percentage of a
percentage, convert both percentage to fractions of 100, or to decimals, and multiply them.
Chi-square Test
This test is used when we are dealing with the collection of values that include adding up
squares. Variance of samples requires adding a collection of squared quantities and thus having
distribution that is related to chi-square distribution. This method is used for judging the
significance of difference between observed and expected frequencies.
Chi-square is an important non-parametric test as such no test is necessary in respect of the type
of population. We require only the degree of freedom (implicitly of course the size of the
sample) for using this test. As a non-parametric test, chi-square can be used (1) as a test of
goodness of fit and (2) as a test of independence. Chi-square test enables us to explain whether or
not two attributes are associated. In order that we may apply the chi-square test either as attest to
judge the significance of association between attributes, it is necessary that the observed as well
as theoretical or expected frequencies must be grouped in same way and theoretical distribution
must be adjusted to give the same total frequencies as we find the case of observed distribution.
Karl Pearson developed a test for testing the significance of discrepancy between the
experimental value and the theoretical value obtained under some theory or hypothesis. This test
is as chi-square test of goodness of fit, Karl Pearson that the statistics
( )
Chi- square is used to test whether the different between observed and expected frequencies are
frequent. Observed frequencies are available in a given problem. But expected frequencies are to
be computed. To find chi-square table value degree of freedom should be calculated. Degree of
47
freedom is calculated using the formula (r-1)(c-1). The table of this degree of freedom is seen
using 5% or 1% of significance. If chi-square table value is greater than chi-square calculated
value, Null hypothesis is accepted or Null hypothesis is rejected.
Correlation
Correlation means relationship between two variables. When two variables move together then
we called it as correlated. When the one variable changes and if there is a corresponding change
in another variable then that is called correlation. It can be defined as "Tendency of two or more
variables of items varies together directly or indirectly." That means an increase or decrease in
one variable is found in connection with an increase or decrease of other variable. There are
several methods and formulas are used to measure correlation. Among that Karl Pearson
coefficient of correlation is widely used.
Karl Pearsons coefficient of correlation is denoted by using the symbol „r‟. It can be expressed in
the following way.
Conditions;
Where,
48
CHAPTER 5
DATA ANALYSIS
49
5.1 DATA ANALYSIS
100
90
80
70
60
50
40
30
20
10
0
Highly satisfied Satisfied Nutral Dissatisfied Highly
dissatisfied
Figure No:5.1
INTERPRETATION
From the above data it is clear that 59% of the employees are satisfied with management
support. 17% of the employees are of neutral opinion. 8% says that they are highly satisfied with
management support. 9%of the employees are dissatisfied and 7% of the employees are highly
dissatisfied with the management support.
50
Table no:5.2 Employees satisfaction level at present job
Figure no:5.2
INTERPRETATION
Respondents says that, 61% of the employees are satisfied with the present job. 13% of them
have neutral opinion. 10% of them are highly satisfied and 9% of them are highly dissatisfied
with present job.
51
Table No:5.3 .Employees opinion about salary and perks provided by the organisation.
Figure No:5.3
INTERPRETATION
From the above data, 60% of the employees are satisfied with salary and perks provided by the
organization . 13% of them have neutral opinion. 12% of them are dissatisfied, 8% of them are
highly satisfied and 7% of them are highly dissatisfied with the salary and the perks
provided by the organization.
52
Table No: 5.4 Employees opinion about promotion avenues provided by the organisation
Figure No:5.4
INTERPRETATION
From the above data 29% of the employees says that they have neutral opinion about the
promotion avenues provided by the organisation. 28% of them are satisfied. 27% of them are
dissatisfied then 12% of the employees are highly dissatisfied with the promotion avenues. 4% of
the are highly satisfied.
53
Table no:5.5 Support from co- workers and management
Figure No:5.5
INTERPRETATION
Respondents says that 58% them are satisfied with the support of co-workers and management.
15% of them are highly satisfied. 30% of them have neutral opinion and 11% them are
dissatisfied and 3% of them are highly dissatisfied with the support of co-workers and
management.
54
Table No: 5.6 Employees opinion about Communication channel exist in the
organisation.
100
90
80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied
Figure no :5.6
INTERPRETATION
From the above data, 60% of the employees are satisfied with the communication channel
exist in the organisation. 20% of them have neutral opinion. 8% of them are dissatisfied
with the communication channel exist in the organisation. 5% of the employees are highly
dissatisfied with the same.
55
Table No: 5.7 Employees opinion about grievance redressal system in the Organisation
80
70
60
50
40
30
20
10
0
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Figure No:5.7
INTERPRETATION
Respondents says that 50% them are satisfied with the grievance redressal system exist in the
organisation. 27% of them have neutral opinion and 14% them are dissatisfied and 5% of them
are highly satisfied and 4% of the employees are highly dissatisfied with the same.
56
Table No:5.8 Employees opinion about the welfare and safety measures provided by the
organisation.
Neutral 34 23
Dissatisfied 10 7
Highly Dissatisfied 8 5
Total 150 100
Source –Primary data
100
90
80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Figure No5.8
INTERPRETATION
From the above data 60% employees are satisfied with the welfare and safety measures
provided by the organisation, 23% of them are of neutral opinion , 7% employees are
dissatisfied and 5% employees are highly satisfied and dissatisfied.
57
Table No: 5.9 Employees opinion about employees participation in management
80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Figure No:5.9
INTERPRETATION
From the above data 45% employees are satisfied with the workers participation in
management, 35% employees are of the opinion neutral , 10% employees are dissatisfied and
7% are highly satisfied with the workers participation in management, 3% employees are highly
dissatisfied with the same.
58
Table No:5.10 Employees opinion about interpersonal relationships exist in the
organisation
80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
Figure No:5.10
INTERPRETATION
This table shows that 48% employees are satisfied with the interpersonal relationship exist in the
organisation, 21% of them are of neutral opinion ,15% of employees are highly satisfied ,11%
employees are dissatisfied with the interpersonal relation exist in the organisation and 5%
employees are highly dissatisfied.
59
Table No: 5.11 Employees opinion about the incentives provided by the company
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.11
INTERPRETATION
This table shows that 51% employees agree that motivation will affect employees performance,
20% employees strongly agree, 12% of them are of neutral opinion, 10 % employees disagree
that motivation will not affect employees performance, 7% employees strongly disagree with the
same.
60
Table No:5.12 Employees opinion about the motivation factors
60
50
40
30
20
10
0
Salary increase Promotion Leave Motivational Recognition
Talk
Figure No:5.12
INTERPRETATION
This table shows that 6% of the employees are of the opinion that salary increase is the
motivating factor. 7% of employees says it is promotion. 32% are of the opinion that leave is the
motivating factor for them. 17% says it is motivational talks and remaining 38% are of the
opinion that the motivating factor is recognition
61
Table No:5.13 Employees opinion about most motivating type of benefit
High Salary 16 11
Challenging jobs 22 15
Job Recognition 60 40
Rewards 25 16
Other benefits 27 18
70
60
50
40
30
20
10
0
High Salary Challenging Job Recognition Rewards Other benefits
jobs
Figure No:5.13
INTERPRETATION
From the above table it shows that 11% of employees are of the opinion that high salary is the
most motivating type of benefit. 15% of employees says it is challenging jobs. 40% are of the
opinion that job recognition is the most motivating type of benefit. 16% says rewards and
remaining 18% says other benefits.
62
Table No:5.14 Employees opinion about their role in decision making in the department
80
70
60
50
40
30
20
10
0
Particulars Yes No
Occasionally
Figure No:5.14
INTERPRETATION
From the above table 20% employees says that they are having role in decision making in the
department , 48% says no role and remaining 32% says they gets role occasionally in decision
making.
63
Table No:5.15 Opinion of employee relating to highly motivating incentive
70
60
50
40
30
20
10
0
Financial incentives Non- Financial Both
incentives
Figure No:5.15
INTERPRETATION
This shows that, 53% employees says financial incentives are highly motivating incentive, 22%
employees says non-financial incentives and remaining 43% says both financial and non-
financial incentives are highly motivating incentive.
64
Table No:5.16 Employees opinion about periodic increment in salary as a motivating factor
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree
Figure No:5.16
INTERPRETATION
This shows that 53% of employees agree about periodic increment in salary as a motivating
factor, 16% disagree with it and 15% strongly agree that periodic increment in salary as a
motivating factor , 11% of them are of neutral opinion remaining 5% strongly disagree with the
opinion regarding periodic increment in salary as a motivating factor.
65
Table No:5.17 Employees opinion about job security as a motivating factor
100
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.17
INTERPRETATION
From the above data 57% of employees agree that job security as a motivating factor, 16% of
them have neutral opinion. 12% of employees strongly agree and 11 % disagree with it,
remaining 4% strongly disagree with the same.
66
Table No:5.18 Employees opinion about interpersonal relationship as a motivating factor.
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.18
INTERPRETATION
This shows that 15% employees strongly agree about interpersonal relationship as a
motivating factor, 53% employees agree, 16% employees are of the opinion neutral, 11%
disagree about the interpersonal relationship as a motivating factor, remaining 5% employees
strongly disagree with the same.
67
Table No:5.19 Employees opinion about existence of effective performance appraisal
system.
100
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.19
INTERPRETATION
This shows that, 12% employees strongly agree about existence of effective performance
appraisal system , 57% employees agree, 16% employees are of the opinion neutral ,11%
employees disagree about existence of effective performance appraisal system, 4% employees
strongly disagree with the same.
68
Table No:5.20 Opinion about performance appraisal as a motivating factor.
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree
Figure No:5.20
INTERPRETATION
This shows that 54% employees agree about performance appraisal as a motivating factor,
16% employees are saying its neutral , 15% employees strongly agree with it. 11% employees
disagree about performance appraisal as a motivating factor remaining 4% employees strongly
disagree with the same.
69
Table No:5.21 Opinion about safety measures adopted by the organisation as a motivating
factor.
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly disagree
Figure No:5.21
INTERPRETATION
This shows that , 49% employees agree about safety measures adopted by the organisation as a
motivating factor, 27% employees are of the opinion neutral ,9% employees disagree , 8% of
employees strongly agree and remaining 7% employees strongly disagree agree about safety
measures adopted by the organisation as a motivating factor.
70
Table No: 5.22 Employees opinion about recognition and acknowledgement provided by
the company
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.22
INTERPRETATION
This shows that 8% employees are strongly agree about recognition and acknowledgement
provided by the company, 51% employees agree,21% employees are of the opinion neutral,
13% employees disagree about recognition and acknowledgement provided by the company, 7%
employees strongly disagree.
71
Table No:5.23 Employees opinion about welfare measure as a motivating factor
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.23
INTERPRETATION
This shows that ,10% employees strongly agree about welfare measure as a motivating factor,
57% employees agree, 13% employees are of the opinion neutral , 12% disagree about welfare
measure as a motivating factor, 8% employees strongly disagree with the same.
72
Table No: 5.24 Employees opinion about the interest of management in motivating the
performance of employees
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.24
INTERPRETATION
From the above data 51% employees agree about the interest of management in motivating the
performance of employees, 21% of them are of neutral opinion ,12% employees disagree about
the interest of management in motivating the performance of employees, 9% strongly disagree
and remaining 7% employees strongly disagree with the same.
73
Table No:5.25 Employees opinion about the satisfaction of working environment in the
organisation
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Figure No:5.25
INTERPRETATION
This shows that 55% employees agree that welfare measures affect employee motivation, 55%
employees agree, 15% employees are of the opinion neutral , 11% employees disagree,10%
strongly agree about the satisfaction of working environment in the organisation and remaining
9% employees strongly disagree with the same.
74
CHI-SQUARE TEST
Alternative Hypothesis
QUESTION;
Particulars Respondents
Strongly Agree 30
Agree 78
Neutral 18
Disagree 15
Strongly Disagree 9
Total 150
X2= ∑ ( ) ∕E
75
O E O-E (O-E)2 (O-E)2/E
30 30 0 0 0
78 30 48 2304 768
18 30 -12 144 4.8
15 30 -15 225 7.5
9 30 -21 441 14.7
795
E =150/5
30
5-1
Interpretation:
From the above hypothesis we identify that the calculated value of the chi square is 795 and the
table value is 9.448. So we reject the null hypothesis. So, it can be concluded that motivation will
affect employee performance.
76
CORRELATION
The relationship between managements interest in motivating employees and welfare measures
as a motivating factor
x y X2 Y2 xy
9 15 81 225 135
57 82 3249 6724 4674
48 23 2304 529 1104
26 17 676 289 442
10 13 100 169 130
∑X = 150
∑Y=150
∑X2 = 6410
∑Y2 = 7936
∑XY = 6485
n =5
77
Conditions;
Where,
r= 32425-22500
√ 9550 x √ 17180
r = 9925
7630
r= 1.300
Interpretation
From the above analysis r is 1.300 from that we can interpret that there is positive perfect
correlation between management and welfare measures.
78
CHAPTER 6
FINDINGS
79
FINDINGS
Fertilisers and Chemicals Travancore Limited has well- defined organisational structure.
The study indicates that there is a relationship between motivation and employee
performance.
59% employees says that they are satisfied with the managements support.
In FACT 61% employees are satisfied with their present job.
FACT provide good remuneration to its employees. 60% employees are satisfied with
salary and perks provided by the organisation.
Since promotion opportunities is an important factor which can motivate employees.
Employees in FACT is not highly satisfied with promotion and career development
opportunities provided by the organisation.
There is a good interpersonal relationship exist in the company.58% employees are
satisfied with the interpersonal relationship exist in the company . Interpersonal
relationship exist in the company is an important factor which motives employee
performance.
There is a good communication cannel exist in the company.60% employees are satisfied
with the communication channel exist in the company. It is also an important factor
which can influence employee performance. 55% employees agree that communication
channel exist in the organisation motives them.
50% Employees are satisfied with the grievance redressal system exist in the
organisation. FACT give considerations to employees grievance and it takes various
measures redress employee grievance.
Employees in FACT has good opinion about the welfare and safety measures provided by
the organisation. 60% employees are satisfied with the welfare and safety measures
provided by the organisation. Welfare and safety measure are important factors which
influence employee performance.
80
Employees in FACT are not highly satisfied with employees participation in
management. Company should try to give more opportunities for employee participation
in management.
Both the financial as well as non- financial incentives motivates the employees in FACT
FACT provides various types of incentives for motivating the employees, 61 %
employees are satisfied with the incentives provided by the organisation. Incentives
provided by the organisation is also an important factor of motivation.
Since FACT is a public organisation and there is large of job security exist in the
organisation. It is also an important factor of motivating the employees.
81
CHAPTER 7
RECOMMENDATIONS
82
RECOMMENDATIONS
This study reveal that both financial and non- financial incentives motivates an employee.
So the company should try to provide more effective financial and non- financial
motivations to the employees.
Employees should be identified by their better performance and should give some type of
incentives, promotions etc. So that employee will be boosted up and will work better.
Management should try to include employee‟s opinion in decision making.
Promotions should be given on the basis of performance only.
Company should try to provide incentives by considering the needs and wants of
employees.
The motivation review discussion should be practiced well to encourage the open
communication between both the appraiser and appraise.
Better development opportunities should be given to the employees for their improvement
The management should study motivation theories for better motivation.
Employees in FACT are not satisfied with the promotion and career development
opportunities provided by the organisation, so the company should try to give more
promotion and career development opportunities to the employees.
83
CHAPTER 8
CONCLUSION
84
CONCLUSION
The study concluded that motivational programmes in FACT are highly effective and it make
impact on employees performance. THE STUDY ON EMPLOYEE MOTIVATION AND ITS
EFFECTIVENESS ON EMPLOYEE PERFORMANCE IN FACT LTD,UDYOGAMANDAL
identify various motivational factors which influence employee performance. The study also
reveal that both financial and non-financial incentives motives the employees. The study was
conducted among 150 employees and collected information through structured questionnaire.
The incentives, salary increments, promotions play a major role in motivating the employees of
the organisation. It is major factor that make employee feel good in workplace make changes in
employee performance. The organisation can concentrate on specific area which are evolved
from the study in order to make motivation programme more effective . Only if the employee are
properly motivated – they work well and only if they work well the organisation is going to
benefit out of it. Steps should be taken to improve the motivational programme in future. The
suggestion of this report may help in this direction.
85
REFERENCES
86
BIBILIOGRAPHY
WEBLIOGRAPHY
www.factltd.com
www.slideshare.net/employeecommitment
87
APPENDIX
88
APPENDIX A
89
A STUDY ON EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS
ON EMPLOYEE PERFORMANCE IN FACT LTD, UDYOGAMANDAL..
QUESTIONNAIRE
Dear Sir/Madam,
I ARYA R NAIR, MBA student of Mangalam college of Engineering conducting a project study
on “EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS ON EMPLOYEE
PERFORMANCE IN FACT LTD, UDYOGAMANDAL”.
I will be grateful if you kindly fill up the below questionnaire. I assure that all the data I collect
will be kept strictly confidential and will use them only for academic purpose.
ARYA R NAIR
90
Name:
Age:
Sex:
Male
Female
Department:
Experience:
Highly
Factors Satisfied Neutral Dissatisfied Highly
Satisfied
dissatisfied
1. Support from
management
2. Present job
3. Salary and
perks
4. Promotion
avenues
91
5. Support from
co-workers and
management
6.
Communication
channel
7. Grievance
redressal system
8. Welfare and
safety measures
9. Employee
participation in
management
10. Interpersonal
relationship
11. Incentives
provided by the
organization
92
14. Does the management involve you in decision making which are connected to your
department?
Yes No Occasionally
15. Which type of incentives motivates you more?
Financial incentives Non-financial incentives Both
93
22. Do you think company
recognise and acknowledge
your work?
94