CHAPTER-1

 INTRODUCTION
 NEED FOR THE STUDY
 SIGNIFICANCE OF THE STUDY
 OBJECTIVES OF THE STUDY
 LIMITATIONS

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 1.1 INTRODUCTION

The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special reference
to SRI LAKSHMI SRINIVASA HERO PRIVATE LIMITED; Anakapalle is mainly
conducted to identify the factors which will motivate the employees and the organizational
functions in Sri Lakshmi Srinivasa Hero Private Limited Anakapalle.

Management’s basic job is the effective utilization of human resources for achievements of
organizational objectives. The personnel management is concerned with organizing human
resources in such a way to get maximum output to the enterprise and to develop the talent of
people at work to the fullest satisfaction. Motivation implies that one person, in organization
context a manager, includes another, say an employee, to engage in action by ensuring that a
channel to satisfy those needs and aspirations becomes available to the person. In addition to
this, the strong needs in a direction that is satisfying to the latent needs in employees and
harness them in a manner that would be functional for the organization.

Employee motivation is one of the major issues faced by every organization. It is the major
task of every manager to motivate his subordinates or to create the ‘will to work’ among the
subordinates. It should also be remembered that a worker may be immensely capable of
doing some work; nothing can be achieved if he is not willing to work. A manager has to
make appropriate use of motivation to enthuse the employees to follow them. Hence this
studies also focusing on the employee motivation among the employees of Sri Lakshmi
Srinivasa Hero Private Limited .

The data needed for the study has been collected from the employees through questionnaires
and through direct interviews. Analysis and interpretation has been done by using the
statistical tools and data’s are presented through tables and charts.

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 1.2. NEED FOR THE STUDY

Competent and motivated employees are essential for organizational survival growth
and excellence. Over a period of time, an organization may achieve a saturation point in
terms of its growth. Even to maintain such a saturation level of growth employee
competencies need to be sharpened or developed. Thus, motivation is needed by every
organization that is interested in the following activities:

 Stability itself

 Growing
 Diversifying
 Renewing itself to become more effective
 Improving its systems and services
 Change and becoming more dynamic
 Playing leadership roles

Understanding the importance of the motivation that is essential for the betterment of
the employees’ welfare and satisfaction I have taken this topic to understand the motivational
needs that are followed at SRI LAKSHMI SRINIVASA HERO PRIVATE LIMITED.

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 1.3 RESEARCH PROBLEM
The research problem here in this study is associated with the motivation of employees of Sri
Lakshmi Srinivasa Hero Private Limited, anakapalle. There are a variety of factors that can
influence a person’s level of motivation; some of these factors include

1. The level of pay and benefits,

2. The perceived fairness of promotion system within a company,
3. Quality of the working conditions,
4. Leadership and social relationships,
5. Employee recognition
6. Job security
7. career development opportunities etc.

Motivated employees are a great asset to any organisation. It is because the motivation and
Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in
the organisation. The research problem is formulated as follows:

“What are the factors which help to motivate the employees?

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 1.4 SIGNIFICANCE OF THE STUDY

The study is intended to evaluate motivation of employees in the organization. A good

motivational program procedure is essential to achieve goal of the organization. If efficient
motivational programmes of employees are made not only in this particular organization but
also any other organization; the organizations can achieve the efficiency also to develop a
good organizational culture.

Motivation has variety of effects. These effects may be seen in the context of an 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
“who can

deliver value to the organization. Proliferating and nurturing the number of “true believers”
1
is the challenge for future and present HR managers.

This means innovation and creativity. It also means a change in the gear for HR polices and
practices. The faster the organizations nurture their employees, the more successful they will
be. The challenge before HR managers today is to delight their employees and nurture their
creativity to keep them a bloom.

This study helps the researcher to realize the importance of effective employee motivation.
This research study examines types and levels of employee motivational programmes and
also discusses management ideas that can be utilized to innovate employee motivation. It
helps to provide insights to support future research regarding strategic guidance for
organizations that are both providing and using reward/recognition programs.

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 1.5 OBJECTIVES OF THE STUDY

1.5.1 Primary objective

1. To study the important factors which are needed to motivate the employees.

1.5.2 Secondary Objective

1. To study the effect of monetary and non-monetary benefits provided by the
organization on the employee’s performance.
2. To study the effect of job promotions on employees.

3. To learn the employee’s satisfaction on the interpersonal relationship exists in the

organization.
4. To provide the practical suggestion for the improvement of organization’s
performance.

1.6 LIMITATIONS OF THE STUDY

The limitations of the study are the following

 The data was collected through questionnaire. The responds from the respondents
may not be accurate.
 The sample taken for the study was only 50 and the results drawn may not be
accurate.
 Since the Organization has strict control, it acts as another barrier for getting data.
 Another difficulty was very limited time-span of the project.
 Lack of experience of Researcher.

1.7 RESEARCH HYPOTHESIS

A hypothesis is a preliminary or tentative explanation or postulate by the researcher of what

the researcher considers the outcome of an investigation will be. It is an informed/educated
guess. It indicates the expectations of the researcher regarding certain variables.  It is the
most specific way in which an answer to a problem can be stated.

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Research hypotheses are the specific testable predictions made about the independent and
dependent variables in the study. Hypotheses are couched in terms of the particular
independent and dependent variables that are going to be used in the study. The research
hypothesis of this study is as follows.

Ho: There is no significant relationship between incentives and employee’s performance.

Ho: There is no significant relationship between career development opportunities and the
extent of employee motivation

Ho: There is no significant relationship between performance appraisal system and the extent
of motivation.

Ho: There is no significant relationship between interpersonal relationship in the organization

and extent of motivation.

1.8 RESEARCH METHODOLOGY.

Research is a systematic method of finding solutions to problems. It is essentially an

investigation, a recording and an analysis of evidence for the purpose of gaining knowledge.
According to Clifford woody, “research comprises of defining and redefining problem,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
reaching conclusions, testing conclusions to determine whether they fit the formulated
hypothesis”2

1.8.1 Sampling Design.

A sample design is a finite plan for obtaining a sample from a given population. Simple
random sampling is used for this study.

1.8.2 Universe.

The universe chooses for the research study is the employees of Hyderabad Industries Ltd.

1.8.3 Sample Size.

Number of the sampling units selected from the population is called the size of the sample.
Sample of 50 respondents were obtained from the population.

2
.

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1.8.4 Sampling Procedure.

The procedure adopted in the present study is probability sampling, which is also known as
chance sampling. Under this sampling design, every item of the frame has an equal chance of
inclusion in the sample.

1.8.5 Methods of Data Collection.

The data’s were collected through Primary and secondary sources.

1.8.5.1 Primary Sources.

Primary data are in the form of “raw material” to which statistical methods are applied for the
purpose of analysis and interpretations.

The primary sources are discussion with employees, data’s collected through questionnaire.

1.8.5.2 Secondary Sources.

Secondary data’s are in the form of finished products as they have already been treated
statistically in some form or other.

The secondary data mainly consists of data and information collected from records, company
websites and also discussion with the management of the organization. Secondary data was
also collected from journals, magazines and books.

1.8.6 Nature of Research.

Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal
relationship, where one variable affects another. In other words, descriptive research can be
said to have a low requirement for internal validity.

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1.8.7 Questionnaire.

A well defined questionnaire that is used effectively can gather information on both overall
performance of the test system as well as information on specific components of the system.
A defeated questionnaire was carefully prepared and specially numbered. The questions were
arranged in proper order, in accordance with the relevance.

1.8.8 Nature of Questions Asked.

The questionnaire consists of open ended, dichotomous, rating and ranking questions.

1.8.9 Pre-testing

A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed

and all of them were collected back as completed questionnaire. On the basis of doubts raised
by the respondents the questionnaire was redialed to its present form.

1.8.10 Sample

A finite subset of population, selected from it with the objective of investigating its properties
called a sample. A sample is a representative part of the population. A sample of 50
respondents in total has been randomly selected. The response to various elements under each
questions were totaled for the purpose of various statistical testing.

1.8.11. Variables of the Study.

The direct variable of the study is the employee motivation

Indirect variables are the incentives, interpersonal relations, career development opportunities
and performance appraisal system.

1.8.12. Presentation of Data.

The data are presented through charts and tables.

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CHAPTER-II
 INDUSTRY PROFILE
 COMPANY PROFILE

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 INTRODUCTION TO INDUSTRY
Two wheelers in India cater to various needs of the consumers. With the choice of
the Indians improving from bicycles to two wheelers, the Indian two-wheeler market has seen
a significant growth over the year. With the growth in the economy the demand for two
wheelers is increasing over the years. It is one of the most dynamic industries today and with
the increasing competition companies are bringing in new products with sophisticated
technologies and innovative features to capture a major pie of the Indian market and it‘s the
consumer who is benefited from it. With the availability of reduced consumer loans and high
disposable income the Indian two-wheeler industry has perceived an exceptional growth over
the past few years thereby making India the second largest market for two wheelers in the
world only after China.

The motorcycle has now become one most popular mode of transportation among
the Indian middle class families because of it is cost effective, economical and easy to
navigate through the traffic. Moreover, the people have started preferring bikes instead of
scooters and mopeds and today bikes form a major part of the Indian two wheelers.

Indian companies are one of the largest two wheeler manufacturers in the world. The
number one bike manufacturer in the world, Bajaj is in close competition with the Indian
manufacturer Hero Honda The motorcycle industry in India has witnessed a tremendous
change in the 90‘s with the invention of 4 stroke engine which makes the bikes more fuel
efficient. Further companies are trying to bring in more innovations to make the
motorcycle ride more comfortable, safe and user friendly and economical.

In a nut shell the followings factors can be distinguished for the growth of
motorcycle industry in India:

 Easy accessibility to cheap consumer loans.

 The increase in the average income of the family.
 The reduction in duties and taxes.
 Convenience with regards to commuting as compared to the public transport system.
 Continuous innovations in technology making the bikes economic and fuel-efficient.
 The first choice among youths and teenagers.

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Overview of the Two Wheeler Industry 

India is the largest manufacturer of two wheelers in the world. It stands next only to
Japan and China in terms of the number of two wheelers manufactured and sold respectively.

Initially the motorcycles segment had only three manufacturers Enfield, Ideal, jawa
and Escorts. While bullet was a four –stroke bike, java and Rajdoot were the two strokes.
Enfield 350cc bikes & escorts 175cc bike initially dominated motorcycle segment.

The two wheelers market was opened to foreign competition in the mid-80’s and the
then market leaders – Escort & Enfield were caught unaware by the onslaughts of the 100 cc
bikes of the four indo –Japanese joint ventures . With the availability of fuel efficient low
power bikes, demand swelled, resulting in Hero Honda – then the only producer of four
stroke bikes (100 cc category), gaining a top slot.

The 1st Japanese motorcycles were introduced in the early eighties. TVS Suzuki &
Hero Honda brought in the 1st two stroke & four strokes engine motorcycles respectively.
These two players initially started with assembly of Ckd kits, & later on progressed to
indigenous manufacturing .In the 90’s the major growth for motorcycle segment was brought
by Japanese motorcycles, which grew at the rate of nearly 25% CAGR in the last five years.

The Indian two wheelers can be broadly classified into three major segments –
scooters, motorcycles & mopeds. The domestic two wheeler sales of 3.800 mn in Fiscal year
2000 constitutes scooter sales of 33.4% (39%in Fiscal year 1999), motorcycles 47.7 %( 42%
in Fiscal year 99) & mopeds 18 %( 20% in Fiscal year 99). The motorcycle segment has
gradually increased its presence from 27% in the year 1992 to 48% in the year 2000, mainly
at the expenses of the scooter and, to some extent, the moped segment.

The demand for scooters is on the wane and witnessed a 19% year of year fall in Fiscal year
2000 .Sales in the scooters segment are expected to fail further , while on the other side
motorcycle and scooterette segment will record continued growth in the future . This will
translate into a demand fall of around 20% in scooters. With the ongoing expansion from

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Bajaj auto Ltd., LML & TVS Suzuki, the capacity in the sector will increase from 2mn in
Fiscal year 2000 to 2.15 mn Fiscal year 2001 leading to a surplus situation.

We expect the motorcycle segment to continue to grow at an average of 20% in Fiscal

year 2001. This will increase demand for motorcycles from 1.800 mn in Fiscal year 2000 to
2.15mn in Fiscal year 2001. The supply of motorcycle segment as per the present trend will
increase from 2.08 mn in Fiscal year 2000 to 2.38 mn in Fiscal year 2001. The segment will
be witnessing several new entrants in Fiscal year 2001, mainly in the four stroke sub
segment. This will lead to an over supply situation and increase the competition in the
Japanese segment...

In the last six years, the domestic two wheelers industry has seen structural changes.
This can be seen from the change in composition of two –wheelers sales, where the
motorcycles have consistently gained market share from the scooter and moped segments to
corners a share of 41% of total two wheelers sales. 

This trend is expected to continue in the next two years till the four stroke scooters
make their presence felt in the segment. The table below gives an idea the strides made the
motorcycle segment in the last six years.

The Indian motorcycle industry can broadly categorized in to Indian motorcycles and Indo
Japanese motorcycles. The Indo – Japanese motorcycle segment is dominated by Hero group,
Bajaj and Escorts in collaboration with Japanese vehicle manufacturers Honda, Kawasaki &
Yamaha respectively. The Indian motorcycles segment is dominated by Bajaj, Escorts &
Enfield. In the motorcycle sales western region leads with a market share of 40% of the total
motorcycle sales. South & North regions come second & third with an market share of 28%
& 17.5 % of total motorcycles sales respectively.

In terms of two wheelers vehicle population, Maharashtra stands 1st with a population
of all most 3 mn vehicle and Gujarat stands 2nd with 2.7mn vehicles population as on March
31st 1997. Tamilnadu is his largest state with 2.45 mn two wheelers population. In the period
Fiscal year 1993 – Fiscal year 99 the two wheelers industry has grown at CAGR of 14.6%.

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 This splendid growth was possible due to the average performance of motorcycle
segment, which has grown at a CAGR of 24.3 % compared to 11% for scooters & 8.6 % for
mopeds. After lying for two years, sales of two wheelers bounced back a witness growth in
Fiscal year 1999. The sales of two wheelers have increased by 11.85% YOY to 3.4 mn. 

The trend has continued in Fiscal year 2000 with the sector sales growing by 11% to
3.78 mn vehicles. The demand of two wheelers in India is dependent upon factors like
availability of finance, increase in income levels, and restricted growth in public
transportation and movement in petrol prices. Except petrol prices, all other factors have
positive correlation with the demand of two wheelers .The increase in petrol prices on
contrary, adversely affects the demand for two wheelers, due to increase in the running cost
of a vehicle.

Two wheelers are distinguished on different factors for different consumer segments.
For e.g. high powered two wheelers have a niche market as racing / sporting vehicle and have
a special appeal to youngsters. Easy maneuverability / handling ease is preferred by teenagers
and women. Urbanities are lured by fuel efficiency a low maintenance. The lower end of the
market looks for durability, value for money and higher resale values.

Some Two Wheeler Manufacturers in India are:

Hero Motocorp:

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle

and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint
venture between Hero Cycles of India and Honda of Japan. The company is the largest two
wheeler manufacturer in India.

Hero offers two wheelers for everyone right from mopeds to racing bikes. At the
rage of Pleasure, Maestro, Splendor, Splendor+, Passion, Passion Plus, CD 100, CD Dawn,
CD Deluxe, Hero Honda Joy, Glamour, CBZ Xtreme, Hunk, Karizma

Hero Impulse launched in 2011 after the separation of hero and Honda. Its India's
first off-road and on road Bike. Recently Hero launched a new bike Ignator for both Drum
and Disc self cast.

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Bajaj Auto:

Bajaj Auto is the largest exporter of two and three wheelers in India. In
collaboration with Kawasaki Heavy Industries of Japan Bajaj Auto Ltd manufactures a wide
range of two wheelers which are the best in the industry.
This company has introduced certain models like Pulsar, Discover DTSi and
Kawasaki Bajaj Eliminator which has given other two wheeler manufacturing companies a
run for their money.

TVS Motor Company:

TVS Motor Company is the third largest two wheeler manufacturer in India and
among the top ten in the world. In its wide range of products TVS offers a two wheelers for
everyone right from mopeds to racing bikes. It has a range of products for women as well like
the TVS Wego, Scotty Streak, Scotty Pep+, and Scotty Teenz and among its most famous
road dominators are: TVS Apache RTR 180, and TVS Flame DS 125.

Majestic Auto Ltd:

The Company began operations in the year 1975, having understood the
requirements of the Indian two wheeler market the company started off with manufacturing
mopeds. The company is synonymous for its mopeds under name of Hero Majestic. The
company has a phenomenal growth record since its very inception in the year 1973.

Kinetic:

Kinetic is the name that is almost synonymous with scooters in India. They were the
first to introduce auto chokes, auto fuel cork, TLAD suspensions, and gearless two wheelers
to the Indian market which was an immediate hit with the Indian women. However the latest
two wheelers introduced by Kinetic are Kinetic 4S and Kinetic Luna TFR Plus.

Suzuki Bikes and Scooters:

Suzuki motors first entered India in collaboration with TVS Motors. Suzuki motors
ruled the two wheeler market for quite a long time until competitors started flooding in. Some

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of the most famous and stylish two wheelers by Suzuki are Suzuki Samurai, Suzuki Shogun
and Suzuki Max 100.

Trend in Sales Volumes of the Indian Two-wheeler Industry

The Indian two-wheeler (2W) industry recorded sales volumes of 13.4 million
units in 2015-16.

A growth of 14.0% over the previous year. In a year wherein growth in other
automobile segments particularly, passenger vehicle (PV) and medium & heavy commercial
vehicle (M&HCV), slowed down to single digits - marred by demand slowdown due to
northward movement of inflation, fuel prices and interest rates - the 14% growth recorded by
the two-wheeler industry remained steady. However, the momentum in the two-wheeler
industry’s volume growth too has been losing steam lately as evident from the relatively
lower volume growth of 11.0% recorded in H2, 2015-16 (YoY) against a growth of 17.1%
recorded in H1, 2015-16 (YoY).

The deceleration in growth is largely attributable to the motorcycles segment which

grew at a much lower rate of 7.8% (YoY) in H2, 2015-16 vis-à-vis 16.4% in H1, 2015-16;
even as the scooters segment continued to post 20%+ (YoY) expansion during both halves of
the last fiscal. With this, the share of the scooters segment in the domestic two-wheeler
industry volumes increased to 19.1% in 2015-16 from 17.6% in 2014-15.

Overall, ICRA expects the domestic two-wheeler industry to report a volume growth
of 8-9% in 2015-16 as base effect catches up with the industry that has demonstrated a strong
volume expansion over the last three years at cumulative annual growth rate (CAGR) of
21.8%.

Over the medium term, the two-wheeler industry is expected to report a volume
CAGR of 9-11% to reach a size of 24-26 million units (domestic + exports) by 2017-18, as
we believe the various structural positives Associated with the domestic two-wheeler industry
including favorable demographic profile, moderate 2W penetration levels (in relation to
Several other emerging markets), under developed public transport system, growing
urbanization, strong replacement demand and Moderate share of financed purchases remain
intact.

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DOMESTIC:

VOLUME:

  volumes (units, No's)

Q1 Q2 Q3 Q4
YoY 2014-15
2015-16 2015-16 2015-16 2015-16
Motorcycles 9,019,090 2,464,143 2,558,515 2,556,782 2,514,699
Scooters 2,073,797 532,867 650,155 659,643 720,176
Mopeds 697,418 190,672 192,859 186,472 206,863
Total
Domestic 11,790,305 3,187,682 3,401,529 3,402,897 3,441,738

GROWTH:

  Growth (%)
Q1 Q2 Q3 Q4
YoY 2014-15
2015-16 2015-16 2015-16 2015-16
Motorcycles 22.90% 17.50% 15.40% 9.20% 6.30%
Scooters 41.80% 13.30% 29.00% 21.60% 29.40%
Mopeds 23.50% 21.00% 7.00% 2.60% 16.40%
Total Domestic 25.80% 17.00% 17.30% 11.00% 11.10%
EXPORTS:

VOLUME:

  volumes (units, No's)

Q1 Q2 Q3 Q4
YoY 2014-15
2015-16 2015-16 2015-16 2015-16
Motorcycles 1,480,983 482,566 492,408 448,090 434,521
Scooters 52,312 20,949 24,696 23,950 21,010
Mopeds 6,295 1,461 3,478 2,796 1,341
Total Exports 1,539,590 504,976 520,582 474,836 456,872

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GROWTH:

  Growth (%)
Q1 Q2 Q3 Q4
YoY 2014-15
2015-16 2015-16 2015-16 2015-16
Motorcycles 34.30% 27.10% 31.70% 21.80% 18.10%
Scooters 73.60% 100.40% 88.50% 92.00% 29.00%
Mopeds -8.80% -44.00% 159.20% 188.00% -2.30%
Total Exports 35.00% 28.60% 34.00% 24.50% 18.50%

MARKET SHARE FOR 2014-15

PV's
CV's 16%
3%
Three wheelers
7%

Two wheelers
75%

Two-Wheelers: Market Size & Growth

In terms of volume, 13,433,846 units of Two-Wheelers were sold in the country in 2014 with
1,957,266 units exported the total two-wheeler sales of the Indian industry accounted for
around 75% of the total vehicles sold in the period mentioned.

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 HISTORY OF THE COMPANY
The joint venture between India's Hero Group and Honda Motor Company, Japan has
not only created the world's single largest two wheeler company but also one of the most
successful joint ventures world wide .During the 80s. Hero Honda became the first company
in India to prove that it was possible to drive a vehicle without polluting the roads. The
company introduced new generation motorcycles that set industry benchmarks for fuel thrift
and low mission. A legendary

'Fill it - Shut it - Forget it campaign captured the imagination of commuters across

India, and Hero Honda sold millions of bikes purely on the commitment of increased
mileage. Over 20 million Hero Honda two wheelers tread Indian roads today. These area
almost as many as the number of people in Finland, Ireland and Sweden put together. Hero
Honda has consistently grown at double digits since inception; and today, every second
motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys
Hero Honda's top -selling motorcycle – Splendor. Thisfestive season, the company sold half a
million two wheelers in a single month. Hero Honda bikes currently roll out from its three
globally benchmark manufacturing facilities. Two of these are based at Dharuhera and
Gurgaon in Haryana and the third state of the art manufacturing facility was inaugurated at
Haridwar, Uttrakhand in April this year. These plants together are capable of  producing out
4.4 million units per year. Brijmohan Lall Munjal, the Chairman, Hero Honda Motors
succinctly points out,

"We pioneered India's motorcycle industry, and it's our responsibility now to

take the industry to the next level. We'll do all it takes to reach there

SUCCESS OF HERO HONDA MOTORS

Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group
and Japanese Honda Motors Company in the year 1983. This joint venture has not only
created the world's single largest two wheeler company but also one of the most successful
joint ventures worldwide. Hero Honda is globally known of being the most fuel-efficient and
the largest CBZ selling Indian motorcycle company. This is a relationship so harmonious that
Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record
worldwide.

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The below chart shows the golden years in the history of HERO HONDA :

1985 CD-100
1989 SLEEK
1991 CD-100 SS
1994 Spelendor
1997 Street
1999 CBZ
2001 PASSION
2002 DAWN, AMBITION
2003 CD-DAWN, SPLENDOR +, PASSION +,
KARIZMA
2005 SUPER-SPLENDOR, CD-DELUX, 
GLAMOUR, ACHIEVER
2008 SUPER-SPLENDOR, CD-DELUX, 
GLAMOUR, ACHIEVER
2015 HERO HF DAWN, Hero HF DELUX, HHERO HF
HUNK, HERO IGNITOR,
2016 HERO KARIZRMA, HERO PASSION, HERO
PLEASURE, HERO XTREME, Hero ACHIEVER,
HERO XTREME SPORTS, HERO DASH

The company is committed to provide the customer with excellence. A rich background of
producing high value products at reasonable prices led the world's largest manufacturer of
motorcycles to collaborate with the world's largest bicycle manufacturer. During 80s, Hero
Honda became the first company in India to prove that it was possible to drive a vehicle
without polluting the roads. They company possess three manufacturing units based at
Dharuhera, Gurgaon and Haridwar are capable to produce 4.4 million units per year. They
introduced new generation motorcycles that set industry benchmarks for fuel thrift and low
emission.

The unique features like fuel conservation, safety riding courses and mobile
workshops helped the group reach in the interiors of the country. Well-entrenched in the
domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have
been steadily on the rise. 

Over the years, the Company has received its share of accolades, including the National
Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business

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School Association of India Award, against 200 contenders. The gross sales of Hero Honda
by March end'2008 was 33,371,43 Crores.

QUALITY SECRET OF HERO HONDA MOTOR COMPANY:

Here are three techniques that Hero Honda uses to sex up sales of India's workhorse
form of transportation.

Put Quality First

Inside Hero Honda's spotless Indian plants, white-suited workers produce 13,000
motorcycles a day. Half of a Hero Honda factory worker's wage is based on performance
factors such as productivity and quality, and top employees enjoy the most generous
compensation in the industry.

The extra effort translates into a better-made product, and customers notice the
difference. "Hero Honda doesn't just deliver good quality, it delivers consistently good
quality," says Pradeep Saxena of Delhi-based market research firm TNS Automotive India.
"The company's engines are always considered smooth."

Keep the Improvements Coming

Hero's Indian management uses Honda's vast parts bin to exploit the best technology
its Japanese partner has to offer. Just a year and a half ago, $900 100cc Passion Plus bikes
were among Hero Honda's top-selling models.
Now, for a price about 2 percent higher, the new 125cc Super Splendor offers a self-
starter and better acceleration, and there are signs that it's eating into the Passion's sales. Hero
also added fuel injection to the 125cc motors installed in the company's $1,100 Glamour
models this year; fuel injection is common in cars, of course, but this is the first time the
technology has been offered on such a small motor.

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Deliver on the Image
Delhi's Himgiri Hero Honda, one of India's top dealerships, caters to consumers who
are eager to see how far their new wealth can take them. "The performance is excellent, and I
know it's going to be totally reliable," explains Delhi insurance salesman Umesh Mathur as
he signs the papers to purchase a new bike. "It's everything I could want in a motorcycle."

Termination of Honda Joint Venture:

In December 2010, the board of directors of the Hero Honda Group had decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a phased
manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.

Logo of Hero Honda, as the company was known till August 2011

Under the joint venture Hero Group could not export to international markets (except
Nepal, Bangladesh and Sri Lanka) and the termination would mean that Hero Group can now
export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the
technology in their bikes. So there are concerns that the Hero Group might not be able to
sustain the performance of the joint venture alone.

The Japanese auto maker will exit the joint venture through a series of off market
transactions by giving the Munjal family—that held a 26% stake in the company—an
additional 26%. Honda, which also has an independent fully owned two wheeler subsidiary—
Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a discount and get
over $1 billion for its stake. The discount will be between 30% and 50% to the current value
of Honda's stake as per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually emerged as an irritant.
Differences had been brewing for a few years before the split over a variety of issues, ranging
from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year
technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high

Page No : 22
royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of
Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts
business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter
India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led
by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle
(SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV
would eventually be thrown open for private equity participation and those in the fray
include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle
Group.

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for
existing as well as future models.

Company Performance:

The company has sold over 47 million 2-wheelers since its inception in 1984 till March
2014.[2] It sold 6.07 million 2-wheelers in 2013, out of which 5.5 million were motorcycles.

Hero Moto corp sells more two wheelers than the second, third and fourth placed two-
wheeler companies put together. Its most popular bike Hero Honda Splendor sells more than
one million units per year.

In 2014, Hero MotoCorp registered best ever calendar year performance of more than 6.1
million unit sales. By selling 6.25 lakh units in the month of October, it became the first-ever
manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or
say in the festive season, the company sold more than 1.6 million units, while in non festive
time in April–May 2014, it managed to sell out quite good numbers of units- 1.1 million.

Page No : 23
Awards and Recognition:

 The Brand Trust Report published by Trust Research Advisory has ranked Hero
Honda in the 7th position among the most trusted brands in India.
 It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two
Wheelers Category at the Auto India Best Brand Awards 2012.

Sports Association:

 Hero MotoCorp began its association with the prestigious Indian Open Golf tournament
in 2005. The tournament has helped catapult the popularity of golf in India. Illustrious
golfers from around the world participate in this annual event, which boasts of the largest
prize fund sanctioned solely by the Asian Tour. Hero MotoCorp, the India's largest
manufacturer of two-wheelers, took over title sponsorship of the World Challenge Hero
World Challenge

 Hockey is India's national sport, and Hero is committed to doing its part to promote and
popularize the sport. In 2010, Hero MotoCorp extended its support to Hockey by
sponsoring the 'Hockey World Cup 2010' that was held in India. 2 years after this, Hero
Motocorp was also the sponsor of the 'FIH Road to London 2012' tournament.

 The company is proud to associate with, and will continue to endorse this great sport in
the future.

 Our association with cricket goes a long way. Hero MotoCorp has in the past sponsored
major cricket tournaments in association with International Cricket Council (ICC),
including the cricket World Cup and the Champions Trophy. Hero has also been
associated with IPL.

Page No : 24
Company Timeline:

 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)

 1975—Hero Cycles becomes largest bicycle manufacturer in India.

 1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

 1984—Hero Honda Motors Ltd. Incorporated

 1985—Hero Honda motorcycle CD 100 launched.

 1989—Hero Honda motorcycle Sleek launched.

 1991—Hero Honda motorcycle CD 100 SS launched.

 1994—Hero Honda motorcycle Splendor launched.

 1997—Hero Honda motorcycle Street launched.

 1999—Hero Honda motorcycle CBZ launched.

 2001—Hero Honda motorcycle Passion and Hero Honda Joy launched.

 2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition

launched.

 2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus,

Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.

 2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ Star
launched.

 2005—Hero Motocorp SuperSplendor, Hero Honda motorcycle CD Deluxe, Hero

Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda
Scooter Pleasure.

 . New licensing arrangement signed between Hero and Honda. In August Hero and
Honda parted company, thus forming Hero MotoCorp and Honda moving out of the
Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike
Named Hero "Impulse".

 2012—New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the
young generation bike are launched.

 2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero
Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus
andHero Honda motorcycle Hunk launched.
Page No : 25
 2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour,
Glamour Fi and Hero Honda motorcycle Passion Pro launched.

 2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and limited

edition of Hero Honda motorcycle Hunk launched

 2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda

motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.

 2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme,
Karizma launched

 2014—Hero MotoCorp Launched Splendor Pro Classic, Xtreme Sports and new
models of Karizma ZMR, Karizma R, Maestro and Pleasure.

 2014—In October 2014, Hero updated its 100cc engine range on Passion Pro and
Splendor Pro Classic. Is should be updated on other Hero's 100cc vehicles shortly as
well.

 2014—Hero invests $25 million into American motorcycle manufacturer EBR(Erik

Buell Racing)

 2015—Hero MotoCorp unveiled line-up of 15 updated products including Karizma R,

ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero
Motocorp SuperSplendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also
introduced three new technologies- Engine Immobilizer in new Xtreme, Integrated
Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new
Splendor iSmart[13]

 2016—New Models of Hero Glamour, Hero HF Dawn, Hero HF Delux, Hero HF

Hunk, Hero Ignitor, Hero Karizrma, Hero Passion, Hero pleasure, Hero Xtreme, Hero
Achiever, Hero Xtreme Sports, Hero Dash launched.

 Up coming Bikes Hero HX 250R Hero Dare, Hero Leap, Hero ZIR, Hero Hasture,
Hero RNT, Hero Xtreme 200x, Hero Duet , Hero duet E launched.

Page No : 26
 COMPANY PROFILE

INTRODUCTION OF THE HERO MOTOCORP

LOGO
LOGO
Type Public company
BSE: 500182
Traded as NSE: HEROMOTOCO
BSE SENSEX Constituent

Products
Motorcycles, scooters, three-wheeler vehicles
Parent Hero Group
FOUNDED 19 January 1984, HARYANA, INDIA
HEAD QUARTERS Gurgaon, HARYANA, INDIA

HERO MOTO CROP

Company Profile
Hero Motocorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two – wheelers, based in India. In 2001, the Company achieved the coveted

Page No : 27
position of being the largest two-wheeler manufacturing Company in India and also, the
‘World No.1’ two-wheeler Company in terms of unit volume sales in a calendar year. Hero
Motocorp Ltd. continues to maintain this position till date.

In 2010, when Honda decided to move out of the joint venture, Hero Group
bought the shares held by Honda. Subsequently, in August 2011 the company was renamed
Hero Motocorp with a new corporate identity. On 4 June 2012,Hero Motocorp approved a
proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. into the
automaker. The decision comes after 18 months of its split from Honda Motors.

“Hero” is the brand name used by the Munjal brothers for their flagship company,
Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family
and Honda group both owned 26% stake in the Company. In 2010, it was reported that
Honda planned to sell its stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were popular in India
for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill
it – Shut it – Forget it' that emphasized the motorcycle's fuel efficiency helped the company
grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for
almost 26 years (1984–2010) has come from the Japanese counterpart Honda.

Hero Motocorp has three manufacturing facilities based

at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together
are capable of churning out 3 million bikes per year. Hero Motocorp has a large sales and
service network with over 3,000 dealerships and service points across India. Hero Honda has
a customer loyalty program since 2000, called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10
million two-wheelers by 2016–17. This in conjunction with new countries where they can
now market their two-wheelers following the disengagement from Honda. Hero Motocorp
hopes to achieve 10 per cent of their revenues from international markets, and they expected
to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new
demand over the coming half decade, the company was going to build their fourth factory in

Page No : 28
South India and their fifth factory in Western India. There is no confirmation where the
factories would be built.

Registered and corporate office - 34, Community Centre, BasantLok, VasantVihar, New
Delhi

Zonal and regional office :

North South zone East zone West zone

Zonal office New Delhi Bangalore Kolkata Pune
Regional office Chandigarh, Chennai, cochin, Bhubaneswar, Baroda, Bhopal,
jaipur, dehradun, Coimbatore, hubli, Ranchi ,Patna Mum, Nagpur,
lucknow, Varanasi Hyd, Vijayawada Raipur, Rajkot

Manufacturing plant

Hero Honda bikes are manufactured across three globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of
Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar,
in the hill state of Uttarakhand.

Total no of employee- 6106

FDI/FII (Nature Of Investment)

Holder's Name % Share Holding
Promoters 52.21
Foreign Institutions 33.21
General Public 6.94
Financial Institutions 4.52
Other Companies 1.46
NBanksMutualFunds 1.42
Others 0.13
ForeignNRI 0.11

Vision & Mission

Vision

Page No : 29
The story began with a simple vision – the vision of a mobile and an empowered India,
powered by its bikes. Hero Motocorp Ltd., company’s new identity, reflects its commitment
towards providing world class mobility solutions with renewed focus on expanding
company’s footprint in the global arena.

Mission

Hero Motocorp’s mission is to become a global enterprise fulfilling its customers’ needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates. The Company will provide an engaging
environment for its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners

Hero Group aspires to deliver the best and the most cost-effective products & solutions
empowered by superior technologies. The Group is committed to ensure value for money by
developing high-quality, environment-friendly and efficient solutions that fulfill the diverse
needs of customers.

“At Hero Motors, we are committed to give our best and achieve the highest
standards in Performance, Quality, Systems, Care and Relationships. And then
we want to beat these high standards and go further…because anything that can
be done can be done better.”

-PankajMunjal- Managing Director, Hero Motors Ltd.

Group Philosophy

Hero Group’s philosophy is laid on foundations of responsibility, transparency,

accountability, professionalism and code of ethics, which are the indispensable principles of
corporate governance. The philosophy is to strive to be a Group that society wants to exist by.
The Group focuses on building mutually beneficial relationships with customers, suppliers,
partners and employees. Customers are at the center of everything the Group plans. Hence,
the Group strives to offer cost-effective solutions to customers without compromising on
highest degree of professionalism, quality, accountability and relevance.

Page No : 30
Suppliers who work with Hero Group are greatly benefited from its professionalism. The
group believes in maintaining long-term partnerships based on trust and values.

Hero Group’s joint ventures are running smoothly and reporting unprecedented success and
profitability. The Group ensures transparency and collaborative approach to grow mutually
and promises to maintain a productive and progressive work environment.

In short, Hero Group believes that only an ethical business can contribute towards the
development of society. And the company leaves no stone unturned to uphold ethical values.

Evolution

With a modest start in 1956 as a small manufacturer of cycle parts, Hero Group steadily
evolved into an integrated manufacturing engineering solutions provider, with a family of
more than 30,000 employees, as many as 7,500 outlets and a total number of 23 companies
around the globe. Progressing by leaps and bounds, the company went on adding more and
more feathers to its cap. Soon after starting as a manufacturer of cycle parts, the company
started producing complete cycles. Currently, Hero Cycles is the world’ leading cycle
producer, with more than 100 million bicycles running on Indian roads alone. In 1978, the
company forayed into the moped market. Hero Motors was set up in 1988, when the
company joined hands with Steyr Daimler Puch of Austria. In the subsequent years, Hero
started a joint venture with acclaimed automaker Honda to produce Hero Honda motorcycles.

The saga of success, whose foundation was laid by Late Mr. DayanandMunjal, Mr.
SatyanandMunjal, Mr. BrijmohanLallMunjal and Mr. O. P. Munjal, is being continued with
the same zeal & passion by the second and third generations of the family that is
internationally acclaimed for its business acumen and entrepreneurial spirit.

International financial body - World Bank has applauded Hero Cycles, describing the
company as a role model in vendor development. The huge Hero Group now boasts of a
number of companies that rule the roost in their respective fields. It proudly stands among the
top 10 Business Houses in India. The strength and massiveness of the Group can be
determined from the fact that it has annual revenue of around US$5.2 billion.

The Hero Group has been evolving with the passage of time. The best quality and
competitive prices of the products have empowered the group to have an edge over its

Page No : 31
competitors and win the trust of the customs. With local stocking and logistical hubs in all the
main markets, the Group is in a position to cater to the needs of the customers from around
the world. Customized service part as well as customized documentation has enabled it to
efficiently meet the diverse needs of the customers.

Effective use of skilled labor and cutting-edge technologies has resulted in the unprecedented
growth of the Group. Keeping abreast of the trends in the automotive industry and the
changing needs of the customers, Hero Group is continuously launching innovative products
in the market. The Group is advancing, building long-term relationship with the clients and
expanding its business empire.

Company History - Hero Motocorp:

 1983 - Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

 1984- The Company was incorporated on 19th January, at New Delhi. The Company
Manufacture motor cycles up to 100 cc capacity. The Company was promoted by
Hero Cycles (P) Ltd. (HCPL).

- The Company entered into a technical-cum-financial collaboration agreement with

Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was
to furnish complete technical information and know-how and trade secrets and
other relevant data.

- Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in
100cc range. Its most attractive features are fuel efficiency and its light weight. CD-
100 will be equipped with electronic ignition system, illuminated speedometer, 4
speed gear box, neutral and flasher indicators, etc.

- 15 No. of equity shares subscribed for by the promoters, etc. In November,

119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved for
allotment as under:

- (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and
Bahadur Chand Investments (P) Ltd.

- (ii) 31, 20,000 shares to Honda Motor Co. Ltd., Japan and

- (iii) 9,59,987 shares to friends and association of promoters. Out of the balance 48,

Page No : 32
 00,000 shares, 2,40,000 shares were reserved for subscription by the employees of the
Company and 96,000 shares by business associates. The remaining 44, 64,000 shares
were offered at par for public subscription during November.

 1985
- The Company embarked on its 2nd phase of expansion of increasing its installed
capacity from 1, 20,000 to 1, 50,000 vehicles per annum by the addition of several
critical aluminum and steel components. 

 1986
- 36, 00,000 rights equity shares issued at par in prop. 3:10.

 1987
- The Company offered 6,00,000 - 15% secured redeemable non-convertible
debentures of Rs 100 each for cash at par on rights basis in the proportion 1
debenture: 18 equity shares.

- Another 3, 00,000 - 15% debentures were allotted to retain oversubscription. The

debentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of
the 7th year from the date of allotment of the debentures.

- 3, 75,000 rights equity shares issued at par in prop. 3:10.

 1989
- The Company introduced a new model "Sleek" during July.
- 850 No. of equity shares forfeited.

 1990
- The Company was planning to launch a new model motor cycle-CD 100 SS suitable
to semi-rural conditions. In the domestic market the Company was reported to have a
market share of 46%. 

- 850 forfeited shares reissued.

 1994
- The Company proposed to expand the capacity of existing plant at Dharuhera to
2, 40,000 nos. per annum. Another plant with an installed capacity of 1, 50,000 nos.
per annum at Gurgaon Industrial Estate was being set up.

- The Company issued 39, 79,500 bonus shares to the existing shareholders in the
ratio of 1:4. The Company also issued 28,557 numbers of fractional coupons
representing 14,250 shares against which shares shall be allotted to presenting the
same for consolidation and allotment.

- The Company's production and turnover increased to 1, 83,490 motorcycles

and Rs.483.85 crores respectively due to growth in demand for two wheelers
and declining inflation. 1995

Page No : 33
 - 14,420 bonus shares issued by way of consolidation of fractional coupons. - A
new Technical Collaboration Agreement has been signed with Honda Motor
Co. Ltd., Japan for the period up to the year 2004 which includes technology
related to models of higher Engine displacement. 

- The Company allotted 39, 79,500 No. of Equity Shares of Rs. 10/- each as
Bonus shares on 7th February, by way of capitalization of General Reserves.

- The Company had issued 28557 No. of Fractional Coupons representing

14.250 shares against which the Shares shall be allotted on presenting the
same for consolidation and allotment.
 1997

- Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bike
designed for use in congested urban traffic conditions.

- Hero Honda Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon,
near Delhi for the manufacture of the Honda Super Cub 100 cc stepthro bike.

- Hero Honda has set up a new state-of-the-art plant, heralding a new phase of
development of motorcycle industry in India, to provide the most modern and
technologically advanced production facilities.

- Hero Motors of the Rs.1,600 crore Hero group, as part of its globalization plan, has
set up a plant in Brazil for manufacturing hero winner scooters.

- A new step thru model `Street-100' with unique feature was launched on 24th
January.
 1998
- The company proposes to increase the share capital to 5 crore equity shares of Rs.
10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh
cumulative convertible preference shares of Rs. 100 each with power to increase or
reduce it from time to time

- The company further proposes to capitalize Rs. 19, 96, 87,500 from general
reserve to share capital through issue and allotment of bonus shares.
Altogether, 1,99,68,750 fully paid bonus shares will be allotted and distributed
to members of the company holding equity shares of the company in the
proportion of one bonus share for every fully paid equity shares of Rs.10 each.

- Motorcycles major Hero Honda is considering entry into scooters in

collaboration with partners, Honda Motors, after the Japanese company
decided to walk out of Kinetic Honda, their scooter venture with the Firodias
of Pune.

- - Honda Motors recently pulled out of its joint venture with the Firodias in
which it held a 51 per cent equity stake.

- Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd
(KHML) have signed a five-year license and technical assistance agreement

Page No : 34
 under which KHML will continue to receive the technical knowhow, critical
vehicle parts and access to Honda's markets even after the sale of Honda stake
in KHML to Kinetic Engineering Ltd (KEL).

- The Company changed the paradigm in two-wheelers by launching the most

powerful and fast bike- CBZ (ee) with a unique feature of Transient Power
Fuel Control (TPEC) system.

- 23,962,500 bonus shares issued in prop. 1:1.

 1999
- Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have
signed a Memorandum of Understanding (MOU) for financing of Hero Honda
motorcycles.

- The company, a joint venture between Honda Motor Company of Japan and Hero
group of India to produce four-stroke motorcycles, also aims to increase its share
by 1 per cent to 38.6 per cent during the current fiscal.

- Leading two-wheelers manufacturer Hero Motors has formed a joint venture with
Briggs Stratton of US to develop and manufacture four-stroke engines for mopeds
and scooters in India, a top company.

- Honda Motor Company of Japan has decided to re-enter the scooter market in
India as also foray into three-wheelers in a joint initiative with its existing joint
venture company Hero Honda Motors Ltd.

 2000

- Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national tie-up
agreement. The Company is the largest manufacturer of motorcycles in the country.-
The Company will relaunch its step thru Street Smart on Baisakhi 13th April.

- Hero Honda Motors Ltd (HHML), has launched an upgraded version of the existing
step-through motorcycle - the Hero Honda Street.

- The Company was ranked as the 9th Highest Value Creator among 12 industry
groups within the Bombay Stock Exchange top 100 companies over a five year period
(1994-99).

 2001
- Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion'.

- The Company has secured shareholders' approval for splitting one equity share of Rs
10 each into five equity shares of Rs 2 each in the ratio of 1:5.

- Hero Honda Motors Ltd. has become the largest seller of motorcycles amongst all
Honda companies and ventures in the world by selling one million motorcycles during
the current financial year.

Page No : 35
 - Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the
proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper
programme and fixed deposit programme of Hero Honda Motors.

- Promoter-Chairman of the country’s largest motorcycle manufacturing company,

Hero Honda Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young
Entrepreneur of the Year (EOY) award here on September 27.

 2002
- Company included in the 30 companies Bombay Stock Exchange index (Sensex)

- Becomes world's largest two wheeler company by selling 1.3 million vehicles in 2001

- Japanese automaker Honda Motor for the first time decides to source motorcycles
from its Indian joint venture Hero Honda to sell as 'Honda' brand name in Vietnam

- Royalty to the Japanese parent, Honda Motor Co, hiked to Rs 630 per vehicle as
compared to the flat royalty of Rs 200 on existing models like Splendor and Passion

- Approves Foreign Institutional Investors (FIIs) to increase their stake from the present
24 per cent to 40 per cent

- Comes out as the most profitable two-wheeler company in the country during the
trailing four quarters by overtaking second-largest player, Bajaj Auto

- Launches Ambition, a 133 cc 11 BHP vehicle

- Unveils Smart, a 75 cc step-thru

- Comes out with a free insurance scheme worth Rs 1,000 for all its bikes

- Bajaj Auto goes ahead of Hero Honda in market capitalization (m-cap) growth in the
last fifteen months

 2003
-Achieves a landmark sales turnover of over Rs 5,000 crore during 2002-03

-Launches its cheapest 100cc motorbike 'CD Dawn'

-Hikes production capacity at two of its manufacturing facilities to three lakh units

-Hero Honda and SBI Cards launch co-branded credit card for Hero Honda's
customers

-Achieves milestone by producing five million bikes from its Dharuhera plant in

Page No : 36
 Haryana

-Launches its new 223-cc, 16.8 BHP Karizma at Rs 79,000

-Joins hands with Small Industries Service Institute (SISI) to train the unemployed
youth who have finished diplomas

-Initiates a new dealer credit system which will bring down its receivable levels to
around seven days and save the company Rs 100 crore

-Introduces Passion Plus, new version of Passion motorcycle

-Forges marketing pact with Aprilia, the Italian bike maker, to introduce its range of
motor scooters and top-end motorcycles in India

-The company has bagged two Total Customer Satisfaction (TCS) Awards.

-Hero Honda Karizma bags BBC Bike of the Yr Award

 2004
-Hero Honda retreats Ambition

-Hero Honda unveils new version of Ambition

-Hero Honda's Dawn emerges as largest entry-level bike

-Hero Motors introduces 'Sting' new 4-stroke bike

-Hero Motors has announced a licensing agreement with Austria-based Bombardier-

Rotax that will provide 125cc-175cc engines for the upcoming `Hero Aprilia' range of
scooters.

-Hero Honda renews alliance with Honda Motor

-Two-wheeler major Hero Honda and SBI Card, the credit card arm of State Bank of
India, have joined hands to launch India's first co-branded credit card in the two-
wheeler industry

 2005
-New product launches widen HHML's product portfolio

-Two-wheeler major Hero Honda on October 5 announced launch of its first scooter
'Pleasure'

-Hero Honda rolls out 150-cc motorcycle Achiever

Page No : 37
 2006
-Hero Honda launches CBZ variant Xtreme

-Hero Honda announced the launch of two new variants the new 'Glamour' and
'Passion Plus' limited edition. - Hero Honda is the World No. 1 for the 5th year in a
row

- 15 million production milestone achieved 

 2007
-Hero Honda Motors Ltd. has appointed Mr. Yutaka Kudo as Director and Whole-
time Director of the Company in the category of Executive Director W.e.f. April 1,
2007.

- Hero Honda is the World No. 1 for the 6th year in a row

- New 'Splendor NXG' launched

- New 'CD Deluxe' launched

- New 'Passion Plus' launched

- New motorcycle model 'Hunk' launched

- 20 million production milestone achieved

 2008
- Hero Honda Motors Ltd has informed that Mr. Arun Nath Maira. Has been
appointed as an Additional Director in the category of Non Executive and
Independent Director w.e.f. December 20, 2008 by the Board of Directors by way of
passing a resolution by circulation.

- Hero Honda Haridwar Plant inauguration

- New 'Pleasure' launched

- Splendor NXG launched with power start feature

- New motorcycle model 'Passion Pro' launched

- New 'CBZ Xtreme' launched

- 25 million production milestone achieved

- CD Deluxe launched with power start feature

- New 'Glamour' launched

Page No : 38
  2009
- Hero Honda Motors Ltd has appointed Mr. Ravi Nath as an Additional Director in
the category of Non Executive and Independent Director W.e.f. October 14, 2009 by
the Board of Directors by way of passing a resolution by circulation on October 14,
2009.

- Hunk' (Limited Edition) launched

- Splendor completed 11 million production landmark
- New motorcycle model 'Karizma - ZMR' launched 
- Silver jubilee celebrations 
2010
- Hero Honda - Honda & Hero Honda sign MOU for New Licensing Arrangement

- Hero Honda on September 2 launched the new model of Super Splendor that comes with
'Honda intelligent ignition system' (HIIS). Priced at Rs.45, 950.

 2011
- New licensing arrangement signed between Hero and Honda (Hero Honda is
renamed as Hero)

- Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme, Karizma

- Crosses the landmark figure of 5 million cumulative sales in a single year

- Hero Honda Motors Ltd has received a fresh copy of Certificate of Incorporation
consequent upon change of name from Hero Honda Motors Ltd. to Hero Motocorp
Limited.

- Hero Honda rolled out the updated variants of their 125 cc motorcycle namely
Glamour and Glamour FI where the new Hero Honda Glamour will be priced at Rs
50,500 for the drum brake variant and Rs 52,500 for the disc brake variant.

-Company has changed its name from Hero Honda Motors Ltd. to Hero Motocorp
Ltd.

 2012

- Hero Honda - Hero Motocorp Forms Strategic Partnership With Erik Buell Racing
of USA

- Hero Motocorp signed deal with a European design and technology partner.

- Hero Motocorp joins hands with HDFC Bank to offer financing at 6.99%

- Hero Investment Pvt. Ltd. to Merge with Hero Motocorp Ltd.

- Hero Motocorp tied up with US-based Erik Buell Racing (EBR) to outsource
technology to be used for its high-end bikes.

Page No : 39
Company performance:

During the fiscal year 2011–12, the company sold 3.7 million bikes, a growth of 12%
over last year. In the same year, the company had a market share of 57% in the Indian
market. Hero Honda sells more two wheelers than the second, third and fourth placed two-
wheeler companies put together. Hero Honda's bike Hero Honda Splendor sells more than
one million units per year. On 1 June 2015, Hero Motocorp reported its highest ever monthly
sales at 556,644 units in May, registering a growth of 11.28%.
2015-16 Performance

 Total unit sales of 54, 02,444 two-wheelers, and growth of 17.44 percent.

 Total net operating income of Rs. 19,401.15 Crores, growth of 22.32 percent.

 Net profit after tax at Rs. 1,927.90 Crores

 Total dividend of 52.50% or Rs. 105 per share including Intern Dividend of Rs. 70 per
share on face value of each share of Rs. 2 each

 EBIDTA margin for the year 13.49 percent

 EPS of Rs. 96.54

Revenue 239.43 billion (US$4.4 billion) (2012)

Net income 23.78 billion (US$440 million) (2012)
Total assets 60.58 billion (US$1.1 billion) (2012)

SWOT ANALYSIS

Let’s analyze position of HERO in the current market set-up, evaluating its strengths,
weaknesses, threats and opportunities available.

Strengths:

 Highly experienced management.

 Product design and development capabilities.
 Extensive R&D focus.
 Wide spread distribution network.
 High performance products across all categories.
 High export to domestic sales ratio.

Page No : 40
 Great financial support network (for financing the automobile).
 High economies of scale.
 High economies of scope.

Weaknesses:

 Hasn’t employed the excess ash for long.

 Not a global player in spite of huge volumes.
 Not a globally recognizable brand.

Threats:

 The competition catches-up any new innovation in no time.

 Bajaj pulsar gives a huge competition to hero Motocorp.
 Margins getting squeezed from both the directions (price as well as cost).

Opportunities:

 Double-digit growth in two-wheeler market.

 Untapped market above 180cc in motorcycles.
 More maturity and movement towards higher-end motorcycles.
 The growing gearless trendy scooters and scooterette market.
 Growing world demand for entry-level motorcycles especially in emerging markets.

Page No : 41
MANAGEMET PROFILE

FOUNDER Brijmohan Lall Munjal

CHAIRMAN Deya Varadh Sens
MD & CEO Pawan Munjal
Technical Director Mr. Sumihisa Fukuda
Non-executive Director Mr. Om Prakash Munjal
Non-executive Director Mr. Sunil Kant Munjal

Non-executive Director Mr. Masahiro Takedagawa

Non-executive Director Mr. Santoshi Matsuzawa (Alternate Director to
Mr.Takashi Nagai)
Non-executive & Independent Director Mr. Pradeep Dinodia
Non-executive & Independent Director Mr. Analjit Singh
Non-executive & Independent Director Dr. Pritam Singh
Non-executive & Independent Director Mr. Arun Nath Maira

Motorcycle models:

See also: Category: Hero Honda motorcycles

 Sleek
 Street
 Achiever
 Ambition- Ambition133, Ambition 135
 CBZ- CBZ, CBZ Star, CBZ Xtreme
 CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
 Glamour- Glamour, Glamour F.I
 Hunk
 Karizma- Karizma, Karizma R, Karizma ZMR FI
 Passion- Passion, Passion Plus, Passion Pro
 Pleasure
 Maestro

Page No : 42
 Splendor- Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor
NXG, Splendor PRO
 Hero Impulse launched in 2011 after the separation of hero and Honda. Its India's first
off-road and on road Bike.
 Recently Hero launched a new bike Ignator for both Drum and Disc self cast.

Dealer profile:

Sri laxmi srinivasa auto mobiles pvt. Ltd. was started in the year December 12, 2005 as
starting workshop service station of HHML at Anakapalli, Visakhapatnam. In this company
have a three major departments with 70 employees, there are

1. Sales
2. Spares
3. Work shop

Department Manager No. of employees

Sales Mr. D.S.Sagar 22
Spares Mr.K. Ramaraju 8
Work shop Mr. B.Srinivasa Rao 40

Page No : 43
 CHAPTER- 3

 THEORETICAL FRAMEWORK

Page No : 44
3.1 THEORETICAL FRAMEWORK

MOTIVATION

Motivation is a powerful tool in the hands of leaders. It can persuade convince and propel
People to act.

 internal state or condition that activates behavior and gives it direction;

 desire or want that energizes and directs goal-oriented behavior;
 Influence of needs and desires on the intensity and direction of behavior.

CONCEPT OF MOTIVATION:

The word “motivation” is often used to describe certain sorts of behavior. A definition of
motivation: Motivation can be defined as a concept used to describe the factors within an
individual which arouse, maintain and channel behavior towards a goal..

Another way to say this is that Motivation is goal-directed behavior. While it is easy to see
the things that a person does, it is much harder to guess at why they are doing it.

Since it is part of a manager’s to get their work done through others, managers need to
understand why people do things (that is, what motivates them?) so that she/he can convince
their employees to work towards the goals of the organization.

Performance of any organization would results from the interaction of physical, financial and
human resources. The first two are inanimate; they are translated into “productivity” only
when the human element is introduced. In dealing with employees, however, an intangible
factor of will, volition or freedom of choice is introduced and workers can increase or
decrease their productivity as they choose. This human quality gives rise to the need for
positive motivation.

In psychology, motivation refers to the initiation, direction, intensity and persistence

of behavior . Motivation is a temporal and dynamic state that should not be confused with

Page No : 45
personality or emotion. Motivation is having the encouragement to do something. A
motivated person can be reaching for a long-term goal such as becoming a professional writer
or a more short-term goal like learning how to spell a particular word. Personality invariably
refers to more or less permanent characteristics of an individual's state of being (e.g., shy,
extrovert, conscientious).

The word motivation is derived from the Latin word mover, meaning "to move." The
simplest definition of motivation is that it is force acting on or within a person that "moves"
the person to behave in a particular manner. The force can come from within (intrinsic
motivation) as well as from outside (extrinsic motivation) of an individual. When people are
intrinsically motivated, they are influenced by internal and self-managed factors (feeling of
accomplishment, enjoying what you do). When people are extrinsically motivated, they are
influenced by external factors that are controlled by others (money, praise, avoid negative
consequences).Motivation is a combined effect of arousal, direction, intensity and persistence
.Clarification of definition – Graph

Graph of motivation as a combination of four elements

Characteristics:

There are several characteristics of motivation. Some of the important characteristics are
shown in the form of graph as below:

Page No : 46
General graph of different characteristics of motivation:

Page No : 47
 Clarification of the graph:

The purpose of motivation is to create conditions in which people are willing to work
with zeal, initiative, interest and enthusiasm, with a high personal and group moral
satisfaction, with a sense of responsibility, loyalty and discipline and with pride and
confidence in a most cohesive manner so that the goals of an organization are achieved
effectively.

Motivation is The Energisation of Goal-Orientated Behavior:

The definition of motivation is to give reason, incentive, enthusiasm, or interest that

causes a specific action or certain behavior. Motivation is present in every life function.
Simple acts such as eating are motivated by hunger. Education is motivated by desire for
knowledge. Motivators can be anything from reward to coercion.

There are two main kinds of motivation: intrinsic and extrinsic. Intrinsic motivation is
internal. It occurs when people are compelled to do something out of pleasure, importance, or

desire. Extrinsic motivation occurs when external factors compel the person to do
something. However, there are many theories and labels that serve as sub tittles to the
definition of motivation. For example: "I will give you a candy bar if you clean your room."
This is an example of reward motivation.

Page No : 48
 A common place that we see the need to apply motivation is in the work place. In the
work force, we can see motivation play a key role in leadership success. A person unable to
grasp motivation and apply it will not become or stay a leader. It is critical that anyone
seeking to lead or motivate understand "Hewlett’s Hierarchy of Work Motivators."

Salary, benefits, working conditions, supervision, policy, safety, security, affiliation,

and relationships are all externally motivated needs. These are the first three levels of
"Hewlett’s Hierarchy" When these needs are achieved; the person moves up to level four and
then five. However, if levels one through three are not met, the person becomes dissatisfied
with their job. When satisfaction is not found, the person becomes less productive and
eventually quits or is fired. Achievement, advancement, recognition, growth, responsibility,
and job nature are internal motivators. These are the last two levels of "Hewlett’s Hierarchy."
They occur when the person motivates themselves (after external motivation needs are met.)
An employer or leader that meets the needs on the "Hewlett’s Hierarchy" will see motivated
employees and see productivity increase. Understanding the definition of motivation, and
then applying it, is one of the most prevalent challenges facing employers and supervisors.
Companies often spend thousands of dollars each year hiring outside firms just to give
motivation seminars.

Another place motivation plays a key role is in education. A teacher that implements
motivational techniques will see an increased participation, effort, and higher grades. Part of
the teacher’s job is to provide an environment that is motivationally charged. This
environment accounts for students who lack their own internal motivation. One of the first
places people begin to set goals for themselves is in school. Ask any adult: "What is the main
thing that motivates you." Their answer will most likely be goals. Even the simplest things in
life are the result of goal setting. A person may say, "I want to save 300.00 for a new T.V."
Well, that is a goal. School is where we are most likely to learn the correlation between goals,
and the definition of motivation. That correlation is what breeds success.

So, as we can see, motivation is what propels life. It plays a major role in nearly everything we
do. Without motivation, we would simply not care about outcomes, means, accomplishment,
education, success, failure, employment, etc. Then, what would be the point?

Wendy Pan is an accomplished niche website developer and author. To learn more about
definition of motivation, please visit Self Improvement and Motivation for current articles and

Page No : 49
discussions.

1) Achievement Motivation

It is the drive to pursue and attain goals. An individual with achievement motivation
wishes to achieve objectives and advance up on the ladder of success. Here, accomplishment is
important for its own shake and not for the rewards that accompany it. It is similar to ‘Kaizen’
approach of Japanese Management.

(2) Affiliation Motivation

It is a drive to relate to people on a social basis. Persons with affiliation motivation

perform work better when they are complimented for their favourable attitudes and co-
operation.

(3) Competence Motivation

It is the drive to be good at something, allowing the individual to perform high quality
work. Competence motivated people seek job mastery, take pride in developing and using their
problem-solving skills and strive to be creative when confronted with obstacles. They learn
from their experience.

(4) Power Motivation

It is the drive to influence people and change situations. Power motivated people wish to
create an impact on their organization and are willing to take risks to do so.

(5) Attitude Motivation

Attitude motivation is how people think and feel. It is their self confidence, their belief in
them, their attitude to life. It is how they feel about the future and how they react to the past.

(6) Incentive Motivation

It is where a person or a team reaps a reward from an activity. It is “You do this and you
get that”, attitude. It is the types of awards and prizes that drive people to work a little harder.

(7) Fear Motivation

Fear motivation coercions a person to act against will. It is instantaneous and gets the

Page No : 50
job done quickly. It is helpful in the short run.

Importance of Motivation:
Most motivation theorists assume that motivation is involved in the performance of all
learned responses; that is, a learned behavior will not occur unless it is energized. The major
question among psychologists, in general, is whether motivation is a primary or secondary
influence on behavior. That is, are changes in behavior better explained by principles of
environmental/ecological influences, perception, memory, cognitive development, emotion,
explanatory style, or personality or are concepts unique to motivation more pertinent.

Explanations of influences/causes of arousal and direction may be different from

explanations of persistence

In general, explanations regarding the source(s) of motivation can be categorized as

either extrinsic (outside the person) or intrinsic (internal to the person). Intrinsic sources and
corresponding theories can be further subcategorized as either body/physical, mind/mental
(i.e., cognitive, affective, cognitive) or transpersonal/spiritual.

In current literature, needs are now viewed as dispositions toward action (i.e., they create a
condition that is predisposed towards taking action or making a change and moving in a
certain direction). Action or overt behavior may be initiated by either positive or negative
incentives or a combination of both. The following chart provides a brief overview of the
different sources of motivation (internal state) that have been studied. While initiation of
action can be traced to each of these domains, it appears likely that initiation of behavior may
be more related to emotions and/or the affective area (optimism vs. pessimism; self- esteem;
etc.) while persistence may be more related to conation (volition) or goal-orientation. 

Page No : 51
 Sources of Motivational Needs

behavioral/external   elicited by stimulus associated/connected to

innately connected stimulus
 obtain desired, pleasant consequences
(rewards) or escape/avoid undesired,
unpleasant consequences

social     imitate positive models

 be a part of a group or a valued member
biological  increase/decrease stimulation (arousal)
 Activate senses (taste, touch, smell, etc.
 Decrease hunger, thirst, discomfort, etc.
 maintain homeostasis, balance

cognitive  maintain attention to something interesting

or threatening
 develop meaning or understanding
 increase/decrease cognitive disequilibrium;
uncertainty
 solve a problem or make a decision
 figure something out
 eliminate threat or risk

affective   increase/decrease affective dissonance

 increase feeling good
 decrease feeling bad
 increase security of or decrease threats to
self-esteem
 maintain levels of optimism and enthusiasm

co native   meet individually developed/selected goal

 obtain personal dream
 develop or maintain self-efficacy
 take control of one's life
 eliminate threats to meeting goal, obtaining
dream
 reduce others' control of one's life
spiritual   understand purpose of one's life
 connect self to ultimate unknowns
Theories of Motivation:

Many of the theories of motivation address issues introduced previously in these

materials. The following provides a brief overview to any terms or concepts that have not
been previously discussed.

Theory X Assumptions:

Page No : 52
  People inherently dislike work
 People must be coerced or controlled to work to
 Achieve objectives
 People prefer to be directed

Theory Y Assumptions:

 People view work as being as natural as play and rest

 People will exercise self-direction and control towards achieving objectives they
are committed to People learn to accept and seek responsibility

Behavioral:

Each of the major theoretical approaches in behavioral learning theory posits a

primary factor in motivation. Classical conditioning states that biological responses to
associated stimuli energize and direct behavior. Operant learning states the primary factor is
consequences: the application of reinforces provides incentives to increase behavior; the
application of punishers provides disincentives that result in a decrease in behavior.

Cognitive:

There are several motivational theories that trace their roots to the information
processing approach to learning. These approaches focus on the categories and labels people
use help to identify thoughts, emotions, dispositions, and behaviors.

A first cognitive approach is attribution theory (Heifer, 1958; Weiner, 1974). This
theory proposes that every individual tries to explain success or failure of self and others by
offering certain "attributions." These attributions are either internal or external and are either
under control or not under control. The following chart shows the four attributions that result
from a combination of internal or external locus of control and whether or not control is
possible.

  Internal External
Page No : 53
No Control Ability Luck

Control Effort Task Difficulty

 In a teaching/learning environment, it is important to assist the learner to develop a
self-attribution explanation of effort (internal, control). If the person has an attribution of
ability (internal, no control) as soon as the individual experiences some difficulties in the
learning process, he or she will decrease appropriate learning behaviour (e.g., I'm not good at
this). If the person has an external attribution, then nothing the person can do will help that
individual in a learning situation (i.e., responsibility for demonstrating what has been learned
is completely outside the person). In this case, there is nothing to be done by the individual
when learning problems occur.

A second cognitive approach is Expectancy theory (Vroom, 1964) which proposes the
following equation:

“Motivation = Perceived Probability of Success (Expectancy) *

Connection of Success and Reward (Instrumentality) *
Value of Obtaining Goal (Valance, Value).”

Since this formula states that the three factors of Expectancy, Instrumentality, and
Valance or Value are to be multiplied by each other, a low value in one will result in a low
value of motivation. Therefore, all three must be present in order for motivation to occur.
That is, if an individual doesn't believe he or she can be successful at a task or the individual
does not see a connection between his or her activity and success or the individual does not
value the results of success, then t

he probability is lowered that the individual will engage in the required learning
activity. From the perspective of this theory, all three variables must be high in order for
motivation and the resulting behavior to be high.

The third cognitive approach is cognitive dissonance theory which is in some respects
similar to disequilibrium in Piaget's theory of cognitive development. This theory was
developed by Leon Fastener (1957), as social psychologist, and states that when there is a

Page No : 54
 discrepancy between two beliefs, two actions, or between a belief and an action, we will act
to resolve conflict and discrepancies. The implication is that if we can create the appropriate
amount of disequilibrium, this will in turn lead to the individual changing his or her behavior
which in turn will lead to a change in thought patterns which in turn leads to more change in
behavior.

Psychoanalytic Theories:

The psychoanalytic theories of motivation propose a variety of fundamental

influences. Freud (1990) suggested that all action or behavior is a result of internal,
biological instincts that are classified into two categories: life (sexual) and death
(aggression). Many of Freud's students broke with him over this concept. For example,
Erikson (1993) and Sullivan (1968) proposed that interpersonal and social relationships are
fundamental, Adler (1989) proposed power, while Jung (1953, 1997) proposed temperament
and search for soul or personal meaningfulness.

Humanistic Theories:

One of the most influential writers in the area of motivation is Abraham Maslow
(1954). Abraham Maslow (1954) attempted to synthesize a large body of research related to
human motivation. Prior to Maslow, researchers generally focused separately on such factors
as biology, achievement, or power to explain what energizes, directs, and sustains human
behavior. Maslow posited a hierarchy of human needs based on two groupings: deficiency
needs and growth needs. Within the deficiency needs, each lower need must be met before
moving to the next higher level. Once each of these needs has been satisfied, if at some future
time a deficiency is detected, the individual will act to remove the deficiency. The first four
levels are:

1) Physiological: hunger, thirst, bodily comforts, etc.;

2) Safety/security: out of danger;

3) Belongings and Love: affiliate with others, be accepted; and

4) Esteem: to achieve, be competent, gain approval and recognition.

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According to Maslow, an individual is ready to act upon the growth needs if and only if the
deficiency needs are met. Maslow's initial conceptualization included only one growth
need--self-actualization. Self-actualized people are characterized by:

1) Being problem-focused;
2) Incorporating an ongoing freshness of appreciation of life;
3) A concern about personal growth
4) The ability to have peak experiences. Maslow later differentiated the growth need of
self-actualization, specifically naming two lower-level growth needs prior to general
level of self-actualization (Maslow & Lower, 1998) and one beyond that level
(Maslow, 1971). They are:
5) Cognitive: to know, to understand, and explore;
6) Aesthetic: symmetry, order, and beauty;
7) Self-actualization: to find self-fulfillment and realize one's potential; and
8) Self-transcendence: to connect to something beyond the ego or to help others find
self-fulfillment and realize their potential.

Maslow's basic position is that as one becomes more self-actualized and self-
transcendent, one becomes more wise (develops wisdom) and automatically knows what to
do in a wide variety of situations. Daniels (2001) suggests that Maslow's ultimate conclusion
that the highest levels of self-actualization are transcendent in their nature may be one of his
most important contributions to the study of human behaviour and motivation.

Page No : 56
 The few major studies that have been completed on the hierarchy seem to support the
proposals of William James (1892/1962) and Mathes (1981) that there are three levels of
human needs. James hypothesized the levels of material (physiological, safety), social
(belongingness, esteem), and spiritual. Mathes proposed the three levels were physiological,
belongings, and self-actualization; he considered security and self-esteem as unwarranted.
Alderfer (1972) developed a comparable hierarchy with his ERG (existence, relatedness, and
growth) theory. His approach modified Maslow's theory based on the work of Gordon
Allport (1960, 1961) who incorporated concepts from systems theory into his word
personality

Alderfer's Hierarchy of Motivational Needs:

Level of Need Definition  Properties

Satisfied through using
Impel a person to make
capabilities in engaging
creative or productive effects
Growth problems; creates a greater
on himself and his
sense of wholeness and
environment
fullness as a human being

Satisfied by mutually sharing

thoughts and feelings;
Involve relationships with
acceptance, confirmation,
significant others
Relatedness under- standing, and influence
are elements

Includes all of the various When divided among people

Existence forms of material and one person's gain is another's
psychological desires loss if resources are limited

Maslow recognized that not all personalities followed his proposed hierarchy. While a
variety of personality dimensions might be considered as related to motivational needs, one
of the most often cited is that of introversion and extroversion. Reorganizing Maslow's
hierarchy based on the work of Alderfer and considering the introversion/extraversion
dimension of personality results in three levels, each with an introverted and extroverted
component. This organization suggests there may be two aspects of each level that
differentiate how people relate to each set of needs. Different personalities might relate more
to one dimension than the other. For example, an introvert at the level of other/Relatedness
might be more concerned with his or her own perceptions of being included in a group,

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whereas an extrovert at that same level would pay more attention to how others value that
membership.  

A Reorganization of Maslow's and Alderfer's Hierarchies:

Level Introversion Extroversion

Self-Actualization
(development of Transcendence (assisting in the
competencies development of others' competencies and
Growth
[knowledge, attitudes, character; relationships to the unknown,
and skills] and unknowable)
character)

Personal identification
Other
with group, significant Value of person by group (Esteem)
(Relatedness)
others (Belongingness)

Physiological, biological
Self
(including basic Connectedness,  security
(Existence)
emotional needs)

At this point there is little agreement about the identification of basic human needs
and how they are ordered. For example, Ryan & Deci (2000) also suggest three needs,
although they are not necessarily arranged hierarchically: the need for autonomy, the need for
competence, and the need for relatedness. Thompson, Grace and Cohen (2001) state the most
important needs for

children are connection, recognition, and power. Nohria, Lawrence, and Wilson (2001)
provide evidence from a sociobiology theory of motivation that humans have four basic
needs :(1) acquire objects and experiences. (2) Bond with others in long-term relationships of
mutual care and commitment. (3) Learn and make sense of the world and of ourselves; and
(4) to defend ourselves, our loved ones, beliefs and resources from harm. The Institute for
Management Excellence (2001) suggests there are nine basic human needs:

 Security,
 Adventure,
 Freedom,

Page No : 58
  Exchange,
 Power,
 Expansion,
 Acceptance,
 Community and Expression.

Notice that bonding and relatedness are a component of every theory. However, there
do not seem to be any others that are mentioned by all theorists. Franken (2001) suggests this
lack of accord may be a result of different philosophies of researchers rather than differences
among human beings. In addition, he reviews research that shows a person's explanatory or
attribution style will modify the list of basic needs. Therefore, it seems appropriate to ask
people what they want and how their needs could be met rather than relying on an
unsupported theory. For example, Whitley (1996) advises having a person imagine what life
would be like if time and money was not an object in a person's life. That is, what would the
person do this week, this month, next month, if he or she had all the money and time needed
to engage in the activities and were secure that both would be available again next year. With
some follow-up questions to identify what is keeping the person from happening now, this
open-ended approach is likely to identify the most important needs of the individual.

There is much work still to be done in this area before we can rely on a theory to be
more informative than simply collecting and analyzing data. However, this body of research
can be very important to parents, educators, administrators and others concerned with
developing and using human potential. It provides an outline of some important issues that
must be addressed if human beings are to achieve the levels of character and competencies
necessary to be successful in the information age.

Maslow's work lead to additional attempts to develop a grand theory of motivation, a theory
that would put all of the factors influencing motivation into one model. An example is
provided by Leonard, Beauvais, and Scholl (1995). These authors propose 5 factors as the
sources of motivation: 1) Instrumental Motivation (rewards and punishers), 2) Intrinsic
Process Motivation (enjoyment, fun), 3) Goal Internalization (self-determined values and
goals), 4) Internal Self Concept-based Motivation (matching behavior with internally-
developed ideal self), 5) External Self Concept-based Motivation (matching behavior with

Page No : 59
externally-developed ideal self). Individuals are influenced by all five factors, though in
varying degrees that can change in specific situations. 

Factors one and five are both externally-oriented. The main difference is that
individuals who are instrumentally motivated are influenced more by immediate actions in
the environment (e.g. operant conditioning) whereas individuals who are self-concept
motivated are influenced more by their constructions of external demands and ideals (e.g.,
social cognition).

Factors two, three, and four are more internally-oriented. In the case of intrinsic
process, the specific task is interesting and provides immediate internal reinforcement (e.g.,
cognitive or humanistic theory). The individual with a goal-internalization orientation is more
task-oriented (e.g., humanistic or social cognition theory) whereas the person with an internal
self-concept orientation is more influenced by individual constructions of the ideal self
(humanistic or psychoanalytic theory).

Social Learning :

Social learning (or observational) theory suggests that modelling (imitating others)
and vicarious learning (watching others have consequences applied to their behaviour) are
important motivators of behavior.

Social Cognition:

Social cognition theory proposes reciprocal determination as a primary factor in both

learning and motivation. In this view, the environment, an individual's behaviour, and the
individual's characteristics (e.g., knowledge, emotions, and cognitive development) both
influence and are influenced by each other two components. Bandura (1986, 1997) highlights
self-efficacy (the belief that a particular action is possible and that the individual can
accomplish it) and self-regulation (the establishment of goals, the development of a plan to
attain those goals, the commitment to implement that plan, the actual implementation of the
plan, and subsequent actions of reflection and modification or redirection. The work of Ames
(1992) and Dweck (1986) discussed below is a major component of social cognitive views on
motivation.

Page No : 60
Transpersonal or Spiritual Theories:

Most of the transpersonal or spiritual theories deal with the meaningfulness of our
lives or ultimate meanings. Abraham Maslow (1954) has also been influential in this
approach to motivation.

Other influential scholars included Gordon Allport (1955), Victor Frankl (1998), William
James (1997), Carl Jung (1953, 1997), and Ken Wilber (1998).

Achievement motivation:

One classification of motivation differentiates among achievement, power, and social

factors (see McClelland, 1985; Murray, 1938, 1943). In the area of achievement motivation,
the work on goal-theory has differentiated three separate types of goals: mastery goals (also
called learning goals) which focus on gaining competence or mastering a new set of
knowledge or skills; performance goals (also called ego-involvement goals) which focus on
achieving normative-based standards, doing better than others, or doing well without a lot of
effort; and social goals which focus on relationships among people (see Ames, 1992;
Dweck, 1986; Urdan & Maher, 1995). In the context of school learning, which involves
operating in a relatively structured environment; students with mastery goals outperform
students with either performance or social goals. However, in life success, it seems critical
that individuals have all three types of goals in order to be very successful.

One aspect of this theory is that individuals are motivated to either avoid failure (more
often associated with performance goals) or achieve success (more often associated with
mastery goals). In the former situation, the individual is more likely to select easy or
difficult tasks, thereby either achieving success or having a good excuse for why failure
occurred. In the latter situation, the individual is more likely to select moderately difficult

Page No : 61
tasks which will provide an interesting challenge, but still keep the high expectations for
success.

Impacting motivation in the classroom:

Stipek (1988) suggests there are a variety of reasons why individuals may be lacking
in motivation and provides a list of specific behaviors associated with high academic
achievement. This is an excellent checklist to help students develop the cognitive component
of their lives. In addition, as stated previously in these materials, teacher efficacy is a
powerful input variable related to student achievement (Proctor, 1984).

There are a variety of specific actions that teachers can take to increase motivation on
classroom tasks. In general, these fall into the two categories discussed above: intrinsic
motivation and extrinsic motivation.

Intrinsic Extrinsic
o Explain or show why learning a o Provide clear expectations
particular content or skill is o Give corrective feedback
important o Provide valuable rewards
o Create and/or maintain curiosity o Make rewards available
o Provide a variety of activities and
sensory stimulations
o Provide games and simulations
o Set goals for learning
o Relate learning to student needs
o Help student develop plan of action

As a general rule, teachers need to use as much of the intrinsic suggestions as possible while
recognizing that not all students will be appropriately motivated by them. The extrinsic
suggestions will work, but it must be remembered that they do so only as long as the student
is under the control of the teacher. When outside of that control, unless the desired goals and
behaviors have been internalized, the learner will cease the desired behavior and operate
according to his or her internal standards or to other external factors.

Page No : 62
Common myths about employee motivation :

The topic of motivating employees is extremely important to managers and supervisors.

Despite the important of the topic, several myths persist -- especially among new managers
and supervisors. Before looking at what management can do to support the motivation of
employees, it's important first to clear up these common myths.

1. Myth #1 -- "I can motivate people" Not really -- they have to motivate themselves. You
can't motivate people anymore than you can empower them. Employees have to motivate
and empower themselves. However, you can set up an environment where they best
motivate and empower themselves. The key is knowing how to set up the environment
for each of your employees.
2. Myth#2 -- "Money is a good motivator"
Not really. Certain things like money, a nice office and job security can help people from
becoming less motivated, but they usually don't help people to become more motivated. A
key goal is to understand the motivations of each of your employees.
3. Myth#3--"Fear is a damn good motivator"
Fear is a great motivator -- for a very short time. That's why a lot of yelling from the boss
won't seem to "light a spark under employees" for a very long time.
4. Myth #4 -- "I know what motivates me, so I know what motivates my employees"
Not really. Different people are motivated by different things. I may be greatly
motivated by earning time away from my job to spend more time my family. You might
be motivated much more by recognition of a job well done. People are not motivated by
the same things. Again, a key goal is to understand what motivates each of your
employees.
5. Myth #5 -- "Increased job satisfaction means increased job performance"
Research shows this isn't necessarily true at all. Increased job satisfaction does not
necessarily mean increased job performance. If the goals of the organization are not
aligned with the goals of employees, then employees aren't effectively working toward
the mission of the organization.
6. Myth #6 -- "I can't comprehend employee motivation -- it's a science"
Nah. Not true. There are some very basic steps you can take that will go a long way
toward supporting your employees to motivate themselves toward increased performance
in their jobs.

Page No : 63
MOTIVATIONAL METHODS

There are as many different methods of motivating employees today as there are companies
operating in the global business environment. Still, some strategies are prevalent across all
organizations striving to improve employee motivation. The best employee motivation efforts
will focus on what the employees deem to be important. It may be that employees within the
same department of the same organization will have different motivators. Many organizations
today find that flexibility in job design and reward systems has resulted in employees'
increased longevity with the company, improved productivity, and better morale.

EMPOWERMENT:

Giving employees more responsibility and decision-making authority increases their realm of
control over the tasks for which they are held responsible and better equips them to carry out
those tasks. As a result, feelings of frustration arising from being held accountable for
something one does not have the resources to carry out are diminished. Energy is diverted
from self-preservation to improved task accomplishment.

CREATIVITY AND INNOVATION:

At many companies, employees with creative ideas do not express them to management for
fear that their input will be ignored or ridiculed. Company approval and toeing the company
line have become so ingrained in some working environments that both the employee and the
organization suffer. When the power to create in the organization is pushed down from the
top to line personnel, employees who know a job, product, or service best are given the
opportunity to use their ideas to improve it. The power to create motivates employees and
benefits the organization in having a more flexible work force, using more wisely the
experience of its employees, and increasing the exchange of ideas and information among
employees and departments. These improvements also create an openness to change that can
give a company the ability to respond quickly to market changes and sustain a first mover
advantage in the marketplace.

LEARNING:

Page No : 64
If employees are given the tools and the opportunities to accomplish more, most will take on
the challenge. Companies can motivate employees to achieve more by committing to
perpetual enhancement of employee skills. Accreditation and licensing programs for
employees are an increasingly popular and effective way to bring about growth in employee
knowledge and motivation. Often, these programs improve employees' attitudes toward the
client and the company, while bolstering self-confidence. Supporting this assertion, an
analysis of factors which influence motivation-to-learn found that it is directly related to the
extent to which training participants believe that such participation will affect their job or
career utility. In other words, if the body of knowledge gained can be applied to the work to
be accomplished, then the acquisition of that knowledge will be a worthwhile event for the
employee and employer.

QUALITY OF LIFE:

The number of hours worked each week by American workers is on the rise, and many
families have two adults working those increased hours. Under these circumstances, many
workers are left wondering how to meet the demands of their lives beyond the workplace.
Often, this concern occurs while at work and may reduce an employee's productivity and
morale. Companies that have instituted flexible employee arrangements have gained
motivated employees whose productivity has increased. Programs incorporating flextime,
condensed workweeks, or job sharing, for example, have been successful in focusing
overwhelmed employees toward the work to be done and away from the demands of their
private lives.

MONETARY INCENTIVE:

For all the championing of alternative motivators, money still occupies a major place in the
mix of motivators. The sharing of a company's profits gives incentive to employees to
produce a quality product, perform a quality service, or improve the quality of a process
within the company. What benefits the company directly benefits the employee. Monetary
and other rewards are being given to employees for generating cost-savings or process-
improving ideas, to boost productivity and reduce absenteeism. Money is effective when it is
directly tied to an employee's ideas or accomplishments. Nevertheless, if not coupled with
other, nonmonetary motivators, its motivating effects are short-lived. Further, monetary

Page No : 65
incentives can prove counterproductive if not made available to all members of the
organization.

OTHER INCENTIVES:

Study after study has found that the most effective motivators of workers are nonmonetary.
Monetary systems are insufficient motivators, in part because expectations often exceed
results and because disparity between salaried individuals may divide rather than unite
employees. Proven nonmonetary positive motivators foster team spirit and include
recognition, responsibility, and advancement. Managers, who recognize the "small wins" of
employees, promote participatory environments, and treat employees with fairness and
respect will find their employees to be more highly motivated. One company's managers
brainstormed to come up with 30 powerful rewards that cost little or nothing to implement.
The most effective rewards, such as letters of commendation and time off from work,
enhanced personal fulfillment and self-respect. Over the longer term, sincere praise and
personal gestures are far more effective and more economical than awards of money alone. In
the end, a program that combines monetary reward

EMPLOYEE SATISFACTION

Employee insight is the key to any HR program. Knowledge satisfaction and

expectations to be measured in order to develop the organization prepared for tomorrow. A
strong and satisfaction survey enables the organization to retain and develop the best talents.
Intelligent decisions are the key to organizations success. Hence the need to acquire accurate
and timely information and satisfaction level in the organization becomes a necessity to make
effective decisions in these issues and it has to come from the employees themselves.

“Loyal employees in any company create loyal customers who in turn, needs happy
shareholders”

Employee satisfaction is a measure of how happy workers are with their job and
working environment. Keeping morale high among workers can be of tremendous benefit to
any company, as happy workers will be more likely to produce more, take fewer days off,
and stay loyal to the company. There are many factors in improving or maintaining high
employee satisfaction, which wise employers would do well to implement.

Page No : 66
 Employee satisfaction surveys help employers measure and understand their
employees’ attitude, opinions, motivation, and general satisfaction with their work
environment.

To measure employee satisfaction, many companies will have mandatory surveys or

face to face meetings with employees to gain information. Both of these tactics have pros and
cons and should be chosen carefully. Surveys are often anonymous allowing workers more
freedom to be honest without fear of repercussion. Interviews with company management can
feel intimidating, but if done correctly can let the worker know that the voice has been heard
and their concerns addressed by those in charge surveys and meetings can truly get to the
centre of the data surrounding employee satisfaction and can be great tools to identify
specific problems leading to lowered morale

Many experts believe that one of the best ways to maintain employee satisfaction
is to make workers feel like part of a family or team. Holdings office events such parties or
group outings can help build close bonds among workers. Many companies also participate in
team building retreats that are designed to have found success, strengthen the working
relationship of the employees in anon work related setting. Camping trips, backpacking wars
and guide backpacking trips are versions of this type of team building strategy with which
many employers have found success.

The backbone of employee satisfaction is respect for workers and the job they
perform. In every interaction with management employees should be treated with courtesy
and interest. Easy avenue sor employees to discuss problems with upper management should
be maintained and carefully. Even if management cannot meet all the demands of employees,
showing workers that they are being heard and putting honest dedication into compromising
will often help to improve morale.

HRD PHILOSOPHY IN HERO MOTO CORP:

 Employees of the company are the greatest and most valuable resources
 While on the one hand, HRD should appropriately harness the employee potential for
the attainment of the company objectives, the company on the other, as its corporate
responsibility, should create an enabling climate where in a human talent gets the best
opportunity for self expression, all round development and fulfillment.

Page No : 67
  People are more than mere resources and therefore it will be the company’s sincere
endeavor to treat people with all the respect and that in warranted when employees are
seen as more mere instrumentalities.
 HRD as a management function will be given a place of strategic priority along with
function like production, maintenance, materials or finance in the overall scheme of
management action in the company
 HRD does not refer to training alone, nor is it just a new name for training. In HERO
MOTO CORP, HRD refers to creative and innovative initiatives in several
management functions for the development and growth of employees
 HRD should eventually be a core philosophy of all management actions and should not
remain merely a departmental/sectional activity.
 All functional and divisional heads responsible for various activities of the company
will imbibe the HRD spirit and suitability integrate HRD into their plans, decision and
actions

HR PRACTICES AT HERO MOTO CORP

Human Resource Management:

Human resource initiatives at HMC are closely linked to the corporate strategy of the
organization. HMC has harmonious industrial relations where the entire workforce works as
a well-knit team for the progress of the company. The productive environment prevailing in
the company fosters an atmosphere of growth - both for the employees and for the company.
HMC has introduced multi-skilling concept since inception and the employees are trained to
imbibe this. HMC has adopted a system of overlapping shifts - the first of its kind in the
industry. This system ensures smooth changeover of the shifts and uninterrupted pace of
operation of the dairy during the shift change over.

Management of Industrial Relations:

Presently, 20 registered Trade Unions are functioning at HMC. There are 17 unions
operating for espousing the cause of contract labour. By and large, a smooth and cordial IR
climate prevails at HMC.

The “Man days Lost” were brought to ‘NIL’ since 2003 which indicates the peaceful and
harmonious industrial relations scenario in HERO MOTO CORP.

Page No : 68
 The Code of Discipline adopted in the state of Andhra Pradesh has envisaged determination
of Majority union by way of secret ballot elections at an interval of every 2 years.

Till date around 75 nos. of Memorandum of Understandings (MOU), Memorandum of

Settlements (MOS) Around 110 nos. of Participative Fora are functioning at VSD.

Unique informal and formal Grievance Redressal Systems have been successfully
implemented in the organization

A separate section “Central Employees’ Relations” coordinates with respect to all IR related
issues

Joint participative / consultative for a management representatives,

recognized union members
Central Board of
safety Canteen trustees
committe managing of PF trust
e committee

Sports Board of
council trustees ofunion members
Joint participative / consultative fora management representatives, recognised
SBF trust

Shop Community
floor welfare
safety centre
committe committee
e Management-union s
interaction with the Town
Shop
recognised union developm
floor
& 2 major unions ent
cooperati
committe
on
e
committe
e

HR Policy:

We, at Hero Moto corp, believe that our employees are the most important resources. To
realize the full potential of employees, the company is committed to:

 Provide work environment that makes the employees committed and

motivated for maximizing productivity

Page No : 69
  Establish systems for maintaining transparency, fairness and equality in
dealing with employees
 Empower employees for enhancing commitment, responsibility and
accountability
 Encourage teamwork, creativity, innovativeness and high achievement
orientation
 Provide growth and opportunities for developing skill and knowledge
 Ensure functioning of effective communication channels with employees

HR OBJECTIVES OF HERO MOTO CORP:

 To provide initially a suitable match between employee competence level and

company’s work requirements
 To foster an appropriate climate and culture which nurtures employee competence
and adequate motivational levels for the application of their abilities to assigned
jobs/roles with required commitment.
 To enable employees seek greater identification with the company by fusing
management decisions and actions with the requisite care, concern and
developmental approach.
 To initially enable the employees and the organization achieve its mission and
objectives and business goals through HRD.

FUNCTIONS OF H.R.M

Functions of H.R.M in HERO MOTO CORP is being carried out by following departments.

a) TRAINING DEPARTMENT:

It gives training to employees on technical aspects like medical programs, preventive

maintenances, computer education and safety programs.

b) PERSONNEL DEPARTMENT:

It deals with recruitment, wage and salary administration, industrial relations, corporate social
responsibility, welfare measures etc.
Page No : 70
c) H.R.D:

It conducts in-house training programs at Centre for H.R.D and also nominates employees for
External training program sessions conducted outside HMC. This includes sponsoring
employees to various management development programs all over India.

d) MANAGEMENT SERVICES DEPARTMENT:

It is a nodal department for coordinating various HR related activities like

employee involvement programmes through small group activities like Quality Circles, 5S-
The workplace management , apart from other employee motivational activities like
Incentives, Special Performance Awards schemes are being designed, implemented and
monitored.

WELFARE MEASURES IN HMC:

HERO MOTO CORP considers human resources as the most important of all the
resources in the Company. Its development and welfare have therefore been given the
utmost emphasis in the overall policy of Human Resources Management of the Company.
Pursuant to this policy, HMC has taken several initiatives for introducing and implementing
Statutory as well as Non-Statutory Welfare schemes which together impart and propagate the
feeling that the “Company cares for its employees”.

Besides the Statutory Welfare Measures, the Company has been taken up the Non-
Statutory Welfare and Social Security Schemes for the benefit of the employees and their
family members, which are detailed below:

Statutory welfare measures:

 Canteen facilities
 Baby crèche
 First aid facilities
 Waters coolers
 Leave
 Maternity Leave
 Factories act

Page No : 71
  Gratuity
 Workmen’s compensation
 Contract Labour Welfare

Non Statutory welfare measures:

 Facilities for Education
 Scholarship
 Medical facilities
 Housing facilities

 Work dress
 Vehicle advance to Employees
House building advance
Motivational Schemes:
 Awards
 Suggestion Rewards
 Incentive Schemes
 LTC / LLTC
 Leave Encashment
 Facilities for Recreation

 Community Welfare Centers (CWCs):

 Library
 Sports Facilities
 Hostel Grounds
 National Day Celebrations
 Cultural and Trekking Activities
 Co-operatives:
 Employees Consumers’ Co-operative Stores
 Employees Consumers’ Co-operative Thrift & Credit
Society

Page No : 72
SOCIAL SECURITY MEASURES:

Some of the social security measures being taken implemented in VSD are

 Employees’ family benefit scheme

 HMC Employees’ Superannuation Benefit Fund
 Group Savings Linked Insurance Scheme
 Group Personal Accident Insurance Scheme
 Contribution from Incentive Earnings
 Traveling/Transport Expenses

MOTIVATIONAL SCHEMES IN HERO MOTO CORP

Non - Financial Motivational Schemes.

Many a time, it is felt that a better motivated, worker needs less control. However, a
manager’s job becomes easier if he can empower the employees to take actions appropriate
for bettering his performance. The employee empowerment can be done in the following
ways.

 Quality circles
 Suggestion Schemes
 Commendation Letter
 Employee Instantaneous Recognition Scheme (EIRS)

All these can be effectively used to involve employees in decision – making process.
awards are given to an individual based on his contribution to the organization in an
assessment year, where as the Quality Circles and Suggestion Schemes may involve a group
of people. Suggestion scheme may be applicable to an individual also apart from a group of
people.

The above activities help in tapping human resources that is, potential of an individual
by satisfying his:

 Security needs by support

 Social needs by participation

Page No : 73
 Ego needs by recognition
 Self Actualization by achievement and motivating him
 Performance based rewards.

CHAPTER-4

ANALYSIS AND
INTERPRETATION
OF DATA

Page No : 74
4.1 DESCRIPTIVE STATISTICS

4.1.1 Response about the support from the HR department

SL NO PARTICULAR NUMBER OF
PERCENTAGE
RESPONDENTS

1 Highly satisfied 18 36

2 Satisfied 29 58

3 Neutral 3 6

4 Dissatisfied 0 0

5 Highly dissatisfied 0 0

Total 50 100

(Table 4.1)

70
58
60
50
40 36
Series1
30
20
10 6
0 0
0
d d al d d
fie fie ur fie fie
a tis
at
is et at
is
at
is
S S N s s
l y is is
D D
gh y
H
i
g hl
hi

Page No : 75
 (Chart 4.1)

INTERPRETATION

The table shows that 58% of the respondents are satisfied with the support they are getting
from the HR department.

Page No : 76
4.1.2 Management is interested in motivating the employees

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 27 54

2 Agree 20 40

3 Neutral 3 6

4 Disagree 0 0

5 Strongly Disagree 0 0

Total 50 100

(Table 4.2)

Management is interested in motivating the

employees

60 54
50
40
40

30 Series1
20

10 3
0 0
0
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 4.2)

INTERPRETATION

The table shows that 54% of the respondents are strongly agreeing that the management is
interested in motivating the employees.

Page No : 77
4.1.3 The type of incentives motivates you more

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Financial Incentives 15 30

2 Non financial Incentives 9 18

3 Both 26 52

Total 50 100

(Table 4.3)

The type of incentives motivates you more

30%
Financial Incentives
Non Financial Incentives
52%
Both
18%

(Chart 4.3)

INTERPRETATION

The table shows that 52% of the respondents are expressing that both financial and non
financial incentives will equally motivate them.

Page No : 78
4.1.4 Satisfaction with the present incentives scheme

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Highly satisfied 18 36

2 Satisfied 29 58

3 Neutral 3 6

4 Dissatisfied 0 0

5 Highly satisfied 0 0

Total 50 100

(Table 4.4)

Satisfaction with the present incentives provided by

the organization

70%
58%
60%
50%
40% 36%

30%
20%
10% 6%
0% 0%
0%
Highly Satisfied Netural Dissatisfied highly
Satisfied Dissatisfied

(Chart 4.4)

INTERPRETATION

The table shows that 58% of the respondents are satisfied with the present incentive scheme
of the organization.

Page No : 79
 4.1.5The company is eagerness in recognizing and acknowledging employee’s work
SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 18 54

2 Agree 29 58

3 Neutral 3 6

4 Disagree 0 0

5 Strongly Disagree 0 0

Total 50 100

(Table 4.5)

Eagerness of the company in acknowledging the

work of employees

70%
58%
60%
50%
40% 36%

30%
20%
10% 6%
0% 0%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 4.5)

INTERPRETATION

From the study, 58% of employees agreed that the company is eager in recognizing and
acknowledging their work, 36% strongly agreed and only 6% showed neutral response.

Page No : 80
4.1.6 Periodical increase in salary

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 12 24

2 Agree 23 46

3 Neutral 3 6

4 Disagree 9 18

5 Strongly Disagree 3 6

Total 50 100

(Table 4.6)

Periodical increase in salary

50% 46%
45%
40%
35%
30%
24%
25% Series1
18%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 4.6)

INTERPRETATION

The table shows 46% of employees agree that there is a periodical increase in the salary.

Page No : 81
4.1.7 Job Security existing in the company.

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 15 30

2 Agree 18 36

3 Neutral 11 22

4 Disagree 3 6

5 Strongly Disagree 3 6

Total 50 100

(Table 4.7)

Job security exist in the company

40% 36%
35%
30%
30%
25% 22%
20%
15%
10% 6% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 4.7)

INTERPRETATION

The table shows 35% of employees agree with good job security exist in the company.

Page No : 82
4.1.8 Good relations with the co-workers.

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 15 30

2 Agree 27 54

3 Neutral 8 16

4 Disagree 0 0

5 Strongly Disagree 0 0

Total 50 100

(Table 4.8)

Good relations with co-workers

60% 54%

50%

40%
30%
30%

20% 16%

10%
0% 0%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree
(C
hart 4.8)

INTERPRETATION

The table shows 54% of the respondents agree that they have good relations with co-worker.

Page No : 83
4.1.9 Effective performance appraisal system.

SL NO NUMBER OF

PARTICULAR RESPONDENT PERCENTAGE

S

1 Strongly Agree 10 20

2 Agree 23 46

3 Neutral 8 16

4 Disagree 6 12

5 Strongly Disagree 3 6

Total 50 100

(Table 4.9)

Effective performance appraisal system.

50% 46%
45%
40%
35%
30%
25% 20%
20% 16%
15% 12%
10% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 4.9)

INTERPRETATION

Page No : 84
The table shows 46% of the respondents agree to effective performance appraisal system
existing in the company.

Page No : 85
4.1.10 Effective promotional opportunities in present job,

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 9 18

2 Agree 26 52

3 Neutral 9 18

4 Disagree 3 6

5 Strongly Disagree 3 6

Total 50 100

(Table 4.10)

Effective promotional opportunities in present job

60%
52%
50%

40%

30%
18% 18%
20%

10% 6% 6%

0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 4.10)

INTERPRETATION

The table shows 52% of the respondents agree with effective promotional opportunities in
their present job.

Page No : 86
4.1.11 Good safety measures existing in the organization.

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 15 30

2 Agree 23 46

3 Neutral 3 6

4 Disagree 6 12

5 Strongly Disagree 3 6

Total 50 100

(Table 4.11)

Good safety measures existing in the organization.

50% 46%
45%
40%
35%
30%
30%
25%
20%
15% 12%
10% 6% 6%
5%
0%
Strongly Agree Netural Disagree Strongly
Agree Disagree

(Chart 4.11)

INTERPRETATION

Page No : 87
The table shows 46% of the respondents agree that there is a good safety measure existing in
the company.

Page No : 88
4.1.12 Performance appraisal activities are helpful to get motivated.

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 9 18

2 Agree 23 46

3 Neutral 6 12

4 Disagree 3 3

5 Strongly Disagree 9 18

Total 50 100

(Table 4.12)

Performance appraisal activities are helpful to get motivated

50% 46%
45%
40%
35%
30%
25%
20% 18% 18%
15% 12%
10% 6%
5%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 4.12)

INTERPRETATION

The table shows 46% of the respondents agree that the performance appraisal activities are
helpful to get motivated.

Page No : 89
Page No : 90
4.1.13 Support from the co-worker is helpful to get motivated

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 12 20

2 Agree 29 46

3 Neutral 0 0

4 Disagree 6 12

5 Strongly Disagree 3 6

Total 50 100

(Table 4.13)

Support from the co-worker is helpful to get motivated

70%
58%
60%

50%

40%

30% 24%
20%
12%
10% 6%
0%
0%
Strongly Agree Agree Netural Disagree Strongly Disagree

(Chart 4.13)

INTERPRETATION

The table shows 58% of the respondents agree that the support from the co-worker is helpful
to get motivated.

Page No : 91
Page No : 92
4.1.14 Career development opportunities are helpful to get motivated

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Strongly Agree 10 20

2 Agree 26 52

3 Neutral 2 4

4 Disagree 4 8

5 Strongly Disagree 8 16

Total 50 100

(Table No.4.14)

60%
52%
50%

40%

30%
20%
20% 16%

10% 8%
4%

0%
Strongly Agree Neutral Disagree Strongly
Agree Disagree

(Chart 4.14)

INTERPRETATION

The table shows 52% of the respondents agree that the career development opportunities are
helpful to get motivated.

Page No : 93
4.1.15 Factors which motivates you the most.

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Salary increase 21 42

2 Promotion 15 30

3 Leave 3 6

4 Motivational talk 5 10

5 Recognition 6 12

Total 50 100

(Table 4.15)

12% Salary increase

10%
42% Promotion
Leave
6%
Motivational talk
30% Recognition

(Chart 4.15)

INTERPRETATION

The table shows that the 42% of the respondent is responding that increase in salary will
motivate them the most.

Page No : 94
4.1.16 Incentives and other benefits will influence your performance

SL NO NUMBER OF

PARTICULAR RESPONDENTS PERCENTAGE

1 Influence 32 64

2 Does not influence 12 24

3 No opinion 6 12

Total 50 100

(Table 4.16)

12%

24% Influence
Does not influence
No opinion
64%

(Chart 4.16)

INTERPRETATION

The table shows 64% of the respondents responded that incentives and other benefits will
influence their performance

Page No : 95
4.1.17 Management involves you in decision making which are connected to your
department.

SL NO NUMBER OF

PARTICULAR RESPONDENT PERCENTAGE

S

1 Yes 47 94

2 No 0 0

3 Occasionally 3 6

Total 50 100

(Table 4.17)

0% 6%

94%

Yes No Occasionally

(Chart 4.17)

INTERPRETATION

The table shows 94% of the respondents agree that they the Management involve them in
decision making which are connected to your department.

Page No : 96
CHAPTER-V
 FINDINGS
 SUGGESTIONS
 CONCLUSION
 SUMMARY

Page No : 97
 5.1 FINDINGS
The findings of the study are follows

 The Hero Moto Corp has a well defined Organization structure.

 There is a harmonious relationship is exist in the Organization between employees

and management.

 The employees are really motivated by the management.

 The employees are satisfied with the present incentive plan of the company.

 Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.

 The study reveals that there is a good relationship exists among employees.

 Majority of the employees agreed that there job security to their present job.

 The company is providing good safety measures for ensuring the employees safety.

 From the study it is clear that most of employees agrees to the fact that performance

 appraisal activities and support from the coworkers in helpful to get motivated.

 The study reveals that increase in the salary will motivates the employees more.

 The incentives and other benefits will influence the performance of the employees.

Page No : 98
 5.2 SUGGESTIONS
The suggestions for the findings from the study are follows

 Most of the employees agree that the performance appraisal activities are helpful to
get motivated, so the company should try to improve performance appraisal system,
so that they can improve their performance.

 Non financial incentive plans should also be implemented; it can improve the
productivity level of the employees.

 Organization should give importance to communication between employees and gain

co-ordination through it.

 Skills of the employees should be appreciated.

 Better carrier development opportunities should be given to the employees for their
improvement.

 If the centralized system of management is changed to a decentralized one, then there

would be active and committed participation of staff for the success of the
Organization.

Page No : 99
 5.3 CONCLUSION
The study concludes that, the motivational program procedure in Sri Lakshmi
Srinivasa Hero Private Limited is found effective but not highly effective. The study on
employee motivation highlighted so many factors which will help to motivate the employees.
The study was conducted among 50 employees and collected information through structured
questionnaire. The study helped to findings which were related with employee motivational
programs which are provided in the organization.

The performance appraisal activities really play a major role in motivating the
employees of the organization. It is a major factor that makes an employee feels good in his
work and results in his satisfaction too. The organization can still concentrate on specific
areas which are evolved from this study in order to make the motivational programs more
effective. Only if the employees are properly motivated- they work well and only if they
work well the organization is going to benefit out it. Steps should be taken to improve the
motivational programs procedure in the future.

Page No : 100
 5.4 SUMMARY
This document aims at providing employees and management members with the
information that can be beneficial both personally and professionally. Every business
enterprise has multiple objectives including of adequate profit for payment of a reasonable
rate of return to the owners and for investment in business through satisfaction of customers,
maintenance of a contended workforce and creation of a public image. The basic job of
management of any business is the effective utilization of available human resources,
technological, financial and physical resources for the achievement of the business
objectives.

This project entitled as “employee motivation ” was done to find out the factors
which will motivate the employees. The study undertakes various efforts to analyze all of
them in great details. The researcher in this project at the outset gives the clear idea of the
entire department existing in the company. From the study, the researcher was able to find
some of the important factors which motivate the employees. Factors like financial incentives
and non financial inventive, performance appraisal system, good relationship with co-
workers, promotional opportunities in the present job, employee participation in decision
making are very much effect the level employee motivation . It is also clear from the study
that the company is so eager in motivating their employees and their present effort for it so
far effective.

The human resources can play an important role in the realization of the objectives.
Employees work in the Organization for the satisfaction of their needs. If the human
resources are not properly motivated, the management will not be able to accomplish the
desired results. Therefore, human resources should be managed with utmost care to inspire,
encourage and impel them to contribute their maximum for the achievement of the business
objectives.

Page No : 101
ANNEXURE
 QUESTIONNARIE
 BIBILOGRAPHY

Page No : 102
 QUESTIONNARIE

Q1. Response about the support from the HR department

a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

e) Highly dissatisfied

Q2. Management is interested in motivating the employees

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q3. The type of incentives motivates you more

a) Financial Incentives b) Non financial Incentives c) both

Q4. Satisfaction with the present incentives scheme

a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

e) Highly dissatisfied

Q5.The company is eagerness in recognizing and acknowledging employee’s work

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q6. Periodical increase in salary

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q7. Job Security existing in the company.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q8. Good relations with the co-workers.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q9. Effective performance appraisal system.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Page No : 103
Q10. Effective promotional opportunities in present job,

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q11. Good safety measures existing in the organization.

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q12. Support from the co-worker is helpful to get motivated

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q13. Career development opportunities are helpful to get motivated

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree

e) Strongly disagree

Q14. Factors which motivates you the most.

a) Salary increase b) Promotion c) Leave d) Motivational talk

e) Recognition

Q15. Incentives and other benefits will influence your performance

a) Influence b) Does not influence c) No opinion

Page No : 104
 BIBLIOGRAPHY

1. Human Resource Management & Industrial Relations

- P. Subba Rao

2. Human Resource and Personnel Management

- K Aswathappa

3. www.herogroup.com

4. www.google.com.

5. Records and Reports of Hero Moto Corp. .

Page No : 105