A STUDY ON MOTIVATION, REWARDS AND RECOGNITION ON PERFORMANCE OF IT PROFESSIONALS IN BANGALORE CITY

Presented to TASMAC and University of Wales On 15-NOV-2010 T.LALHRIATPUII WBM/O08/09 MBA HUMAN RESOURCE MANAGEMENT SPECIALIZATION Total word count: 19,874

TABLE OF CONTENTS

Chapter

Contents
EXECUTIVE SUMMARY

Page No
1

INTRODUCTION 1.1) Back ground of Study 1.2) Statement of Problem 1.3) Purpose of the Study 1.4) Research Objectives 1.5) Research Questions 1.6) Scope and Limitations LITERATURE REVIEW 2.1) Conceptual Review 2.2) Review of Theories 2.3) Empirical Evidence 2.4) Contextual Review RESEARCH METHODOLOGY 3.1) Company Profile 3.2) Research Design 3.3) Mode of Analysis ANALYSIS AND INTERPRETATION

3 5 6 7 7 7

8 23 34 36

43 48 50 51

4 5

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 5.1) 5.2) 5.3) Findings Conclusions Recommendations 77 79 80

6.

References

7. Appendices

-i-

LIST OF TABLES

Table No

Page No

1..13 2..16 3..49 4..49 5..51 6..52 7..54 8 a-c .....55 & 56 9..57 10....58 11a & b.........60 & 61 12....62 13 a & b....63 & 64 14....65 15........66 16........67 17....69 18....70 19........71 20........72 21........73 22........75 23........76

- ii -

LIST OF FIGURE/GRAPHS Figure/Graph No Page No

1......11 2......19 3..................................23 4..................................26 5..................................27 6..................................30 7..................................33 8..41 9..42 1067 1172

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A STUDY ON MOTIVATION, REWARDS AND RECOGNITION ON PERFORMANCE OF IT PROFESSIONALS IN BANGALORE CITY.

EXECUTIVE SUMMARY

The success of any business depends largely on the motivation of the employees. Human resources are essential to the prosperity, productivity and performance of any company. Motivation is the key to creating an environment where optimal performance is possible.

IT sector has been recognised as one of the drivers of Economic Growth. By keeping that in mind, the IT Companies in Bangalore have come up with new idea in order to provide facilities to the employees, now IT Sector is one of the fastest growing markets in the country.

This study is about the employees of the IT Companies in the city of Bangalore in Karnataka which is a state in India. The study is mainly based on Employees Motivation, Rewards and Recognition on performance of the IT professionals. It is based on the selected seven IT Companies located in Bangalore city. They are IBM, Oracle, Wipro, Honeywell, Bosch, Mahindra Satyam and Elcoteq. This study examines the current practices and impact of motivational, recognition and rewarding factors on employees performance among the IT Companies in Bangalore City. This study also assesses the employees perception on motivational factors.

This study is based on primary data collection. The primary sources are discussion with employees; data collected through questionnaires. These questionnaires were constructed according to this research objectives and purpose. It was divided into four parts; demographic data, rewarding factors, recognition factors, and motivational factors. This study is based on qualitative analysis. Table and Graphics are used for the analysis and presentation of the data.

The findings in this study show that the respondents prefer a challenging and interesting work is an important motivational factor for performing a good work. IT-professionals value more non-monetary incentives than monetary incentives. Nevertheless, monetary incentives still remains an important motivating factor to IT-professionals.

Since the respondents prefer a challenging and interesting work as an important motivational factor for performing a good work, the management should give more attention to training and career development to their employees, so that it will be a step for gaining superior employee commitment, which in return, it can enhance, organizational knowledge management, because the IT Professionals focusing more on their career development than the monetary benefits.

This study is organized into five chapters-Introduction, Literature review, research Methodology, Analysis and Data Presentation and Findings, Conclusions and Recommendation.

CHAPTER-1 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Every organization requires human resources, in addition to financial and physical resources for it to function. Three behavioral dimensions of HR are significant to the organization- (i) People must be attracted not only, to join the organization but also to remain in it. (ii) People must perform the tasks for which they are hired, and must do so in a dependable manner and (iii) People must go beyond this dependable role performance and engage in some form of creative, spontaneous, and innovative behavior at work. In other words, for an organization to be effective, it must come to grips with the motivational problems of stimulating both- the decision to participate and the decision to produce at work.

Employees join organizations with different needs and expectations. Their values, beliefs, backgrounds, lifestyles, perceptions and attitudes are different. Not many organizations have understood these and many HR experts are clear about the ways of motivating such diverse workforce.

Most business and organizations strive to improve quality and performance of their products, services, internal or external operations. The reasons for this can be various, depending on the goals the business or the organization have set. Important goals could concern an effort to assure a firm and stable ground in the market or to improve cost effectiveness. The competition between organizations and business can be a difficult task, and make it difficult to reach higher goals and development.1

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Aswathappa. K. Human Resource Management, Fifth Edition (2008), Tata

McGraw-Hill Publishing Company Limited, New Delhi. 3

One strategy for reaching higher goals and development is motivation. Employees who are motivated produce a higher quality of work and effectiveness which means that motivation is a key factor for progress within an organization or business. It is important that the management in the organizations dedicate time and interest to their employees individual needs and to improve their motivation. By doing so, the quality of work and efficiency might be improved.

Managements basic job is the effective utilization of human resources for achievements of business goals. The utilization should be 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.

Motivation 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 IT Professionals in Bangalore.

The process of motivation is much more complex than many people believe. People have different needs, establish different goals to satisfy those needs and take different actions to achieve those goals.2It is wrong to assume that one approach to motivation fits all.

_____________________________________________________________________
2

Aswathappa. K. Human Resource Management, Fifth Edition, (2008) Tata McGraw-Hill

Publishing Company Limited, New Delhi.

1.2 PROBLEM STATEMENT

There are various factors that can influence a persons level of motivation; some of these factors are:

The level of pay and benefits The perceived fairness of promotion system within a company, Quality of the working conditions, Career development opportunities etc. Leadership and social relationships, Employee recognition Unreasonable workload3

When the employees feel that they do not get proper Rewards, Motivation and Recognition from the management, it leads to the employees poor performance and grievances and working conditions or individuals efficiency can also be affected. When employees fail to get the satisfaction they need from the work itself, efficiency declines. Motivated employees are great asset to any Organization. It is because the motivation and Job satisfaction are clearly linked.

Motivation has many effects. These effects may be seen in the context of an individuals physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers who can deliver value to the organization. Proliferating and nurturing the number of true believers4 is the challenge for future and present HR managers.

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3

www.google.com-Counteracting Workplace De-motivators by Frances, John De, Posted:

Mar 14th, 2008, (accessed on 3rd August 2009)

4

Retaining High Performers: Issues & Imperatives by Ravi Dasari HRM Review (The

ICFAI University Press) May 2006, Pg No-55

This means innovation and creativity. It also means a change in the gear for HR policies 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.

Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force .It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates. It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term.

Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.

In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities.

1.3 PURPOSE OF THE STUDY

The purpose of this study is to assess the impact of motivational, recognition and rewarding programs on employees performance among the IT Companies in Bangalore City. 6

1.4 RESEARCH OBJECTIVE

a) To examine the current practices of IT Companies in Bangalore in motivating the employees b) To assess the employees perception on reward and recognition in the organizations selected for the study. c) To assess the impact of motivational factors (non-monetary and monetary) provided by the organization on employee performance

1.5 RESEARCH QUESTIONS

i.

How are the IT Professionals motivated by the Companies?

ii.

What are the employees perception on the recognition and rewarding system?

iii.

What is the impact of motivational factors on employees performance?

1.6 SCOPE & LIMITATIONS

This study is conducted among the Professionals from the selected IT Companies in the city of Bangalore.

Due to time constraint only seven IT units are being considered for the study. Hence, results cannot be generalized. The area of motivation is a complicated and diverse area. This study cannot possibly cover all aspects of the area of motivation. Since employees perception change with time and circumstances, the study results may be valid only for the study period.

CHAPTER-2 LITERATURE REVIEW

A review of the literature will help in gaining the knowledge about the latest work in the field. Different materials have been used for this chapter which includes research journals, text books, and articles on internet. The Literature Review is classified into three sections. They are Conceptual Review, Empirical Evidence, and Review of theories and Contextual Review.

2.1 CONCEPTUAL REVIEW

2.1.1 The concept of motivation According to Anthony Palmer5, Motivation means in public speaking to be an inside force which actuates a certain behavioral pattern, action, thought process, or reaction. Both the positive and the negative forces can serve as these actuators. Its generally includes the usage of words, situations, circumstances, and the internal and external forces. When effectively used by a great speaker, this certain force can greatly help people or working group toward a common goal. The application of this definition of motivation is certainly varied by culture, socio economic groupings, background, and of course, our brain's neural programming. The positive and the negative motivational force could mainly include desire, coercion, fear, need, and influence. Regardless of how fear, influence, and coercion are outlined, they could really be the positive or negative forces that can act as an actuator. For example, a negative force like fear of an injury could really be a stimulus to use safety equipment all the time which is the positive force.

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Anthony Palmer: Definition of Motivation: Importance of Knowing Posted on-28/01/ 2010 http://www.articleblast.com/Self_Improvement/Inspirational/Definition_of_Motivation:_Importance_of_Knowin g/ /accessed on 06/03/2010.
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These certain forces can also be either extrinsic or intrinsic. The first one is when the negative or positive external forces produce a certain behavioral changes and the latter one is when those forces come from within a person. The extrinsic motivation includes situations, circumstances, punishments or rewards, both intangible and tangible that certain participation is a result of an outside benefit. The tangible benefits then could include prize or monetary reward while intangible things could include recognition, adoration, and praises. The intrinsic motivation however would include thought process, behavioral pattern, action, reaction, activity, without obvious external thing for doing such. An example of this is a hobby. If a person really loves to master the public speaking just for the sake of mastering it and not for any prize, he is experiencing the natural motivation. In the addition to these mentioned forces that produces actuation, there is also a call for the ability to be able to fulfill that motivation. For instance, a paraplegic might be desirous to escape from his wheelchair and start to walk, but he does not have the ability, then it is just worthless. The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.

2.1.2 Motivation; Utilizing Strategic Motivation in the Workplace by Benedict Smythe., Motivation is the willingness to do something, conditioned by the actions ability to satisfy some needs6 Motivation has three distinct features: It results from a felt need. Motivation triggers behavior impelling a person to action. It is goal-directed. Motivation is a driving state that channels behavior into a specific course that is fulfillment of a felt need. It sustains behavior in progress. It persists until the satisfaction or reduction of a need state occurs.

Motivation is one of the key factors to keep the employees in the organization. A good understanding of motivated behavior is an invaluable tool towards improving productivity in the workplace. Motivated employees are workers that are more productive. If people are properly motivated, they are likely to be more good-natured about their work and will less likely need constant supervision. The reason for this is because they want to achieve defined goals. These goals serve as their motivating factors.

Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward. A basic principle is that the performance of an individual depends on his or her ability backed by motivation. Stated algebraically the principle is: Performance= f (ability x motivation)

Ability refers to the skill and competence of the person to complete a given task. However, ability alone is not enough. The persons desire to accomplish the task is also necessary. Motivation in simple terms may be understood as the set of forces that cause people to behave in certain ways.7 _________________________________________________________________
6

Benedict Smythe-Utilizing Strategic Motivation in the Workplace. Posted: Jul 13th, 2008. www.google.com

(accessed on 28th August 2009)

7

Aswathappa. K. Human Resource Management, Fifth Edition, 2008. Tata McGraw-Hill Publishing Company

Limited, New Delhi.

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1.Identifies needs

6.Reassess

2.Searches for ways to satisfy the needs

Employee
5.Receives entire rewards or punishment 3.Engage in goal directed behavior

4.Performs

Fig-1: Motivation Process. (Source: Aswathappa K, 2008)

The Framework in Fig-1 comprises six steps, Motivation Process begins with the individuals needs (Step-1), these needs may be psychological (e.g. the need for recognition), physiological (e.g. the need for water, air or food) or social (e.g. the need for friendship). These deprivations the individual to search for ways to reduce or eliminate them (Step-2).

Motivation is goal directed (Step-3). A goal is a specific result that the individual wants to achieve. An employees goals are often driving forces and accomplishing those goals can significantly reduce needs. Employees striving to advance may seek to work on major problems facing the organization in order to gain visibility and influence with senior managers (Step-4). Promotions and raises are feedback to employees that their needs for advancement and recognition and behaviors are appropriate (Step-5). Once the employees have received either rewards or punishments, they reassess their needs (Step-6)

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2.1.3 Importance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise.

1. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity.

2. The rates of labors turnover and absenteeism among the workers will be low.

3. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease.

4. The number of complaints and grievances will come down. Accident will also be low.

5. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.

2.1.4 Intrinsic versus Extrinsic Motivation

Stephen P. Robbins, (2004.) Defines intrinsic motivation as the process of being motivated is based on the satisfaction derived from the behavior itself, at the other hand, extrinsic motivation suggests that our behavior is designed to please others rather than ourselves to get certain rewards. One of the deficiencies of expectancy theory makes the managers think that all kind of behavior is motivated by extrinsic rewards. 12

Table-1 Difference between intrinsic and extrinsic motivation:

Intrinsic Motivation Activity is its own reward

Extrinsic Motivation Activity generates rewards controlled by others

Table-1 Differences between Intrinsic and Extrinsic Motivation (Stephen. P. Robbins, 2004)

2.1.5. Motivational Factor

A survey result conducted by Wiley in 1992 indicates ten motivational factors that employees were asked to rank in term of personal preference. The following resulted showed as follow:

Good wages; Full appreciation of work done; Job security; Feeling of being in on things; Sympathetic help with personal problems; Interesting work; Promotion and growth in the organization; Personal Loyalty to employees; Good working conditions; Tactful discipline In 1992, the result showed that good wages was the top motivation factor followed

by full appreciation of work done and job security. A same survey was given to employees in 13

1946, 1980 and 1986.By 1980 and 1986 interesting work was the top motivation factor, full appreciation of work done ranked at number 2 and job security, good wages ranked at number 4 and 5. In 1946 full appreciation of work done was the top motivation factors. Good wages ranked at number 5 and interesting work ranked at number 6.8

Another survey was conducted by Arnold Keller to Info systems programmer personnel. He found that interesting work, good wages, and promotion and growth in the organization to be the top motivating factor. Earlier research in the United States has shown that employees who find their work interesting and challenging are also motivated to do a good work. What defines an interesting or challenging work can only be done by the employee himself. It could be the possibility to work with technical opportunities, to expand their knowledge and so forth.

2.1.6 Motivation through Financial Incentive

According to Greenberg & Baron (2003), the motivation through financial incentive includes: Linking pay to performance, stock option and gain sharing.

Linking pay to performance: Linking pay to performance generally motivates people to work harder. Ratings are viewed by managers on employee development, team productivity, and leadership. Merit pay for both individuals and the team is based on actual results. Merit pay runs from 5 percent to over 15 percent of total compensation.

Stock Option: Stock options give the employees the right to purchase certain of company shares in the future at the specified price. Stock options also are used to attract and retain employees, as well as reward them. For example, many IT workers in Silicon Valley became rich or millionaires with their stock option.

http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&hdAction =lnkpdf&contentId=848181 (accessed on 31st August 2009) 14

Gain sharing is a formal and win-win program that allows employees to participate financially in the productivity, both the employer and the employee benefit from increased productivity, thus enhancing motivation.

In the future and in todays global organizations motivation could no longer depend on traditional leadership. It is more likely that motivation and leadership will rise from within groups and in the interaction with coworkers rather than from executives.

2.1.7 Individual Factors and Motivation

According to Brayton R.Bowen (2005) there are some forms of recognition that really only work for individuals including personal skills and promotion. With personal skill, the individuals feel motivated having given chance to show his personal talent in the wider area than his normal work groups. Brayton R.Bowen debates effectiveness of promotion as a factor of individual recognition.

The literature indicates that individual factors are essential in motivating employees. The motivation factors of the individual and the group are different because the goals are not at the same level. An individual will try with his or her best to get higher level needs and these needs are not always consistent with the needs of the group.

A group is defined according to four criteria that must be met:

The members of the group must see themselves as a unit. The group must provide rewards to its members Anything that happens to one member of the group affects every other member. The member of group must share a common goal.

According to Robbins S.P (2005), the first criterion is that the group must have multiple members. One person cannot form a group; the group has at least two people. The 15

group of 2 people called as a dyad, 3 people as a triad and 4 to 20 people called as a small group.

The second group criterion is that membership must be rewarding for each individual in the group. Furthermore, people will join or form a group only if it provides some form of reward. The third group criterion means that if something significant happens to one person and does not affect any of the other people gathered with her, then the collection of people cannot be considered as a group. The fourth and final criterion is that all the members have a common goal; the members cannot form a group if they work in different ways and for different reasons.

According to Armstrong M. (2003), a team is a special type of group. In a team, team members are working for a common purpose. However, groups and teams can also be differentiated in other ways.

The difference between groups and team is shown below in Table 2:

Groups
Strong, clearly focused leader Individual accountability Individual work-products Runs efficient meetings

Teams
Team leader shares leadership roles Individual and mutual accountability Deliver actual joint work products Encourages open-ended discussion and full participation in problem solving

Table 2: Difference between groups and teams (Dubrin, 2002)

According to him, there are four representative of work team: cross function team, top management team, affinity group, and virtual team.

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Cross function team: A cross function team is a work group composed of workers from different specialties who come together to fulfill a task. In order to perform well on a crossfunction team, a person should have to think and contribute for his organization rather than his or her own specialty.

Top management team: Top management team is a group of managers/executives working together within the same organization. However, this kind of team sometimes has difficult to get good cooperation and team spirit because of strong personalities and the members in the team have their own agenda.

Affinity group: Affinity group is a group composed of professional level (or knowledge) workers who work as self-directing and has a formal charter.

Virtual team: A virtual team is a small group of people who conduct almost all of their collaborative work by electronic communication rather than face to face meeting. For example in high-tech or IT companies have been conducted virtual team nowadays.

In conclusion, in order to get motivation and strong satisfaction in the workplace, the individual should like the job what he/she is doing, and he or she also believe that he or she make a good contribution for the company or organization. The employee also feels that the job is challenging and demanding. The manager of the company should give the job suitable with her or him capability and responsibility. He or she also gets recognition from his or her contribution for a company.

In order to get motivation for a team or group, the team member also should trust their manager, they also feel the job they are doing is interesting and meaningful, and the team members also get the reward and recognition with their effort and contribution for the company or organization. Team members have also mutual respect each other. The company also provide good working environment for the team, group and individual to work. In attempt to motivate, employers can use rewards and recognition to motivate employees. 17

2.1.8 Rewarding

According to Brayton R. Bowen (2005) reward is the benefit that arise from performing a task, rendering a service or discharging a responsibility. In general, the principal reward is pay. Besides the pay, employers also quite often offer the whole reward package that include not only wages and salaries but many other rewards such as bonus, pension scheme, health insurance, allocated cars, and mortgage assistance, beneficial loans, subsidized meals, and profit sharing, share schemes, share options and so on.

There are two kinds of rewards including: intrinsic rewards and extrinsic rewards:

Intrinsic rewards are the satisfaction or accomplishment an employee gets from the job itself. For example, an employee works overtime because he or she likes the job that he or she is doing. He or she also motivates with the challenging project, the opportunities for learning and personal growth from the project (Bowen B.R, 2005).

A survey of IT professionals working in state agencies and universities of Louisiana, USA, conducted in 20029, showed that employees were mostly satisfied with intrinsic factors, such as: the technical aspects of the work and working with new technologies, the intellectual challenge and creativity require to solve complex technical problems, the constant learning and master skills related to new technologies, and a sense of contribution and pride in their accomplishment.

Extrinsic rewards are rewards an employee gets from the employer such as praise, money, a promotion, or benefits, etc. For example, an employee works overtime because he or she wants to get more money or overtime payment (Bowen B.R, 2005).

http://coe.louisiana.edu/Inst report/ull_2002-2003.pdfAccording to this year's survey: (accessed on 20th August

2009)

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The survey also shows that the employees to be satisfied with extrinsic factors, such as working environment, their co-workers and the professional work climate, benefits, job securities and flexible/normal work hours. Another study performed by Bowditch (1997), showed that extrinsic rewards were positive for employees occupying simple jobs and negative for employees having jobs that were difficult and challenging.

Figure 2 Structures of Rewards

Rewards

Intrinsic

Extrinsic

Participate in Financial decision making Greater job freedom And discretion More responsibility More interesting work Opportunities for personal growth Diversity of Activities etc. Wages

Financial

Non-Financial

Bonuses and Profit sharing Pension plans Paid vacations Paid sick leaves and Lunch with boss Coffee breaks Birthday treats Picnics etc.

(Source De Cenzo/Robbins, 1996)

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Extrinsic rewards are divided into two groups: Financial and Non-financial rewards.

Financial rewards can be direct or indirect. The employees can get directly financial reward such as wages, bonuses and profit sharing. They can also get indirectly supportive benefits such as pension plans, paid vacations, paid sick leaves and purchase discounts. (Robbins S.P 2004)

Research shows that some employees are motivated by financial rewards and that money is a strong motivator for them. A survey that was conducted in Malaysian organizations found that most of the employees prefer to have a cash reward10.

Non-financial rewards such as having lunch with the boss of the company or preferred lunch hours, receiving the office furnishing, having a change to work with congenial colleagues, and achieving a desired work assignments or an assignments where the worker can operate without close supervision. Non-monetary rewards can help to build feelings of confidence and satisfaction in the employees. Research has revealed that non-monetary awards may be more rewarding than monetary awards to many employees.

According to a survey conducted in 2000 by Watson Wyatt to 410 North American companies and 3,600 of their top performers, the survey found that three commonly used nonmonetary rewards by employers include advancement opportunities (76 percent), flexible work schedules (73 percent), and opportunities to learn new skills (68percent)11.

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http://www.bizjournals.com/seattle/stories/2002/05/13/newscolumn2.html (Accessed on 26th August 2009)

Watson Wyatt -Cost Of Employee Absenteeism Up. Posted on September 20, 2000 http/:www.papers.ssrn.com (accessed on 26th August 2009)

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2.1.9 Recognition

Recognition is also a strong motivator, because it is a normal human need to long for. Brayton R. Bowen (2005) states that motivating others by giving them recognition and praise can be considered a direct application of positive reinforcement. Studies conducted since 50 years ago have indicated that employees welcome praise for a job well done as much as they welcome a regular paycheck (Dubrin. 2002).

Recognizing an employee can be seen as expressing appreciation for his or her efforts, is a good and positive practice for both parts (Bowen, 2005). Recognition must be consistent, given in a regular basis, and most important, part of the organization.

There are two kinds of recognitions: informal recognitions and formal recognitions:

Informal recognition can be described as an individual thing. It could be from a work partner to another, from a manager to his or her subordinate. Bowen B.R. (2005) underlines some examples of informal recognition, as follows:

Time off with pay Lunch on the house Cards and letters for all occasions (Birthdays, Thank You Notes) Certificates for outstanding service, ideas, top productivity (giving the extra mile)

Formal Recognitions are concentrated from an organizational achievement perspective, where employees are recognized when they achieve organizational objectives, when they meet performance goals, solving departmental organizational problems (Bowen B.R., 2 005

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Bowen states that compared with informal recognition, the formal recognition programs lean to:

Look out over longer time horizons Incorporate benchmarks, e.g., years of services or achievements, profit objectives, etc. Be performed-based Focus on the value of the organization, e.g., employee commitment, market appreciation, investor loyalty, etc. Be connected with the organizations compensation programs Involve both reward and risk Planned, rather than spontaneous

2.1.10 Motivation within IT-organizations

Motivating IT-professionals has been, and still are troublesome for management and need further attention (Yecenia Rivera Ortiz & Nghi Tran, 2007). Evidence support that job satisfaction is important among IT-professionals and one crucial ingredient to retain employees. Job satisfaction can be improved by non-monetary (intrinsic) motivation. Nonmonetary motivation appears to have a direct effect on IT-professionals job satisfaction and their commitment to the organization they are working for. On the other hand, non-monetary motivation does not appear to have a great importance to improve IT-professionals autonomy (Yecenia Rivera Ortiz & Nghi Tran, 2007). It is suggested that management can use skill variation as a motivator and improve job satisfaction.

Monetary and hygiene factors also appear to have an important influence upon IT professional and their job satisfaction. It is suggested that these factors also can have a positive impact upon retention and creativity. IT-professionals have a high need for growth and development and it is therefore important to future investigate motivation among ITprofessionals. It has not fully been investigated what monetary or non-monetary factors ITprofessionals prefer. It is important to investigate how IT professionals want to be motivated 22

but also to compare if there are differences between IT-professionals concerning their tasks and positions.

In this competitive world the IT Sector has become a fastest growing sector in the market. By keeping that in mind the IT Companies have to deal their employees and customer with dignity and respect. According to the past research, the IT professionals do not get proper motivation, rewards and recognition from the work done. Its a time for the employer to come up with new ideas to pull out the employees perception on motivation. It is the researcher opinion that, this is a crucial task for the employers to investigate for maintaining the level of motivation among their employees.

2.2 REVIEW OF THEORIES

Early Theories of Motivation

2.2.1 Abraham Maslow: Hierarchy of Needs

Five needs rank in a hierarchical order from lowest to highest: physiological, safety, belonging, esteem, and self-actualization. An individual moves up the hierarchy, when a need is substantially realized (Robbins S.P, 2004).
SeifActualization Esteem Needs

Social needs

Safety needs

Physiological needs

Figure 3: Maslows Need Hierarchy 23

1. Physiological needs: The basic physical needs for sustaining the human life. For example food, water, sleep, medicine, education (Robbins S.P, 2004).

2. Safety needs: To be free of physical danger and of the fear of losing a job, property, food or shelter. To protect against any emotional harm. To have a safe home, secure income, sufficient salary, benefits and medical insurance.

3. Social needs: Because people are social beings, they need to belong and be accepted by others. They like to have family and friends. People try to satisfy their need for affection, acceptance and friendship. Interaction and cooperation with coworkers and leaders (Robbins S.P, 2004).

4. Esteem needs: To be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like self-respect, autonomy, achievements and external esteem factors such as states, recognition and attention (Robbins S.P, 2004).

5. Self-actualization: This is the highest need in Maslows hierarchy. This need is to fulfill ones potential and self-fulfillment and maximize ones potential and to accomplish something. Employees in this rank try to maximize their knowledge, skills and performance to do a good job (Robbins S.P, 2004).

There are some criticisms to Maslows theory. There are arguments that there is still no adequate empirical verification to support Maslows theory and frame work (Roa VSP, 2005). It also concerns the numbers of levels where research suggests that there may be only two or three levels instead of five levels (Stephen P. Robbins, 2004). Thirdly concerns the methodology, where the numbers of people included are small and by Maslow himself declared self-actualizing. This methodology might be a suboptimal sample, scientifically spoken (Stephen P. Robbins, 2004). Maslow also predicts that human beings will move up the 24

hierarchy, satisfying one need before moving on. There are many examples of people who exhibited at very least aspects of self-actualization and they were far from having their lower needs taken care of. Many artists and scientists, (Van Gogh and Galileo, for example), suffered from mental illness, and yet were able to produce works that changed the world (Roa VSP,2005). Maslows theory predicts that once the needs at one level are satisfied, the next needs level should become more important. Researcher has shown that this does not necessarily happen (Roa VSP, 2005).

Although, Maslows theory is still useful in certain areas, the main strength of this theory is the recognition and identification of individual needs for the purpose of motivating behavior (Stephen P. Robbins, 2004).

2.2.2 Douglas McGregor: Theory X/Theory Y

McGregors theory, which is built on Maslows theory, adds a central idea: that managers assumptions about their employees can affect their motivation. This theory proposes two alternative and extreme views to see the human being: Theory X and Theory Y. According to Theory X the employee is viewed as mainly negative, lazy, resist change and unable to motivate. This produces a controlled environment with strict rules, threats and punishments. Employees in an organization like this tends to perform less effective, gives low productivity, produces aggressions and conflicts (Decenzo/ Robbins, 1996).

Theory Y on the other hand strives to maximize the employees individual goals and efforts by giving workers greater job involvement and autonomy. This means that employees are given the possibility to grow and achieve their own goals within the organization. Employees are viewed as positive and open to development. The managements goal is to make the employee happy and satisfied with their work and performance (Stephen P. Robbins, 2004).

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Nowadays, Douglas McGregor theories are seldom used because this theory has been influenced during the past decades by many new ideas and modern theories. This theory has also been criticized of being too black and white in its division of employees and managers. However, Theory X and Theory Y are still important terms in the field of management and motivation. Taken not too literally the theory can provide a useful tool for the motivation and management research (Define This, 2007). In addition, these theories remain as a guiding principle of positive approaches for management, to organizational development and to improve organizational culture (Wikipedia, 2007).

2.2.3 Frederick Hertzberg: Motivation-Hygiene

Hertzberg argues that intrinsic job factors are motivating, whereas extrinsic factors only placate employees. In this theory there are two group factors. The first one is motivating factors or satisfaction and the second one is hygiene factors or dissatisfaction which includes in (Stephen.P.Robbins, 2004Ed):

Figure-4 Hertzbergs Motivation-Hygiene Theory

The absence of money as a hygiene factor, will lead to dissatisfaction and prevent to motivate the worker. Money is also used to motivate an individual to perform a task. More money is often offered to an individual for to do the task again. 26

According to Hertzberg, the workers get motivated when they are responsible for their work. He also proposed that managers can give their employees more authority to their job and offer them direct and individual feedback in order to motivate and help employees to connect to their work (Stephen P. Robbins, 2007). Furthermore, Hertzberg also recommended that the job should have sufficient challenge to utilize the full ability of the employee. If the job is not sufficient challenge enough and not use an employees full abilities, the company should replace the employee with the one who has a lower level of skill to do the job.

Most empirical studies have refuted predictions based on Hertzbergs theory. According to Hertzbergs theory, he concluded that hygiene factors are related with dissatisfaction rather than satisfaction. However, recent researcher has found contradictions and opposite with his theory. This theory also got criticism in its methodology leading to limitations on the results (Bowditch, 1997).

Figure-5 Contrasting Views of Satisfaction-Dissatisfaction

Another problem with Hertzbergs theory is that some employees show no particular interest in such motivators as opportunity for growth and advancement (Stephen P. Robbins, 2004). In spite of criticisms, Hertzbergs theory provided a new way of thinking about worker motivation and his theory remains as an influential factor in attempts to make the motivation theory in an organizational way (Stephen P. Robbins, 2004). Hertzbergs theory implication in real work life for a manager and management in the company who want to motivate their employees would include these activities: provide the employees with good compensation, flexible company policies and being connected to their own employees. In addition, the

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manager also recognizes the good work from their employees and gives their employees the opportunities to grow and develop their skills, knowledge and experience.

Contemporary Theories of Motivation

2.2.4 Alderfers ERG Theory

The E, R and G theory stands for existence, relatedness and growth-the three sets of needs which are the focus of this alternative theory of human needs in organizations. Alderfers argues as Maslow did, that people do have needs that those needs are arranged

In a hierarchy and that needs are important determinants of human behavior. However, the ERG theory differs from the need hierarchy theory in the three respects.

First, instead of five hierarchies of needs, the ERG theory hypothesizes only three.

Second, the need hierarchy theory postulates a rigid step-like progression. The ERG theory, instead, hypothesizes that more than one need may be operative at the same time. In other words, Alderfer suggest that there does not exist a rigid hierarchy where a lower level need must be substantially gratified before one can move on. A person can be working on growth even though existence or relatedness needs are unsatisfied.

Third, Maslow had stated that a person will at a certain level until that need is satisfied. The ERG theory counters this by nothing that when a higher-level need is frustrating, the individuals desire to a lower-level need takes place. Inability to satisfy the need for social interaction, for instance, might increase the desire for more money or for better working conditions. Thus, the ERG theory contains a frustrating-regression dimension. Frustrating at a higher-level need can lead to regression to a lower-level need (Aswathappa. K, 2008)

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2.2.5 David McClelland: Achievement, Affiliation, and Power Motives

McClelland proposes that there are three major needs in workplace situations: achievement, affiliation, and power. A high need to achieve has been positively related to higher work performance when jobs provide responsibility, feedback, and moderate challenge (Stephen P.Robbins, 2004).

The need for achievement: The desire to accomplish something difficult, to overcome obstacles and attain a high standard, to excel, to rival and surpass others.

The need for affiliation: The desire to form and maintain a few lasting, positive and important interpersonal relationships.

The need for power: The individuals desire to influence, coach, teach, or encourage others to achieve.

According to David McClelland, the success will come if the employee is dedicated to the company, committed to the work ethic and unflagging in energy and devotion. However, the increasing popularity of switching jobs as a method of rapid advancement and the rapidity of change in organizations somewhat contradicts this type of thinking (Stephen P. Robbins, 2004).

2.2.6 Skinners Behavioral Modification Theory;

According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives.

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More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior. It assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated. Positive reinforcement is preferred for its long-term effects on performance. Ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors

2.2.7 Goal-Setting Theory

The theory states that specific and difficult goals, with feedback, lead to higher performance. Edwin Locke proposed that proposed that intensions to work toward a goal are a major source of work motivation. That is, goals tell an employee what needs to be done and how much effort will need to be expended. The evidence strongly supports the value of goals. More to the point, we can say that specific goals increase performance; that difficult goals, when accepted, result in higher performance than does non-feedback.

Benefits of Participation in Goal-Setting: Increases the acceptance of goals. Fosters commitment to difficult, public goals. Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (self-efficacy).

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Figure-6: Model of Goal setting Theory.

2.2.8 J. Stacey Adams: Equity Theory

According to equity theory, introduced by J. Stacy Adam, employees compare the ratio of their inputs (efforts) and outcomes (rewards) to the input-outcome ratios of other employees who are viewed as comparable to themselves. (Aswathappa K.2008)

Education, experience, job qualifications, skills, etc. are the input to the job by employees. The outcomes of the employees receive from the job are: pay, benefit, rewards, intrinsic job factors, etc.

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The equity happens when an employee compares the outcomes/ persons own inputs ratio is equal to the ratio of the other employee outcome to inputs. The inequity happens if the ratio is not equal. For example, an IT professional senior engineer with many years of working experiences and high education get the same salary as a new or recent graduated junior engineer, the senior engineer will perceive it as an inequity and therefore unjust.

When the employee perceives an inequity, he or she will do in one of the following actions.

Alter the outcome: An underpaid person will ask for more salary or bonus, promotional opportunities, or vacation time.

Alter the inputs: An underpaid person or a person who feels treated inequitable might decrease effort or time devoted to work. Someone even create faking sick days to take care of personal business.

Distort the perception: a person, who feels of inequity, can distort his or her perception of their own or others inputs or outcomes.

Change the reference source: he or she can change to another reference source whose outcome/input ratio is similar to his or her own.

Leave the situation: a person who feels of inequity, can choose to quit a job and get greater equity in another.

There is very little application of Equity theory in the workplace. Furthermore, the individuals are very sensitive with inequity. It is better to identify those inequities and have some research before some application can be applied (Motivation to Work2007).

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2.2.9 Victor Vroom: Expectancy Theory

Vroom proposes that motivation is a function of value of effort-performance and performance-rewarded relationships. Expectancy theory emphasizes the role of individual perceptions and feelings (expectations of particular results) in determining motivation and behavior. The best way to view the expectancy theory is with the acronym VIE, which stands for: Valence, Instrumentality, and Expectancy, where: Valence is the value or anticipated satisfaction that an individual attaches to an outcome. Instrumentality is the possibility that a doing well performance will yield the valued outcome. Expectancy is the possibility that a certain level of effort will result in successful behavioral performance.

Individual Effort

Individual Performance

Organizational Rewards

Individual Goals

A= Effort-performance linkage B = Performance-rewards linkage C = Attractiveness Figure-7-Model of expectancy theory

The expectancy theory is that this theory focuses on individual perceptions of the work environment and the interactions of that context with one's personal expectations. In addition, empirical support for the concepts of expectancy, instrumentality, and valences has been rather broad. Also the expectancy theory does not specify which outcomes which are relevant to individuals in any situation. Despite the criticism, Expectancy Theory is still one of the most useful for predicting employee behavior.

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2.2.10 Cognitive Evaluation Theory

Cognitive evaluation theory introduced allocation of extrinsic rewards for behavior that had been previously intrinsically rewarding tends to decrease the overall level of motivation. In other words, when extrinsic rewards are given to someone for performing an interesting task, it causes intrinsic interest in the task itself to decline. (Stephen P. Robbins, 2004).

If Cognitive Evaluation theory is correct in proposing that extrinsic rewards such as pay reduce intrinsic motivations, it seems to be less true for jobs that are inherently interesting, such as a concert violinist.

2.3 EMPIRICAL REVIEW According to Nitin Nohria, Boris Groysberg, and Linda-Eling Lee,(2008) Getting people to do their best work, even in trying circumstances, is one of managers most enduring and slippery challenges. To define overall motivation, we need to focus on four commonly measured workplace indicators-engagement, satisfaction, commitment, and intention to quit

They have done two major studies based on- can managers take to satisfy the four drives and, thereby, increase their employees overall motivation? In one, they surveyed 385 employees of two global businessesa financial services giant and a leading IT services firm. In the other, they surveyed employees from 300 Fortune 500 companies. To define overall motivation, they focused on four commonly measured workplace indicators of it: engagement, satisfaction, commitment, and intention to quit.

Engagement represents the energy, effort, and initiative employees bring to their jobs. Satisfaction reflects the extent to which they feel that the company meets their expectations at

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work and satisfies with them. Commitment captures the extent to which employees engage in corporate citizenship. Intention to quit is the best proxy for employee turnover. The study showed, strikingly, that an organizations ability to meet the four fundamental drives explains, on average, about 60% of employees variance on motivational indicators (previous models have explained about 30%).They also found that certain drives influence some motivational indicators more than others. Fulfilling the drive to bond has the greatest effect on employee commitment, for example, whereas meeting the drive to comprehend is most closely linked with employee engagement. But a company can best improve overall motivational scores by satisfying all four drives in concert. The whole is more than the sum of its parts; a poor showing on one drive substantially diminishes the impact of high scores on the other three. An organization as a whole clearly has to attend to the four fundamental emotional drives, but so must individual managers. They may be restricted by organizational norms, but employees are clever enough to know that their immediate superiors have some wiggle room. In fact, our research shows that individual managers influence overall motivation as much as any organizational policy does. In this article well look more closely at the drivers of employee motivation, the levers managers can pull to address them, and the local strategies that can boost motivation despite organizational constraints.

Motivation factors may differ from persons to persons, the research done by Yecenia Rivera Ortiz & Nghi Tran (2007) among the IT Professionals in Sweden and Finland, showed that the majority of the IT professionals feel that an interesting and challenging work is an important motivational factor for performing a good work.

In the current scenario, most of the employees are well educated and when they looking for a job, they used to look for career growth. Now days a challenging and interesting work is an important factor to be motivated and to perform a good work not only for IT-professionals in Sweden and Finland but also for the Indian employees need to perform better in the organization. 35

Another research carried out by YouGov on behalf of Investors in People UK (2008) found that the top three de-motivating factors for employees were:

Unreasonable workload (18%) Feeling underpaid (18%) Lack of clear career path (17%)

This research reveals a worrying picture, not only because such a significant proportion of UK employees are de-motivated, but because it suggests that valuable employees may be heading for the door. It is also important to highlight that employees that have been with an organization for just one to two years are most likely to want to leave, given that nearly half claim their employers focus their efforts on the initial induction stage but then, as employees settle in, let employee development fall down the list of priorities. Employees, however long theyve worked in an organization, want better support from their managers alongside clear and effective feedback on their performance. This support is vital when it comes to mapping out career paths and identifying relevant training and development. Without it, employees are likely to drift and depart rather than stay engaged with their organizations objectives.

2.4 CONTEXTUAL REVIEW

2.4.1 Current Issues in Motivation

Various groups provide specific challenges in terms of motivation. This section reveals some of the unique problems faced in trying to motivate professional employees, contingent workers, the diverse workforce, low-skilled service workers, and people doing highly repetitive tasks. (Stephen P. Robbins, 2004).

1. Motivating Professionals - professionals tend to derive intrinsic satisfaction from their work and receive high pay36

Characteristics of professionals Strong and long-term commitment to their field of expertise. Loyalty is to their profession, not to the employer. Have the need to regularly update their knowledge. Dont define their workweek as 8:00 am to 5:00 pm.

Motivators for professionals Job challenge Organizational support of their work

2. Motivating Contingent Workers - part-time, contract, or temporary workers Less security and stability than permanent employees-receive fewer benefits Display little identification or commitment to their employers Hard to motivate contingent workers-opportunity to become a permanent employee and opportunity for training Repercussions of mixing permanent and contingent workers when pay differentials are significant. (Stephen P. Robbins, 2004).

3. Motivating Low-Skilled, Minimum-Wage Employees Difficult challenge to keep performance levels high Employee recognition programs-highlight employees whose work performance has been good, encourage others to perform better & power of praise In service industries, empower front-line employees to address customers problems-tie compensation to customer satisfaction (Stephen P. Robbins, 2004).

4. Motivating a Diverse Workforce:-

Flexibility is the key to motivating a diverse workforce (Stephen P. Robbins, 2004), diverse array of rewards necessary to satisfy diverse personal needs and goals. Be ready to 37

design work schedules, compensation plans, benefits, physical work settings, and the like to reflect your employees varied needs. This might include offering child and elder care, flexible work hours, and job sharing for employees with family responsibilities. It also might include offering flexible leave policies for immigrants who want occasionally to make extensive to return trips to their homelands, or creating work teams for employees who come from countries with a strong collectivist orientation, or allowing employees who are going to school to vary their work schedules from semester to semester.

5. Motivating people doing highly repetitive tasks:-

Motivating individuals in these jobs can be made easier through careful selection. People vary in their tolerance for ambiguity. Many individuals prefer jobs that have a minimal amount of discretion and variety. Such individuals are obviously a better match to standardized jobs than individuals with strong needs for growth and autonomy.

Many standardized jobs, especially in the manufacturing sector; pay well. This makes it relatively easy to fill vacancies. While high pay can ease recruitment problems and reduce turnover, it does not necessarily lead to highly motivated workers. And realistically, there are jobs that dont readily lend themselves to being made more challenging and interesting or to being redesigned. This might include providing clean and attractive work surroundings, ample work breaks, the opportunity to socialize with colleagues during these breaks, and empathetic supervisors.

2.4.2 Implication for Managers The following suggestions may help the managers to motivate employees:-

1. Recognize Individual Differences- Employees have different needs. Dont treat them all alike. Moreover spend the time necessary to understand whats important to each employee. This will allow you to individualize goals, level of involvement, and rewards to align with individual needs (Stephen P. Robbins, 2004). 38

2. Use Goals and Feedback- Employees should have hard, specific goals, as well as feedback and how they are faring in pursuit of those goals.

3. Allow employees to participate in decision that affect them- Employees can contribute to a number of decisions that affect them: setting work goals, choosing their own benefits packages, solving productivity and quality problems, and the like. This can increase employee productivity, commitment to work goals, motivation and job satisfaction. (Stephen P. Robbins, 2004).

4. Link rewards to performance- reward should be contingent on performance. Importantly, employees must perceive a clear linkage. Regardless of how closely rewards are actually correlated to performance criteria, if individuals perceive this relationship to be low, the results will be low performance, a decrease in job satisfaction, and an increase in turnover and absenteeism. (Stephen P. Robbins, 2004).

5.

Check the system for equity- Rewards should also be perceived by employees as equating with the inputs they bring to the job. At a simplistic level, this should mean that experience, skills, abilities, effort and other obvious inputs should explain differences in performance and, hence, pay, job assignments and other obvious rewards(Stephen P. Robbins,2004).

6. Designing Appropriate Rewards Programs

Pay-for-Performance:- instead of paying for time on the job, pay is adjusted to reflect some performance measure linkage
Programs are gaining in popularity-research suggests that programs affect

Compatible with expectancy theory- imparts strong performance-reward

performance. (Stephen P. Robbins, 2004).

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Open-Book Management Involve employees in workplace decisions by opening up the financial statements Workers treated as business partners Get workers to think like an owner May also provide bonuses based on profit improvements

Employee recognition programs Giving personal attention and expressing interest, approval, and appreciation for a job well done.

Stock option programs Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price. Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price. (Stephen P. Robbins,
2004).

7. Designing Motivating Jobs

Job Design-The way into which tasks can be combined to form complete jobs. The job design can be influenced by the following factors: Changing organizational environment/structure The organizations technology Employees skill, abilities, and preferences (Stephen P. Robbins, 2004).

Job enlargement- Increasing the jobs scope (number and frequency of tasks) Job enrichment- Increasing responsibility and autonomy (depth) in a job.

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Job Characteristics Model (JCM)-A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees growth needs. Five primary job characteristics: Skill variety: how many skills and talents are needed? Task identity: does the job produce a complete work? Task significance: how important is the job? Autonomy: how much independence does the jobholder have? Feedback: do workers know how well they are doing?

Figure-8 Job Characteristic Model

Suggestions for Using the JCM:

Combine tasks (job enlargement) to create more meaningful work. Create natural work units to make employees work important and whole. Establish external and internal client relationships to provide feedback. Expand jobs vertically (job enrichment) by giving employees more autonomy. Open feedback channels to let employees know how well they are doing. (Stephen P. Robbins, 2004). 41

Figure-9 Suggestion for using JCM

According to Stephen P. Robbins (2004) the modified job characteristic model has the organizational structure consisting of organizational size, a number of hierarchical levels, formulation and centralization as can be seen in figure 9.These factors have an effect on the core job dimensions, which in the adapted model include both intrinsic, and extrinsic factors. The core job dimension in the modified job characteristic model include task identity, skill variety, task significance, autonomy and feedback which are all from the original model and in addition job dimensions which are social relationships, participation, task difficulty, work load, pay, benefits, hours and working conditions. In addition, the extrinsic motivation along with intrinsic motivation for the employees is being covered. The core job characteristics are satisfied under reward satisfaction, which has been replaced from the critical psychological states to make the model more usable for manager and with the satisfaction of these variables personal, and work benefits will be achieved. As a result of satisfaction of these core job dimensions the employee will be able to generate personal and work outcomes of high internal motivation, high growth job satisfaction, high work effectiveness and low absenteeism. The model also strengthens the concept that there is a link between satisfaction of the core job characteristics to result in an overall improvement in intrinsic and extrinsic motivation e.g. Overall motivation of employees.

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CHAPTER-3

RESEARCH METHODOLOGY

This study is descriptive in nature. This chapter presents a brief profile of selected companies and the research methodology for the data collection and mode of analysis.

3.1 COMPANY PROFILE:

IBM India Pvt. Ltd. commenced business in India in the 1930s and set up its manufacturing there in 1951. The business operated successfully until the mid1970s, when Indias Foreign Exchange Regulation Act (FERA) required foreign owned companies to reduce their equity ownership to (26% in IBMs case). IBM was unwilling to take that course of action and in 1978; the company ceased its operations but still continued to conduct business in India as an off-shore entity only, through a small Liaison Office. IBM re-entered the Indian shores in 1992 with a Tata joint-venture, named Tata Information Systems Ltd. It has headquartered in Bangalore, Karnataka. Its business interest in India was still focused on product sales.IBM India has now grown to an extent where it poses a stiff challenge to homegrown Software companies of India in IT global delivery and manpower attraction/retention. It now operates the following business lines from India which contributes to worldwide IBM in a global delivery framework: India Software Labs (ISL), India Research Lab (IRL), Linux Technology Center, Global Business Services(GBS), Global Technology Services (GTS), Global Service Delivery Center (GSDC), Global Business Solutions Center (GBSC), Strategic Outsourcing (SO) and Business Transformation Outsourcing (BTO).

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ORACLE INDIA PVT. LTD

Oracle started its Indian subsidiary in August 1993 in Bangalore, Karnataka. It has established itself as the market leader in relational database management systems, software development tools, packaged E-Business applications and high quality client support. Oracle's software technology has been adopted by developers in India at an everincreasing rate, reflecting the popularity of developing applications for the Internet. Oracle was one of the first companies to make its business applications available through the internetan idea that is now pervasive. With the release of Oracle Fusion Middleware, Oracle has begun debuting new products and functionality that reflect the company's goal: connecting all levels of enterprise technology to help customers access the knowledge they need to respond to market conditions with speed and agility. Today, Oracle Real Application Clusters, Oracle E-Business Suite, Oracle Grid Computing, support for enterprise Linux, and Oracle Fusion all fuel a commitment to innovation and results that has defined Oracle journey. It is the largest business software company in the world, with 345,000 customers including 100 of the Fortune Global 100 and supports these customers in more than 145 countries.

The Wipro Technologies was established in 1980, in Bangalore, Karnataka. It is a global services provider delivering technology- driven business solutions that meet the strategic objectives of their clients. Wipro has 40+ Centers of Excellence that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service

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delivery innovation. Wipro is the World's first CMMI Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award. Wipro has introduced Magnum Opus initiative, with its unique approach, scale and distributed nature. It is a scalable, cost-effective, innovative model to nurture the young university talent pool across India, utilize the open source environment and propel the future Indian talent in technology towards innovation excellence. Wipro plans to scale the Magnum Opus model for 2000 students this year, working on multiple technology themes.

HONEYWELL INTERNATIONAL Honeywell was set up first in Pune in 1987 as Honeywell Automation India ltd. It is a leader in providing integrated automation and software solutions. HAIL also has the unique distinction of being one of the first automation companies in India to be awarded dual certification of ISO 14001 and OHSAS 18001. Honeywell International is also a Fortune 100 global diversified technology and manufacturing leader. Each of the companys four businesses - Aerospace, Automation and Control Solutions, Transportation Systems, and Specialty Materials - has operations in India. Honeywell has set up state-of-the-art manufacturing and engineering operations for its automation, turbocharger and refining businesses and operates its global centers of excellence for research, providing technology solutions, product development and innovation in India. Honeywell directly employs more than 10000 people based in Delhi, Pune, Bangalore, Hyderabad, Chennai, Gurgaon, Madurai and several other cities.

The Bosch Group is one of the worlds biggest private industrial corporations. Headquartered in Stuttgart, Germany, the Bosch Group has some 280,000 employees worldwide, and generated

45

annual sales revenue of 45.1 billion euros in 2008. There are about 300 subsidiary and regional companies around the world.

In India, the Bosch Group has about 18,030 employees, and in business year 2008 achieved total consolidated revenue of over Rs. 6400 crores. In India, Bosch is a leading supplier of technology and services, and has a strong presence in the country at numerous locations in diverse industry segments - both automotive and non-automotive. Bosch set up its manufacturing operations in 1953, and has grown over the years to 11 manufacturing sites and 4 development centers.

In India, the Bosch Group operates through the following Bosch Ltd. Bosch Chassis Systems India Ltd. Bosch Rexroth India Ltd. Robert Bosch Engineering and Business Solutions Ltd. Bosch Automotive Electronics India Private Ltd. Bosch Electrical Drives India Private Ltd.

Elcoteq SE is a leading electronics manufacturing services (EMS) company in the communications technology field. Elcoteqs global service offering covers the entire lifecycle of products, from product development to after-market services. By further combining mechanics expertise into its service offering, Elcoteqs vision is to be a leading integrated electronics manufacturing services (IEMS) company.

Elcoteq provides global end-to-end solutions consisting of product development services, supply chain management, NPI, manufacturing, and after market services for the whole lifecycle of its customers' products. These products include Consumer 46

Electronics products such as mobile and wireless phones, their parts and accessories, settop boxes, flat panel TVs and other consumer products as well as System Solutions products such as wireless and wire line infrastructure systems and modules, enterprise network products and other industrial segment products. Elcoteq Bangalore was inaugurated in 2005. It is one of Elcoteqs four volume manufacturing plants in the Asia-Pacific region and the first one in India. Elcoteqs main businesses in India are wireless communication terminal products, wireless communications network equipments and after-sales services. The plant is equipped with the latest manufacturing technologies, including Surface Mount Technology (SMT), testing and ESD control to support its modernized manufacturing.

Bangalore has optimal location and logistics for deliveries and gives easy access to the fast growing market in India and other developing markets in the Middle East, Pakistan and East Africa. The plant floor area covers 7,900 m2 and the plant employs around 1,000 people.

Mahindra Satyam (formerly known as Satyam Computer Services Ltd) was founded in 1987. It had headquarters in Hyderabad, Andra Pradesh. It is a leading global business and information technology services company that leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highestvalue business processes and improve their business performance. . In June 2009, the company unveiled its new brand identity Mahindra Satyam subsequent to its takeover by the Mahindra Groups IT arm, Tech Mahindra. The company's professionals excel in enterprise solutions, 12 supply chain management, _______________________________________________________________________
12

http://en.wikipedia.org/wiki/Mahindra_Satyam" (accessed on 20th September, 2009)

47

client relationship management, business intelligence, business process quality, engineering and product lifecycle management, and infrastructure services, among other key capabilities.Mahindra Satyam provides services in the following areas:

Aerospace and Defense Banking, Financial Services &Insurance Energy and Utilities Life Sciences & Healthcare Manufacturing, Chemicals & Automotive Public Services & Education Retail and Consumer Packaged Telecom, Infrastructure, Media and Entertainment & Semiconductor Travel and Logistics & Industrial Equipment

3.2 RESEARCH DESIGN

3.2.1 Data Collection

This study is based on primary data collection. The primary sources are through a survey with employees; data collected through questionnaires. The questions were constructed as multiple choice questions and open questions which are distributed to the employees of the selected IT companies located in Bangalore city.

3.2.2 Sampling and Selection

The organizations that were investigated are within the Information Technology (IT) sector. Out of the 10 companies contacted only 7 companies have responded of these 7 companies, two are MNCs Headquarter in India having presence in about 40 countries, other 5 are MNCs with Headquarter in US/UK/Germany and Finland with presence in 48

about 100 countries around the world. The following are the name of the companies contacted for the study:-

Company Name IBM Wipro Oracle Honeywell Bosch ltd MahindraSatyam Elcoteq

Headquarter USA INDIA USA USA GERMANY INDIA FINLAND

No. of countries with its office 170 40+ 145 95 60+ 34 13

Table 3: Companies Contacted

3.2.3 Sample Size. Sample of 120 respondents were obtained from the population. Table 4 shows the questionnaires administered given and received from the participating companies in Bangalore City.

Company

Employees in the branch concern IBM 350 Oracle 350 Wipro 320 Honeywell 100 Bosch ltd 130 MahindraSatyam 100 Elcoteq 80 TOTAL 1430

Contacted 30 30 30 20 20 10 10 150

Responded 27 24 28 12 18 6 5 120

Response rate % 90 80 93.33 60 90 60 50 80

Table 4: Distribution of Questionnaire The study is based on the data collected from the employees of the selected IT companies located in Bangalore. For the study, 150 Questionnaires had been 49

administered to the seven IT Companies based on the number of employees in each branches. Out of 150 employees, 120 employees have responded the questions. So the response is 80% of the total questionnaires administered.

3.3 MODE OF ANALYSIS:

This study is based on qualitative analysis, the use of questionnaire and discussion with the employees provided qualitative data of the study.

Table and Graphics are used for the analysis and presentation of the data.

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CHAPTER-4

ANALYSIS AND INTERPRETATION

This chapter presents the analysis of the responses. The analysis is based on the seven companies responses, which participated in the survey.

Analysis based on the data collected from the respondents:

Table-5: Age-Gender Classifications

Respondents Age group (years) 25 & less 26-35 36-45 46 & above TOTAL Male 24 34 11 3 70 Female 19 22 5 2 50

Total

Number 43 56 16 5 120

% 36 47 13 4 100

Table 5; Age-Gender Classification of respondents

An analysis of respondents classification by Age and Gender is shown in Table 4.1. 58% of the respondents are men and 42% are women. A predominant number of respondents are aged 26-35 years; about 49% of men and 44% of women are aged 26-35 years. This is followed by respondents aged 25 years and less (34% of men and 38% of women). 83% of respondents, aged 35 years and less indicate that IT being part of new economy, many employed in the units are young adults.

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Table-6 : Qualifications & Current Position in the company

Current positions of the Respondents Admin. Qualifications High School Graduate(Technical) B. Sc(comp sc) BE B.Tech TOTAL Graduate P.G M.Sc M.C.A M.Tech TOTAL PG Others PhD MBA M.Com M.A B.A PGDCA BCA TOTAL 'Others' TOTAL *S.E= Software Engineer, Admin.Staff= Administrative Staff, H & S.S=Hardware & System Specialist 8 11 66 2 6 1 1 2 4 25 1 1 1 1 5 14 3 3 7 11 18 6 7 13 4 1 2 6 32 16 48 1 1 8 4 12 1 3 2 Manager S.E* Staff* 1 H& SS* Other -

TOTAL

Number 1

% 1

3 40 21 64

3 33 18 53

4 14 23 41

3 10 19 34

2 6 1 1 2 1 1 14 120

2 5 1 1 2 1 1 12 100

Other- Staff Consultant, Project coordinator, Knowledge Advisor, Senior system engineer, Trainer, Business Research Analyst

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An analysis of positions held by the respondents revealed that 55% to be Software Engineers, 21% to be Hardware and System Specialists, 9% to be Managers ,3 % to be Administrative Staff, and 12% to be in other positions like business research analyst, Knowledge Advisor, Project-Coordinator, Senior System Engineer etc.. Among these, the position of senior system engineer were found to be most common.48% of B.E, 24% of B.Tech and 17% of M.Tech have been recruited and positioned as software engineers. 32% of the positions held by B.E are as hardware and system specialist, this is followed by 28% of M.Tech and 24% of M.C.A. Thus, it is clear that recruitment for the position of software engineers requires a bachelor/master degree in engineering or technology or master in computer application.

The respondents who stated to be qualified as MBA (5%), M.Tech (3%) and PhD (2%) degree holders are positioned as managers. The respondents who have a qualification of High school, B Sc, BA and BCA are positioned as administrative staff and 12 % of the respondents have mentioned to be in other position. This includes the position as Staff Consultant, Project Coordinator, Knowledge Advisor, senior system engineer, Trainer and Business Research Analyst. Most of the employees who do not have IT background of qualification are normally found to be in the management lines and as supportive staff. Managers who possessed M Tech background are working with IBM and Wipro as system managers, and administrative manager in Elcoteq.

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Table-7: Respondents Work Experience

Company Honey ExpeRience 0-2 3-5 6& above TOTA L 27 18 24 17 28 15 12 5 18 8 6 3 5 2 IBM *C 18 6 3 #P 16 2 0 Oracle *C 16 7 1 #P 14 3 0 Wipro *C 9 13 6 #P 13 2 0 Well *C 5 4 3 #P 5 0 0 Bosch Ltd. *C 7 8 3 #P 7 1 0 Mahindra Satyam *C 2 3 1 #P 3 0 0 Elcoteq *C 1 2 2 #P 2 58 0 43 0 19 12 0 No. *C

TOTAL

% #P 60 36 8 16 0 0 7 *C 48 #P 50

68

100

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*C-Current Company

#P-Previous Company

Table7: Work Experience of the respondents;

As is clear from the table-7, as many as 48% of respondents have been recruited just 2 years ago or less than that. 36% have 3-5 years experience and the other 16% have over 6 years experience with the current Company, 3 each with of the 19 who stated to have over 6 years experience work for IBM, Honeywell and Bosch, 6 (32%) work for Wipro, About 57% of the respondents had previous work experience in another IT companies. Most of the experienced employees left their previous job in search of better career opportunities, challenging & interesting job and good salary. More than half of the respondents had previous experience in another company. Out of the 68 respondents who stated have worked elsewhere before joining the company they are working for, 60 (about 88%) have had 2 years and less experience in the previous company. About 88% (of 68 respondents) changing job within 2 years (or less) indicates their low level of satisfaction in job, they are recruited for. The IT Companies prefer a person who has work experienced in the same field than a fresher It is clear that the organization is growing rapidly and has employees who have some experience with the other organization; the experienced employees in the organization would be acting as a coach and the new recruits as their key players to achieve their goals.

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4.1 Rewards:4.4.1 Employees preference of rewards system.

Table-8(a) Most- Preferable Rewards system by the respondents.

Rewards

IBM 3 2 1 1 0

Oracle Wipro Honeywell Bosch

3 1 1 0 1 3 2 2 1 1 1 1 0 0 1 2 2 1 0 0

Mahindra Satyam
1 0 1 0 0

Total 13 8 6 2 3 32

Intellectual challenge & Creativity Training for professional Development Participation in decision Making Paid Vacation Beneficial Loans
TOTAL

Out of 120 respondents, 32 respondents stated the most preferred rewards assigning 1-3 ranks, out of these 32 respondents about 69% are employed at IBM, Oracle and Wipro. Intellectual challenge and creativity is found to be the preferred reward (41% ranking it as1-3 ) followed by training for professional development (25% assigning rank 1-3) and participation in decision making (about 19% assigning rank 1-3). Paid vacation and beneficial loans are most preferred rewards by only 6 % and 9% of 32 respondents respectively. None of the respondents working with Elcoteq assigned rank 1-3 for any of these rewards indicating that they do not considered them as most preferred rewards.

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Table- 8 (b) Moderate- Preferred Reward system.

Rewards

Mahindra Satyam Elcoteq IBM Oracle Wipro Honeywell Bosch

1 1 1 1 1 1 2 1 1 1 1 1 3 1 1 1 1 1 1 1 2 1 2 1 0 1 0 1 1 1 1 1 1 1 1 2 1 0 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1

Total 5 5 4 7 8 5 7 6 47

Intellectual challenge & Creativity Training for professional Development Participation in decision Making Paid Vacation Share Options Pension Plans Beneficial Loans Festival Bonus
TOTAL

10

10

Paid vacation, share options and beneficial loans are mentioned as main moderately preferred rewards by about 15%-17% of 47 respondents.38% of 8 respondents, who stated share option as their moderate preference rewards system are employed with Oracle and 25%, are in Wipro indicating that these companies offer share option for employees.

Table-8(c): Least- Preferred Reward system.

Rewards

Mahindra Satyam Elcoteq IBM Oracle Wipro Honeywell Bosch

1 1 2 1 2 1 1 2 1 1 1 1 1 1 2 0 1 1 1 1 1 1 1 2 0 0 0 0 0 1 1 1 0 0 0 1 1 1 1 1 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0

Total 3 4 4 4 5 6 8 7 41

Intellectual challenge & Creativity Training for professional Development Participation in decision Making Paid Vacation Share Options Pension Plans Beneficial Loans Festival Bonus
TOTAL

11

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8% of 41 respondents assigning 8-10 ranks for the rewards stated, intellectual challenging training and participation in decision making are mentioned by only 7-10%. This indicates their least preference to these rewards. This could be because the IT Professionals are more focusing on their career development than physically rewards system.

Table 8 (a-c) presents the employees preference to reward system. 32 of the 120 respondents (about 27% ) ranked 1-3 indicating them as most preferred; 39% ranked 4-7 indicating them as moderate preference to certain rewards and other 34% ranked the rewards as 8-10 indicating them as least preference. The respondents who ranked intellectual challenging training, Training for professional Development and participation in decision making as 1-3 ranked are mostly found to be in IBM, Oracle, Wipro and Bosch. This could be because most of the managers are assigned into it and they are more focusing on career development whereas IT manufacturing company like Elcoteq do not considered these as most preferred reward. They perceived it to be least preferred reward. This could be because they are concentrating more on manufacturing the IT gadgets; monetary reward plays an important role for them. The respondents who are in administrative position are more focusing on monetary benefits.

Table-9: Preference to rewards system based on the respondents position in the company.

Position in the company Particulars Intellectual challenge & Creativity Training for professional development Participation in decision making TOTAL S.E= Software Engineer, Admin.Staff= Administrative Staff, H & S.S=Hardware & System Specialist Other*- Staff Consultant, Project coordinator, Knowledge Advisor, Senior system engineer, Trainer, Business Research Analyst 3 3 11 23 18 66 1 1 4 7 10 25 5 3 14 39 35 120 Manager 5 S.E 25 Admin.Staff 2 H & SS 8 Other 6 TOTAL 46

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55% of the 120 respondents mentioning Intellectual challenge & Creativity, Training for professional development and Participation in decision making are employed as software engineer, 21% are Hardware & System Specialist; and (3%) are Administrative Staff.

40% of 5 managers who stated preference to intellectual challenge and creativity as basis for reward are employed at IBM and Wipro.24 % of 25 Software Engineer who stated intellectual challenge and creativity are their most preference system are employed with Wipro, 20% are working at IBM and 16% are working at Oracle. For technically qualified professionals, recognition of their skills (and related work) intellectual challenges in work, requisites training and participation in crucial decision are most preferred rewards than a monetary rewards. This clearly indicates that perceiving a reward most/ least motivating factor is related to the nature of the work and skill level of employees.

Table-10: Best Rewards received by the respondents.

Particulars Working Abroad Promotion Bonus Salary Raise Stock option/Share option Paid Vacation Responsibility Not Stated TOTAL

Honey Bosch Mahindra IBM Oracle Wipro well 2 4 8 4 1 2 1 5 27 3 1 7 5 2 3 0 3 24 2 2 13 3 3 2 0 3 28 0 0 6 2 0 2 0 2 12 Ltd. 1 1 8 3 0 2 1 2 18 Satyam 0 0 4 2 0 0 0 0 6

TOTAL Elcoteq No. % 0 0 3 1 0 0 0 1 5 8 8 49 20 6 11 2 16 7 7 41 17 5 9 2 13

120 100

Bonus (41%) is the predominant mention as the reward received. All the companies under study have paid bonus as reward in deserving cases. An increase in salary as the best reward received was mentioned by 17% of the respondents. This is followed by paid vacation

58

(9%), assignments in foreign countries (7%) and promotion (7%). 13 % have not stated any reward received. This is because they have been working in the concern companies below 2 years. So, their performance is still being assessed. IT & ITES are more focusing on working abroad, promotion and share option wherein a manufacturing technologies companies like Honeywell and Elcoteq perceive bonus and salary raise, to be most preferred reward than intellectual challenging, training and development and participation in decision.

Tables 8-10, the current reward factors adopted by the companies do not fully cover the employees preference. The employees rewards received like paid vacation and share option are their moderate preferred reward system. Intellectual challenging, training and development and participation in decision have not been appeared in the reward received by the employees. When the employees feel that they do not get proper Rewards, Motivation and Recognition from the management, it leads to the employees poor performance and grievances and working conditions or individuals efficiency can also be affected. When employees fail to get the satisfaction they need from the work itself, efficiency declines. Motivated employees are great asset to any Organization. Employees, however long they have worked in an organization, want better support from their managers with effective feedback on their performance. This support is important to when it comes to mapping out career paths and identifying relevant training and development. Without it, employees are likely to depart rather than stay engaged with their organizations objectives.

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Table-11 Employees perception of rewards received for the work done.

Table-11(a) Employees perception.

Name of the Company IBM ORACLE WIPRO HONEYWELL BOSCH MAHINDRA SATYAM ELCOTEQ TOTAL

*Yes, always *To some extent 6 6 5 2 4 12 11 16 7 8

*No, not sufficient 9 7 5 3 4

*Do not know TOTAL 0 0 2 0 2 27 24 28 12 18

1 0 24

3 3 60

2 2 32

0 0 4

6 4 120

Yes, Always-Employees who always feel that they have received enough rewards for the work done To some extent-Employees who feel that they have received enough rewards to some extent for the work done No, Not enough-Employees who feel that they have not received enough rewards for the work done Do not know-Some Employees do not know they have received enough rewards for the work done or not

Only 20% of the respondents perceive the rewards they have received are always in accordance with their performance and are sufficient. 49% of the respondents stated that sometimes rewards received are sufficient; 27% perceive that rewards received are not sufficient when their performance is considered and other 5% are new to the company and they

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are not certain whether the rewards received are sufficient or not indicating that they are ignorant about their skill level and the companys standards.

Table-11 (b) Employees perception of rewards based on their position in the Company

Employees perception of rewards received Positions In the Company Manager Software Engineer Admin. Staff H & SS Other Total 12 3 2 24 34 2 12 7 59 18 2 9 4 33 2 1 1 4 66 4 25 14 120 Yes, Always 7 To Some extent 4 No, Not sufficient Do not know Total 11

50% of the employees who stated rewards to be sufficient are Software Engineer, (29% are Managers at IBM, Oracle and Wipro). Out of 11 managers, 7 managers are satisfied with the rewards received from the employer. More than half of the software engineers mentioned that they are satisfied to some extent, 20 % of the software engineers mentioned that the rewards received is not sufficient for the work done. A designation wise analysis revealed that of 25 Hardware and System Specialist employees, 36% have mentioned that they have not received enough rewards for the work done. Only 3% of the respondents mentioned that they do not have any idea about the rewards system. These people are found to have less than 5 years experience with the company.

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Table-12: Employees expectation of rewards from the work.

Honey Expectations Pay Raise/Salary Raise Promotion Monetary Benefits Working Abroad Paid Vacation Encourage Variation in the Tasks Career Development No Response TOTAL IBM Oracle Wipro Well 12 2 8 1 0 0 0 1 3 27 5 3 6 2 2 1 1 2 2 24 7 5 3 3 1 1 2 4 2 28 3 1 2 0 0 1 1 2 2 12

Bosch Mahindra Ltd. 8 2 4 1 0 2 0 0 1 18 Satyam 3 1 2 0 0 0 0 0 0 6

TOTAL Elcoteq No. % 2 1 1 0 0 0 0 0 1 5 40 15 26 7 3 5 4 9 11 33 13 22 6 3 4 3 8 9

120 100

33% of the employees would like to be rewarded with salary raise from their employer. 30% the employees who have stated salary raise as the most expectation of rewards are the IBM employees, 20% are employed at Bosch Ltd, 22 % of the employees would like to be rewarded with monetary benefits, among these 31 % are employed with IBM.13% of the participants would like to be rewarded in terms of Promotion. Among these, 33% of the employees are working with Wipro. 9% of the respondents are not clear about the rewards system because of less experience with the company, and hence have not stated any specific expectation.

Increase in pay, promotion and monetary benefits are the major expectations. Monetary gain is the major concern of many respondents; non-monetary are only secondary consideration

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4.2 Recognition

Table-13:- To the query on the employees preference to recognition system, the respondents ranked their preferences. Table-13 (a) Most- Prefer Recognition system by the respondents

Experienced(years) Preferred recognition system 0-2 4 2 3 2 AVM 0.67 0.5 1 0.22 3-5 2 2 0 4 AVM 0.33 0.5 0 0.44 6+ AVM All 6 4 3 9 AVM 0.11 0.07 0.05 0.16

Time off with pay Lunch on the house Thank You Note Full appreciation of work done Certificate for outstanding services or ideas Employee Award Development Opportunities Team-of-the-Month Award Years of Services Award
Total

0 0 0 0 3 0 0 0.33

2 3 2 2 2 22

0.29 0.5 0.25 1 0.67 0.46

2 2 3 0 1 16

0.29 0.33 0.38 0 0.33 0.33

3 1 3 0 0 10

0.43 0.17 0.38 0 0 0.21

7 6 8 2 3 48

0.13 0.11 0.14 0.04 0.05 0.86

As it is clear from the table 13(a) the highest average mean is the most preference of recognition system of the respondents i.e. Full appreciation of work done, this was followed by Development Opportunities and Certificate for outstanding services or ideas. There is a high competition between the IT Professionals, they are working hard, they are trying to apply new technique, ideas and thoughts to do a good work, and so, they expect that should be recognized. Among the employees who rank full appreciation of work done as a first preference of recognition system, around 44% & 33% of the respondents have experience of 3 years and above with the company. Respondents who have less experience are more focused on the monetary benefits and physical recognition system. On the other hand, a person who has experience of above 3 years is found to be focused more on the career benefits.

Table-13(b) Moderate & Low Prefer Recognition system by the respondents 63

Moderate Experienced(years) Preferred recognition system 0-2 3 1 1 1 3-5 1 0 0 0 6+ 0 0 0 1 All 4 1 1 2 0-2 1 1 1 3

Low

3-5 1 3 4 0

6+ 1 1 1 0

All 3 5 6 3

Time off with pay Lunch on the house Thank You Note Full appreciation of work done Certificate for outstanding services or ideas Employee Award Development Opportunities Team-of-the-Month Award Years of Services Award
Total

0 3 1 4 4 18

1 3 1 2 4 12

1 1 1 0 1 5

2 7 3 6 9 35

3 2 3 3 1 18

0 1 1 4 1 15

0 0 0 1 0 4

3 3 4 8 2 37

According to the respondents, the following points are the moderate preferable variable i.e. Years of Services Award. This was followed by Employee Award and Team-of-theMonth Award. 26% of the respondents rank years of services award as their moderate preference recognition system, among these 44% are found less than 5 years experienced with the company, the respondents who has 6 years and above experienced with the company, only 11% has mentioned as their moderate preference recognition system. 22% of the respondents rank Team-of-the-Month Award as their least preference of the recognition system, followed by Thank you not and Lunch on the house. Among these, 50 % & 38% are less than 5years experienced with the company.

It is clear that the IT Professionals prefer appreciation or career development opportunities than the physically recognized by rewards like Lunch on the house, Team of the month Award and Thank you notes indicated by their least preference of them. This (Table13-b) clearly reveals that through recognition system is not the most important recognition

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system for the IT employees, it still plays an important role to perform better in the work they are doing.

Table 14: Recognition Factors adopted by the IT Company according to the respondents. Honey Bosch Mahindra PARTICULARS Thank you note Feather in my cap Award Full appreciation Positive Feedback Best Employee Award Client Appreciation Best project Award No Stated TOTAL IBM Oracle Wipro Well 8 0 5 6 2 1 1 4 27 5 0 3 3 2 4 2 5 24 4 3 4 6 2 2 2 5 28 3 0 4 2 1 0 0 2 12 Ltd. 4 0 0 5 2 2 1 4 18 Satyam 3 0 0 2 0 0 0 1 6 TOTAL Elcoteq No. % 3 0 0 2 0 0 0 0 30 3 16 26 9 9 6 21 25 3 13 22 8 8 5 18

5 120 100

25 % of the respondents have received Thank You Note, followed by these, were 22% respondents that have received Positive Feedback and 13% Full Appreciation as Recognition.18% did not answer the question because of lack of understanding the recognition system (Table 14). Some of the employees are a little confused about recognition system because of their less experience in the organization.

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Table-15: Ways of recognition received by the employees.

Reward as a Name of the Company IBM Oracle Wipro Honeywell Bosch Mahindra satyam Elcoteq TOTAL group/team 10 7 10 5 8 3 2 45

Individual reward 8 3 5 3 2 1 1 23

Both individual & as a group 9 14 13 4 8 2 2 52 TOTAL 27 24 28 12 18 6 5 120

Only about 19% of the respondents stated to have received individual rewards for their performance, while about 38% stated to have received reward for team performance, and other 43% of the respondents stated that they have received recognition as an individual as well as for group/team performance (Table-15). Based on the responses, it is clear that the IT Companies are focusing more on team/group work and rewards system than individual rewards system, mainly because projects could be effectively completed only as a team.

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Table 16: Employees opinion on recognition received for the work done. Name of the Company IBM ORACLE WIPRO HONEYWELL BOSCH MAHINDRA SATYAM ELCOTEQ TOTAL 1 1 16 3 3 54 2 1 35 0 0 15 6 5 120 2 3 4 2 3 *Yes, always *No, not *Sometime enough 11 10 14 8 5 8 9 7 2 6 *Do not know 6 2 3 0 4 TOTAL 27 24 28 12 18

Yes, Always-Employees who always feel that they have received enough rewards for the work done Sometime-Employees who feels that they have received enough rewards to some extent for the work done

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 No, Not enough-Employees who feels that they have not received enough rewards for the work done Do not know-Some Employees do not know they have received enough rewards for the work done or not

45% of the respondents are of the opinion that sometimes their performance are reasonably well recognized; 29% opine that recognition is lacking; 13% opine that their work is well recognized while the other 13% are not able to develop any opinion about the recognition of their performance because of less experience at the organization.

About 25% of respondents employed at IBM, about 42% of respondents employed at Oracle, 50% of Wipro respondents and 67% Honeywell respondents opine that their work is recognized sometimes.30% of IBM respondents and 38% of Oracle respondents opine that their work is not recognized enough by the employer. This could be because the adopting recognition factors are not sufficient to the employees and many employees who joined recently the organization feel that they do not get recognition of the work done.

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4.3 Motivation

Table-17: To the query on the employees preference to motivational factors, the respondents ranked their preferences. Table17 Preferred Motivator factors by the respondents

High Preference
MOTIVATING FACTOR

Moderate No. 7.69 9 5 5 8 3 2 7 3 4 2 48

% 18.75 10.42 10.42 16.67 6.25 4.17 14.58 6.25 8.33 4.17

Low No. 1 1 2 3 2 % 3.03 3.03 6.06 9.09 6.06 All 13 13 17 16 13 9 11 10 13 5 120

No. % 3 7 10 5 8 1 2 2 1 0 39

Job Security Promotion and growth in the organization Challenging and Interesting Work Full appreciation of work done Pay and Benefits Physical Environment Work itself Relationships with Co-workers Achievement Company Policy and Administration Total

17.95 25.64 12.82 20.51 2.56 5.13 5.13 2.56 0.00

6 18.18 2 6.06

5 15.15 8 24.24 3 33 9.09

39 respondents have stated the motivational factors as their most preference motivational factors, among these, 26%, 21% & 18% of the employees stated that challenging and interesting work, pay and benefits and promotion and growth in the organization as the most preference motivational factors. 19%, 17% & 15% of the employees mentioned that Job Security, Full apprecia-

tion of work done and Work itself are the moderate preference motivational factors. As it is clear from the above table, the employees consider job security and the work itself as strong motivational factors by ranking them in their moderate preference system.

24%, 18% & 15% of the employees stated that Achievement, Physical Environment and Relationships with Co-workers as the least preference motivational factors. It is

69

clearly says that the IT Professional prefers not only the physical motivational factors; they are focusing more on non-monetary motivational factors according to their response.

Table 18- Current Practices of Motivational factors by the IT Companies according to the respondents.

Particulars Interesting Work/Task Appreciation Being a part Pay and Benefits Challenging task Job satisfaction Feedback Good relationship with coworkers Responsibility Freedom of creativity Encouraging working environment Salary Raise Promotion and growth Meaningful goals Quality of Work life Satisfied customer No Stated Totals

Honey Bosch Mahindra IBM Oracle Wipro well 8 2 1 3 2 1 0 5 2 0 3 2 0 0 9 1 0 4 2 0 0 2 1 0 2 2 1 0 Ltd. 3 1 1 2 2 0 1 Satyam 2 0 0 2 1 0 0

TOTAL Elcoteq No 1 0 0 2 1 0 0 30 7 2 18 12 3 1 % 25 6 2 15 10 3 1

1 3 2 0 0 0 2 27

2 3 2 1 2 0 1 24

1 2 3 1 1 1 2 28

1 2 1 0 0 0 0 12

1 2 2 0 0 0 1 18

0 1 0 0 0 0 0 6

0 1 0 0 0 0 0 5

6 14 10 2 3 1 6 120

5 12 8 2 3 1 5 100

The top three answers among of the current motivational factors practices as stated by the respondents are Interesting work (25%) Pay and Benefits (15%) and Salary raise with (12%).Table-18 clearly reveals that the IT Professionals considered 70

non-monetary factor is the top most important factors of motivation, but the monetary factors such as pay and benefits and salary raise are still play an important role among the IT professionals.

Table- 19: Factors motivates the employees to do a good work

Motivational Factors Interesting and Challenging tasks Salary/Wage/Pay or benefits/Money Feedback/Positive feedback Clear goal Personal goal Appreciation Good environment/Good working environment Co-workers Gift Not stated Work Itself Promotion Achievement promising results in a project Encouragement Responsibility and trust from employer TOTAL

TOTAL Honey Mahindra IBM Oracle Wipro Well Bosch satyam Elcoteq No % 3 4 1 2 1 1 2 1 1 2 1 3 2 0 3 27 5 4 2 0 0 3 1 0 0 3 3 3 0 0 0 24 4 3 2 1 0 3 2 2 2 4 1 1 1 0 2 28 6 1 0 0 0 1 1 0 0 2 1 0 0 0 0 12 5 2 1 0 0 2 0 1 1 2 0 2 0 1 1 18 3 1 0 0 0 0 0 0 0 1 1 0 0 0 0 6 2 1 1 0 0 0 0 0 0 0 0 1 0 0 28 16 7 3 1 10 6 4 4 14 7 10 3 1 23 13 6 3 1 8 5 3 3 12 6 8 3 1

0 6 5 5 120 100

Table -19 According to the respondents the most repeated answer are "Challenging & Interesting Work/Task" 23% (n=28), Pay & Benefit 13% (n=16). Promotion and Appreciation 8% (n=10). 21% (N=6) of 28 respondents who consider Challenging & Interesting Work as motivating factor are employed with Honeywell, 18% (N=5) are working with Oracle and 71

Bosch. 25% (N=4) of 16 respondents who mention pay and benefit as motivating factor are working in IBM and Oracle, 40% (N=2) of the 5 respondents from Elcoteq consider pay and benefits as motivating factor. 12 % of the respondents are not certain to give the answer; this could be because of less experience with the company which they are working for. So, the IT Professionals consider Challenging & Interesting Work and promotion and career growth as a strong motivator; even though monetary factor like pay & benefit, salary rise still play an important role.

Table-20 Employees and the level of motivation to do a good work

Companies IBM Oracle Wipro Honeywell Bosch Mahindra satyam Elcoteq Total

Always Sometimes Not motimotivated motivated vated 7 2 7 2 4 1 1 24 17 19 17 7 12 4 3 79 1 0 0 1 0 0 1 3

Not Stated TOTAL 2 3 4 2 2 1 0 14 27 24 28 12 18 6 5 120

Graph 11: Employees level of motivation

80 70 s 60 t n e 50 d n 40 o p 30 s e R 20 10 0
Always Sometimes Not Not Stated motivated motivated motivated

IBM Oracle Wipro Honeywell Bosch Mahindra satyam Elcoteq Total

Parameters of the motivation level of the employees

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As is clear from table as many as 66% stated to be motivated sometimes to perform better, while 20% mentioned that they are always motivated. Other 3% stated not to be motivated to perform better. 29% and 17 % of the 24 respondents who stated to be motivated always are employed in IBM, Wipro and Bosch. Out of 79 respondents, 79% of Oracle and 65% of Mahindra Satyam stated that they are motivated sometimes. The analysis clearly shows that the current motivational factors are not enough to motivate the IT Professionals to perform a better. Only 3% of the respondents who are employed in IBM, Elcoteq and Honeywell mentioned that they are not motivated to perform better, this could be because of their less experience and the nature of work.

Table 21-Motivational factors and the employees level of motivation:

Motivational Factors Interesting and Challenging tasks Salary/Wage/Pay or benefits/Money Feedback/Positive feedback Clear goal Personal goal Appreciation Good working environment Co-workers Gift Not stated Work Itself Promotion Achievement promising results in a projects Encouragement Responsibility and trust from employer TOTAL

Always mo- Sometimes tivated motivated No % No % 68 9 32 19 50 6 38 8 71 2 29 5 100 0 0 3 100 0 0 1 80 2 20 8 83 1 17 5 75 1 25 3 75 1 25 3 0 0 0 0 86 1 14 6 80 1 10 8 0 0 0 24 3 0 0 20 3 1 6 79 100 100 100 66

Not motivated Total No % No % 0 0 28 100 13 2 16 100 0 100 0 7 0 100 0 3 0 100 0 1 0 0 10 100 0 100 0 6 0 100 0 4 0 100 0 4 0 0 14 100 0 100 0 7 10 1 10 100 0 0 0 3 0 0 0 3 3 1 6 120 100 100 100 100

68% (n=19) of 28 employees who consider Challenging and interesting work mention that, because of this factor they are motivated sometimes to perform better, 32 % (n=9) mention that they are always motivated to perform better. 50 % (n=8) of 16 respondents who con 73

sider pay and benefits mention that they are sometimes motivated by this factor and 38% (n=6) stated that they are always motivated by this factor. 80% (n=8) of 10 respondents mention they are motivated sometimes to perform better by receiving Promotion and Appreciation for the work done. 12 % of 120 respondents do not certain to give the answer, this could be because of less experienced with the current company. A respondent who has more experience with the company are focusing more on Challenging and interesting work and Promotion whereas newly recruited employees are focusing more on physical factors like pay and benefit and appreciation.

24 of the 120 respondents mention that they are always motivated, out of this 19 (79%) respondents consider challenging and interesting work, performance pay, appreciation and positive feedback. 51% (n=40) of 79 respondents mention that they are motivated sometimes by these factors, this could be depends on the nature of the work or when they like the task and the occasional assignments. Out of 120 respondents 3 % are not satisfied with the promotion and performance pay and benefits are found to be in IBM, Honeywell and Elcoteq. A software engineer who has 3-5 years experience in Honeywell mention that Promotion received is not sufficient for the work done, another two respondents who have 3-5 years and less than 2 years experienced in IBM and Elcoteq, which are found to be in an administrative staffs considered that they are de-motivated by not getting enough salary from the employer.

This clearly indicates that challenging and interesting work and performance pay is the dominant motivational factors and this is followed by appreciation and positive feedback and the other factors are workers are the least motivational factors.

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Table-22- The respondents opinion about their current job.?

SA* OPINION Stability in my working life Compensation and monetary rewards Further training opportunities and higher education level Promotion for higher position Interest \1in the work I am performing 12 10 15 12 19

A* 3 5 3 7 10

DA* 3 2 6 2 2 1 16

SDA* TOTAL 0 18 0 17 1 1 0 0 2 25 22 31 7 120

I see potential growth in the organization I work in 5 1 TOTAL 73 29 *SA-Strongly Agree, A-Agree, DA-Disagree, SDA-Strongly Disagree

The respondents have expressed their agreement or disagreement to the statement s mentioned in the questionnaire. 26% of the respondents strongly agreed that the most important things to staying in their work are interesting the work they are performing. This is followed by 21% agreeing to the statement Further training opportunities and higher education level and18% agreeing Promotion for higher position .It clearly shows that career development plays an important role for the IT Professionals.

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Table-23 Respondents opinion- Acceptance of employment in another similar organization.

Honey Acceptance Accept Neutral Not Accept No Answer TOTAL IBM 12 4 9 2 27 Oracle Wipro 6 8 7 3 24 6 10 7 5 28 Well 4 3 3 2 12 Bosch 7 3 5 3 18

Mahindra Satyam 1 2 2 1 6

TOTAL Elcoteq No 2 1 2 0 38 31 35 16 % 32 26 29 13 100

5 120

32% of the respondents stated that they would accept the new employment if they thought it could be a better career opportunity, 29% of the respondents stated that they would not accept because they are satisfied with the current job and 26% are Neutral to accept that employment, few respondents mention that this would depend on the job profile and salary package. 13% of the respondents are not so sure to give the answer because of less experience with the company.

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CHAPTER-5 FINDING, CONCLUSIONS & RECOMENDATION 5.1 FINDINGS

Rewards:

The finding shows that the employees have preferred Intellectual challenge & creativity as their top most preference of rewards system; this is followed by Training for professional development and Participation in decision making. Monetary rewards like festival bonus, beneficial loans etc are ranked as the least preference rewards system. It is clearly revealed that the monetary benefits are not the only employees expect from the employer.

The findings in this study shows that the IT Professionals do not received enough rewards for the work done. Only 20 % of the respondents feel that they have received enough rewards for the work done.

Recognition:

This study finds that the IT Professionals have considered Full appreciation of work done as their top most preference recognition factors; this was followed by Development Opportunities and Certificate for outstanding services or ideas.

It also finds that the IT Professionals prefer appreciation or career development opportunities than the physically recognized by rewards like Lunch on the house, Team of the month Award and Thank you notes indicated by their least preference of them.

Respondents who have less experience are more focused on the monetary benefits and physical recognition system. On the other side, a person who has experience of above 3 years is found to be focused more on their career benefits.

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It has also been shown in this study that IT-professionals are not always recognized for a good work done. The result reveals that the majority of the respondents would appreciate feedback and verbal recognition from their employers.

Motivation:

A finding shows that a challenging and interesting work and performance pay is the dominant motivational factors and this is followed by appreciation and positive feedback. These factors motivate them to perform better in the work they are doing.

Pay and benefits were found to be the second best factor of motivation after a challenging and interesting work.

Around 57% of the respondents had previous experienced in IT Companies; so, the IT Companies have preferred a person who has experienced in the same field than fresher.

It was also found that 69% of the respondents in this investigation are not fully satisfied with how their employer tries to motivate them.

Job security also becomes an important factor to be motivated as an employee, which this investigation also indicates.

It has also been found that job security has been related to employees supervision and pay satisfaction, which is evidence that monetary incentives are a motivating factor.

IT-professionals value more non-monetary incentives than monetary incentives. Never the less, monetary incentives still remains an important motivating factor to ITprofessionals.

It has also been found that salaries and benefits also are important for maintaining the employees from leaving their current jobs.

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From the study it is found that a great deal of the participants would accept another employment if they get better career opportunities.

Monetary incentives are not the most important motivating factor.

5. 2 CONCLUSIONS

The researchers conclusions is that motivating, recognizing and rewarding ITprofessionals is a severely complicated issue, but of great importance. There are various factors that influence each other and they depend upon a numerous variables such as environment, gender, age, culture, society, social factors, and individual goals, psychological and physiological needs among others. This phenomenon cannot be discouraged and is crucial to both employers and employees in various ways. To employers, the benefits of motivation could improve and maintain high efficiency, quality of work and job retention. For the employees it can lead to career development, professional and personal growth.

As this study shows, there are still works to do in this area. IT-professionals do not appear to be fully motivated and recognized. They would do a better work if they were better motivated, according to them self. It is the author recommendation to management in the ITindustries to dedicate more time and interest to their employees individual needs and to improve motivation, recognition and rewards systems.

It is crucial that the employers identify the factors which constitute a challenging and interesting work. By doing so, the maximal potential in each employee can be reached and in a whole improve the entire organization to the better. Hope this study helps to get clear picture about the factors which motivates the employees. This in turn helps the management to formulate suitable policy to motivate the employees.

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5.3 RECOMMENDATIONS

The management should try to understand what rewards would motivate the employees .The researchers suggest the following points to the management by rewarding the employees: Seniority benefits based rewards- senior employee should receives more benefit than a junior employee in the means of pay raises, retirement benefits etc to reduce turnover. Job status based rewards-A job that require more skill and effort, have more responsibility and have difficult working conditions should have more value and should be placed in higher pay grades to maintain employees feeling of equity. Competency-based rewards system- Employees can be rewarded through their skills and knowledge, so that the employees will automatically motivated and they become more useful to the organization. Performance-based rewards-Performance based rewards like-Profit sharing, Stock option, Gain sharing and bonuses. . The employers should try to identify the factors which constitute a challenging and interesting work including factors like advancement, self improvements, and opportunity to use and develop creativity such as work autonomy, nature of supervision and use of multiple skills. By doing so, the motivational level of the employees will go up and there will be improvement for the organization in productivity.

Pay and benefits also appear to be of importance to improve job retention. Even if the employees are intrinsically motivated, the organization can lose employees if they do not pay attention to hygiene factors such as work environment, training, career development, pay and benefits, job security. So, Employers should try and help their employees to reach self-actualization level. This could lead to a maximization of their knowledge, skills and their performance to achieve a good work. 80

HR department in consultation with the companys management should identify and assess the performance of employees and executives every six months or a year, HR department should decide oni) A list of employees/executives for skill development training as motivation to performance well in future also. ii) Orientation training. iii) Performance related

The Organization should also use personal feedback like thank you note, appreciation mail etc. for the well done work; it is particularly important for newly recruited employees, by doing so they can maintain the employee in a positive thinking way about their job and make them to dedicate their job to achieve the organizations goals.

The management should also has to try and maintain a good communication for constant flow of information and share information with subordinates and delegate responsibility along with it authority to make the employees feel that they are really part of the organization

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6. REFFERENCES

6.1 Books

Roa V.S.P, Human Resource management, Second Edition (2005), Excel books, New Delhi.

Aswathappa. K. Human Resource Management, Fifth Edition (2008), Tata McGraw-Hill Publishing Company Limited, New Delhi.

Robbins S.P, Organizational Behaviour, Ten Editions (2004), Prentice Hall of India Pvt. Ltd. New Delhi.

Greenberg J & Baron R.A, Behaviour in Organizations, Eight Edition (2003), Pearson Prentice hall.

Armstrong M, A handbook of HRM Practice, Nine Edition (2003), Kogan Page India, New Delhi.

Bowen B.R. Recognizing and Rewarding Employee, Second Edition (2005), TATA McGraw Hill.

Singh P.N, People Plus Management-How to save your organization, First Edition (1995), Suchandra Publications.

Kothari C R. Research Methodology-Methods & Techniques-2nd revised edition (2007) New Age International Publishers- New Delhi.

Bowditch, James L., Buono, Anthony F (1997) A primer on Organization Behaviour, John Wiley & Son, Inc., United States.

Colin, Pitts (1995) Motivating your Organization: Achieving Business Success through Reward and Recognition, McGraw-Hill Book Company Europe, England.

De Cenzo, David A. and Robbins, Stephen P. (1996) Human Resource Management, John Wiley & Sons, Inc., New York, Chichester, Brisbane, Toronto, Singapore.

6.2 Journals:

Retaining High Performers: Issues & Imperatives by Ravi Dasari, HRM Review (The ICFI University Press) May 2006.

Employee Motivation: A Powerful New Model by Nitin Nohria, Boris Groysberg, and Linda-Eling Lee, Harvard Business Review July to August 2008

6.3 Articles: Utilizing Strategic Motivation in the Workplace by Benedict Smythe. Posted: July 13th, 2008. www.google.com (accessed on 28th August 2009)

6.4 Research papers:

Rewarding and Recognizing Employees: How IT Professionals in Sweden and in Finland are Motivated and Prefer to be Rewarded, Yecenia Rivera Ortiz & Nghi Tran (2007)

The Impact of Reward and Recognition Programs on Employees Motivation and Satisfaction a Co Relational StudyReena Ali and M.Shakil Ahmed (2008)

Motivation and Work-Investigation and Analysis of Motivation Factors at Work Maren Bassy (2002)

6.5 Websites/ Web links:

Abraham Maslow, Personalities Theories (online). Webspace.com. Available from: http://webspace.ship.edu/cgboer/maslow.html

Define This (2007). Theory X and theory Y (online). Definethis.org Available from: http://www.definethis.org/word/Theory_X.html

Shah, K. and Shah, P.J. (2007). Theories of Motivation (online). Available from: http://www.laynetworks.com/Theories-of-Motivation.html

Motivation Theory (online). Goal Setting-Guide.com. Available from: http://www.goal-setting-guide.com/motivation-theory.html

Wikipedia (2007a). Theory X and Y (online) Available from: http://en.wikipedia.org/wiki/Theory X and_theory_Y http://www.ehow.com/about_5387352_definition-employee-motivation.html
http://www.investorsinpeople.co.uk/MEDIARESEARCH/MEDIA/Pages/PressReleaseDetail.asp x?PRID=47

www.projectparadise.com www.google.com www.ibm.com/in www.oracle.com www.wipro.com www.honeywell.com www.bosch.com www.elcoteq.com http://en.wikipedia.org/wiki/Mahindra_Satyam" www.Mahindrasatyam.net

Appendix-A A study on Motivation, Rewards and Recognition On performance of IT Professionals in Bangalore City

Estimated Mr. /Mrs.....................:

My name is T.Lalhriatpuii, I am a student of the Master of Business Administration Program at TASMAC in Bangalore. At the moment, I am looking at IT companies in Bangalore to collect data for my thesis. My thesis topic is A study on Motivation, Rewards and Recognition on performance of IT Professionals in Bangalore City I am therefore interested in your companys employees because I know your company is doing business within the IT sector. I would be very happy if your company accepts me to collect the data needed for my investigation. The data will be collected through questionnaires that are easy to fill. If you accept the questionnaires will then be distributed to your employees. Enclosed is the questionnaire, for your consideration. There will not be any expenses on your account. Please feel free to contact me, if you need more information or have any questions. I am looking forward for your reply. Thank you for your time!

Best regards, T. Lalhriatpuii MBA (H.R) TASMAC +919916458392

Appendix-B
QUESTIONNAIRE

A study on Motivation, Rewards and Recognition On performance of IT Professionals in Bangalore City

Dear respondents, I am a student of TASMAC in Bangalore .The purpose of this questionnaire is A study on Motivation, Rewards and Recognition on performance of IT Professionals in Bangalore City This research is being conducted in fulfillment of the requirement for my degree of Master of Business Administration at the TASMAC under the University of Wales. I would be very grateful if you could take a few minutes to fill this questionnaire. Your feedback is very important and your answers will be kept in strict confidence. Thank you for your assistance. T. Lalhriatpuii

Profile: Please state:

1. Name: _______________________ 3. Gender 4. Years Male 18-25 Female 26-35 36-45 46& Above 2. Contact No. :______________________

5. Highest degree: High School P.G:- M. Sc Graduate: - B.Sc (comp Sc) M.C.A M.Tech B.E B.Tech

Other (Specify)

6. (a) Name of the Company at which employed . (i) Years of Employment with the company: 0-2 years 3 years to 5 years Above 5 years

(ii) Your current position in the company: Manager Software Engineer Administrative Staff

Hardware and System Specialist (b) Previous Experience

Other (Specify)

(i) Name of the Previous Company_______________________ (ii)Years of Employment with that company_______________

Rewards:
(Rewards are ways your employer has given you feedback for the work you have done in form of money, incentives, medical benefits etc.) 7. Arrange the following rewards in order of your preference from 1 to 10, where 1represent the best reward and 10 the least best rewards: ( ( ( ( ( ( ) Share Options ) Beneficial Loans ) Intellectual Challenge and Creativity ) Festival Bonus ) Trainings for professional development ) Other.. ( ) Pension Plans ( ) Job Satisfaction ( ) Paid Vacations ( ) Participation in Decision Making

8. What is the best reward you have received? ________________________ ________________________________________________________________ 9. How do you receive your rewards from your employer? As a group/team individually Other (Specify) ..

Both as individual and as a group/team

10. Do you feel that you have received enough rewards for the work you have done? Yes, always No, not enough Do Not Know To sometime (If not enough, reason? ______________________________________) (If do not know, why?_______________________________________)

11. What are the types of Reward you expect from your work? ____________________________________________________________________________ ____________________________________________________________

Recognition:
(Recognition is ways your employer has given you feedback for the work you have done in written or spoken ways.) 12. Arrange the following recognitions in order of your preference from 1 to 10, where 1 represents the best type of recognition and 10 represent the least best type of recognition: ( ( ( ( ( ) Time off with Pay ( ) Thank You Note ( ) Certificate for outstanding service or ideas. ( ) Employee Award ( ) Years of Service Awards ( ) Lunch on the house ) Full appreciation of work done ) Development Opportunities ) Team-of-the-Month Award ) Other

13. What is the best recognition you have received?___________________ _______________________________________________________________ 14. How do you receive your recognitions from your employer? As a group/team Both as individual and as a group/team Individually Other (Specify)

15. Do you feel that you have received enough recognition for the work you have done? Yes, always No, not enough Do Not Know To sometime (If not enough, reason? _____________________________________) (If do not know, why?_______________________________________)

Motivation:
16. Arrange the following motivational factors in order of your preference from 1 to 10, where 1 represent the best type of motivational factor and 10 represent the least best type of motivational factor: ( ( ( ( ( ) Challenging and Interesting work ) Promotion and growth in the organization ) Company Policy and Administration ) Physical Environment ) Relationships with co-workers ( ) Job Security ( ) Full appreciation of work done ( ) Pay and benefits ( ) Work itself ( ) Achievement

17. What factors motivates you to do a good work? ________________________ ____________________________________________________________________

18. Does your employer try to motivate you to do a good work? Yes, always To sometime Not at all Never

19. Are you motivated to do a good work? Yes, always To sometime Not at all Never

20. What factors do you consider as motivating? ____________________________________________________________________________ ____________________________________________________________________________ 21. How important is motivation for you as an employee? ____________________________________________________________________________ ____________________________________________________________________________

Individual Motive:
22. Do you agree that the following points are the most important things for you staying with your current job? SA-Strongly Agree. A-Agree. DA- Dis-Agree. SDA-Strongly Dis-Agree Particulars SA A DA SDA Stability in my working life Compensation and monetary rewards Further training opportunities and higher education level Promotion for higher position Interest in the work I am performing I see potential growth in the organization I work in

23. If another organization today offers you the same job you have today, would you accept that employment? Please state why you should accept or not accept that employment: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________

Thanks again for your assistance!