ADISSERTATION REPORT

ON

Role of organizational rewards on the motivation level of employees

[Submitted in the partial fulfillment of MBA degree](Approved by AICTE, Govt. of India)ACADEMIC SESSION

(2013-2015)SUBMITTED TO:

SUBMITTED BY:

MR.YOGENDER KUMAR

ANKITA ASSISTANT PROFESSOR

MBA 4TH SEM

MANAGEMENT

ROLL NO-874

UILMS SEC-40 REGN. NO -08-GG-3614

GURGAON

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

University Institute of law &management studies

Gurgaon, Haryana

PREFACEThe Present report is mainly intended for commerce department such as attempt has been made to explain in reasonably brief manner various aspects of Research & the impact of employee motivation on job. We feel deeply owned to our respectable teacherAsst. Prof. YOGINDER KUMAR University of law and management studies who always been a source of inspiration of us.ACKNOWLEDGEMENT

On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages who have helped me in this endeavor. Without their active guidance, help, cooperation & encouragement, I would not have made headway in the project.

I am ineffably indebted to DR.VIJAY RATHEE for conscientious guidance and encouragement to accomplish this assignment.I am extremely thankful and pay my gratitude to my faculty guide MR.YOGENDER KUMAAR for his valuable guidance and support on completion of this project in its presently.

I extend my gratitude to UILMS for giving me this opportunity.I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of my family, who has always supported me morally as well as economically.

At last but not least gratitude goes to all of my friends who directly or indirectly helped me to complete this project report.

Any omission in this brief acknowledgement does not mean lack of gratitude.

Thanking You

ANKITA SUPERVISIOR CERTIFICATEThis is to certify that the project work entitled Role of organizational rewards on the motivation level of employees is a bonafide work carried out by Ankita, a candidate of the MBA (2013-2015) UILMS under my supervision and direction.

Signature of the supervisor

YOGENDER KUMAR - supervisorTable of contentsPREFACE..2ACKNOWLEDGEMENT..........................................3CERTIFICATE4Executive Summary5literature review6Methodology9Research Design10company profileError! Bookmark not defined.

introduction to motivation25Reward system..32rewards system linked to motivation37Conclusion and suggestions52questionnaire..53biblography54

Executive summaryMotivation refers to forces within person that affect his or her direction, intensity, and persistence of voluntary behavior Motivated employees are willing to exert a particular level of effort (intensity) for a certain amount of time (persistence) toward a particular goal (direction). Every organization wants to increase motivation of their employees to enhance their productivity. For that purpose some organizations use rewards which includes various benefits which are provided by employer these may be monetary or non monetary and some use other tactics like job design practices to motivate employees. We are conducting this research to enhance the academic knowledge in this topic Organizational Rewards and Employees Motivation.

This study finds out the motivation level of different employees for benefits and rewards received from their employers in Pakistan. Responses from users will be received through Questionnaires, Interviews and Observation.The scope of this research is that it will help organizations management to learn the ways of improving their services. It will tell them how they can motivate their employees and what the shortcomings in their operations are. For that purpose we are supposed to explore banking sector. Our study will be of exploratory nature. Exploratory study is necessary when some facts are known, but more information is needed for developing a viable theoretical framework. Exploratory studies are important for obtaining a good grasp of the phenomenon of interest and advancing knowledge through subsequent theory building and hypothesis testing. Qualitative studies where data reveal some pattern regarding the phenomenon of interest, theories are developed and hypothesis formulated for subsequent testing.

Literature Review

DEFINITION:

A literature review is a step-by-step process that involves the identification of published and unpublished work from secondary data sources on the topic of interest, the evaluation of this work in relation to the problem, and the documentation of this work.AUTHORS Michael R. Bowers, (Assistant professor of marketing at the University of Alabama at Birmingham.), Charles L. Martin, (Assistant professor of marketing at The Wichita State University, Wichita, Kansas.), AlanLuker, (Assistant director of marketing at Baptist Medical Centres in Birmingham, Alabama.)Offers the new product to the employees so in this way manage the good relationship between employees and customers. If the quality and rules good of any organization than the motivation of the employees also increase. The values of services play a vital role for increasing the motivation among the employees. So in this way the satisfaction also increase. At the end we suggests that if any organization developing the high quality services with lower cost so in this way also increase the motivation of the customers.AUTHOR (GRANT, PHILIP C)To increase the employees motivation, employees of that organization must be achieved higher result with higher satisfaction. To achieve some rewards we must focus on work.College of Business, University of Illinois at Urbana-Champaign, Champaign, IL 61820, United StatesMotivation, opportunity and ability are the three kinds which help to make the frame work. Employee motivation, at times, can be an elusive quest for companies and managers due to the multiplicity of incentives that can influence employees to do their best work. Furthermore, short-term financial incentives are often seen as mandatory to foster motivation and are generally viewed very positively by employees in the workplace. However, recent research has indicated that there are other factors that can significantly influence motivation and lead to innovation.

In the current scenario the competition in the business markets has been dramatically increased due to which organizations want more competent and motivated employees. In the past organizations have armies of supervisors to closely monitor employees motivation and rewards system. Even if commitment and trust were low, employees performed their jobs with the boss watching them closely but most companies thinned their supervisory ranks when they flattered organizational structure to reduce costs. Supervisors now have many more employees, so they cant possibly keep a watchful eye out for laggards. Therefore now organizations want more motivated employees. Organizational rewards refer to benefits which organization provides to its employees it may be monetary rewards or non monetary rewards. Monetary rewards include salary increases, profit sharing, stock options, project bonuses and additional paid vacation time. Non monetary rewards include employee autonomy, personal recognition, pleasant work environment, flexible work hours training, new and challenging opportunities and also momentous trophies. Monetary rewards fulfills the employees basic needs therefore they are important but non monetary rewards are also very important because they are more long lasting and less costly for the organizations. that can significantly influence motivation and lead to innovation.

Statement of the Problem

The purpose of this study was to determine what types of incentives and motivational factors can more effectively promote innovation and increase employee motivation in the company, as well as to provide recommendations to management on what to implement, eliminate, or change, based on our findings.

Scope of the Study

This study was completed using the input of full-time and part-time employees of the company in all different departments. These employees were surveyed for the purpose of discovering what is most motivating to them in the workplace. Employee motivation is defined as the eagerness or drive in an employee that directly influences their level of involvement or performance in the workplace. Motivating factors and incentives are reasons for employee motivation, and in order to best evaluate and describe which of these factors are most and least critical to employees, we have split this study up into the following criteria: communication, income, long-term incentives, and non-financial incentives. The study was limited to employees working in the sona koyo stearing company.

Research Question:

Introduction shows that now more motivated and satisfied employees are needed, now the important concern is that how we can satisfy the employees? Various previous researches shows that employees can be motivated as well as satisfied by giving those rewards, but only rewards do not result in satisfaction, it may be due to several other factors. Therefore in this study we will evaluate, What is the role of organizational rewards on the motivation level of employees?

Research ObjectivesThe main objective of this research is to check how the organizational benefits and rewards affect the performance and satisfaction of employees. Some specific objectives are as follows;

This study shows various rewards used by organizations.

This study evaluates the impact of reward system on employee motivation.

This study is conducted to identify most important organizational rewards.

This study helps to deliver the theories and models of motivation in the organization.

This study helps to demonstrate the motivational approaches existed in an organization.

Research Methodology

The study conducted is Descriptive in nature. Descriptive study are under taken in organization to learn and describe the characteristics of a group of employees.Data collection method:

The primary method of data collection adopted by us is questionnaire. A detailed questionnaire about motivational incentives has been made to found the required result.Sampling Design: Target population

Target population for this study is the employees of different departments of the same organization.

Characteristics of sample

Our sample includes males and females employees of different ages from different departments of the same organisations. They are working on different job status.

Sample Size

questionnaires were distributed to employees of different departments of the organizations.

Type of sample

Type of sampling we use is convenient sampling. We visited different organizations to get fulfill our questionnaires.Research DesignThis research will be taken on the following approaches.

Purpose of Study

Our study will be of exploratory nature. Exploratory study is necessary when some facts are known, but more information is needed for developing a viable theoretical framework. Exploratory studies are important for obtaining a good grasp of the phenomenon of interest and advancing knowledge through subsequent theory building and hypothesis testing. Qualitative studies where data reveal some pattern regarding the phenomenon of interest, theories are developed and hypothesis formulated for subsequent testing.

Type of investigation

The type of our investigation is causal. When the researcher wants to check the cause and effect relationship among variables then causal study is called for.

Study Settings

The study setting for our research is non-contrived. Because it has conducted in the natural environment of organization where work proceeds normally. Units of analysis

Because weve to study the behavior of the individuals on the workplace, so our unit of analysis is individuals.

Time Horizon

The time horizon of the research is the cross sectional because the data is gathered just once. This kind of time horizon is also called one shot studies.

COMPANY PROFILE

KEY EXECUTIVES

Chairman Dr. Surinder Kapur

Vice Chairman & M.D. Mr. Sunjay Kapur

Deputy Managing Director Mr. K Kamiki

Sona Koyo Steering Systems Limited

Sona Koyo Steering Systems Limited (SKSSL) the flagship company of The Sona Group, is currently the largest manufacturer of steering systems for the passenger car and utility vehicle market in India. Its collaborator and partner, JTEKT Corporation, is the market leader in Japan and in the recent past announced a merger with Toyota Machine Works. Post this merger, JTEKT will become the world's largest steering systems manufacturer. The company also has a technical collaboration with Mando Corporation, Korea.

As part of Sona Koyo Steering Systems Ltd's (SKSSL) globalisation strategy, the company has acquired a position in Fuji Auto tech France, SAS, the 4th largest steering system supplier in Europe. Via Fuji Auto tech, The Sona Group footprint extends to Eastern Europe and South America.

Established in 1985, Sona Koyo Steering Systems Ltd. is the group's flagship company, and the largest manufacturer of steering systems in India, catering to passenger cars, utility vehicles and light commercial vehicles. Sona Koyo has technical and financial collaboration with JTEKT Corporation, Japan (formally known as Koyo Seiko Co. Ltd.), the largest producer of passenger vehicles' steering systems in the world.Sona Koyo's customers include major vehicle manufactures in India such as Maruti Suzuki, Toyota, Hyundai, Tata Motors, Mahindra & Mahindra, General Motors and Mahindra-Renault. Independently, as well as through its network

of overseas joint-venture partners, it exports high quality precision products to USA, Europe and Japan.History of Sona GroupThe Sona Group was founded in 1985 to manufacture components for the automotive industry. Today it is a USD 800 million multi-national with over 16 plants across India, 3 in Germany and 1 in the USA. The group also has a strategic position in Fuji Auto Tec, Europe - which has subsidiaries in Brazil, France, Sweden and the Czech Republic. Starting out as a Manufacture to Print organization, the group today boasts having created its own IPR particularly in the areas of power steering for off highway applications and precision forging.

The Sona Group has engineering capabilities in the areas of machining and assembly, precision forging, cold & hot forging and heat treatment. The Groups range of products primarily consists of steering and driveline components for the automotive OEM segment namely passenger cars, utility vehicles, commercial vehicles and specialty vehicles.

The Group is committed to expansion of its products range and clientele by continuous investment in research and development. SONA is drawing upon the strength of its joint venture partners which include JTEKT Corporation, Japan; Mando, Korea, Mitsubishi Materials Co., Japan, Somic Ishikawa, Japan and ZF Lemforder, Germany to upgrade it's systems, skills and production values to offer its customers contemporary and high quality products.

The Group boasts the worlds largest precision forging enterprise, Indias largest steering systems manufacturer recognized in 1997, by the World

Economic Forum as a topperforming Global Growth Company; a recipient of the prestigiouss Deming Award in 2003 it received the TPM Excellence award in 2007

The Sona Group Vision & Values Core Values

RESPECT FOR THE INDIVIDUALTreating everyone with dignity regardless of the persons origin and status.

SERVICE TO THE CUSTOMER

Exceed stated and understand need of the customer

EXCELLENCE IN THE PURSUIT OF OUR GOALS

Continuously strive to achieve higher and higher standards in everything we do.

PRODUCT PORTFOLIO

Product range of the company includes:

Carrier Differential Assy

Column Type Electronic Power Steering Assy

Intermediate Drive Shaft Assy

Intermediate Shaft Assy With Rubber Isolator

Intermediate Shaft Assy With Rubber Isolator Car

Manual Steering Column Assy With Ea Bracket

Manual Steering Column Assy With Lower Tilt-car

Manual Steering Column Assy With Upper Tilt

Propeller Shaft Assy

Rack & pinion Type Hydraulic Steering Gear Assy.-uv

Rack pinion Type Manual Steering Gear Assy with Integral Housing_uv

Rack pinion Type Manual Steering Gear Assy With Integral Housing_uv

Rack pinion Type Hydraulic Steering Gear Assy with Integral Housing-car

Rear Axle Assy

Recirculating Ball Screw Type Manual Gear Assy

Recirculating Ball Screw Type Manual Gear Assy

Tilt and Telescopic Column HCV

Customer BaseDomestic Customer Base

VE Commercial Vehicles Ltd

General Motors India Pvt Ltd

Chevrolet Sales India Pvt Ltd

Hindustan Motors Ltd

Mahindra & Mahindra Ltd

Maruti Udyog Ltd

Suzuki Powertrain India Ltd

Tata Vectra Motors Ltd

Reva Electric Car Co. Ltd

Swaraj Mazda Ltd

Tata Autocomp Systems Ltd

JCB Manufacturing Ltd (Plant-II)

Fiat India Automobiles Private

Tata Motors Ltd

Toyota Kirloskar Motors Pvt Ltd

Hyundai Motors India Ltd

Mando India Steering Systems

Mobis India Ltd

International Cars & Motors Ltd

Ford India Private Ltd

Milestones: Jan 1985- Technical Collaboration Agreement with Koyo Seiko Co. Ltd., Japan, for manufacturing

Oct 1987- Commencement of Production -Manual Steering Gear -Manual Steering Column

Sep 1994 -ISO-9002 Certificate by TUV-CERT, GERMANY

Jul 1996- Production of Hydraulic Power Steering Gear

Dec 1998 -Established Plant in Chennai

Oct 2003 -Established Export Oriented Unit(EOU) in Chennai

Nov 2003 -'Deming Award' by JUSE, Japan

Oct 2004 -Acquired 21% stake in Fuji Autotech France Mar 2006- Started Production of Column-type Electric Power Steering

Feb 2007 Established Plant at Dharuhera, HaryanaManufacturing Sites in India

S nolocationscompanies

1GurgaonSona Koyo Steering Systems Ltd.

Sona BLW Precision forging ltd.

Sona stamping ltd.

2ChennaiSona Koyo Steering System Ltd.

Sona Somic Lemforder components ltd.

3SanandSona Koyo steering systems ltd.

4Daruhera 1-2 -3Sona Koyo steering systems ltd.

5BawalJTECT Sona automotive India Ltd.

Sona Fuji kiko automotive ltd.

6NasikMahindra Sona India Ltd.

7PuneSona BLW Precision forging Ltd.

Collaborations

Sona Koyo journey

1985 : Technical collaboration agreement with Koyo Seiko, Japan to manufacture manual steering Geer

1987: commencement of participation

1992: Equity participation by Koyo

1994: ISO9002 certification by TUV CERT Germany

1995: Technical collaboration with Koyo for manufacture of power steering Geer

1997: Koyo increased equity stake to 20.5%

1998: name of Sona steering systems ltd changed to Sona steering system ltd.

: Established 2nd plant in Chennai

2000: QS 9000/ISO9001 Certification by TUV-CERT Germany

2002: ISO 14001Certification by TUV-CERT Germany

2003: Deming award by JUSE, Japan

2004: 21% participation by Fuji Autotech France S.A.S

2005: Establishes presence in North America through Sona Autocomp Inc.

2006: Establishing presence in Europe through Sona Autocomp Europe S.A.R.L

2007: Recipient ot TPM award

Sona code of conduct

Sona Koyo is committed to create a disciplined and healthy working environment that is free from harassment and discrimination, where workers are respected and provide an appropriate culture to encourage good performance and conduct. The code of conduct aims to provide guidance to all employees of Sona Koyo on how and in which manner should they conduct themselves while at work.

The circumstances of conducts as set out below, although are intended to cover situations that may occur. In case an employee encounters any circumstance which is not covered hereunder or in case of any doubt, he should seek guidance from the human resource development and act accordingly.

Conflict of interest

Confidentiality of information

Compliance with rules & regulations

Bribes/gifts & other benefits

Fraud

Heath , safety & environment

Harassment

Protection and use of company property

Alcohol & substance abuse

HR DEPARTMENT STRUCTURE

HUMAN RESOURCE

Introduction to MotivationMotivation

The term motivation is derived from the Latin word for movement (movere). Building on this concept, Atkinson defines motivation as the contemporary (immediate) influence on direction, vigor and persistence of action (1964: 2).

Motivation is the driving force within individuals that drive them physiologically and psychologically to pursue one or more goals to fulfill their needs or expectations (Lam & Tang: 2003).While Campbell and Pritchard (1976), defines motivation as a dependent and independent set of relationships which explains the amplitude, direction, and persistence of a behavior holding constant the effects of skills, aptitude, and understanding of a task and the constraints operating in the work environment.Motivation is the desire to achieve beyond expectations, being driven by internal rather than external factors, and to be involved in a continuous striving for improvement(Torrington, Hall, Taylor & Atkinson, 2009, p. 276).Motivation, in the context of work, is a psychological process that results from the interaction between an employee and the work environment and it is characterized by a certain level of willingness. The employees are willing to increase their work effort in order to obtain a specific need or desire that they hold (Beardwell & Claydon, 2007, p. 491).

Managers can motivate employees through methods such as pay, promotion and praise. Employees can also motivate themselves by seeking work where individual goals, needs and wants will be achieved. These two types of motivation are called intrinsic and extrinsic motivation and are more closely described as follows: (Armstrong 1988, p. 109).

MOTIVATIONAL TECHNIQUES:

Peoples believe that they obligate their work in a good way. But on the other side some peoples who work do as much as they do. Motivation provides us higher profit, productivity and success.Dr.kushel, author and professor, write on his book is there is the many variables are involved in motivation. There are three variables used in motivational techniques and these variables are there:MOTIVATION STRENGTHDURATIONCONTEXTVALUEDMotivation strength is show that work for his or her loots. If the employer provide the incentives to their employees dont means the employee cant work for the employer. Motivation also called intensity, strength and etc. Motivation intensity show that how the person is strongly. It depend on the peoples how they motivate highly or less. Peoples must be answers some questions like what in it for me?What the duration for motivation is that question it may be a longer or shorter. Due to the durability recurrent rewards are stronger. Someone who expect the reward but he dont know how the treat this reward. Possibly it has to do with the doubt or the wonder factor of the incentive.Contextis the third variable and this variable show the time, place and the way to deliver the rewards. Context also relates the culture of any organization.Values is more important for every culture of any organization. Without the values no one can achieved the motivation. There is no commitment among the values of any organization. In values two strengthen are included:NEGATIVE STRENGTHENPOSITIVE STRENGTHENNegative strengthen provides us the highly de-motivating result. This is used for long term period for setting business. Negative strengthen include punishments, admonishments, docking or withholding pay, stopping vacations, removing freedoms, and showing dislike for or ignoring the performer. De-motivation is worse than no motivation at all. Positive strengthen works better as compare to the negatives strengthen. Positive strengthen include gratitude, adoration, praise, better working conditions, money, paid vacations, fringe profits, prizes, etc.HOW CAN YOU INCREASE EMPLOYEES MOTIVATION?MANGERIAL ACTION FOR INCREASE MOTIVATION:

Motivation method varies from person to person so it can be achieved by different methods among the employee. It is therefore important to know that factors, so that after identifying that factors we can implement them. Employee appraisal is introduced for it.If there are small numbers of employees then it becomes very easy to know the problem of them and to handle that problem also become easy. They even have an idea how they can motivate the employees to improve the performance and motivation. They even not to have used any specific process to check that factors and these can also be used for all employees. If there are numbers of employees then it becomes difficult to know factors and to handle the workers at one time. For it different tasks are assigned to the mangers assistant managers or to supervisors to check the motivation of employees.Financial Incentives:

Financial reward is a method through which the motivation of employees can be increased. For it all those employees of employees are focused who are involved in production and rewards given to them as a unit and paid also according to the produced units. It can be imposed to them to produce high quality units and increase in numbers of units will increase the reward because the customers are attract only by good quality and quantity.Non-financial incentives:

Money is not everything, so it is not much more effective to know the motivation of employees it can only be short term. Employees can also focus on some other points and factors are concerned to it. We can increase the motivation of employees by giving them good responsibilities. So that, they can feel good and valuable to their selves. And also if it is announced that if the performance will be better as compared to earlier and reached it on the standard set by organization then they will be awarded with special bonus. It is all because they can improve their efficiency by it. Following points are also be used at some degree to improve it.JOB ENLARGEMENT:

It means to give the opportunity to do the work completely instead of a part of it. It removes there repeaters of the activity which cause of boring and dull working. It can be asked to employees to produce a whole product instead of making a part of it. It will be considered full task and can be completed full task and can be completely easily. Interesting and in less time.JOB ROTATION:

It means to move an employee from one place or department to another .the work duration can be divided in period of one week set up and one employee will work in marketing department, in admin and so on in others and the back towards its real job. It will increase his experience and self-confidence. This will be an organizing process and really good.JOB ENRICHMENT:

Same as we can use the techniques an enlargement it is also a method by which employees motivation can be achieved. In it the working levels increased in same working conditionFor example: Manufacture of product and producer, produce goods. And it can be assigned to him to make order for production or make marketing of that products for production department.This will improve the skill of workers and feeling of responsibility will be increased the implication of Maslowshierarchyof needs Existence of anything contribute a lot towards the satisfaction, so for this purpose before going towards to make improvement programme about the cash or any monetary form. It is not necessary to make its physical shape for the satisfaction so that they can gain tangible evidence of their workMostly the incentive program depends on the behavioral model which a psychologist F skinner explained. This model shows who positive attitude and positive work effect on the behavior of employee individually. This positive process help the organization to achieve its goal and the required results are found by it.By changing the behavior every employee or work comes to know what his duty is and how he has to complete it. For this purpose and improvement constant feedback is necessary.Reward systemThe Word rewards state the benets that workers receive from their jobs (Kalleberg 1977,Mottaz1988), and significant elements of employee job attitudes such as organizational commitment and motivation(Steers and Porter 1991). In any organization, rewards play an important role in building and sustaining the commitment among employees that ensures a high standard of performance and workforce constancy (Wang 2004). According to the individualorganization exchange theme, individuals enter organizations with specic set of skills, desires and goals, and expect in return a decent working environment where they can use their skills, satisfy desires, and attain their goals (Mottaz 1988). Mostly organizations have increased the substantial improvement by entirely complying with the organizational strategy by a well-balanced reward and recognition programs for employee.

Reward refers to all categories of nancial benefits, tangible services and benets that an employee receives as part of employment relationship with the organization (Bratton and Gold 1994). Lawler (2003) described that there are two aspects that decide how much a reward is attractive, the quantity of reward which is provided and the weight age an employee gives to a specific reward. Employees are certainly closer to their organizations and perform better job, while they receive healthier reward and recognition in their organizations. Rewards increase the level of efficiency and performance of the employees on their jobs and in the result thereof increase the success of the organization. Generally employees job description and job specification determines rewards to maintain fairness among employees within an organization and competitive in the marketplace (Zaini et al. 2009).

Organizational rewards means all the benets i.e. nancial and non-nancial that an employee receives through their employment relationship with an organization (Bratton and Gold 1994,Malhotra et al. 2007).

According to the literature the rewards distinguishes into three main types that individuals seek from their organization i.e. extrinsic, intrinsic and social rewards (Williamson et al. 2009).

Extrinsic rewardsThese are the physical benets provided by the organization such as pay, bonus, fringe benets and career development opportunities.

Intrinsic rewards

These refer to the rewards that come from the content of the job itself, and encompass motivational characteristics of the job such as autonomy, role clarity and training (Hackman and Oldham 1976). Social rewardsThese arise from the interaction with other people on the job and may include having supportive relationships with supervisor and co-workers.Ali and Ahmed (2009) established that there is a substantial affiliation between reward and recognition, and similarly in employee motivation and job satisfaction. Study exposed that if rewards and recognition offered to employees then there would be a substantial modification in work motivation and satisfaction.

Explores past and present attitudes of employees concerning work-related motivational factors. Understanding the factors that employees consider Motivating lends insight to therewardsto which they more positively respond. Compares the results of four motivation surveys conducted in 1946, 1980, 1986 and 1992. The comparisons reveal that employees motivational preferences vary over time. In addition, the results of the 1992 survey indicate that the factors that motivate todays workers are more extrinsic than they used to be. Although employees differ on how they rank these factors, they overwhelmingly selected good wages as the top motivator. A good wage is an extrinsic reward with intrinsic potency. On the surface good wages seem to be purely extrinsic. Yet, at a deeper level, monetary rewards communicate what thecompany valuesand affect employees emotional and familial wellbeing(Carolyn Wiley, (University of Tennesseeat Chattanooga, Tennessee, USA)

A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company's reward philosophy, strategies and policy. However, it might be challenging to find the right way to combine the companys integrated policies and practices together with the employees contribution, skill and competence. (Armstrong, 1999, p. 569-570).Theoretical Framework

Schematic Diagram for the Theoretical Framework

SHAPE \* MERGEFORMAT

In this research we take the following variables;Dependent Variable Employees Motivation

Independent Variables

Bonuses and incentives Handsome salary packages

Promotion opportunities

Working Environment

Explanation of the relationship between dependent and independent variableThe variance in the dependent variable, motivation of employees can be explained by the five independent variables; Bonus and incentives, handsome salary package, promotion opportunities, Flexible timings, Working Environment.

If the employees are given the proper training in this way their motivation level towards organizations can be increased. With highly motivated employees organizations can increase their productivity. Different factors affect the motivation level of employees that includes bonuses and incentives, handsome salary package, promotion opportunities, flexible timing, and working environment.Bonuses and incentives is a very important factor for motivating the employees within the organization to get high productivity from them. In this way organizations can increase motivation level of the employees.

Handsome salary packages also affect the motivation level of the individual. If someone perceives the beneficial and fruitful salary package for himself then his motivation level be such higher than others.

Promotion opportunities also have great impact on employees, so that promotion opportunities should be exist in every organization. Because every employee wants to be grow up in his working field and also status conscious. If the employees know that promotion opportunities exist within the organization then they work with their best efforts which are beneficial for the organization.

Working environment is also very important factor for the employees as well as good repute of the organizations. If organizations provide friendly working environment to their employees then employees will perform their duties with high moral and also will pay their full concentration to their work.HYPOTHESiS:Based on the assumed casual relationship given in the conceptual model the following hypothesis were developed for testing.H1:- Higher the employee rewards lead to higher the Employee Motivation

H2:- Lower the employee rewards lead to lower the Employee Motivation

A reward can be defined as an external agent administered when a desired act or task is performed, that has controlling and informational properties. While rewards are typically delivered to increase the probability of a response, they can increase or decrease the probability of an event occurring, depending on the saliency and direction of the controlling and informational aspects of the reward. Saliency would refer to the intensity of either the controlling or informational aspect of the reward. It is what stands out to you the most. While direction would refer to whether the reward is perceived as increasing or decreasing the athletes control; and whether the information is perceived as positive (increasing the athletes competency) or negative (decreasing the athletes competency). Rewards can come in the form of verbal rewards (i.e. telling someone good job!), physical rewards (i.e. a pat on the back), or tangible rewards (i.e. giving someone money, food, or a medallion), among others. There are 5 basic types of rewards discussed in the literature as follows (Deci, Koestner, & Ryan, 1999)

REWARDS VS. RECOGNITION

Although these terms are often used interchangeably, reward and recognition system should be considered separately. Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered separate from salary but may be monetary in nature or otherwise have a cost to the company. While previously considered the domain of large companies, small businesses have also begun employing them as a tool to lure top employees in a competitive job market as well as to increase employee performance. As noted earlier, although employee recognition programs are often combined with reward programs, they retain a different purpose altogether. They are intended to provide psychological rewards a financial benefit. Although many elements of designing and maintaining reward and recognition system are the same, it is useful to keep this difference in mind, especially for small business owners interested in motivating staffs while keeping costs low.

DIFFERENTIATING REWARDS FROM MERIT PAY AND THE PEFORMANCE APPRAISAL

In designing a reward program, a small business owner needs to separate the salary or merit pay system from the reward system. Financial rewards, especially those given on a regular basis such as bonuses, profit sharing, etc., should be tied to an employees or a groups accomplishments and should be considered pay at risk in order to distance 18 them from salary. By doing so, a manager can avoid a sense of entitlement on the part of the employee and ensure that the reward emphasized excellence or achievement rather than basic competency. Merit pay increases, as a result, are not part of an employee reward system. Normally, they are increase for inflation with additional percentages separating employees by competency. They are not particularly motivating since the distinction that is usually made between a good employee and an average one is relatively small. In addition, they increase the fixed costs of a company as opposed to variable pay increases, such as bonuses, which have to be re-earned each year. Finally, in many small businesses teamwork is a crucial element of a successful employees job. Merit increases generally review an individuals job performance, without adequately taking into account the performance within the context of the group or business. PURPOSES OF REWARD SYSTEMS To recognize individual and( In designing a reward program, a small business owner needs to separate the salary or merit pay system from the reward system. Financial rewards, especially those given on a regular basis such as bonuses, profit sharing, etc., should be tied to an employees or a groups accomplishments and should be considered pay at risk in order to distance 18 them from salary. By doing so, a manager can avoid a sense of entitlement on the part of the employee and ensure that the reward emphasized excellence or achievement rather than basic competency. Merit pay increases, as a result, are not part of an employee reward system. Normally, they are increase for inflation with additional percentages separating employees by competency. They are not particularly motivating since the distinction that is usually made between a good employee and an average one is relatively small. In addition, they increase the fixed costs of a company as opposed to variable pay increases, such as bonuses, which have to be re-earned each year. Finally, in many small businesses teamwork is a crucial element of a successful employees job. Merit increases generally review an individuals job performance, without adequately taking into account the performance within the context of the group or business.

PURPOSES OF REWARD SYSTEMS

(To recognize individual and team efforts

( To re-enforce positive behaviors

( To create a better working environment

( To have a system that recognizes as many people as possible.

( To attract and retain good employees

( To reduce the absenteeism

( To facilitating organizational culture and strategic objectives

DESIGNING A REWARD PROGRAM

The key characteristics of developing a reward program are as follows:

Identification of company or group goals that the reward program will support

( Identification of the desired employee performance or behaviors that will

( reinforce the companys goals. Determination of key measurements of the performance or behaviors, based on the individual or groups previous achievements.

( Determination of appropriate rewards.

( Communication of program to employeesReward system are concerned with two major issues: Performance and Rewards. Performance includes defining and evaluating performance and providing employees with feedback. Rewards included bonus, salary increase, promotions, stock awards and perquisites. Large corporations with several different businesses may have multiple reward systems. And while they may share some fundamental philosophies and values, they may differ accordingly to the particular business setting, competitive situation, and product life cycle. Thus, multiple reward systems can support multiple cultures within one organization. These components will be designed, developed and maintained on the basis of reward strategies and policies which are created within the context of the organizations between strategies.1. Improve Organizational Effectiveness: Support the attainment of the organizations mission, strategies, and help to achieve sustainable, competitive advantage. 2. Support and Change Culture: Under pin and as necessary help to change the organizational culture as expressed through its values for performance innovation, risk taking, quality, flexibility and team working.3. Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process. 4. Manageable: It helps to manage the undue administrative burdens imposed on managers and members of the personal department. 5. Motivate Employees: Motivate employees to achieve high level of quality performance. 6. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, (b) develop a strong belief in and acceptance of the values and goals of the organization; and (c) be ready and willing to exert considerable effort on its behalf. 7. Fairness and Equity: Reward assesses can upgrade competence and encourage personal development. 8. Improved Skills: The employees can upgrade competence and encourage personal development. 9. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service. 10. Develop team working: An effective award system improves co-operation and effective team working at all level. REWARD SYSTEM LINKED TO MOTIVATION One of the primary purposes to use rewards in companies is to motive the employee to perform well. When we talk about motivation from managerial prospective it is important to bear in mind that: You cant motive other people. You can only influence what theyre motivated to do. In other words we do things because it will fulfil some current or future personal goal or desire we have. It is therefore important for the corporate management to identify what motivates their employees and try to join their personal objectives with the ones of the company. MASLOW HIERARCHY OF NEEDS The motivation process can be described in the term of need theory which states that it is an unsatisfied need that motivates behavior. The best known theory within this category is written by Abraham H Maslow (1908-1970). An American psychologist in 1954. Maslows hierarchy of needs is one of the most famous theories in the term of individual motivation. Human need are by him divided into five different levels, physiological, safety, belongings, esteem and self-actualization. Maslows hierarchy of needs always illustrated in the pyramid, shown in the following figure.

MASLOWS NEEDS CLASSIFIED INTO FIVE CATEGORIES: Physiological needs are basic needs for survival such as food, water & sleep.Safety needs consist of variety of safety needs such as security of employment, health & family. Social need consist of friendship, family, love & intimacy.

The esteem needs presents the desire to be accepted & valued by others. Here we find the concept such asself-esteem, confidence, achievement, respect for others and respect by others.

The need for self-actualization here we find the motivation to ones own maximum potential, self-fulfillment and try to become everything that one is capable of becoming. It includes the concept as morality, creativity, spontaneity, problem solving and some more.

HERZBERGS MOTIVATION-HYGIENE THEORY (TWO FACTOR THEORY)

To better understand employee attitudes and motivation, Frederick Herzberg performed studies to determine which factors in an employees work environment caused satisfaction or dissatisfaction. He published his findings in the 1959 book the Motivation to work. The following table presents the top six factors causing dissatisfaction and the top six factors causing satisfaction, listen in the order of higher to lower importance.

Factors Affecting Job Attitudes

Leading to dissatisfactionLeading to satisfaction

Company policy Achievement

Supervision Recognition

Relationship with boss Work itself

Work conditions responsibility

Salary Advancement

relationship with peers growth

EXPECTANCY THEORY

Expectancy Theory (1964) is a motivational theory written by Victor Vroom, born 1932, in Canada. The theory states that motivation will be strong if the individual can expect that their effort & contribution will give meaningful rewards. It means that motivation is more likely when a clear relationship is exists between performance and outcome and the outcome is satisfying needs.

Motivation in work can be reached in two ways.

Firstly, people can motivate themselves by working with things that satisfied their personal needs. Secondly people can be motivated by management using incentives such as pay, promotion, praise.

TYPES OF REWARDS

Rewards serve many purposes in organizations. They serve to build a better employment deal, hold on to good employees and to reduce turnover. The principal goal is to increase people's willingness to work in ones company, to enhance their productivity. Most people assimilate "rewards", with salary raise or bonuses, but this is only one kind of reward, extrinsic reward. Studies proves that salespeople prefer pay raises because they feel frustrated by their inability to obtain other rewards, but this behavior can be modified by applying a complete reward strategy. Besides verbal appreciation, tokens of appreciation, rewards (award trophies, framed certificates, special parking spaces, gift cards, pens or a free day off.) etc. are generally given to employees. The principal difficulty is to find a balance between employees' performance (extrinsic) and happiness (intrinsic)

There are two kinds of rewards:

Extrinsic Rewards- Tangible / Concrete Rewards.

Intrinsic Rewards- Non Tangible / to give satisfaction to IndividualVarious categories of rewards that are given and can be given are:

Basic Pay: Basic Pay is defined as the rate fixed by applicable law or regulation. Examples of special types of pay included in Basic Pay are:

Night differential pay for wage employees

Environmental differential pay for employees who work under hazardous situations.

Premium pay for groups such as law enforcement officers

Locality-based comparability payments.

It is an essential factor which is closely related to job satisfaction and motivation. Although pay may not be a reward as this is a static amount which an employee will be paid every month, it will be considered as a reward if similar worker is paid less.

Additional Hours Rewards: This is similar to that of overtime. However, it is paid to employees if they put in an extra hour of work for working at unsocial hours or for working long hours on top of overtime hours.

Commission: Many organizations pay commission to sales staff based on the sales that they have generated. The commission is based on the number of successful sales and the total business revenue that they have made. This is a popular method of incentive.

Performance Related Pay: This is typically paid to employees who have met or exceeded their targets and objectives. This method of reward can be measured at either team or department level.

Profit Related Pay: Profits related pay is associated with if an organization is incurring a profit situation. If the organization is getting more than the expected profits, then employees receive an addition amount of money that has been defined as a variable component of the salary.

Payment by Results: This is very similar to that of profit related pay. This reward is based on the number of sales and total revenue generated by the organization.

Piece Rate Reward: Piece rate reward is directly related to output. The employees get paid on the number of pieces that they have produced. These pieces will be closely inspected to make sure that quality standards are being met.

Bonuses: Bonuses will be paid to employees who have met or exceeded their targets and objectives. This is aimed at employees to improve their performance and to work harder. There are several types of bonus programs followed by industries, some are as follows: Current Profit Sharing, Gain Sharing, Spot Bonus Award, Noncash Bonus, Sign-on Bonus, Mission Bonus, Referral Bonus, Retention Bonus, Holiday Bonus, etc. Recognition: Employees will not always be motivated by monetary value alone. They do require recognition to be motivated and to perform well in their work.

Job Enrichment: This is a common type of recognition that is aimed at employees to get motivated. Job enrichment allows more challenging tasks to be included in the day-today tasks performed by the employee.

Job Rotation: Unlike job enrichment, job rotation refers to shifting employees between different functions. This will give them more experience and a sense of achievement.

Teamwork: Teamwork is also considered as recognition. Creating teamwork between team members will improve performance at work. Social relationships at work are essential for any organization. Empowerment: Empowerment refers to when employees are given authority to make certain decisions. This decision making authority is restricted only to the day to day tasks.

Training: Many organizations place a greater emphasis on training. This is considered as recognition for employees. Training could vary from on the job training to personal development training. Benefits: Another element in the total rewards approach includes employee benefits. Benefits are programs that an employer uses to supplement the cash compensation that employees receive. These benefits provide a level of security for employees and their families, and may include health care insurance, time off, disability insurance and retirement programs. As such, benefits fall under the satisfier category.

AWARDS:

This again is an important type of recognition that is given to employees who perform better. Organizations have introduced award systems such as best performer of the month etc. and all these will lead employees to perform better. Rewards are basically the methods to extrinsically motivate employees. These awards can be MONETARY or NON MONETARY. Some of the commonly given awards in various organizations are: Service Awards: Each year that an employee commits to an employer, he offers great advantages to the business or organization. Employees gain more knowledge of their position and responsibilities over time, and the company does not have to set aside time and money hiring and training new employees. Employers often reward employees who remain committed with a recognition pin or a certificate acknowledging the number of years of continuous service. Employers may further reward long-term employees with an extra gift such as a watch or a special desk set, typically engraved with the employees name and the date they received the honor.

Employee of the Month:

Some workers will consider being designated Employee of the Month a great honor. This award is commonly given to the one employee each month who has given exceptional service, had perfect attendance and gone the extra mile for the company to ensure all 28 customers are given the service they expect. These employees are often recognized during monthly staff meetings with a plaque or certificate recognizing their efforts. A designated parking space is another good idea, and displaying the plaque where customers can see it adds to the honor. Employers should take care in choosing employees in a manner that shows no favoritism. If others perceive that employees are chosen unfairly, the award can be counterproductive.

Attendance Awards: Companies depend on employees to be punctual and perform tasks to their potential so that the work load can be evenly distributed. Employees who strive to be at work during every scheduled shift and never come in late deserve to be recognized in a special way. Perfect attendance awards can be given in the form of a certificate, plaque or even as a cash bonus. Sometimes employers will give employees with perfect attendance a day off with pay or a gift certificate to a local restaurant in appreciation for their commitment to the company.

Safety Awards:

Safety awards are a great way for employers to recognize employees or teams for their continued adherence to safety guidelines. This kind is typically awarded when an employee or a group files no incident or accident reports over a given period of time, such as a month or year. These acknowledgements are often expressed in terms of the man (or woman) hours since the team last experienced in injury. Cash bonuses or gifts such as tickets to popular local events make great safety awards.

Company Advancement:

The ultimate reward that every employee tends to strive for is company advancement. Employees generally work hard to earn recognition in an attempt to be promoted to a higher position within the company or receive an annual raise in pay. Employers should choose candidates for advancement carefully, avoiding favoritism and ensuring that the most reliable and skilled employees are advanced to higher positions.

Special Operating Unit Award: Individual bureaus may establish award programs which are appropriate to their particular interest in recognizing certain group of employees. There are a large variety of programs, ranging from recognition for scientific accomplishments to employee of the year. These award programs can be cash or non-monetary.

Cash-in-Your Account Award:

A small cash award designed to recognize employees for going the extra mile in getting the job done. These awards do not recognize overall performance, but rather specific instances of exemplary performance. Awards range from Rs. 1000 to Rs. 10000 in Rs. 1000 increments.

Suggestion Award:

Under the suggestion program, employee are granted an award for formal suggestions which have been evaluated and adopted. The amount of the award is determined by the amount of tangible and intangible benefits of the idea.

On the Spot Award:

A small award which is granted as a means to recognize employees for those day-to-day efforts which contribute in a special way to get the job done.

Certificates of Appreciation:

Certificates granted to employees or non-employees who have made outstanding contributions or who have performed significant services to the Department. External Awards: Awards sponsored by other agencies and non-government organizations given to corporate employees. 30 Group-Based Reward Systems Group-based reward systems are based on a measurement of team performance, with individual rewards received on the basis of this performance. While these systems encourage individual efforts toward common business goals, they also tend to rewardunder-performing employees along with average and above-average employees. A reward program which recognizes individual achievements in addition to team performance can provide extra incentive for employees.WHAT IS PERFORMANCE MANAGEMENT

It can be defined as a continuous process of assessing and measuring the performance of an individual and aligning it with the organizational goals. It is the job of the HR people to design an effective performance management system. Expansion for the word Perform, best explains it

. P Potential

E Enthusiasm

R Reliability

F Flexibility

O Orientation

R Reengineering

M Motivation

Why Link Reward to Performance

To connect two ends of the rope, a knot is required; to make it lengthy and useful for long run. Likewise, the tie up between the reward and performance should be made for employee retention and their commitment to work, which ultimately improvise the contributing factor of the employee. Employees should perform well to be rewarded and the approach designed for this is Pay for Performance. Apart from the base pay, which is based on job description, a variable pay should be announced for their outstanding performance. Although the pay raise motivates the employees to an extent, ultimately they want them to be appreciated and recognized in a society for their work, here comes the employee recognition program. Many employees become less committed to work notbecause of their low pay structure, but for the lack of recognition. Both types of rewarding 31 system should be ensured for higher motivation, retention, engagement and job satisfaction. A simple example for performance based reward system can be best explained by the game of cricket. When a bowler or batsman performs well in a match, his performance is rewarded by the cricket council through the title Man of the Match and cash award. It motivates the winner and also the team players to perform well for their team.

PERFORMANCE MANAGEMENT, REWARDS AND AWARDS

Performance management is the systematic process by which an organization involves its employees, as individuals and members of group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

Employee performance management includes:

( Planning work and setting expectations

( Continually monitor performance

( Developing the capacity to perform.

( Periodically rating performance in a summarized fashion, and

( Rewarding good performance

( Planning Rewarding Monitoring Rating DevelopingPerformance appraisals and rewards are designed to show recognition to employees. Those who exemplify outstanding abilities in the workplace are celebrated through an appraisal and reward system. Managers may offer employee praise in a one-on-one setting, such as a performance evaluation, or in a group setting among peers. Archer North, a company that designs and develops employee performance appraisal and corporate evaluation systems, says that social recognition is powerful and is an effective forum for showing value in employees. Employee recognition programs boost the morale of employees and positively change the health of an organization. By instituting performance appraisal and reward systems, an employer lets its workers know that their hard work pays off and is appreciated. Reward system is a part of performance appraisal. When an employee do performance appraisal he uses reward system to appreciate the work done by the employee. Every company has its own reward system which has to be linked with its performance appraisal method. Reward systems are concerned with two major issues: performance and rewards. Performance includes defining and evaluating performance and providing employees with feedback. Rewards included bonus, salary increase, promotions, stock awards and perquisites. Purposes of Performance Management The purposes of performance management may be grouped as under:

a) Informational Purpose ( To let an employee know how his performance compares with job standards.

( To assist in identifying special talents and abilities

( To identify employees needing performance improvement

( To allow employees to evaluate management.

b) Motivational Purpose

(To establish closer employer-employee relationships and communicate the job

(To provide financial rewards or recognition for a job well done.

( To work out plans to solve performance problems.

( To encourage initiative, creativity and develop a sense of ownership amongst the employees.c) Developmental Purpose ( To identify individual employee training needs ( To identify individuals for potential development. ( To help the employee strengthen current performance and prepare for higher responsibilities. ( To show organizational interest in attracting and retaining capable employees.d) Managerial Purpose To translate organizational goals into individual job/performance objectives ( To communicate managements expectations regarding employee performance. ( To provide feedback to the employee about job performance in the light of ( managements expectations. To coach the employee on how to improve job performance on a periodic basis. ( To diagnose the employees strength and weakness. ( To determine what kind of development activities might help the employee better ( utilize his competencies / skills on the job. Functions of Performance Managements: ( To communicate vision of its objectives to allFunctions of Performance Managements:

To communicate vision of its objectives to all its employees

.( To set departmental and individual performance targets which are related to widerobjectives.

( To conduct formal review of progress towards these targets.

( To use the review process to identify training, development and reward outcomes

( To evaluate the effectiveness of the whole process in order to improve effectiveness.

Benefits of Performance-based Rewarding approach

An effective Performance-based Rewarding approach can bring out multiple benefits to an organization and employees,

( Decreased attrition rate, which empowers employee retention in long run andcommitment. Due to decreased attrition rate and increased employee retention, recruitment cost is less which helps in the financial stability of the organization

(Motivate employees to perform better, aligning with the organizational goals.Employees get a clear insight of what should be done to meet the goals.

( Employee involvement (Participation Management) is increased which results in(autonomy, more productivity and satisfaction. Employees feel that they are part of a big success, enabling more confidence and innovation in work. ( Rather than working on routine jobs, employees volunteer to work on challenging jobs to increase their recognition levels in the working society. It enforces healthy competition among individuals to perform better. (Employee gets a chance to learn and enhance their skills, which highlights their development in career. For the real success of the system, it should be implemented without any bias or oversight. When employees perform well, he should be acknowledged rightly by the supervisors. HR department should not make this process to follow over a night; its importance has to be stressed to the supervisors and employees at all levels. When a perfect system is implemented, it results in higher retention of talented employees and greater profits to the organization. LIMITATIONS OF REWARD SYSTEM Feeling of discrimination or dissatisfaction among employees (if they feel the reward assessment process is not transparent).Staff morale could fall if there is a large difference in the amount of reward being paid out to people doing similar work. Staff may become too focused on individually earning those rewards/bonuses that they forget to work in the best interests of the team as a whole. Competition can be good but if its too aggressive it can be detrimental. There will always be an element of judgment required to administer such a system. Someone will have to rate the performance of staff. This judgment may end up being too subjective rather than objective. Some functions are support roles in nature (and therefore may not attract as much rewards as other roles such as sales). There must be a good balance of incentives for these admin/support staff or else they will not feel appreciated.

RECENT TREND OF REWARD SYSTEMS IN INDIA Reward systems helps in increasing performance and creating happier employees. The greatest management principle is that the things that get rewarded get done. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. Those organizations which gives the maximum reward attracts and retains most people. Higher rewards will give higher satisfaction. This will lead to lower turnover and more job applicants. It is difficult to retain the best performers in any organization. They will get higher offers from competitive organizations and may leave the company. For retaining the best performers, the organization needs to reward people at all level above the reward standards in similar organizations. In some organization, reward system is based on performance and skills of the employees. So higher rewards will motivate skilled employees to perform better. In hierarchical organizations, reward system acts as a motivation for lower cadre employees to learn those skills which will lead to promotion to the higher levels. The reward system contribute to the overall culture and climate of organizations. Reward systems are a major cost factor in many organizations. There are some criteria for building effective reward systems. ( Give Value for the employees preference in the reward system. Employees prefer rewards in different ways like cash awards, plaques, recognition in award ceremonies and company newsletters. ( Reward systems should simple and specific. Easy understanding of the system will make the system work effectively. Elaborate procedures, evaluations and review by different levels will lead to confusion among people. A line of sight should be maintained between rewards and actions. ( Rewards should be timely. The recognition/rewards should be provided frequently enough to make performers feel valued for their efforts. ( Reward systems should be fair and effective.( It should be reliable, that is, the program should operate according to its principles and purpose.

( Involve people in the formulation of the reward system. By ensuring the participation of the people in the reward system, the company can empower them to do the needful. For most people, the most important reward is the pay they receive for their work. Effectively planned and administered reward systems will enhance motivation thus performance also. Employees who work hard and produce better quality products should get higher pay than the poor performers. The employees should be satisfied with the rewards they receive for their good work. They should be given extrinsic rewards like pay, promotion and other status symbols. This will give them a feeling of competence, achievement, personal growth and self-esteem. In India, rewards are given in the form of financial benefits, incentives, profit sharing, gain sharing and stock options. Financial rewards are given to employees for their achievements. Pay is of many types like Competence related pay, Skill-based Pay, Team based pay and merit pay. RECENT TRENDS A FEW EXAMPLES Its an annual affair at Genpact to identify 35 star leaders within the company and fly their families on a vacation. This is apart from regular ritual of recognizing high performing leaders in every board meeting. Even as salary levels soar and are a given in the current war for talent, more and more companies are fumbling for the ideal mix of non compensation rewards to retain leaders. Retaining and rewarding leadership is a hot button issue facing most organizations. Increasing complexity of hiring leadership talent in the face of burgeoning market demand is bringing companies under pressure to retain their top talent. The only way to reward and retain top leadership is by sharing the success of the company with them, says Piyush Mehta, senior V-P, Genpact. It is common to see firms ring fence their senior executives by devising long-term wealth certain opportunities in the form of retention pay, deferred bonus plans, stock options and shadow options. Companies are arriving at a reward system, which is linked with the companys performance.

As a business leader in Accenture moves higher, the variable component in his 37 compensation goes up. Equity has been quite effective as a leadership reward system. Conversely too, it works well as it makes leaders conscious of the fact that they carry the weight of the organization, says Rahul Varma, senior HR director, Accenture India. Employee stock plans offered by Indian firms in the past few years have been ableto create the right setting than that MNC counterparts, says K Sudarshan, managing partner, EMA Partner International. Key employees feel a lot closer to centre of action with a belief that they are making a difference to the fortunes of the organization as opposed to large MNCs where the India business is still a small percentage of their overall numbers, he says.

The attractiveness quotient for Indian companies is increasing all the time. Even though we see emergence of several employee millionaires, analysis caution, relying on generous compensation as the only strategy for retaining your key resources is a sure shot recipe for disaster.

There is interplay of multiple factors which makes the organization a preferred destination for top talent and creates a long-term sustainable employer brand. Thats why the best employers need not necessarily be the best paymasters.

First and foremost is to create a sense of ownership and belonging to the organization. Successful organizations have a culture which supports and encourages entrepreneurial behaviour, the freedom to make informed business decisions and above all eliminates the fear of failure, says Mr Sudarshan. This will work only if it goes hand-in-hand with standard compensation levels in the industry.

HR fraternity believes ICICI Bank has done well on both fronts. They have provided great opportunities to their stars plus have locked in their key people with significant stock options. It also helped that ICICI bank is growing more rapidly when compared to HDFC Bank and there is a great passion at work one can experience with senior people in ICICI group.

HDFC Bank has largely adopted the ESOP route to reduce fixed cost but this has backfired in the long term because people moved on once the stocks vested and their exit barriers significantly reduced, says a head of headhunting firm. Bharti has largely taken the compensation route both fixed as well as long-term wealth 38 creation opportunities for their people. Hutch has always retained their key people on the basis of the work culture and freedom to operate though the compensation levels have always been pegged lower than Bharti and Reliance.REWARD SYSTEM LINKED TO PERFORMANCE IN SONA KOYO STEARING SYSTEMS LTD.SONA KOYO STEARING SYSTEMS LTD. has developed an unbreakable bond with sound HR practices in an environment that defies traditional roles and responsibilities. The company views its employees as assets, which as to be utilized efficiently. The SONA KOYO STEARING SYSTEMS LTD. senior management constantly keeps track of the vast intellectual assets, their skills sets, the status of projects on which they are working, and the number of people available for being placed in other projects. SONA KOYO STEARING SYSTEMS LTD. determines its manpower requirements based on inputs from senior consultants, who provide information on changes in the technology and the potential demand for new skills in the immediate future. This enables the HR department to plan and schedule recruitment and training programs. Figure 1 illustrates the role of HR, which evidently is that of a facilitator. So whether it is recruitment or even career development, HR is the catalyst which initiates and institutionalizes processes. To manage all the function of employees is herculean task but the smoothness of operations is intriguing. The HR structure, which allows flexibility and empowerment, is the solution. SONA KOYO STEARING SYSTEMS LTD. takes care of every aspect of Human Resource Management, from recruitment to training and career development. The company combines its aim of recruiting skilled employee with the broader objective of improving educational standard in India. SONA KOYO STEARING SYSTEMS LTD.Is well recognized in the industry for its emphasis on employee training. Company is having its own training center in Dighi, Pune, where induction and other training are conducted by its expert trainer who provide functional and operational knowledge about the SONA KOYO STEARING SYSTEMS LTD. and its subsidiaries. It keeps decent amount of budget from its annual sales on training. In addition to training, IT also believes in grooming its employee into managers. In their first couple of years at the company, employees are put to work on different technological platforms and applications. The organization consciously does not try to develop its employee as specialists, as it knew that they would become useless once their area of specialization becomes obsolete. This approach was different from that of many other companies, who stressed specialization of their workforce.AWARD CATEGORIES

There are three award levels in new appreciation framework. Each award level has multiple awards as detailed below:

Level 1- Marking a difference

i. Thank you appreciation card

ii) Hi 5

Level 2- Above and Beyond

i) Xtra Mile

ii) Blue Ribbon

iii) ACE

iv) Partner & Progress

Level 3- CEO Recognition

1. Proclub

The detail description of awards are as follows:

1) Thank you appreciation card: It is basically a simple greeting card which is been given by any employee to the performer for his significant performance. 2) Hi 5- As on the spot recognition program to recognize any significant contribution of individuals at any time. Process: Nominations along with the citation will be made by the Reporting Manager. All winners would receive gift certificates, given by the Reporter manager. All efforts should be made to ensure that the recognition is done publicly. Citations through mail will also be sent by the Reporting Manager to the peers/team members of the winners to ensure transparency of the process.

Rewards will be given at any time.

3) XtraMile: It is an On-the-Spot Recognition program to recognize any significant contribution of individuals in solo or in a team.

4) Blue Ribbon: It is a Quarterly Reward and Recognition program for exceptional contribution by individuals in their respective Function/ LOB/ Shared Services. Number of rewards: Maximum of 1-2 rewards in every LOB/ Shared Services per quarter. Process: Nominations and Selection: Individual nominations will be made by the Manager. Nominations must be made using the nomination form provided in the annexure. The nomination would have to be approved by the Reviewing Manager. The form should be duly filled with very specific details of the initiatives and results. All relevant supporting information like Rs / $ savings or profit, customer or team appreciation etc. should be provided to strengthen the case. To qualify for consideration, the achievement must be in line with the Corporate and LOB/Shared Services goals (e.g. profitability enhancement, process improvement, superior contribution or teamwork). The selection would be made by the LOB/ Shared Services Head.

Timeline

Request for nominations for achievements in the previous quarter, to be sent out in the first week of every quarter

. Completed nominations to be submitted within two weeks of request for nominations.

Rewards

Each of the winners would receive gift certificates

. All winners would receive a certification and the winners would be recognized during town halls.

The names of such winners would be announced in the Company Newsletters/ Tata Communications Buzz with a brief write-up on their achievement.

5) A.C.E.- Award for Champion Employees is a quarterly reward and recognition given to an individual for his/her outstanding contribution towards the achievement of the companys objectives. Number of Rewards: Maximum of 1-2 rewards in every LOB/ Shared Services per quarter. Nominations and Selection: Individual nominations may be made by a LOB / Shared Services Head. To qualify for consideration, the achievement must be in line with the Corporate and LOB/Shared Services goals (e.g. profitability enhancement, process improvement, superior contribution or teamwork). Nominations must be made using the nomination form provided in the annexure. The form should be duly filled with very specific details of the initiatives and results. All relevant supporting information like Rs / $ savings or profit, customer or team appreciation etc. should be provided to strengthen the case. The final selections will be made by the nominating LOB/ Shared Services Head in consultation with another LOB/Shared Services Head who has reasonable visibility of either the individual or the delivery of the outcomes of that individual who is being considered for the reward.

CONCLUSION

I am highly privileged that I got an opportunity to work with SONA KOYO STEARING SYSTEMS LTD. which is a leader in Telecommunications industry. Here I got to learn a lot about my project which is on the role of organizational rewards for motivation of employees. I am really happy that I got an opportunity to have a deep knowledge about the subject. It has been a great learning experience. For my project which I had interacted with different departments, understand their working, their contribution and SONA KOYO STEARING SYSTEMS LTD as a whole. Somewhere or the other, it has directly helped a lot in my confidence building because in the process I got to interact with SONA KOYO STEARING SYSTEMS LTD management from all the departments. This essay has evaluated the reward systems and highlighted the importance of reward management. As discussed above, payment including reward and other benefits does not mean simply encourage minimal expectation of employees. This can be basic in organization to attract and retain people. Effective reward management can not only be applied to dominate an individuals behavior but also improve an organizations productivity. These rewards aim to recognize and reward outstanding individuals and teams who have gone beyond their role requirements and have taken initiatives that have had a positive impact to its short term and long term growth objectives. There is a general direct / positive relationship between total rewards and employee performance which are linked with Leadership Signatures on its 6 attributes. Reward is very critical and central activity in the human resource management function in the organization which can be used in scientific way. Through embracing a total reward approach to management of rewards, organizations are able to address diverse needs of employees in their organization and the diverse ways in which individuals are motivated to work.

QUESTIONNAIRE

NAME: GENDER EDUCATION

STATUS

Note: Based on your knowledge and experience, please indicate your views about the impact of rewards and incentives on motivational level of employee Financial incentive increases employee work productivity. Strongly Disagree Disagree Strongly Agree Agree Neutral

Intrinsic rewards increases employee on job satisfaction. Strongly Disagree Disagree Strongly Agree Agree Neutral

Incentives develops employee attitude toward organization. Strongly Disagree Disagree Strongly Agree Agree Neutral

Incentives increases employee loyalty towards organization. Strongly Disagree Disagree Strongly Agree Agree Neutral

Motivated employees are real asset of any organization. Strongly Disagree Disagree Strongly Agree Agree Neutral

Relevant need satisfaction leads to high motivation.

Strongly Disagree Disagree Strongly Agree Agree Neutral

Is money enough to motivate employee. Strongly Disagree Disagree Strongly Agree Agree Neutral

Work recognition & appraisal motivates employees towards job. Strongly Disagree Disagree Strongly Agree Agree Neutral

Work environment is also important for motivation.

Strongly Disagree Disagree Strongly Agree Agree Neutral

Motivated employees are effective and efficient in their functioning.

Strongly Disagree Disagree Strongly Agree Agree Neutral

Bibliography:

http://www.answers.com/topic/employee-reward-and-recognition-systems http://www.opm.gov/retirement-services/calculators/fegli-calculator/basic-pay/

http://www.ecommerce-now.com/images/ecommerce-now/HRM%20Strategies.htm

http://www.businessperform.com/articles/performance-management/money_in_reward.html http://www.mbaskool.com/business-articles/human-resource/5260-performance-management-linkingreward-to-performance.html

http://www.slideshare.net/search/slideshow?ft=all&lang=%2A%2A&page=1&q=rewards+system+linked +to+performance&qid=2f88a192-78c1-4801-8552-ed894b8a68e0&searchfrom=header&sort=&ud=any

http://www.humanresources.hrvinet.com/performance-management-handbook http://www.hr-guide.com http://www.tatacommunications.com/

http://www.inc.com/encyclopedia/employee-reward-and-recognition-systems.html

http://www.citehr.com http://ceo.usc.edu/working_paper/performance_management_and_rew.html

http://corehr.wordpress.com/performance-management/performance-appraisal-methods/

http://www.citeman.comwww.project-team-rewards.com

Export Customers Base

Fuji Autotech , Brazil

Fuji Autotech, France

Fuji Koyo, Czech

JTEKT

Sona Autocomp

Maval Manufacturing

Sigma ASL Logistics

EZGO textron

Mando America Corporation

Transaxle Manufacturing of America

John Deere Horicon Works

Nissan south Africa

Human Resource

HR

Adminstration

Personnel

Facility mgmt

Transportation

Liaisioning

Security mgmt

Housekeeping

Scrap mgmt

Front office mgmt

Water mgmt

Civil infrastruture

Payroll mgmt

Time office

Employee welfare

Statutory Compliances

Contractual workforce mgmt

Recruitment

Training &development

Performance mgmt system

Talent retention

Handsome salary packages

Promotion opportunities

Working Environment

Working Environment

Bonuses and incentives

Employees Motivation

Dependent variable

Independent Variables

Perceived equity

ability

motivation

effort

performance

Reward system

satisfaction

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