THE IMPACT OF COMPENSATION ON EMPLOYEE

MOTIVATION AND PERFORMANCE.

PROJECT REPORT

SUBMITTED TO
KUMAUN UNIVERSITY,NAINITAL

SUBMITTED IN THE PARTIAL FULFILLMENT OF

THE DEGREE IN
BACHELOR IN BUSINESS ADMINISTRATION
(2021-24)

SUBMITTED TO: SUBMITTED BY:

DR.RAJNIKANT KUMAR PRIYANSHU SINGH DANGI
AMRAPALI GROUP OF INSTITUTE, BBA 6TH SEM
SIKSHA NAGAR,LAMACHAUR ROLLNO:210945250092

Amrapali group of institute

Shikshanagar,lamachaur
Haldwani,uttarakhand
 DECLARATION

I declare that the project report entitled “THE IMPACT OF COMPENSATION ON

EMPLOYEE MOTIVATION AND PERFORMANCE.
“ is my on work conducted under the guidence
Of DR.RAJNIKANT KUMAR at faculty of commerce and business
management at amrapali group of institute. I further declare that to the best of
my knowledge the project report has not previously formed the basis of the
award of any degree, diploma, or other similar title of recognition.

SignatureofProjectGuide Signatureof Student

DR.RAJNIKANT KUMAR MR.PRIYANSHU SINGH DANGI

FORWAREDED
DR.AK SRIVASTAV HEAD OF DEPARTMENT
FACULTY OF COMMERCEANDBUISNESS MANAGEMENT
AMRAPALI GROUP OF INSTITUTES
HALDWANI(NAINITAL),UTTARAKHAND
ACKNOWLEDGEMENT

Before I start with the details of my projects, I would like to add a few heartfelt words
for the people who were a part of my projects in numerous ways, the people who gave
me their immense support.

First,I thank our Directo rProf.(Dr.)DeepChandraOli,Dr.N.P.Singh(Dean)&Dr.A.

K. Srivastava, HOD for their timely support and knowledgeable guidance that helped
me in my project.

Iwould like to thank my Project Supervisor DR.RAJNIKANT KUMAR for

hiscontinuous support in my Survey. Hewas involvedright from theselection till
theImplementation ofthe project. He taught me how to ask questions and express my
ideas. He showed me different ways to approach a problem and the need to be
persistent to accomplish any goal. His continuous support has helped me in removing
the operational Hurdles.

I also express my gratitude to all my faculty members who endured with extraordinary
grace
andprovidedconstantencouragementtomybesteffortsandmadethisarewardingexperience.

Priyanshu singh dangi BBA

VI Semester Roll no.
210945250092

INDEX
Chapter No. Chapter Title Page No.

1 EXECUTIVE SUMMARY 4-6

INTRODUCTION
2 7-27

4 COMPANY PROFILE 28-33

LITERATURE REVIEW
5 33-55

6 RESEARCH DESIGN 55-61

7 OBJECTIVES OF THE STUDY 55-57

8 DATA ANALYSIS AND INTERPRETATION 62-69

9 FINDINGS AND SUGGESTIONS 70-72

10 BIBLIOGRAPHY 72-74

11 :QUESTIONNAIRE 75-78
 **Executive Summary**
Our company specializes in providing comprehensive services to
assist individuals in their academic and professional endeavors
within the medical field. With a focus on project work support,
course enrollment, and guidance in securing placements at
prestigious colleges, we aim to empower students to achieve their
goals with confidence.

Our offerings include personalized assistance tailored to the unique

needs of each client, coupled with a commitment to delivering high-
quality services and support. By leveraging our expertise and
extensive network within the medical community, we strive to
streamline the process of navigating academic pathways and
accessing educational opportunities.

Key features of our services include:

- **Detailed Information**: We provide comprehensive information

about courses, colleges, and academic pathways, empowering
students to make informed decisions about their future.

- **Responsive Support**: Our dedicated customer support team

ensures prompt assistance and guidance throughout the
engagement process, addressing inquiries and concerns with
efficiency and professionalism.

- **Continuous Improvement**: We actively seek feedback from our

customers to enhance our services, incorporating suggestions and
implementing improvements to better meet their needs.
5
- **Holistic Approach**: We go beyond traditional service offerings,
providing additional resources such as networking events, career
counseling, and informative materials to support students in every
aspect of their academic journey.

As we continue to expand our range of services and forge new

partnerships, our commitment to excellence remains unwavering.
We are dedicated to empowering students to thrive in their
academic and professional pursuits, serving as a trusted partner on
their path to success in the medical field.
---

6
7
 INTRODUCTION

Motivation
Every organization and business wants to be successful and have desire to get
constant progress. The current era is highly competitive and organizations
inattentive of size, technology and market focus are facing employee holding
challenges. To overcome these restraints a strong and positive relationship and
connection should be made and maintained between employees and their
organizations. Human resource or employees of any organization are the most
central part so they need to be influenced and convinced towards tasks
fulfillment.
For achieving prosperity, organizations design different strategies to compete
with the competitors and for increasing the performance of the organizations. A
very few organizations believe that the human personnel and employees of any
organization are its main assets which can lead them to success or if not focused
well, to decline. Unless and until, the employees of any organization are satisfied
with it, are motivated for the tasks fulfillment and goals achievements and
encouraged, none of the organization can progress or achieve success.
The focus of this study is to enlighten that how an organization through its
employees can achieve success and effectiveness. The purpose of the study is to
analyze the impact of employees’ motivation on organizational effectiveness. The
study has two sub-objectives; firstly the factors that increase motivation of
employees are to be determined. Secondly the relationship of employee
motivation and organizational effectiveness is to be examined.

8
RensisLikerthas called motivation as 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.
The concept of motivation:
The word motivation has been derived from motive which means any idea, need
or emotion that promots a man into action. Whatever may be the behavior of man,
there is some stimulus behind it .Stimulus is dependent upon the motive of the
9
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.
Meaning of motivation:
Motivation has been variously defined by scholars. Usually one or more
of these words are included in the definition: desires, wants, aims, goals, drives,
movies and incentives. Motivation is derived from the Latin word ‘Move on’
which means “to move”.
Human motives are internalized goals within individuals. A motive is an
inner state that energies activates, or moves and directs or channels behavior
towards goals.
Definition:
1. Motivation is the complex forces starting and keeping a person at work in
the organization.

2. Motivation is the various drives within or environmental forces surrounding

individual that stimulate or attract them in a specific manner.

3. Motivation is the art of understanding motives satisfying them to direct and

sustain behavior towards the accomplishment of organization goals.

4. Motivation is the process of operating organizational conditions which will

impel employees of any emotion or desire operation one’s will and
prompting or driving at it to action.
10
 Motivation consists of the three interaction and interdependent elements
of needs, drives and goals.
Needs:
These are the deficient, and create whenever there is a physiological or
psychological imbalance.
Drive or motives:
These are set to alleviate needs. These are action oriented and provide an
energizing thrust toward goal accomplishment. They are the very heart of the
motivation process.
Goal:
Goals are anything which will alleviate a need and reduce a drive.
Nature of motivation:
Following are some of the characteristics of motivation derive from the
definitions given by various authors.
1. Based on motives: Motivation is base on individuals motive which are internal
to individual. These motives are in the form of feeling that the individual lacks
something.
2. Goal directed behavior: Motivation Leads to goal directed behavior. A goal
directed behavior is one which satisfied the causes for which behavior takes
place. Motivation has profound influence on human behavior.
3. Related to satisfaction: Motivation is related to satisfaction. Satisfaction is
refers to the contentment experiences of an individual which we derives out of
needs fulfillment.
4. Complex process: Motivation is a complex process; complexity emerges
because of the nature if needs a types of behavior that need attempted to satisfied
11
those needs.
Significance 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.
1. 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.

2. 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.

3. The rates of labor’s turnover and absenteeism among the workers will be
low.

4. There will be good human relations in the organization as friction among

the workers themselves and between the workers and the management
will decrease.

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

6. 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.
12
 Ways to increase motivation in an organization
Motivation is the reason that drives all of our actions. An individual expects that
if they behave a certain way or perform certain tasks, they will achieve their
desired outcome. In the workplace, this outcome, as long as it’s positive, is the
driver that can impact if and how the tasks given to employees are performed.
The key to reaching the highest possible results lies in being able to identify the
factors that drive each individual in a workforce.
It’s crucial that apart from considering that the final outcome is worthwhile,
employees also believe that they are capable of performing the task that’s
expected of them. If the targets or goals seem unachievable from their
perspective, it is unlikely they’ll feel motivated which in return will lead to lower
performance.
This is why, being able to identify the main factors that drive an employee is a
first and most important step on the way to increasing performance. There are 9
main components that contribute to employees motivation:

1.Salary
Receiving regular payment, especially in reference to permanent employees, is
considered a basic need that is expected to be satisfied by an employer. However,
salary on its own is a short term satisfied. In the longer term salary isn’t a factor
that increases performance and a promise of getting a pay rise frequently has only
a temporary impact.
However, if the salary is lower than an employee would expect, it could cause
dissatisfaction and disengagement. While earning an ‘equitable’ salary might not
motivate employees to perform better, it will reduce the risk of them feeling
13
2. Non-monetary incentives
Non-financial rewards are a way of satisfying employees’ ego and self-
actualization needs. These are often used to:
 Acknowledge extraordinary performance.

 Recognize achievement.

 Increase morale.

 Create a positive work environment.

 Motivate high performance.

According to research conducted by the Industrial Relations Services, non-

monetary rewards help to fulfil organisational objectives at a relatively low cost.
What’s more, some non-financial incentives can be executed almost immediately
as opposed to financial rewards, which can take weeks or months to take effect.

There is a wide range of different non-financial incentives that can be used by

managers:
 Simple “thank you” - either said directly to an employee or, better still, sent
in written form and preferably hand-written.

 Public appreciation and acknowledgement of a job or task well done.

 Rewarding an employee with a title of a “star of the month” or employee of

the month”.

14
  Vouchers or tangible goods.

 Flexible working arrangements.

 The opportunity to work from home.

 Free or subsidized meals, fruit or drinks.

3. Relationship with colleagues

As employees spend one-third of their day at work, relationships and interactions
they have with their colleagues can significantly impact their mood and outlook.
Negative experiences or attitudes will eventually lead to isolation and loneliness,
making it more difficult to find satisfaction from work, which in turn will
decrease motivation.
Employee’s social needs linked to their desire to be accepted and to belong to a
community can be used to build strong and loyal teams that will achieve higher
results by cooperating on the basis of common understanding.

To stimulate the development of positive work relationships, it’s advised to focus

on team building activities that will allow employees get to know each other
better:
 Brainstorming sessions in or outside of the office that allow anyone to speak
freely, openly and honestly.

 Team lunches or dinners, and social events such as Christmas parties.

15
  Bowling, river cruises, comedy clubs, physically challenging activities or
other activities that the team could attend together. Care should be taken to
select and plan events taking into account all team members’ abilities.

 Using an external facilitator for team building who might offer: ice
breakers, discussion topics, games or similar techniques.

4. Relationship with leadership

Each employee has a hierarchy of needs that should be addressed and the
responsibility of understanding those needs lays with their line manager. The
basis for effective communication between the two parties is two-sided trust.
Relationships built on this foundation will help employees to honestly and openly
talk about their needs, thoughts and feelings, which in turn will give the line
managers clear direction on how to support and motivate their team members.

5. Company’s culture
According to survey conducted by the Harvard Business Review, the reasons
behind why employees work determines how well they perform. Employees are
conscious of their company’s culture and learn and align their professional goals
with the organization’s goals, which becomes their answer to the question: “why
we do what we do”. The extent to which employees align with the goals set by
their employer is directly impacted by the strength and clarity of their employer’s
mission statement and values.
Any lack of belief or understanding of the employer’s goals is one of the major
causes of low job satisfaction, negative attitude and lower commitment. On the
16
other hand, employees who are aligned with the culture are generally more happy
in their roles, achieve better result and fulfillment.
A company’s culture comes down to 6 main elements: work environment,
company mission, value, ethics, expectations and goals. In practice, the culture is
just a set of rules or accepted behaviours that help employees make decisions
everyday. While every company would have their own unique set of features,
values and beliefs, culture is always about making sure that the employees have a
productive and enjoyable working environment.

6. Learning and development opportunities

Self-actualisation is a natural by product of high performance. Most employees
naturally want to do a good job to feel they are achieving their full potential.
Learning & Development (L&D) is a way of educating and guiding your
employees on the areas and aspects that will help them develop and progress.
The subject of personal and professional development is especially important to
generation Y - a recent M3S survey has shown that the desire to learn, acquire
new skills and continue personal development is one of the reasons millennials
choose to leave their employer. According to the research, the lack of
professional and/or personal development is one of the main causes of job
dissatisfaction among this group.
On the other hand, L&D can stimulate higher performance and improve
engagement as long as the company offers development opportunities at every
level - from learning on the job, through mentorship, shadowing and specific
internal or external training programmes.

17
7. Processes within the company
While processes on their own aren’t a motivational tool, they are closely linked to
the areas that impact desire, enthusiasm and willingness of the employees. The
workload, division of responsibilities, access to resources and accountability all
depends on the structure and efficiency of the processes on which the business
runs.
Efficient processes stimulate workers, allowing them to work effectively and
efficiently and by reducing the amount of potential blockers. At each stage of the
process an individual should be aware of what’s expected from them and what
resources are available. Making sure that an employee feels responsible for the
outcomes of their work is crucial in building work engagement and stimulating
higher performance.

8. Personal life
According to a research by Bensinger, DuPont & Associates, 47% of employees
state that problems in their personal lives affect their work performance. Personal
challenges can cause issues with concentration, poor attention, lack of
engagement and even absenteeism.
As employees spend ⅓ of their days at work, there’s a lot that an employer and/or
a manager can do to support members of their team who are going through a
tough time. Being patient and understanding towards them is the first step.
Most organisations have clear policies, procedures or guidelines that specify how
employees can be supported during difficult times. These often fall under “work-
life balance” umbrella and are especially helpful in situations when bereavement
or grief strikes, including flexible working, paid time off or Employee Assistance
18
Programs.
By offering support and understanding, as well as guiding employees through the
hard times, it is possible to build trust and loyalty within people who frequently
will return stronger and more committed. Making their professional career
another challenge to deal with and manage might create the opposite result and
as an employer, you may never regain their trust and commitment.

9. Performing meaningful work

As in case of non-monetary incentives, motivation through meaning targets the
need of self-actualisation. Finding meaning is an existential question and
according to research, including Deloitte’s Talent 2020 series, performing
meaningful work is one of the top 3 motivational drivers.
Finding the meaning behind work turns out to be linked to being able to make a
difference to humanity through the job. By creating a culture of ethics, morals
and establishing a CSR strategy, companies can encourage and guide their
employees in the search of meaning.
Another element to consider is educating employees on the values and the
mission of the organisations they work for - the foundation of seeing the meaning
is understanding why the company does what it does and how it makes a
difference. Another aspect is showing how the employees the role they play
within the company links to the Company’s vision, mission and values. By
helping employees understand how they make an impact on the business and
through that how they contribute to society is a clear and simple way of giving
them a purpose
Everyone has weeks where you check off everything on your to-do list with
19
pleasure, and weeks where you’d really rather be anywhere but at work.
A little daydreaming never hurt anyone. 🌴🍹
It’s totally normal for employees to face dips in motivation, but it becomes a
problem when your colleagues are consistently disengaged. That's why we
gathered some great tips from experts to help keep you and your team motivated,
day in and day out.
These tips aren't specific to any industry, and most of them are either low or no-
cost. They can be applied in small establishments, franchises, startups, and
Fortune 500 companies.
Let's get started with one that has the potential to change everything: recognition.
1. Recognize great work

One of the most important factors that contribute to employee motivation is

how often their hard work is recognized. 70% of employees say that motivation
and morale would improve massively with increased recognition from managers.
After all, if an employee puts a lot of effort into a project to produce exceptional
results but their hard work isn't recognized, why would they continue to be a
high-performing employee?
It's not just important to recognize great work. How you recognize your team's
contributions has a significant impact. Employee recognition shouldn’t just an
annual bonus at the end of the year—it should be meaningfully and frequently
given.
Meghan M. Biro shared some excellent advice on effective recognition in a
TalentCulture post. Here's one of my favorite tips:
Money is appropriate much of the time, but it’s not the only—or even the most
20
effective—motivator. Treat employees as valued team members, not as
numbers.
2. Set small, measurable goals

We've all had projects that just drag on and on, and seem to never end. It can be
really demoralizing to be stuck in a rut, which is why seeing how you've made
visible progress feels so good. It's also a clear indicator that our work is making a
difference.
We met with Walter Chen, co-founder of iDoneThis, who shared some great
insights into the importance of clear goal setting and tracking progress. You can
check out full the interview here.
Setting clear, achievable goals provides a real boost of motivation each time one
is conquered and keeps team on the right track. You can magnify these effects by
taking the next step and celebrating those achievements.
3. Celebrate results

Part of what makes setting small and measurable goals so important is that it
provides plenty of opportunities to celebrate your team’s hard work.
This doesn't mean you need to give a standing ovation to every employee who
made it to work on time, but it is crucial to let everyone know exactly how (and
how much) much each of their contributions move the organization forward.
Be specific in your applause. Don't just tell Marie good job. Don't even stop
at great job on the new email campaign. Applaud her success and when you do,
tie her to the greater picture. For example: Great job on that new email campaign
—it’s going to really grow our community and nurture our customer pipeline.
21
4. Stay positive
Let’s be real—we’re a little suspicious of people who are happy all the time. 🤖
Negative emotions have their place, and some really good process or cultural
changes can stem from having tough conversations. However, it's important to
find ways to inject positive experiences into your team's interactions to create
a net positive workplace.
Why? Because it’s actually a competitive advantage to have happy
employees. Research shows that happiness raises business productivity by 31%
and sales by 37%.
It turns out that happiness and positivity play a greater role in the success of your
business than you'd ever imagine. If you're not fully convinced yet, take a
moment to view this hilarious and fascinating presentation by psychologist
Shawn Achor, explaining why:
A simple shift in bias toward positivity and happiness can have an immediate
impact on your work experience and relationships, which are major factors in
success, motivation, engagement, and productivity.
A simple shift in bias toward positivity and happiness can have an immediate
impact on your work experience and relationships, which are major factors in
success, motivation, engagement, and productivity.
5. Stay fueled
It's hard to stay focused and driven when you're hangry. That's why it's so
important for everyone to stay fed, hydrated, and in some cases, caffeinated.
Unfortunately, it's common for employees to become so busy engrossed in their
work that they can barely squeeze in time for lunch. That's not great for their
health and even worse for their productivity. Not convinced? Check out this great
22
article from Buffer co-founder Leo Widrich wrote an outstanding piece on
food's crucial role in employee wellbeing.
Keeping healthy snacks around the workplace is an easy way to help your team
maintain energy levels throughout the day. The cost of providing them will likely
be offset by your team's increased productivity.
If you don't have the time or resources to manage this on your own, there are
some great services out there that can help you keep your office stocked with
healthy snacks. Our friends at SnackNation will even drop a curated box of
healthy snacks right at your company's front door. At Bonusly, we get a Fruit
Guys delivery every week, which is a godsend when it’s 3 p.m. and you need
some fuel to get through the rest of the day!
6. Take regular breaks

Banging your head against a problem for three hours is rarely productive.
Stepping back and taking a moment to recalibrate isn't just helpful in staying
motivated, it's also important to your health.
Stepping back and taking a moment to refresh and recalibrate isn't just helpful
in staying motivated, it's also important to your health.
Sitting all day isn't good for you, and neither is working nonstop. Taking a short
break every hour or two can have a positive effect on both your mind and body,
especially for remote workers. Don't forget to get up from your desk and grab
some fresh air!
Sitting all day isn't good for you, and neither is working nonstop. Taking a short
break every hour or two can have a positive effect on both your mind and body.
Get up, stretch your legs, rest your eyes—and come back to work with a refreshed
23
mind and body.
7. Stay healthy

Which brings us to our next topic: staying healthy. As we learned in our

interview with Button's Stephen Milbank, sharing is caring, but not if what
you’re sharing is germs. 😷
When you’re ill, stay at home! It's unlikely that you'll be getting any of your best
work done when you can hardly hold your head up, and not taking the time to rest
will only prolong your sickness and prevent your body from recovering.
Make sure that the policies you're instituting aren't keeping people from taking
the time they need to stay healthy. Think about the way you approach time off,
medical benefits, and employee wellness. The stress and frustration from
worrying about taking sick time leads to disengagement, and costs companies
across the world billions of dollars each year.
A generous time-off policy or options for more flexible schedules or remote
work might seem expensive at face value, but it can actually save your company
quite a lot of money in lost productivity, poor attendance, and suboptimal
engagement.
8. See and share the big picture
A large part of understanding the purpose behind your work is seeing how it fits
into the larger picture. You can help boost motivation in the workplace by
ensuring your team understands how each of their efforts impacts the
organization, customers, and the community.
Completing a task usually provides a small sense of accomplishment,
but knowing how that work helped others is the real antidote to disengagement.
24
Need more proof? Check out Zach Mercurio's talk on meaningful work:
9. Be transparent
Every relationship, including work relationships, is built on trust. Defaulting to
transparency is one of the best ways to encourage an atmosphere of trust amongst
you and your team, and a team that trusts you will be more motivated
and engaged with their work.
Transparency also helps ensure that everyone is working with the same
information. That in itself can benefit the team.

10. Provide clarity

In order to be motivated about your work, it’s crucial that you actually understand
what your goals and objectives are. For many employees, that understanding
starts with transparency, and ends with clarity. Without clarity, transparency
begins to lose its effectiveness and motivational power.
Make sure you're giving everyone a very clear and concise mission they can get
motivated about in the first place, because it's nearly impossible to invest genuine
motivation into something you're unaware of, or confused about.
11. Envision and share positive outcomes
It's easier to achieve success when you can envision it. Professionals of all types,
from athletes to musicians and CEOs, all practice this technique to improve their
motivation. Luckily, if you're providing a clear objective, you're already more
than halfway there.
Help the team understand what it would mean to achieve that objective. When
someone makes real progress toward that objective or outcome, share that
progress as a source of motivation for everyone.
25
12. Find purpose

Although it's commonly stated that millennial employees are motivated

by purposeful work, that's really true of most employees. We met
with Imperative's Arthur Woods, who explained why purpose is a vital factor
in employee motivation, and how to help share and express that purpose.
Erica Dhawan echoed Arthur's advice in an article about motivation that she
wrote for The Muse. She explains why it's so important to take time to explain
the purpose behind the work you do:
Another key to staying motivated is knowing that the work you’re doing makes
a difference in some way—recognizing the impact you’re making on your
clients, company, or the world.
13. Loosen the reins
Autonomy and flexible work schedules are incredibly effective motivators.
Giving employees more agency around when and how they get their work done
can actually improve their efficiency, and help keep them motivated.
In her article for Monster.com, Roberta Matuson provides a great
framework for getting started on the path of employee autonomy:
Tell your employees what needs to be done by what deadline; allow them to
decide when they will do the actual work. For some, that may mean coming in
early; for others that might involve working on the weekend.
The key here is that you're giving employees the freedom to work on their project
when their motivation is strongest, not just when they're in the workplace.
Giving employees more control over their work also helps eliminate one of the
worst enemies of motivation in the workplace: micromanagement.
26
14. Provide a sense of security
We're not talking about hiring a bouncer for your office (although you should
make sure your employees feel safe at your workplace!). We’re talking about
employees feeling secure enough to show their full selves at work.
Psychological theory suggests that there is a hierarchy of basic needs that people
require before they can be motivated to reach their full potential. Security falls
right beneath physiological needs like food and water.

Once employees feel secure, they're more likely to be motivated to reach, and
further stretch their potential.
15. Power pose

Your posture not only says a lot about your motivation levels, it can actually
impact them. Amy Cuddy gave an outstanding TED presentation about what your
own body language can tell you, and how it affects your mood, your work, and
your interactions with others.
Take a moment to think about your own posture, and the postures you're seeing

27
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that education offers. We are inspired by our past
successes and motivated to continue our journey, guided
by our unwavering commitment to excellence and the
dreams of our students.

Party Nights
From achieving targets to launching new initiatives, our
team has countless reasons to celebrate their hard work.
And they do it in style! Whether it's a surprise office party, a
spontaneous team outing, or a themed celebration, we
know how to turn milestones into unforgettable memories.

Airport Diaries
29
It all begins here, at the airport. Students and their families
are filled with a mix of emotions - excitement, anticipation,
and perhaps a touch of nervousness. As they check in and
board their flights, they embark on a journey that will shape
their futures.

Our Team

Why choose affinity education

University Selection
We have an expert team that assists you in choosing the best
university to complete your Study Abroad dream. We provide

30
more than 650+ top medical universities for MBBS/other courses
and 25+ nations.

100% Admission Support

From University selection to all the paperwork, we are available at
every single step. Our expert guidance team provides complete
support for your admission.

Customized Guidance & Counselling

Facilitates discovering budget-friendly options tailored to your
needs. For students grappling with the dilemma of selecting the
ideal country and university for study, and for an individual
seeking Permanent Residency in a specific nation, our
counsellors are dedicated to offering expert guidance, ensuring
you make well-informed decisions.

Pre-Departure Guidance
We conduct a pre-departure session for those students who are
ready to Study MBBS Abroad or any other courses. In this
session, students get all the necessary instructions regarding
departure and other things.

Post-landing Services for PR

Our post-landing services for Permanent Residency (PR)
candidates go beyond the journey's end, ensuring a smooth
transition and successful settlement in your new homeland. Our
31
dedicated team understands the unique challenges faced by
newcomers and is committed to providing personalized guidance,
whether it's navigating the healthcare system, understanding local
educational opportunities, or connecting with cultural and social
networks

32
LITERATURE REVIEW

33
Motivation
According to Webster’s New Collegiate Dictionary, a motive is “something a
need or desire that causes a person to act”. “Motivate, in turn, means “to provide
with a motive,” and motivation is defined as “the act or process of motivating”.
Consequently, motivation is the performance or procedure of presenting an
motive that origin a person to capture some accomplishment (Shanks.N. H.).
According to Butkus& Green (1999), motivation is acquire from the word
“motivate”, means to move, push or influence to proceed for satisfy the desire
(Kalimullah et al, 2010).
Bartol and Martin (1998) describe motivation as a power that strengthens
behavior, gives route to behavior, and an activate the tendency to continue
(Farhad et al, 2011). This explanation identifies that in order to accomplish
assured targets; individuals must be satisfactorily energetic and be clear about
their destinations. In view of Bedeian, (1993) it is an internal drives to satisfy an
unsatisfied need and the will to attained. Motivation is a procedure that begain
through a physiological or psychological want that stimulates a performance that
is intended at an objective. It is the concluding product of interface among
34
personality behavior and organizational distinctiveness (IRCO). It symbolizes
those psychological procedures that foundations the stimulation, route, and
determination of deliberate actions that are target oriented (Farhad et al, 2011).
Also motivation is a progression of moving and supporting goal-directed behavior
(Chowdhury.M.S, 2007). It is an internal strength that drives individuals to pull
off personal and organizational goals (Reena et al, 2009).
Motivation is a set of courses concerned with a kid of strength that boosts
performance and directs towards accomplishing some definite targets (Kalimullah
et al, 2010). According to Barron (1983), it is an accrual of diverse routes which
manipulate and express our activities to attain some particular ambitions (Rizwan
et al, 2010). Porter and miles (1974) proved that the motivation boosts expresses
and continues conduct (Khadim et al). The motivation of an individual envelops
all the motives for which he selects to operate in a definite approach (Lefter et al).
In fact motivation is “inside another person’s head and heart” (Khadim et al).

35
Employee Motivation
Among financial, economic and human resources, the latest are more essential
and have the capability to endow a company with competitive edge as compared
to others (Rizwan et al, 2010). Employee Performance is depend on many factors
like performance appraisals, employee motivation, The area of study is focused
only on employee motivation as this factor highly influence the performance of
employees.
Employee motivation is one of the policies of managers to increase job
management amongst employees in organizations (Shadare et al, 2009). A
motivated employee is responsive of the definite goals and objectives he/she must
achieve, therefore he/she directs its efforts in that direction. Rutherford (1990)
reported that motivation formulates an organization more successful because
provoked employees are constantly looking for improved practices to do a work,
so it is essential for organizations to persuade motivation of their employees
(Kalimullah et al, 2010).
Getting employees to do their best work even in strenuous circumstances, is one
of the employees most stable and challenges and this can be made possible
through motivating them.
Organizational Effectiveness
Composition of people which formulate independent business identity for some
specific purpose is commonly known as organization and getting desired outcome
within defined resources is treated as effectiveness. Organizational effectiveness
is the notion of how effectual an organization is in accomplishing the results the
36
organization aims to generate (Muhammad, et al, 2011). It plays an important role
in accelerating organizational development (Bulent et al, 2009). It is the net
satisfaction of all constituents in the process of gathering and transforming inputs
into output in an efficient manner (Matthew et al, 2005).
Organizational effectiveness is defined as the extent to which an organization, by
the use of certain resources, fulfils its objectives without depleting its resources
and without placing undue strain on its members and/or society (Mary et al,
1996). It is the maximum combined utility of the primary constituents (Matthew
et al, 2005).
The goal model describes organizational effectiveness in terms of the extent to
which an organization attains its objectives. The legitimacy model regards
organizational effectiveness in terms of a background evaluation “of component
preferences for performance and natural limitations on performance from an
external environmental perspective” (Zammuto.R.F, 1982).
The constituency model considers organizational effectiveness “as a set of
several statements, each reflecting the evaluative criteria applied by the various
constituencies” involved with the organization being evaluated with an emphasis
on means criteria (Connolly.T, 1980).
The systems resource model defines organizational effectiveness “in terms of its
(the organization’s) bargaining position, as reflected in the ability of the
organization, in either absolute or relative terms, to exploit its environment in the
acquisition of scarce and valued resources” and how they utilize these resources
(Yuchtman.E, 1987).
Campbell and Pritchard (1976) defined as “a label for the determinants of the
choice to initiate effort on a certain task, the choice to expend a certain amount of
37
effort, and the choice to persist in expending effort over a period of time”.
Motivation, therefore, closes the satisfaction-performance loop, and has to do
with a set of interrelated factors that explain an individual’s behaviour, holding
constant the variables controlled or influenced by management, as well as by
individual skills, abilities and knowledge.

Beach (1980) saw motivation as a willingness to expend energy to achieve a goal

or reward. This author took somewhat of a behaviourist approach in stating that
behaviour that is perceived to be rewarding will be repeated, whereas behaviour
that goes unrewarded or is punished, tends to be extinguished. He recognizes
intrinsic motivation related to the job content, and that which occurs when people
perform an activity from which they derive satisfaction from simply engaging in
the activity itself. Further he regarded extrinsic motivation as related to the job
environment, which provides a person with the incentives and rewards he or she
receives after having performed the work.
Churchill (1985) stated that studies over the years have shown little relationship
between measures of job satisfaction and performance outputs. Highly satisfied
workers may be poor performers, whereas highly dissatisfied workers may be
good performers. Several
variables influence the relationship between job satisfaction and job performance;
although no direct causal relationships between these have been identified as yet.
However, it appears that motivation might account for much of the link between
an employee’s job satisfaction and job performance. In practice, proponents of
this view would focus on establishing an environment conducive to satisfying and
maintaining social interrelationships at work. From the perspective of self-
38
actualizing man, people are intrinsically motivated, and take pride in their work,
and derive satisfaction from their accomplishments. Within this approach,
workplace reward systems are highly performance-oriented. Lastly, the complex
man view recognizes that people are motivated by a great variation of motives,
emotions, experiences and abilities, and that these change over time as new
motives are learnt, and new skills change their attitudes towards their jobs.
Organizations supporting this perspective offer highly individualized reward
structures, and environments and ways in which employees are allowed to
perform their duties.

The fundamental point of departure should be a thorough understanding of the

nature of the individual, e.g. his or her needs, values, beliefs, expectancies, drive
levels and habits. It is interesting to note that the concept of organizational
commitment has come to partly replace that of motivation within the field of
organizational behaviour Lewicki (1981). While the concept of motivation is
linked to individualistic and task-centered reward systems, commitment seems to
be linked to the identification of employees with a collective, that is, in terms of
corporate values and norms. As such, management is concerned with cultivating
motivation towards realizing the mission and goals of the organization, which are
far above the ambitions and goals of any individual in it.

Employee motivation was viewed as an innate force, shaped and maintained by a

set of highly individualized factors that may change from time to time, depending
on the particular needs and motives of the employee. Environmental forces, such
as those related to the job itself and to the organization, do not have a causal link
39
with motivation, but impact on the level of motivation experienced by the
employee. Together, the innate and environmental forces determine an
employee’s behaviour at work. Motivation was
also regarded as a multi-dimensional concept that manifests in behaviours that
may be observed, measured and, to some extent at least, predicted. As mentioned
earlier the concept of motivation is very important in terms of organizational
effectiveness, as it constitutes the crucial link between employee job satisfaction
and employee performance, which in turn determines organizational profitability
and success. In their quest to maintain an optimally motivated workforce,
management’s focus should therefore be on attending to the myriad of job-
specific, as well as organizational factors which have been shown to contribute
towards employee job satisfaction and motivation.

Beck (1983) expressed a similar view, and stated that motivation is concerned
with explaining the variation in behaviour, such as why some people work harder
than others. Work characteristics in this regard refer to specific characteristics of
a person’s job, for example its task variety, whereas personal characteristics
include those determined by a person’s personality, for example an intrinsic need
for achievement.

Van Niekerk (1987) saw work motivation as the creation of work circumstances
that influence workers to perform a certain activity or task of their own free will,
in order to reach the goals of the organization, and simultaneously satisfy their
own needs. In the field of organization psychology, work motivation is clearly
approached from several angles. As a result, a single comprehensive definition of
40
motivation, which covers all purposes in the field, is not possible.

Du Toit (1990) added that three groups of variables influence work motivation,
namely individual characteristics, such as people’s own interests, values and
needs, work characteristics, such as task variety and responsibility, and
organizational characteristics, such as its policies, procedures and customs. The
concept of motivation is therefore particularly useful in its ability to increase
general understanding and prediction of behaviour. Gouws (1995) defined
motivation as an inner wish or urge that originates with an individual, either
consciously or unconsciously, to complete a task successfully because it is
enjoyable, and not necessarily for what will be received in return.
Petri (1996) also regarded motivation as the forces acting on or within a person to
initiate and direct behaviour. It explains differences in intensity of behaviour, and
why behaviour occurs in one situation, but not in another. Pinder (1998)
contended that an essential feature of this definition is that work motivation is an
invisible, internal and hypothetical construct, and that researchers therefore have
to rely on established theories to guide them in the measurement of observable
manifestations of work motivation. In terms of equity theory for example, work
motivation is expected to manifest in both attitudinal (e.g. job satisfaction) and
behavioural (e.g. performance) measures, whereas in terms of goal-setting theory
the primary manifestation of motivation is behavioural (e.g. enhanced
performance when ability remains unchanged).

Pinder (1998) described work motivation as the set of internal and external forces
that initiate work-related behaviour, and determine its form, direction, intensity
41
and duration. The concept focuses on events and phenomena of the work context
only, and includes the influence on work behaviour of both environmental forces
and those inherent in the person. Schultz and Schultz (1998), regarded motivation
as simply the personal and workplace characteristics that explain why people
behave the way they do on the job.

In an age where retaining talent is crucial to their prosperity, organisations realize

that they need to do a better job at letting employees know that their work
matters, by stepping up employee recognition Clarke (2001). Fortunately there
also appears to be acknowledgement of the fact that people are inspired in
dramatically different ways, and that employee motivation should never take a
one-size-fits-all approach Terez (2001). Baron et al. (2002) concurred, and added
that motivation is a complex phenomenon best understood within a multivariate
systems framework. Such a comprehensive view should, at the very least, include
the following aspects. A considerable field of interest covers the relationship of
extrinsic reward and work motivation, and many organisations have responded
strongly to its findings. Successful organizations often attribute much of their
success to a corporate culture that focuses on employee recognition Wiscombe
(2002).
Spector (2003) described motivation as an internal state that induces a person to
engage in particular behaviours, and held that motivation may be viewed from
two angles. On the one hand, motivation encompasses direction, where a
particular behaviour is selected from a choice of behaviours. It refers to the
amount of effort put into a task, and persistence, which denotes the person’s
continuing engagement in the selected behaviour. On the other hand, motivation
42
is also concerned with a desire to achieve a certain goal, which derives from the
particular individual’s own needs and desires.

Theories of Motivation

Even though much research has been conducted on the field of financial
motivation and many researchers and writers have proposed theories on the
concept of financial motivation, and its role in enhancing employee’s
performance in every organization some of these models have been widely used
and accepted by today’s organizations leaders. According to Petri (1996) the vast
array of motivation theories are based on differing approaches to the origins or
sources of motivation. These can be energy, heredity, learning, social interaction,
cognitive processes, activation of motivation, hedonism or growth motivation.

Motivation research draws on a large number of theoretical perspectives.

Although some of these appear to be less influential than when they were
originally postulated, such as Maslow’s hierarchy of needs theory Wicker &
Wiehe (1999). Their contributions as foundation layers and inspirations for
subsequent theories are still evident and acknowledged. Cognitive theories do not
focus directly on work as a potential source of motivation. They rather focus on
the cognitive processes, such as thoughts, beliefs and values, which people use to
make choices regarding their behaviour at work Schultz & Schultz (1998). For
this reason these theories are also referred to as process theories. Examples
include equity, expectancy and goal-setting theories.

Needs-based theories, also referred to as content theories due to their explanation

43
Factors Determining a Compensation Plan

Whether an organization uses job-based or skill-based compensation plan, the

main aim of the plan is to enable the organization achieve its strategic objectives
(Gomez et al, 2012) and attract, motivate and retain competent employees
(Decenzo et al, 2007). It is for these reasons that the plan is developed to fit the
organizations unique characteristic and environment (Gomez et al, 2012).
According to Gomez et al. (2012), the key factors to be considered when
determining a compensation plan in any organization are;- Internal versus
external equity. This refers to the perception of the plan to be fair within the
company and relative to what other employers are paying, flexibility of the pay;
whether the pay is fixed or variable, employee performance consideration in the
plan; whether the plan pays for performance or for membership, value placed on
the job versus individual skill, employee differentiation; whether all employee are
treated the same (Egalitarianism) or treated differently (Elitism), motivation
method; whether the plan motivates with monetary or non-monetary awards,
employee compensation information accessibility to employees and finally the
decision making process in the organization whether it is centralized or
decentralized.

Compensation Plan Determination Process

Determining a well-balanced employee’s compensation plan comprises of five

steps namely, salary survey, job evaluation, grouping similar jobs into pay grades,
pricing each pay grade and fine-tuning pay rates (Amstrong, 2008). Salary survey
44
is the conducting a survey of what other employers are offering for comparable
jobs, this helps ensure there is external equity (Dessler, 2008). This is also called
benchmarking and is the process of identifying the rates of pay in the labour
market for comparable jobs to inform decisions on level of pay within the
organization (Amstrong, 2008). A good salary survey provides specific wage
rates for specific jobs and a salary survey can be done formally (written
questionnaire) or informally by use of telephone, internet check or newspaper
adverts. Salary surveys published by consulting firms, professional associations
or government agents can also help.

Job evaluation is a systematic process of defining the relative worth or size of

jobs within an organization in order to establish internal relativities and provide
the basis for designing an equitable grade structure, grading jobs and managing
job and pay relativities (Amstrong, 2008). The process involves comparing, the
effort required, responsibility, and skills and this helps ensure there is internal
equity. The process eventually results to a wage or salary hierarchy as the jobs
that require greater qualifications, more responsibilities and more complex jobs
are paid more highly than jobs with lesser requirements (Dessler, 2008). Job
evaluation does not determine the level of pay directly and it is based on the
analysis of jobs or roles, which leads to the production of job descriptions or role
profiles (Amstrong, 2008).

Job-grouping entails grouping similar jobs into pay grades; it is the process of
turning job evaluation results to pay grades. A pay grades comprises of jobs of
approximately equal difficulty or importance as established by job evaluation
45
(Dessler, 2008). Pricing each grade is also referred to as the process of forming a
wage curve. A wage curve shows the relationship between the value of a job and
the wage paid for the job (Dessler, 2008). Fine-tuning pay rates, this involves
developing pay ranges and correcting out-of-lines rates (Dessler, 2008). Pay
range is a series of steps or levels within a pay grade, usually based upon years of
service.

According to Amstrong (2008), pay grades and pay structures are important part
of a reward plan and if well designed and maintained they provide a logically
designed framework within which an organization’s pay policy can be
implemented. They enable the organization to determine where jobs should be
placed in a hierarchy, define pay levels and the scope for pay progression, and
they provide the basis upon which relativities can be managed, pay equality
achieved and lastly they show how the process of monitoring and controlling the
implementation of pay practice can take place. A grade structure can also serve as
a medium through which the organization communicates career and pay
opportunities available to employees.

Direct Financial Payments and Employee’s Motivation

Financial payments are rewards that enhance employees financial well being
directly or indirectly (Decenzo et al, 2007). According to Dessler (2008) the
direct financial rewards refers to payment to employees which when done they
enhances employee’s financial position directly. Direct financial rewards come in
form of wages, salaries, incentives, commissions and bonuses (Dessler, 2008).
46
Bowen (2000) also notes that financial rewards mean those direct and indirect
payments that enhance an employee's well being, they make employee financially
sound so that he/she can fulfill his/her material desire. There are two main
categories of direct financial rewards namely:- Base/Basic pay and Contingent
pay. Dessler (2008) reckons that financial payments are determined on the basis
of equity which he defines as the fair treatment of employees. This may be
internal equity where employees are paid according to relative value of their jobs
within same organization or external equity where organizations’ employees are
paid comparably to workers who perform similar jobs in other firms.
Base/ Basic Pay

Base/ Basic pay also known as membership based reward, refers to the amount of
pay that constitutes the rate for the job, it may be varied according to the grade of
the job or for manual workers, the level of skill required (Amstrong, 2008).
Several factors influence the base pay; these include legal (government
regulations), union (staff labour relations), company policy (company strategic
aims) and equity (internal and external/market comparisons) (Dessler, 2004).
Chruden and Sherman (1980) indicate that other additional factors include worth
of the job and individual bargaining power.

According to Amstrong (2008) the basic pay is normally expressed in form of

normal rate and allowances. The normal rate may be hourly, weekly, monthly or
annually while the allowances may be overtime, shift working or increased cost
of living adjustment. DeNisi and Griffin (2008) differentiates between salary and
wage by defining salary as income paid to an individual on the basis of
performance or position held while wages refers to hourly compensation paid to
47
operating employees on the basis of time worked.

Basic pays as the name suggests, are just base pays and though their absence de-
motivates employees, their presence may not necessary motivate the employees
as they expect to get it anyway for the work done, time worked or for them being
there. According to Amstrong, (2008) some of the key determinant of an
individual basic pay include; organization policies, labour market, the job content
and finally the employees themselves. It is however important that base pay helps
achieve the internal and external equity to avoid de-motivation (Dessler, 2008).
Drafke (2002) emphasis this point by pointing out that money can increase
performance but this is often limited to short term increase. On the other hand
DeNisi and Griffin (2008) argues that in general higher levels of pay and more
attractive benefits tend to result in greater satisfaction, a point that is affirmed by
Bretz and Thomas (1992) who stated that pay dissatisfaction reduce performance
and morale. Clegg and Birch (2002) argues that “pay peanuts and you will get
monkeys”, and in addition to that they said
that if you show that you value people by paying a reasonable wage then they
appreciate it.

Contingent Pay

Contingent pay on the other hand refers to additional financial rewards that may
be provided and are related to performance, competence, contribution, skill or
experience (Amstrong, 2008). They may come inform of incentives,
commissions, bonuses and merit pays (Decenzo et al, 2007). Dransfield, (2000)
48
states that automatic increases within the fixed pay bands have largely
disappeared and the trend is toward performance-related-pay as the preferred
method. Dessler (2008) defines financial incentives as financial rewards paid to
workers whose production exceeds some predetermined standard. Bowen (2000)
adds to the definitions that performance based rewards are such benefits which
are provided on the basis of an employee's job performance ability. The reward
depends upon the performance of an individual in the actual work floor. These
rewards are exemplified by the use of commissions, piece work pay plans,
incentive systems, group bonuses or other forms of merit pay plans. Many people
see contingent pay as the best way to motivate people, but it is simplistic to
assume that it is the only extrinsic motivator in the form of pay that creates long-
term motivation (Amstrong, 2008).
Gomez et al. (2012) states that most employees believe that they should be
rewarded to recognize their performance, they defined pay-for-performance or
incentive system as a system that rewards employees on the assumptions that
individual employees and work teams differ in how much they contribute to the
firm and that the firms over-all performance depends to a large extent on the
individuals and groups within the firm. They also argued that for a firm to attract,
retain and motivate employees, the firm needs to reward employees on the basis
of their relative performance. Lazear (2000), Paarsh and shearer (2000) and
Parent (1999) recons that use pay performance schemes has been shown to
increase employee morale. Brown and Session (2003) confirmed the same by
stating that employees prefer environment where productivity is rewarded and
that this increases employee morale.

49
Amstrong (2008) says that there are different incentives and recognition programs
applicable to different people in a firm, they include incentives for individual
employees, sales people related, team or group based, organization wide and
executive incentives. He continues to argue that the individual employee
incentive and recognition programs are incentive plans particularly suited for use
with individual employees and examples include; Piece work plan, merit pay as
an incentive, merit pay options and incentives for professional. According to
Bowen, (2000) the incentive plan can be designed on individual, group or
organization wise performance. An individual incentive refers to incentives given
to individual employees for their additional contribution towards organizational
objectives, while group incentives applies when the output of the individual
employees is not measurable due to interdependency with other employees tasks.
An organization incentive occurs when the incentives are provided to all
employees of the organization.
Dessler (2008), defined some of the incentives such as piece work plan, which
refers to a system of pay based on a number of items processed by individual
worker in a unit of time. Merit pay as an incentive,(also known as merit raise) is a
salary increase to an individual for better performance, it goes toward increasing
one’s base salary. Merit pay options are one off short term bonuses, given to
individuals as recognition of better performance without raising the base pay of
the individual.

Decenzo et al. (2007) refers to incentives for professional employees like system
analysts and programmers, engineers, doctors, economists whose work involves
use of learned knowledge to provide solutions, to as competency-based
50
compensation plan. Professional employees are also incentivized by used of
recognition-based awards, these are non-financial incentives such as employee-
of-the-year award, job well done card, star award card which are meant to give
performance feedback (Decenzo et al, 2007).

Incentives for sales people come in the form of sales commissions, straight
salaries or combination of both, this is with aim of ensuring the top line numbers
or turnover (Dessler, 2008). Amstrong, (2008) expounded the above points by
giving the applicability of the different forms like salary only, salary plus
commission and salary plus bonus. He argued that the “salary only option” is
applicable in a company where direct selling is more important than sales
volume; hence need to encourage its customer service rather than high pressure
selling. This may however attract under achievers while salary plus commission
is more appropriate when it’s believed that
sales can go up if a commission is given, however, a base salary is needed to
attract people as it provides a direct motivation for performance. This may result
to people concentrating on easier to sell product and not those generating high
margins. Finally the salary plus bonus operates well when flexibility in providing
reward is important and sales staffs need to be motivated to focus on certain
aspects of their work other than simply maximizing sales volume, thus ensure that
other goals like high margins are achieved. The latter may however be complex to
administer and understand. Commission only works well when sales performance
depends on ability to sell and staff is not involved in non-selling activities. This
provides a direct financial incentive, attracts high performing sales staff and
ensure selling cost vary directly with volume. Finally, additional non-cash
51
rewards for example recognition and opportunity to grow, is better applied when
it is believed that other methods of payments need to be enhanced to provide
additional motivation to the sales person.

Team or group incentives plans are plans in which production standard is set for a
specific work group and its members are paid incentives if the group exceeds the
standard (Dessler, 2008). While team incentives may foster a sense of
cooperation and unanimity, the main disadvantage of plans is that one may not
get paid proportionately to the personal effort put to the work, which may de-
motivate top workers (Dessler, 2008). In addition, Gomez et al. (2012) also adds
that although team based approach may aid in performance measurement, the
system may allow free-riding effects and social pressure may limit performance.

Organization-wide incentive plans, also called variable pay plan are plans in
which all or most employees enjoy rewards as a result a performance of over-all
companywide nature (Dessler, 2008). Examples include profit sharing, employee
stock ownership (ESOP) and gain sharing plans. According to Bowen (2000),
these organization-wide rewards are also called Membership based rewards. They
are those rewards that are paid on the basis of being a member of an organization.
It means, the basis of allocating rewards is employee's organizational
membership. Hence, the reward goes to all employees irrespective of their
performance. Incentives for managers and executives are rewards meant for
recognizing the crucial roles that managers play in the divisional and
companywide profitability (Dessler, 2008). They may be inform of short-term
incentives like, annual bonus or long-term incentives like stock options.
52
 Benefits and Employee’s Motivation

According to Amstrong, (2008), there is more to rewarding people than throwing

money at them, a point that is also echoed by Clegg and Birch (2002) that reward
is not all about money. Decenzo et al. (2007), states that today’s workers expect
more than just a salary or wage, they want additional considerations that will
enrich their lives. They described non-financial rewards as the desirable extras in
the organization which do not directly increase the employee’s financial position,
but rather add attraction to life on the job. Examples of such rewards may include
things like, preferred office furnishing, assigned parking space, business cards,
own secretary and recognition and amongst other things.

Dessler (2008) defines benefits as indirect financial and non-financial payments

employees receive for continuing their employment with the company. Gomez et
al. (2012) also says that benefits are sometimes called indirect compensation as
they are given to employees in form of plan rather than cash; they provide
security for employees and their family members. Decenzo et al. (2007) too
defines employees benefits as non-financial rewards offered to attract and keep
employees, he adds that they have grown in importance and variety as employers
have realized that such benefits affects the discretion of applicants when
accepting or declining employment offers. DeNisi and Griffins (2008) defines
benefits as the various rewards, incentives and other things of value that an
organization provides to its employees beyond their wages, salaries and other
forms of direct financial compensation. Bernardin (2003) defines benefits as
indirect forms of compensation that are intended to maintain or improve the
53
capabilities. Error tolerance is being allowed to fail without punishment and being
helped to learn from experience. Measurement is being encouraged to keep one’s
own score rather than being micromanaged while goals is being encouraged to set
one’s targets rather than having them imposed by others. Improvement is being in
an environment that enables people to become little better every day while
challenge is about giving appropriately difficult tasks that cause one to stretch
without feeling anxious. Encouragement is being in an environment which others
believe in people while appreciation is about receiving acknowledgment of
contributions and lastly significance is feeling part of a mission that matters.

DeNisi and Griffin (2008) adds to the above list by noting that some organizations
have resulted to different type of benefits known as wellness programs. These
concentrate on keeping employees from becoming sick rather than paying expenses
when they become sick. Others forms include child care and Eldercare. Pilbeam
and Corbridge (2006) reckon that a diverse workforce has diverse benefit needs.
Flexible benefits provide an opportunity to respond to this diversity in the
workforce and to increase the potency of the benefits offer within the total reward
value proposition while checking on cost. Cheatle (2001) also adds that with
increasing competition for scarce skills in the market place, many employers are
looking to develop innovative packages to recruit and retain key staff. Cole (2002)
closes on employee benefits by saying that in deciding on a benefits policy to adopt
an organization need to consider several things such as, the main purpose of the
benefit policy, the range of benefit to be provided, the recipients of the benefits, the
estimated cost of the benefits’ programme, the effect of the programme in the

54
 Research
Methodology

55
Objective of study

● To study the impact of compensation on employee motivation and its

performance .

● To know the relationship between work culture and employee motivation

Data source- Primary data & Secondary Data

Research Approach- Survey Approach
Research Methodology- Exploratory method
Research Instruments- Questionnaire
Sampling plan
Sample method- Random Sample method
Sample Size- 50
Sample Area: Dehradun
Primary Data- Questionnaire
Primary data
Primary data is the specific information collected by the person who is doing the

56
research. It can be obtained through clinical trials, case studies, true experiments
and randomized controlled studies. This information can be analyzed by other
experts who may decide to test the validity of the data by repeating the same
experiments. Primary data can also be retrospective, interventional and
observational in nature. Retrospective primary data gathers information about past
conditions or behaviors. Interventional primary data may be gathered to see the
effect of a new product or services. Observational studies gather primary data by
means of case studies such as the work done by naturalists like Jane Good all on
chimpanzees in the wild.

Survey Approach
We collected primary data through sample survey from the selected elements in
malls and super markets. So for this purpose we have used the most popular tool of
primary data collection through direct communication with respondents. The tools
we used are questionnaires. After fulfilling the questionnaires we asked some
verbal question also. According to their response we are able to recollect some
more information regarding this study and survey. Convenience sampling is used
for this study Convenience sampling is used in exploratory research where the
researcher is interested in getting an inexpensive approximation of the truth. As the
name implies, the sample is selected because they are convenient. This non
probability method is often used during preliminary research efforts to get a gross
estimate of the results, without incurring the cost or time required to select a
random sample.
Exploratory method

57
Exploratory research is a type of research conducted for a problem that has not
been clearly defined. Exploratory research helps determine the best research design,
data collection method and selection of subjects. It should draw definitive
conclusions only with extreme caution. Given its fundamental nature, exploratory
research often concludes that a perceived problem does not actually exist.

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Sample Method-
Random Sample method-
A random sample is one chosen by a method involving an unpredictable
component. Random sampling can also refer to taking a number of independent
observations from the same probability distribution, without involving any real
population. The sample usually is not a representative of the population from which
it was drawn— this random variation in the results is known as sampling error.
● A simple random sample is selected so that all samples of the same size have
an equal chance of being selected from the population.

● A self-weighting sample, also known as an EPSEM (Equal Probability of

Selection Method) sample, is one in which every individual, or object, in the
population of interest has an equal opportunity of being selected for the
sample. Simple random samples are self-weighting.

● Stratified sampling involves selecting independent samples from a number of

subpopulations, group or strata within the population. Great gains in
efficiency are sometimes possible from judicious stratification.

● Cluster sampling involves selecting the sample units in groups. For example,
a sample of telephone calls may be collected by first taking a collection of
telephone lines and collecting all the calls on the sampled lines. The analysis
of cluster samples must take into account the intra-cluster correlation which
reflects the fact that units in the same cluster are likely to be more similar than
two units picked at random.

59
(Here I have chosen simple random sample method for collecting the data)
Sample Size

We have collected 50 samples from the population of different- different area of

Dehradun.
A ANALYSIS
Data analysis and the interpretation of data were a combination of the literature
reviewed and the outcomes of the study. This stage was strengthened by the
qualitative methods used, to discover results of the study.
The Statistics Package for Social Science software (SPSS) was used in the analysis
of the survey. Inferential and descriptive statistical tools are employed to quantify
and estimate the collected data, and to study their basic patterns. Following data
analysis techniques are be used to analyze the data:
MEAN
It is a central tendency measure representing the arithmetic average of a set of
observations. The study uses mean to describe the sample. More specifically, it is
possible to get a broad picture of the sample by considering the mean score of each
of the variable.
ANALYSIS OF VARIANCE (ANOVA)
Analysis of variance is a statistical technique used to test the degree to which two
or more groups differ from each other. ANOVA evaluate the importance of one or
more factors by comparing the response variable means at the different factor
levels. The ANOVA is used to determine whether there are any significant
differences between the means of two or more independent groups. It is used to test

60
the hypothesis that the means of two or more populations are equal at a given level
of significance.
LINEAR REGRESSION

In statistics, linear regression is a linear approach for modelling the relationship

between a scalar dependent variabley and one or more explanatory variables (or
independent variables) denoted X. The case of one explanatory variable is called
simple linear regression. For more than one explanatory variable, the process is
called multiple linear regression. (This term is distinct from multivariate linear
regression, where multiple correlated dependent variables are predicted, rather than
a single scalar variable.)

RELIABILITY
Reliability means the consistency of items of scale and the whole scale. The
consistency of the items was checked with the help of total items correlation
coefficient method. The total of all the items of scale was computed and the
combination of total with each item was calculated. It was found that for all the
sections, the correlation coefficient were highly significant which means that all the
item were consistent or reliable.

61
DATA ANALYSIS
AND
INTERPRETATION

62
Years_of_working_in_organization

Frequenc Valid Cumulative

y Percent Percent Percent

63
Valid 0-1 Year 7 7.0 7.0 7.0
2-5 Years 44 44.0 44.0 51.0
6-10 Year 42 42.0 42.0 93.0
More than 107 7.0 7.0 100.0
years
Total 100 100.0 100.0

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Factor_of_motivation
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Monetary Benefits 21 21.0 21.0 21.0
Non Monetary48 48.0 48.0 69.0
Benefits
Both 31 31.0 31.0 100.0
Total 100 100.0 100.0

Employer_encouragement

65
 Frequenc Valid Cumulative
y Percent Percent Percent
Valid A 49 49.0 49.0 49.0
D 4 4.0 4.0 53.0
N 16 16.0 16.0 69.0
SA 29 29.0 29.0 98.0
SD 2 2.0 2.0 100.0
Total 100 100.0 100.0

66
salary_satisfaction
Frequenc Valid Cumulative
y Percent Percent Percent
Valid A 45 45.0 45.0 45.0
D 1 1.0 1.0 46.0
N 22 22.0 22.0 68.0
SA 31 31.0 31.0 99.0
SD 1 1.0 1.0 100.0
Total 100 100.0 100.0

67
Productive_working_alone
Frequenc Valid Cumulative
y Percent Percent Percent
Valid A 63 63.0 63.0 63.0
D 1 1.0 1.0 64.0
DS 1 1.0 1.0 65.0
N 14 14.0 14.0 79.0
SA 18 18.0 18.0 97.0
SD 3 3.0 3.0 100.0
Total 100 100.0 100.0

change_working_habits
Frequenc Valid Cumulative
y Percent Percent Percent

68
Valid A 47 47.0 47.0 47.0
D 5 5.0 5.0 52.0
N 19 19.0 19.0 71.0
SA 29 29.0 29.0 100.0
Total 100 100.0 100.0

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 FINDINGS

1. MostoftherespondentsofIdeapreferpost-paidservicethantoprepaid

2. Mostoftherespondentscametoknowaboutideathroughfriends/
relatives.

3. Nearly50percentofrespondentsareattractedtow
ardsIdea’swidestcoverage and the remaining
50 percent towards other features.

4. Mostoftherespondentsneedimprovementin service

5. Morerespondentsprefersportspersontofilm

70
starasbrandambassador 6.55% respondents

are ready to subscribe the lifelong plan

71
 SUGESSTIONS

1. Customerswantthecompanytotakefeedbackregardingservices
andinformtheaboutnewtariff plan charges

2. Ideashouldchangepulseratefrom1minuteto15 seconds

3. Customerswantmoreimprovementinservice.

4. “Idea Cellular” should give more advertisement through

Television and should place more hoarding and billboards.

Newspapersandshouldpacemorehoardingandbillboards.

5. IdeamustmakecleartheconditionsapplicablewithlifelongIncom
ingplan.

6. Ideashouldgiveextratalktimeandreducerentalcharges.

7. Callclarityshouldbeimproved.

8. Customershavesuggestedforcustomizedrechargefacility

9. ManycustomershavesuggestedoffreeSMSserviceandfreeoutgo
ingcallswithintheCUG.

72
BIBLIOGRAPHY

73
Abadi, F. E., Jalilvand, M. R., Sharif, M., Salimi, G. A., &Khanzadeh, S. A.
(2011). A Study of Influential Factors on Employees’ Motivation for Participating
in the In-Service Training Courses Based on Modified Expectancy Theory.
International Business and Management, Vol 2, No 1, pp 157-169.
Ali, R., & Ahmad, M. S., (2009). The Impact of Reward and Recognition
Programs on Employee’s Motivation and Satisfaction: An Empirical Study.
International Review of Business Research Papers, 5 (4),pp 270-279.
Annamalai, T., Abdullah, A. G. K., &Alasidiyeen, N. J., (2010).The Mediating
Effects of Perceived Organizational Support on the Relationships between
Organizational Justice, Trust and Performance Appraisal in Malaysian Secondary
Schools. European Journal of Social Sciences, 13 (4), 623-632.
Aydin, B., &Ceylan, A., (2009). Does Organizational learning capacity impact on
organizational effectiveness? Research analysis of the metal industry. Development
and Learning in Organizations, 23 (3), 21-23.
Baldoni, J., (2005). Motivation Secrets. Great Motivation Secrets of Great Leaders
[WWW page]. URL http://govleaders.org/motivation_secrets.htm
Beugré, Constant, D., &Offodile, O. F., (2001). Managing for organizational
effectiveness in sub-Saharan Africa: a culture-fit model. The International Journal
of Human Resource Management, 12 (4), 535-550.

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Chowdhury, M. S., (2007). Enhancing Motivation and Work Performance of the
Salespeople: The Impact of Supervisors’ Behavior. African Journal of Business
Management, 1 (9), 238-243.
Connolly, T., Conlon, E. J., & Deutsch, S. J., (1980). Organizational effectiveness:
a multiple constituency approach. Academy of Management Review, 5, 211-17.
Danish, R. Q., & Usman, A., (2010). Impact of Reward and Recognition on job
Satisfaction and Motivation: An Empirical Study from Pakistan. International
Journal of Business and Management, 5 (2), 159-167.
Fard, H. D., Ghatari, A. R., &Hasiri, A., (2010). Employees Morale in Public
Sector: Is Organizational Trust an Important Factor?. European Journal of
Scientific research, 46 (3), 378-390.
Honold, L., (1997). A Review of the Literature on Employee Empowerment.
Empowerment in Organizations, 5 (4), 202-212.
Houran, J., &Kefgen, K., Money and Employee Motivation [WWW page]. URL
www.2020skills.com
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Network [WWW page]. URL http://www.iese.edu/IRCO

75
QUETIONNAIRE

76
Please mark your responses by putting a tick mark ( ) at appropriate place.
1) PERSONAL INFORMATION

A. Age:

(i) Up to 25 years (ii) 26-35 years

(iii) 36-45 years (iv) 46-55 years
(v) 56 years and above

B. Gender:

(i) Male (ii) Female

(iii) Others

77
 C. Marital Status

(i)Married (ii) Unmarried

D. Educational Qualification

(i) Under graduate (ii) Graduate

(iii) Post graduate (iv) Professionally qualified

E. Income ( per month)

(i) Up to Rs.15,000 (ii) Rs15,001 to Rs.25,000

(iii) Rs.25,001 to Rs.35,000 (iv) Rs.35,001 to Rs 45,000
(v) Rs 45,001 to 55,000 (vi) Rs 55, 001 and Above

F. Since how many years have you been working with this organization?

(i) 0-1 Year (ii) 2-5 Years

(iii) 6-10 Year (iv) More than 10 years

G Which factor that motivates you more?

(i) Monetary Benefits (ii) Non Monetary
Benefits
(iii) Both
EMPLOYEE MOTIVATION
2 My employer encourages me to work.
3 I have the possibility to advance in my work.

78
4 I am satisfied with my salary.
6 My work tasks are interesting.
WORK Culture
7 I am more productive working alone
9 Its very hard for me to change my working
habits
10 I respond to new task fairly and quickly
WORK CULTURE AND ITS RELATION MOTIVATION
12 Support from other staff member is helpful to
get motivated
13 Organizational policies motivates for activities
its aim and objective
14 Employee receive regular feedback about their
work perform
15 Employee with high performance are publically
rewarded and prasied.
16 There is possibility for advancement to
position.

79