Employee motivational

Issues

SUBMITTED TO:- GROUP NO:- 04

Dr. Mousumi S. Bhattacharya & 1. Bhujanga rao sandeep.B (06)

Dr. Nilanjan Sengupta 2. Govind Maanas.k (09)

3. Trinadh kumar .G

SUBMITTED ON:- 4. K.Anish (12)

22-03-2010 5. Rajender singh (22)

6. Somraj Pattak (27)

7. Vidushi Saxena(34)

ACKNOWLEDGEMENT

This is our humble attempt to present gratitude in preparing this report.This project

would not have been possible without the dedication and contribution of a number of

individuals.

First and foremost, we would like to express our gratitude to DR. NILANJAN SEN GUPTA AND DR. MOUSAMI S.BHATTACHARYA for

agreeing to supervise us during the project. They helped us in every step of the way and encouraged us to propel ourselves higher.

Also, we want to show our gratefulness to All those who have shown their continuous and

cordial support during our project.

Finally, we thank to IFIM Bschool, Bangalore for providing us with such opportunities to

work and gain experience of the professional field and writing report like this.

MOTIVATION

“ You are never too old to set another goal or to dream a new dream.”

Les brown

One of the most important factors that lead one to their goals is the drive. This drive is known as

motivation. It is a zest and determination with a kind of excitement that leads one to persevere to

reach greater heights, in no matter what avenue of their life; be it – personal or professional. The

drive may come from an internal or external source. The individual determines this.

DEFINITION OF MOTIVATION:-

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

specific action or certain behavior. Motivation is present in every life function. Simple acts such

as eating are motivated by hunger. Education is motivated by desire for knowledge. Motivators

can be anything from reward to coercion.

From the scientific viewpoint, by most accounts, motivation is defined as an inner state of need

or desire. That state of desire creates a movement or activity towards satisfying that desire.

In my never-ending quest to spread the word about turning ideas into action, I view inspiration as

the state of mind that primes us to come up with great ideas, and motivation as the state of mind

that spurs us to action.

Many contemporary authors have also defined the concept of motivation. Motivation has

been defined as: the psychological process that gives behavior purpose and direction (Kreitner,

1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs

(Buford, Bedeian, & Lindner, 1995); an internal drive to satisfy an unsatisfied need (Higgins,

1994); and the will to achieve (Bedeian, 1993).

Motivation is the activation or energization of goal-oriented behavior.

Intrinsic

Extrinsic

From a practical standpoint, we can dig into our motives in order to get better results, and move

ourselves from point A to point B. For example, if you know what motivates you, you can use

those motives to get yourself to do things that you wouldn't do otherwise. These same principles

can be applied to motivating others as well.

Motivational techniques, therefore, are useful to teachers, leaders, parents, employers, and really,

almost anyone. The key is in understanding that you are not motivating someone else. Instead,

you are simply providing a circumstance that triggers that person to be motivation.

INTRINSIC AND EXTRINSIC MOTIVATION:-

Intrinsic Motivation:-

Intrinsic motivation comes from rewards inherent to a task or activity itself - the enjoyment of a

puzzle or the love of playing. This form of motivation has been studied by social and educational

psychologists since the early 1970s. Research has found that it is usually associated with high

educational achievement and enjoyment by students. Intrinsic motivation has been explained by

Fritz Heider' attributional theory, Bandura's work on self effeciency,and Ryan and Deci's

cognitive evaluation theory. Students are likely to be intrinsically motivated if they:

attribute their educational results to internal factors that they can control (e.g. the amount

of effort they put in),

believe they can be effective agents in reaching desired goals (i.e. the results are not

determined by luck),

are interested in mastering a topic, rather than just rote-learning to achieve good grades.

Extrinsic motivation:-

Extrinsic motivation comes from outside of the performer. Money is the most obvious example,

but coercion and threat of punishment are also common extrinsic motivations.

While competing, the crowd may cheer on the performer, which may motivate him or her to do

well. Trophies are also extrinsic incentives. Competition is in general extrinsic because it

encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the

activity.

Social psychological research has indicated that extrinsic rewards can lead to overjustification

and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect,

children who expected to be (and were) rewarded with a ribbon and a gold star for drawing

pictures spent less time playing with the drawing materials in subsequent observations than

children who were assigned to an unexpected reward condition and to children who received no

extrinsic reward.

Motivation starts with you! As you aspire to be more successful in life, your attiutude towards

yourself and others will play a huge role. Positive people learn how to handle life's challenges

differently and use these opportunities to grow. So can you!

Self Motivation:-

The self-control of motivation is increasingly understood as a subset of emotional intelligence; a

person may be highly intelligent according to a more conservative definition (as measured by

many intelligence test), yet unmotivated to dedicate this intelligence to certain tasks. Yale School

of Management professor Victor Vroom's "expectancy theory" provides an account of when

people will decide whether to exert self control to pursue a particular goal.

Drives and desires can be described as a deficiency or need that activates behaviour that is aimed

at a goal or an incentive. These are thought to originate within the individual and may not require

external stimuli to encourage the behaviour. Basic drives could be sparked by deficiencies such

as hunger, which motivates a person to seek food; whereas more subtle drives might be the

desire for praise and approval, which motivates a person to behave in a manner pleasing to

others.

By contrast, the role of extrinsic rewards and stimuli can be seen in the example of training

animals by giving them treats when they perform a trick correctly. The treat motivates the

animals to perform the trick consistently, even later when the treat is removed from the process.

THEORIES OF MOTIVATION :-

1. Herzberg's theory of motivators and hygiene factors:-

Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's attitudes

about work. He concluded that such factors as company policy, supervision, interpersonal

relations, working conditions, and salary are hygiene factors rather than motivators. According

to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence

does not motivate or create satisfaction.

In contrast, he determined from the data that the motivators were elements that enriched a

person's job; he found five factors in particular that were strong determiners of job satisfaction:

achievement, recognition, the work itself, responsibility, and advancement. These motivators

(satisfiers) were associated with long-term positive effects in job performance while the hygiene

factors (dissatisfiers) consistently produced only short-term changes in job attitudes and

performance, which quickly fell back to its previous level.

In summary, satisfiers describe a person's relationship with what she or he does, many related to

the tasks being performed. Dissatisfiers, on the other hand, have to do with a person's

relationship to the context or environment in which she or he performs the job. The satisfiers

relate to what a person does while the dissatisfiers relate to the situation in which the person does

what he or she does.

2. Maslow's hierarchy of needs:-

In 1954, Maslow first published Motivation and Personality, which introduced his theory about

how people satisfy various personal needs in the context of their work. He postulated, based on

his observations as a humanistic psychologist, that there is a general pattern of needs recognition

and satisfaction that people follow in generally the same sequence. He also theorized that a

person could not recognize or pursue the next higher need in the hierarchy until her or his

currently recognized need was substantially or completely satisfied, a concept called prepotency.

Maslow's hierarchy of needs is shown in Table 1. It is often illustrated as a pyramid with the

survival need at the broad-based bottom and the self-actualization need at the narrow top.

Table 1

Maslow's hierarchy of needs

Level Type of Need Examples

1 Physiological Thirst, sex, hunger

2 Safety Security, stability, protection

3 Love and

Belongingness

To escape loneliness, love and

be loved, and gain a sense of

belonging

4 Esteem Self-respect, the respect others

5 Self-

actualization

To fulfill one's potentialities

(i) Physiological needs :-

These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep,

medicine and education are the basic physiological needs which fall in the primary list of need

satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to

maintain life, no other motivating factors can work.

(ii) Security or Safety needs :-

These are the needs to be free of physical danger and of the fear of losing a job, property, food or

shelter. It also includes protection against any emotional harm.

(iii) Social needs :-

Since people are social beings, they need to belong and be accepted by others. People try to

satisfy their need for affection, acceptance and friendship.

(iv) Esteem needs :-

According to Maslow, once people begin to satisfy their need to belong, they tend to want to be

held in esteem both by themselves and by others. This kind of need produces such satisfaction as

power, prestige status and self-confidence. It includes both internal esteem factors like self-

respect, autonomy and achievements and external esteem factors such as states, recognition and

attention.

(v) Need for self-actualization :-

Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is

capable of becoming, it includes growth, achieving one’s potential and self-fulfillment. It is to

maximize one’s potential and to accomplish something.

As each of these needs are substantially satisfied, the next need becomes dominant. From the

standpoint of motivation, the theory would say that although no need is ever fully gratified, a

substantially satisfied need no longer motivates. So if you want to motivate someone, you need

to understand what level of the hierarchy that person is on and focus on satisfying those needs or

needs above that level.

Maslow’s need theory has received wide recognition, particularly among practicing managers.

This can be attributed to the theory’s intuitive logic and ease of understanding. However,

research does not validate these theory. Maslow provided no empirical evidence and other

several studies that sought to validate the theory found no support for it.

3. Alderfer’s ERG theory :-

Clayton Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory

(existence, relatedness and growth).

Physiological and safety , the lower order needs, are placed in the existence category, while love

and self esteem needs are placed in the relatedness category.

The growth category contains our self-actualization and self-esteem needs.

In addition to the differences in categorizing human needs, ERG theory adds a regression

hypothesis to go along with the progression hypothesis originally proposed by Maslow.

Alderfer’s regression hypothesis helped explain people’s behavior when frustrated at meting

needs at the next higher level in the hierarchy.

4. McClelland’s Theory of Needs :-

David McClelland has developed a theory on three types of motivating needs :

1. Need for Power

2. Need for Affiliation

3. Need for Achievement

Basically people for high need for power are inclined towards influence and control. They like to

be at the center and are good orators. They are demanding in nature, forceful in manners and

ambitious in life. They can be motivated to perform if they are given key positions or power

positions.

In the second category are the people who are social in nature. They try to affiliate themselves

with individuals and groups. They are driven by love and faith. They like to build a friendly

environment around themselves. Social recognition and affiliation with others provides them

motivation.

People in the third area are driven by the challenge of success and the fear of failure. Their need

for achievement is moderate and they set for themselves moderately difficult tasks. They are

analytical in nature and take calculated risks. Such people are motivated to perform when they

see atleast some chances of success.

McClelland observed that with the advancement in hierarchy the need for power and

achievement increased rather than Affiliation. He also observed that people who were at the top,

later ceased to be motivated by this drives.

5. “Theory X and Theory Y” of Douglas McGregor:-

McGregor, in his book “The Human side of Enterprise” states that people inside the organization

can be managed in two ways. The first is basically negative, which falls under the category X

and the other is basically positive, which falls under the category Y. After viewing the way in

which the manager dealt with employees, McGregor concluded that a manager’s view of the

nature of human beings is based on a certain grouping of assumptions and that he or she tends to

mold his or her behavior towards subordinates according to these assumptions.

Under the assumptions of theory X :

Employees inherently do not like work and whenever possible, will attempt to avoid it.

Because employees dislike work, they have to be forced, coerced or threatened with

punishment to achieve goals.

Employees avoid responsibilities and do not work fill formal directions are issued.

Most workers place a greater importance on security over all other factors and display

little ambition.

In contrast under the assumptions of theory Y :

Physical and mental effort at work is as natural as rest or play.

People do exercise self-control and self-direction and if they are committed to those

goals.

Average human beings are willing to take responsibility and exercise imagination,

ingenuity and creativity in solving the problems of the organization.

That the way the things are organized, the average human being’s brainpower is only

partly used.

On analysis of the assumptions it can be detected that theory X assumes that lower-order needs

dominate individuals and theory Y assumes that higher-order needs dominate individuals. An

organization that is run on Theory X lines tends to be authoritarian in nature, the word

“authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to

command.” In contrast Theory Y organizations can be described as “participative”, where the

aims of the organization and of the individuals in it are integrated; individuals can achieve their

own goals best by directing their efforts towards the success of the organization.

However, this theory has been criticized widely for generalization of work and human behavior.

6. Equity Theory :-  

As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the

reward structure as being fair or unfair, relative to the inputs. People have a tendency to use

subjective judgment to balance the outcomes and inputs in the relationship for comparisons

between different individuals. Accordingly :

If people feel that they are not equally rewarded they either reduce the quantity or quality of

work or migrate to some other organization. However, if people perceive that they are rewarded

higher, they may be motivated to work harder.

EMPLOYEE MOTIVATION:-

Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated

employees are needed in our rapidly changing workplaces. Motivated employees help

organizations survive. Motivated employees are more productive. To be effective, managers

need to understand what motivates employees within the context of the roles they perform. Of all

the functions a manager performs, motivating employees is arguably the most complex. This is

due, in part, to the fact that what motivates employees changes constantly (Bowen &

Radhakrishna, 1991). For example, research suggests that as employees' income increases,

money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting

work becomes more of a motivator.

Most companies have it all wrong. They don't have to motivate their employees. They have to

stop demotivating them.

The great majority of employees are quite enthusiastic when they start a new job. But in about 85

percent of companies, our research finds, employees' morale sharply declines after their first six

months—and continues to deteriorate for years afterward. That finding is based on surveys of

about 1.2 million employees at 52 primarily Fortune 1000 companies from 2001 through 2004,

conducted by Sirota Survey Intelligence (Purchase, New York).

The fault lies squarely at the feet of management—both the policies and procedures companies

employ in managing their workforces and in the relationships that individual managers establish

with their direct reports.

Three key goals of people at work

To maintain the enthusiasm employees bring to their jobs initially, management must understand

the three sets of goals that the great majority of workers seek from their work—and then satisfy

those goals:

Equity: To be respected and to be treated fairly in areas such as pay, benefits, and job

security.

Achievement: To be proud of one's job, accomplishments, and employer.

Camaraderie: To have good, productive relationships with fellow employees.

According to various literature on motivation, individuals often have problems consistently

articulating what they want from a job. Therefore, employers have ignored what individuals say

that they want, instead telling employees what they want, based on what managers believe most

people want under the circumstances. Frequently, these decisions have been based on Maslow's

needs hierarchy, including the factor of prepotency. As a person advances through an

organization, his employer supplies or provides opportunities to satisfy needs higher on

Maslow's pyramid.

Frederick has tried to modify Maslow’s need Hierarchy theory. His theory is also known as two-

factor theory or Hygiene theory. He stated that there are certain satisfiers and dissatisfiers for

employees at work. In- trinsic factors are related to job satisfaction, while extrinsic factors are

associated with dissatisfaction. He devised his theory on the question : “What do people want

from their jobs ?” He asked people to describe in detail, such situations when they felt

exceptionally good or exceptionally bad. From the responses that he received, he concluded that

opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job

does not necessarily make the job satisfying. He states that presence of certain factors in the

organization is natural and the presence of the same does not lead to motivation. However, their

nonpresence leads to demotivation. In similar manner there are certain factors, the absence of

which causes no dissatisfaction, but their presence has motivational impact.

Company profile:-

Established on 14th august 2000, HDFC STANDARD LIFE INSURANACE CO. LTD. is a joint

venture between Housing Development Finance Corporation Limited(HDFC limited) – india’s

leading housing finance institutions, and a group company of the Standard Life Pic, UK. The

company is one of leading private insurance companies, offering a range of individual and group

insurance solutions, in India. Being a joint venture of top financial services groups, HDFC

Standard Life has adequate financial expertise to manage long-term investment safety and

resourcefully.

HDFC’S Work:-

HDFC Standard Life Insuranace offers a range of individual and group solutions, which was be

easily personalized to specific needs. Its group solutions have been planned to offer complete

flexibility, together with a low charging structure. As of 31 December, 2008, the Company’s new

business premium income stood at rs 1839.70 Crores; it has covered over 812,811 lives so far.

Product portfolio comprises solutions, which meet various customer need such as

Protections, Pension, Savings, Investment, and Health. Customers have the added advantage of

customizing the Plans, by adding optional benefits called riders, as a normal price. The company

currently has 25 retail and 6 group products in its portfolio, along with five optional rider

benefits catering to the savings, investment, protection and retirement need of customers.

Visions of HDFC:-

‘The most successful and admired lie insurance company, which means that we are the most

trusted company, the easiest to deal with, offer the best value for money, and set the standards in

the industry’. ‘The most obvious choice for all.’

HDFC Standard Life Insurance Company Ltd. is one of India’s leading private life

insurance companies, which offers a range of individual and group insuranace solutions. It is a

joint venture between Housing Development Finance Corporation Liimited. India’s leading

housing finance institions and the standard life Assuarance Company, a leading provider of

financial services from the United Kingdom. Both the promoters are well known for their ethical

Core values:-

Integrity

Innovation

Customer centric

People care

Teamwork “one for all and all for one”

Joy and simplicity

Motivation in HDFC:-

HDFC Standard Life Insurance is known for its stimulatin environment with high levels

of motivations, empowerment and recognition. They encourage an open and informal culture

that values intergrity, commitment, teamwork and excellence in customers service. They adopt a

policy of strong learning and development initiatives, which promotes day-to-day learning as

well as decision-making. They belive their strength is theirs people, so they endeavour to surpass

their expenditure and give them the best possible work environment and benefits that match the

best in the industry.

Prime aim of the company:-

“The primary aim of our company is to help our fellow citizens secure their lives through

structured financial planning and achive their financial goals at every stange of life”. As a joint

venture of leading financial services groups, HDFC Standard Life has the financial expertise

required to manage long-term investment safely and efficiently.

What motivate the employees?

The company has a structured performance Management system where every employee

is measured and rewarded on an annual performance Cycle.

Structured career path where employees have the opportunity to move vertically as well

as horizontally.

Regular Rewards & Recognition systems in all functions help employees inject higher

adrenaline and continue with superior levels of delivery

Finally, and the most important of all – the values at work followed at HDFC Standard

Life help employees work & perform in a high-energy platform.

Empowerment:-

HDFC Standard Life belives in ‘custmoer First’ and this is very important when we deal in the

business of services. Every employee is empowered to take decisions while keeping he intrest of

the customers to the foremost. High leverl of empowerment is back by superior levels of skills

honed by every employee dealing such situations.

Recent changes which affected motivation:-

Very recently the company has introduced ‘Mid-year performance Review that helps the

company and its employees with transparent & value-added feedback mechanism.

Motivation and alignment of company goals:-

Various performance management system and reward & Recognition systems help align

employees in every function to the Macro & Macro of the company.

Employee motivation and development of company:-

Various levels of engagement & motivation tools have helped maintain one of the lowest

level of attrition among industry peers. Employees have grown with the company over the last 9

years and feel highly engaged towards the development of their organization.

Performance appraisal and effectiveness:-

The company follows one of the best performance Appraisal systems across the entire

industry. HDFC attributes the success of their company to their people, who are their most

important asset. They belive employees are a key fact of the company and it is their contribution

that has enabled the company to achieve their current status. Since they deserve the best,

HDFC’S efforts have been to provide them with the best environment, culture and development

opportunities possible.

Company profile:-

HSBC Bank is a subsidiary of HSBC Holdings plc, a London based banking giant which,

according to the Forbes magazine, is the largest banking group in the world, and the 6th largest

company in the world as of April 2009. HSBC Holdings had been established in Hong Kong in

the year 1990 as the parent company to the Hongkong and Shanghai Banking Corporation

(HSBC). Further, the bank moved its headquarters from Hong Kong to London.

HSBC’S work:-

Headquartered in London, HSBC is one of the largest banking and

financial services organizations in the world. Their international network comprises around

8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the

Middle East and Africa.

With a loan-deposit ratio of 90%, HSBC Bank is said to be one of

the five British banks that claim to have more deposits than loans. Such a high loan-deposit ratio

of the bank has been able to retain the trust of its investors and customers, keeping them assured

of its financial strengths. The sound financial position of the bank can also be attributed to the

fact that its stocks maintained relatively high price even during the credit crunch phase,

something not commonly seen to have happened to other banks. 

They provide a comprehensive range of financial services to more

than 100 million customers worldwide in Personal Financial Services, Commercial Banking,

Global Banking and Markets, Private Banking and other activities.

HSBC’S Vision:-

HSBC vision is to be the world’s leading financial service

company. We want HSBC to be the first choice for our customers and for our employees the best

place to bank, and the best place to work. We also believe that we can play a role in helping to an

address the formidable challenges facing society today and by helping to make the world a better

place to live, we will also make our own business more sustainable. At HSBC, our response is

inevitably shaped by the views of our shareholders, our customers, our colleagues and the wider

community; and sustainability is clearly a theme of growing importance to all of these

constituencies. If our owner, customers and staff consider these issue to be important, the clearly

means that our social responsibilities and sustainability must be at the very core of our business;

not just an add-on to it. This is why, our primary objective in our strategic plan states that we

aspire to be one of the world’s leading brands for customer experience and corporate

responsibility. We believe a company that behave ethically, responsibly and believes in

sustainability will ultimately be more successful than its competitors because it addresses issues

on which its long–term success depends, and thereby gains the confidence of investors,

customers and employees. The companies that will be our sector's leaders in five, 10 and 50

years time already know that a commitment to environmental and social sustainability is not a

secondary issue; it is a defining strategy that will help build financially successful global

companies of the future.

Our goal is not, and never has been, profit at any cost because we

know that tomorrow's success depends on the trust we build today.

We look to address the expectations of our customers,

shareholders, employees and other stakeholders. Our frequently asked question cover a range

of issues including the size of HSBC’s profits, customer indebtedness and executive pay.

Being one of the world’s biggest banks means the decisions we

make can have a big impact. We aim to lend and invest responsibly, avoiding projects where the

potential for social and environmental damage outweighs the economic benefits.

Companies like ours must share responsibility for the environment

with governments and citizens for minimizing the damaging effects of human activity – pollution

of land, water and air and the depletion of resources.

The world is a rich and diverse place. The better our people reflect

this diversity, the better we can anticipate and meet our customers’ needs.

Involving our employees in the community brings many benefits.

Our employees gain understanding, confidence and self–esteem. Being recognized in the

community also helps HSBC to attract great people.

Education is crucial to the development and prosperity of every

country. By investing in education, we seek to build the confidence and abilities of young people

on whom, as customers or employees, our business and future success will depend

Motivating employees – HSBC:-

"Motivation is based on giving people an appropriate combination of rewards. "

HSBC often find organizations using their performance appraisal software - and even their 360

degree feedback solutions - as a method of linking pay to performance.  HSBC always support

clients in those initiatives.  They always caution that it forms one small part of the benefits of

360 and appraisal and needs to be part of a wider initiative if the aim is to improve organizational

performance.

What motivates the employee?

Opportunity to Learn, Develop and Advance as an Employee.

Employees understand they need to grow, learn and develop new skills in order to

advance. The ability to be able to choose their assignments and rise to new challenges

offered by new responsibilities.

Flexible Hours.

Family, children, friends, church, sports, hobbies and other activities all have demands on

today's employees. A flexible schedule or the occasional afternoon off can help

employees meet some of these obligations. By allowing some flexibility in an employees

schedule you can increase their desire and motivation.

Recognition.

In today's high paced work environment it is reported that employees consider

recognition of their work and efforts rare and infrequent. Think about it - What better

way to have an employee continue their good work and success then to offer them praise-

verbal, written or ideally a public announcement.

The Opportunity to Contribute.

- The opportunity to be part of the team.

- To work closely with managers and management.

- To be involved in key decisions.

- To be listened to and heard.

Independence and Autonomy.

Employees want to be able to work independently. They do not want someone constantly

watching over them and questioning their every move. They like to receive their

assignments -preferable with the time frame required for completion and then have the

independence to complete the work given the guidelines and framework you have set on

their own merits.

These benefits can go a long way in creating Employee/Employer loyalty and respect. This

clearly demonstrates there are many points, besides money, to consider when you establish your

management and employee policies.

Recognition and rewards:-

Hard work and contribution in HSBC never go unnoticed.

The size they have grown to and the of people has given rise for a need to introduce awards. At

every step of success there is an award awaiting for the particular employee or team.the

challenges they encounter, motivates them to accomplish greater feats and the comforts of

rewards and recognition comes as a package.

HSBS takes pride in their long serving colleagues. They are

a major force behind their success.HSBS recognizes their contribution through a comprehensive

reward programme schemes include holiday packages with special facilities.

Rewards provided to employees for motivation:-

Pension plan / pension contributions

Health insurance/above-standard medical treatment.

Life insurance/other insurance.

Education/training program / school fees.

Recreation / sport /culture.

Meal vouchers / canteen.

Company cars.

Mobile phones.

Gifts to employees.

Accommodation.

Profile:-

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba

Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in

Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred

years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization

in the year 1969, attaining the status of a national level player in terms of geographical reach and

clientele segments. Eighties was characterized by business diversification for the Bank. In June

2006, the Bank completed a century of operation in the Indian banking industry. The eventful

journey of the Bank has been characterized by several memorable milestones. Today, Canara

Bank occupies a premier position in the comity of Indian banks. With an unbroken record of

profits since its inception, Canara Bank has several firsts to its credit.

Work Culture:-

As a premier commercial bank in India, Canara Bank has a distinct track record in the

service of the nation for over 100 years. Today, Canara Bank has a strong pan India presence

with 3002 branches and over 2000 ATMs, catering to all segments of an ever growing

clientele base of over 36 million. We are recognized as a leading financial conglomerate in

India, with as many as nine subsidiaries/sponsored institutions/joint ventures in India and

abroad. As we step into the second century, we aspire to emerge as a Global Bank with Best

Practices.

  Work culture where family concept is practiced among the employees.

Receptivity to new ideas

Opportunities for experimentation

Facilities which supports growth

Record cordial Industrial Relations

HRD Initiatives

Vision:-

To emerge as a ‘Best Practices Bank’ by pursuing global benchmarks in profitability, operational

efficiency, asset quality, risk management and expanding the global reach.

Mission:-

To provide quality banking services with enhanced customer orientation, higher value creation

for stakeholders and to continue as a responsive corporate social citizen by effectively blending

commercial pursuits with social banking.

HRD INITIATIVES:-

Human Resources Development envisages the growth of the individual in tandem with the

organization and aims to achieve synchronization in a bid to attain the goals set out. It also, inter-

alia, aims at the upliftment of the individual by ensuring an enabling environment to develop

capabilities and to optimize performance. The organization, on its part, would endeavour to tap

individual talents and through various initiatives, ingrain in its human resources, a sense of job

satisfaction that would, with time, percolates down the line.

Our Bank has, over the years, taken a series of initiatives in ensuring the development of our

human resources and a number of time – tested systems have been put in place to hone employee

talent and equip them to take the vigours of office and take the measure of the competition. That

we have been largely successful in our endeavour is a testimony to the efficacy of our well

crafted systems:

Entry Interview

Training System

Incentives for Self Development

Employee Suggestion Scheme

Staff Meeting

Study Circle

Brainstorming Sessions

Quality Circle

Exit Interview

Entry Interview:-

Entry Interview assumes great significance as it is the first step in the process of enfolding the

new entrant in the warmth embrace of "Canbank Family Culture". The pride of being a part of

our institution goes a long way in moulding our best asset the human resource. The system of

"Entry Interview" paves way for this. Objectives of the system is

To introduce the new entrant to the history, ethos, culture, tradition and work ethics of the

Bank.

To show concern for proper settlement of the new entrant at the work place and to ensure

full devotion to work.

Proper introduction of the new entrant to all the employees and to create a feeling of

oneness and a sense of belonging so that the process of emotional integration is fast and

smooth.

To lay a firm foundation for enriching partnership between the new entrant and the

organization.

Training System:-

The Visionaries of our Bank had, long back, foreseen the importance of imparting professional

training to our employees for efficient working. As a result, 'Bangalore School of Training', the

in house training centre of the Bank, was born on 12.04.1954. Today, our Training system has an

Apex College, viz., The Staff Training College (STC) at Bangalore with 13 Regional Staff

Training Colleges (RSTCs) spread across the country for effective in-house and cost beneficial

training. The Apex College at Bangalore is the epicenter of training, involving itself in

designing, conducting and evaluating the in-house training programmers’ and getting feedback

on post training utilization. It has Core Group of faculty dealing in these aspects. HR&OD

Section, Personnel Wing, HO, co-ordinates with the functions of STC and also takes care of

external, in-company and foreign training of employees and executives.

Incentives for Self Development:-

Knowledge Management of Human Resource is crucial for any business organization to face the

challenges of competition and to march ahead in the field. As knowledge is power, constant

updation of knowledge is essential. Besides, the well established and constantly reviewed

training system, we have certain incentive schemes as HR initiatives for self development of our

employees.

Employee Suggestion Scheme:-

Employees are the 'Back Bone' of any organization. Systems & procedures are implemented and

new & innovative products are delivered through them. They are the ones who are in constant

touch with clients and customers. Hence, they can pinpoint as to where exactly the shoe pinches

and are capable of giving their suggestions and ideas for improving the systems, procedures,

services, products, etc. To facilitate this, we have a HRD system of 'Employee Suggestion

Scheme' in place. This aims at kindling innovative spirit of the employees and recognizing their

valuable contributions by way of feasible suggestions.

Staff Meeting: -

Staff Meeting is one of the oldest format HRD systems of the Bank. It is the most useful

participative forum at branch/unit level enlisting involvement of all the employees at all cadres in

the effective functioning of the branch/office. It is a free forum for two way communication

facilitating both individual development and organizational effectiveness. The concept basically

aims at Group Synergy, Team Building, Open Culture, Family Feeling and Talent Recognition

which individually and cumulatively benefits the organisation.

Study Circle:-

The concept of Study Circle aims at self development of employees by instilling a desire to

acquire/update knowledge, information and experience. It also kindles and triggers thinking and

learning process, thus facilitating personality development. This is an innovative HRD practice

of the Bank, envisaging enrichment of general knowledge, enabling multifaceted development of

employees, giving an opportunity to employees to discover their talent, come out of their cocoon

and exhibit the same. Added advantage is that the same is arranged at the doorstep of the

employees for their benefit.

Brainstorming Sessions:-

This is an old and useful technique for generating ideas and suggestions on a topic of relevance

so as to generate different possible solutions to a problem by stimulating thinking and

imaginative power of employees. This common technique is well utilized by our Bank, involving

employees at all levels and cadres. Having faith in collective wisdom of employees, we have

adopted the Brainstorming technique to generate ideas from a cross section of employees on

corporate topics of relevance.

Quality Circle:-

The roots of genesis of Quality Circle could be traced to post 2nd world war scenario when mass

industrial production resulted in low quality, high competition, loss of communication and

closeness between Management and workers. Japan, which lost everything, could thrive only on

its survival instinct and Dr Kaoru, Ishikawa an Engineering Professor at Tokyo University

conceived the idea of Quality Circle under his leadership which was registered with Union of

Japanese Scientists and Engineers.

Quality Circle is a voluntary group of employees in the same work area, coming together,

working as a team, solving work related problems resulting in self development and

organizational benefit. The concept has been built on the basic foundation of "Participative work

culture" with motivation and involvement of employees at grass roots level exploring their

potentials, creativity and capabilities.

With a view to provide greater exposure and wide experience, Quality Circles which have

successfully completed their projects are nominated –

To participate in Bank’s Apex Quality Circe Contest.

For presentations at external forums like – Local Chapter Conventions and Annual

National Convention on Quality Circles(NCQC) organized by Quality Circle Forum of

India (QCFI).

Apart from the above, QC Teams are being nominated to International Conventions on Quality

Control Circles(ICQCC) organized by member countries. Several of our QCs have won prizes

and accolades at these conventions.

Exit Interview:-

The concept enables to bid a 'Warm Farewell' to exiting employees, remembering their long

association, respecting their vast experience and considering their valuable suggestions for

organizational benefit. It is an old and well conceived HRD system of the Bank which needs

focussed attention to build better employer – employee relationship and to ensure post retirement

association with the Bank by way of business and propagation of goodwill.

Recent changes which affected motivation:-

NOT many in the banking industry talk about human resource management or employee

motivation. But for Ms. Ranjana Kumar, Chairman and Managing Director (current charge),

Canara Bank, it is a subject that is close to her heart.

Ever since she assumed office in April 1999, Ms. Kumar has been talking about the need to

motivate employees in the banking sector and give them fresh roles. For instance, she introduced

the concept of relationship management at Canara Bank, where the ma rketing professionals are

called relationship managers. It is the task of the relationship managers to relay back to the bank

the needs of the customers. Predictably, Ms. Kumar does not talk about excess workforce in her

organisation unlike some of her p eers!

Even in performance appraisal, Canara has been innovative in recent times. The appraisals are no

more restricted to interviews and tests. Instead, candidates have to take part in group discussions

and psychometric tests were becoming the order of the day at Canara.

Ms. Kumar says the time has come for bankers to look beyond the usual training methods and

evaluation. Bankers have to be `more alive' today than they were earlier. The bank has tied up

with the National Institute of Bank Management (NIBM) for its traini ng and HRD focus to be

different from other PSBs.

The bank already has a tie-up with NIBM for its customer contact programme, where customers

are encouraged to respond to a questionnaire which covers issues ranging from the timings of the

bank to the ambience in the branches. Ms. Kumar says the response has been encouraging and

the bank has even taken up training its front office staff to meet customer demands.

FINDINGS:-

Remuneration packages play an important role in motivating employees. But every employee

is different and what motivates one employee may be of little or no interest to another. To

tackle this, some companies offer a 'salad bar' approach to remuneration that allows staff to

pick and choose their benefits package.

The most visible or obvious part of any remuneration package is the salary. Salary can

be made up of several elements including basic pay, commission, bonuses, profit-

related pay and share dividends.

Many employees appreciate company contributions to pension, insurance or healthcare

schemes.

It is often much cheaper for companies to offer access to group schemes like pensions

than it would be for employees to purchase individual rights.

Company cars remain a popular perk for many employees despite increasing taxation

on cars and fuel.

Rewarding staff through company events and days out can be very effective.

It is a particularly useful way of rewarding groups of people and helps build team

spirit at the same time. It is mainly implemented in the creation of accounts and teams

which are helping in selling personal loans.

For many employees, money and benefits are not the main motivator. Doing

something worthwhile or working for a worthwhile cause is all the motivation they

need.

Bonuses linked to company profits can promote teamwork, as long as individuals can

see how they can affect the figures.

 It is true, we all need money for the expenses of day to day living but studies indicate that when

employees receive a monetary bonus it is typically used to pay bills, expenses or purchase

something that the employee needs, not some thing they truly enjoy. Consequently money

becomes a very in-personal gift. Thus a company should have right balance of monetary and

other facilities.

SUGGESSIONS:-

1. Public sector banks like Canara bank should practice according to equity theory-other

outside which says employee should not compare himself from other bank employees.

We often observe that private sector bank employee are paid higher, so this might de-

motivate public sector banks employees.

2. Private sector banks like HDFC & HSBC banks generally motivate by giving variable

pay program. But according to cognitive evaluation theory the introduction of extrinsic

rewards for work effort that was previously intrinsically rewarded due to the pleasure

associated with the content of the work itself tends to decrease over all motivation.

REFERENCES:-

1. Manoj. K- 9962794639 (HSBC BANK-VISHAKAPATNAM)

2. Santosh Mahapatra – 9986724981(HDFC BANK-BANGALORE)

3. Wikipedia.com

4. Organizational behavior by STEPHEN P.ROBBINS