A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

CHAPTER-I

Introduction
COMPENSATION MANAGEMENT Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Types of Compensation Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity. Direct Compensation Indirect Compensation Need of Compensation Management

* A good compensation package is important to motivate the employees to increase the organizational productivity. * Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively
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and accomplishing its goals. * Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. * The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards. Objectives of Compensation Management:1. Attracting and Retaining Personnel 2. Motivating Personnel: Compensation Management aims at motivating personnel for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance. 3. Optimizing Cost of Compensation: Compensation Management aims at optimizing cost of compensation by establishing some kind of linkage with performance and compensation 4. Consistency in Compensation: Compensation Management tries to achieve consistency both internal and external in compensating employees. Internal consistency involves payment on the basis of criticality of jobs and employees performance on the jobs. BASIC COMPENSATION WAGE: The remuneration paid, for the service of labour in production, periodically to an employee/worker. Wages means any economic compensation paid by the employer under some contract to his workers for the services rendered by them. Usually refer to the hourly rate paid to such groups as production and maintenance employees' wages include family allowance, relief, pay, financial support etc. SALARY: Salary is influenced by the size of a company by the specific industry, and in
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part by the contribution of the incumbent to the process of decision-making. Salary refers to the weekly or monthly rates paid to clerical, administrative and professional employees. Salary is determined by mutual agreement between the individual and the employer. INCENTIVE: An incentive scheme is a plan or programs to motivate industries or group performance. An incentive program is most frequently built on monetary, but may also include a variety of non- monetary rewards or prizes. DETERMINATS The effective use of incentives depends on three variables. They are: 1. The individual. 2. The work situation. 3. The incentive plan. Factors influencing compensation: 1. Organization's capacity to pay 2. Prevailing pay and benefits in the industry: 3. Compensation in the industry and availability of special competent personnel 4. Flexibility, i.e. kind of competencies and abilities in managers: 5. Performance/productivity/responsibilities of individual. 6. Organization philosophy such as to be leader or pay prevailing rates. 7. Qualifications and relevant experience. 8. Stability of employment and advancement opportunities. MOTIVATION Motivation is an employees intrinsic enthusiasm about and drives to accomplish activities related to work. Motivation is that internal drive that causes an individual to decide to take action.

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An individuals motivation is influenced by biological, intellectual, social and emotional factors. As such, motivation is a complex, not easily defined, intrinsic driving force that can also be influenced by external factors. Every employee has activities, events, people, and goals in his or her life that he or she finds motivating. So, motivation about some aspect of life exists in each person's consciousness and actions. The trick for employers is to figure out how to inspire employee motivation at work. To create a work environment in which an employee is motivated about work, involves both intrinsically satisfying and extrinsically encouraging factors. Employee motivation is the combination of fulfilling the employee's needs and expectations from work and the workplace factors that enable employee motivation - or not. These variables make motivating employees challenging. Employers understand that they need to provide a work environment that creates motivation in people. But, many employers fail to understand the significance of motivation in accomplishing their mission and vision. Even when they understand the importance of motivation, they lack the skill and knowledge to provide a work environment that fosters employee motivation. Here are thoughts about encouraging and inspiring employee motivation at work. Motivation Motivation is a willingness to expand energy to achieve a goal and reward. It is a force that activates dormant energies and sets in motion the action of the people. It is the function that kindles a burning passion for action among the human being of an organization. Several factors influence human behavior. There are numerous drives and needs which can act as good motivators moving people to work and getting things done through them as per the plan. People respond to

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physiological needs, social needs and egoistic needs. Human needs and desires are the doorways through which the manager channelizes his motivating efforts. There are three types of motivational programmes to improve a person behavior towards his job. These are: 1. Pay incentives plans 2. Job enrichment and 3. Management by objective Factors Determining response to Motivation There are four important factors governing employee response to the measures of motivation. 1. The intensity or urge of the drive. 2. Past Experience can he rely upon the promises made by the boss. 3. Amount of Reward The quality and quantity of the reward can influence the amount of extra efforts put forth by the employee. 4. Time relationship of response to Reward long range promises are less effective than immediate fulfillment. Type of Motivation If manager wants to get work done by his employees, he may either hold out a promise of a reward (positive motivation) or he may instill fear (negative motivation). Both these types are widely used by managements. 1. Positive or Incentive Motivation: This type of motivation is generally based on reward. A positive motivation involves the possibility of increased motive satisfaction. According to Flippo, Positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward. Incentive motivation is the pull mechanism. The receipt of awards, due recognition and praise for work well done definitely lead to good team spirit, co-operation and a feeling of happiness. Positive motivation includes: (a) Praise and credit for work done (b) Wages and Salaries (c) Appreciation
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(d) A sincere interest in subordinates as individuals (e) Delegation of authority and responsibility 2. Negative or Fear Motivation: This type of motivation is based on force and fear. Fear causes persons to act in a certain way because they fear the consequences. Negative motivation involves the possibility of decreased motive satisfaction. It is push mechanism. The imposition of punishment frequently result in frustration among those punished, leading to the development of maladaptive behavior. It also creates a hostile state of mind and an unfavorable attitude to the job. However, there is no management which has not used the negative motivation at some tome or the other. The Organizational Levers of Motivation Although fulfilling all four of employees basic emotional drives is essential for any company, our research suggests that each drive is best met by a distinct organizational lever. The reward system. The drive to acquire is most easily satisfied by an organizations reward system how effectively it discriminates between good and poor performers, ties rewards to performance, and gives the best people opportunities for advancement. When the Royal Bank of Scotland acquired NatWest, it inherited a company in which the reward system was dominated by politics, status, and employee tenure. RBS introduced a new system that held managers responsible for specific goals and rewarded good performance over average performance. Former NatWest employees embraced their new company to an unusual extent in the aftermath of an acquisition in part because the reward system was tough but recognized individual achievement. Sonoco, a manufacturer of packaging for industrial and consumer goods, transformed itself in part by making a concerted effort to better meet the drive to acquire that is, by establishing very clear links between performance and rewards. Historically, the company had set high business-performance targets, but incentives had done little to reward the achievement of them. In 1995, under Cynthia Hartley, then the new vice president of human resources, Sonoco instituted a pay-for-performance system, based on individual and group metrics. Employee satisfaction and engagement improved, according to
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results from a regularly administered internal survey. In 2005, Hewitt Associates named Sonoco one of the top 20 talent-management organizations in the United States. It was one of the few midcap companies on the list, which also included big players like 3M, GE, Johnson & Johnson, Dell, and IBM. Culture. The most effective way to fulfil the drive to bond to engender a strong sense of camaraderie is to create a culture that promotes teamwork, collaboration, openness, and friendship. RBS broke through NatWests silo mentality by bringing together people from the two firms to work on well defined cost-savings and revenue-growth projects. A departure for both companies, the new structure encouraged people to break old attachments and form new bonds. To set a good example, the executive committee (comprising both RBS and ex-NatWest executives) meets every Monday morning to discuss and resolve any outstanding issues cutting through the bureaucratic and political processes that can slow decision making at the top. Another business with an exemplary culture is the Wegmans supermarket chain, which has appeared for a decade on Fortunes list of 100 Best Companies to Work For. The family that owns the business makes a point of setting a familial tone for the companywide culture. Employees routinely report that management cares about them and that they care about one another, evidence of a sense of teamwork and belonging. Job design. The drive to comprehend is best addressed by designing jobs that are meaningful, interesting, and challenging. For instance, although RBS took a hard-nosed attitude toward expenses during its integration of NatWest, it nonetheless invested heavily in a state-of-the-art business school facility, adjacent to its corporate campus, to which employees had access. This move not only advanced the companys success in fulfilling the drive to bond, but also challenged employees to think more broadly about how they could contribute to making a difference for co-workers, customers and investors. Cirque du Soleil, too, is committed to making jobs challenging and fulfilling. Despite gruelling rehearsal and performance schedules, it attracts and retains performers by accommodating their creativity and pushing them to perfect their craft. Its employees also get to say a lot about how performances are staged, and they are allowed to move from show to show to learn new skills.
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In addition, they get constant collegial exposure to the worlds top artists in the field. Performance-management and resource-allocation processes. Fair, trustworthy, and transparent processes for performance management and resource allocation help to meet peoples drive to defend. RBS, for instance, has worked hard to make its decision processes very clear. Employees may disagree with a particular outcome, such as the nixing of a pet project, but they are able to understand the rationale behind the decision. New technology endeavours at RBS are reviewed by cross-business unit teams that make decisions using clear criteria, such as the impact on company financial performance. In surveys, employees report that the process is fair and that funding criteria are transparent. The Role of the Direct Manager Our research also revealed that organizations dont have an absolute monopoly on employee motivation or on fulfilling peoples emotional drives. Employees perceptions of their immediate managers matter just as much. People recognize that a multitude of organizational factors, some outside their supervisors control, influence their motivation, but they are discriminating when it comes to evaluating that supervisors ability to keep them motivated. Employees in our study attributed as much importance to their bosss meeting their four drives as to the organizations policies. In other words, they recognized that a manager has some control over how company processes. The study is intended to evaluate motivation of employees in the organization. A good motivational program procedure is essential to achieve goal of the organization. If efficient motivational programmes of employees are made not only in this particular organization but also any other organization; the organizations can achieve the efficiency also to develop a good organizational culture. Motivation has variety of effects. These effects may be seen in the context of an individuals physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers who can deliver value to the organization. Proliferating and nurturing the number of true believers 1is the challenge for future and present HR managers.
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1 HRM Review (The ICFI University Press) July 2008 2 A STUDY ON EMPLOYEE MOTIVATION. This means innovation and creativity. It also means a change in the gear for HR policies and practices. The faster the organizations nurture their employees, the more successful they will be. The challenge before HR managers today is to delight their employees and nurture their creativity to keep them a bloom. This study helps the researcher to realize the importance of effective employee motivation. This research study examines types and levels of employee motivational programmes and also discusses management ideas that can be utilized to innovate employee motivation. It helps to provide insights to support future research regarding strategic guidance for organizations that are both providing and using reward/recognition programs.

1.1 Types of Motivation. Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant. Extrinsic motivation comes into play when a student is compelled to do something or act a certain way because of factors external to him or her (like money or good grades)

1.1.1 Incentives A STUDY ON EMPLOYEE MOTIVATION An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.

1.1.2 Need for Incentives Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If one need is satisfied, the other need arises. In order to motivate the employees, the management should try to satisfy their needs. For
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this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those which are not associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-actualization and responsibility.

1.1.3INCENTIVES Financial Incentives Non-financial incentives - Wages and Salaries. - Competition - Bonus - Group recognition - Medical reimbursement - Job security - Insurance - Praise - Housing facility - Knowledge of result - Retirement benefits. - Workers participation. - Suggestion system. - Opportunities for growth

1.2 Motivation is the key to performance improvement There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, Thus: Job performance = (ability)(motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may
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not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation. Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance Essentially, there is a gap between an individuals actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap The effects of monetary compensation on performance are often debated. One of the most popular theories on the subject is psychologist Frank Herzberg's Two-Factor Theory. Somewhat derived from Maslow's Hierarchy of Needs, Herzberg's theory indicates that while pay is a demotivating factor if not adequate for the work, it is also not a strong motivator. He does, however, indicate that recognition and promotion are strong motivators. 1.2.1Pay Basics: Companies use a variety of pay structures in an effort to use pay as a motivator. Straight-salary pay seems to fall most obviously into Herzberg's hygiene or maintenance factors, meaning it is necessary, but not motivating. Other pay structures that include commissions, bonuses and other incentives may have more ability to motivate performance. However, the influence of the actual pay may not have as much to do with the motivation in many instances as the correlation between the earned income and the recognition of the employee's higher standard of performance and potential for advancement because of it. 1.2.2Problems with Pay Some psychologists and analysts indicate that pay may have varying levels of motivational influence on employees. The biggest problem with a straight-pay
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structure is that employees quickly become used to earning a certain level of income regardless of the results they produce. This prompts them to seek or need alternative types of motivation to push beyond meeting basic expectations and to pursue higher standards of excellence. 1.2.3Dissatisfaction Herzberg's theory indicates that while not motivating, hygiene factors can lead to dissatisfaction if expectations are not met. This suggests that adequate and fair pay for work is necessary to retain employees and to protect against strong feelings of dissatisfaction at work. If employees feel underpaid for their work, they may also feel like the company and their direct managers do not value their work or them as employees. This contributes to dissatisfaction, which can ultimately cause the employee to underperform. 1.2.4The Promotional Effects As noted, Herzberg's theory suggests that opportunities for promotions and actual promotions are more likely to motivate higher performance than regular pay structures. This is supported by Maslow's earlier needs theory, which ranks self-esteem and self-actualization as higher-order needs compared with physiological needs, which would include pay, as lower-order needs. Promotions do usually increase pay, but the motivational influence stems from recognition, increased responsibility, more challenging work and a personal sense of accomplishment -- all of which are motivating factors, according to Herzberg. Herzberg even notes "opportunities for advancement" specifically as a motivator. Daschler and Ninemeier (1989) conducted research and investigated what employees may seek from the work environment. Their discussion reviews some of employee-related concerns that can be found in the venue of strategies to employees motivation. Employees are individuals that come from different backgrounds, they have different education with different experiences and their different family classes are all the factors in which their needs be located.
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The primary interest of employees is to satisfy their personal needs, ambitions, desires and goals. An employee wants to satisfy its basic needs, linked to survival and security concerns and desire to belong, to generate positive feelings from within and from others, and to be self-fulfilled. Most employees want (a) fair and consistent company policies in matters affecting them; (b) management they can respect and trust; (c) adequate working relationships with managers and co-workers; (d) acceptable salaries and working environment; (e)Appropriate job security assurance; (f) favorable job status. The other important factors that can fulfill and motivate employees are: challenging work, work that yields a sense of personal accomplishment, expression of appreciation for good performance, increased responsibility and the chance to grow in the job, the feeling of importance and making a contribution to the organization, and participation in job-related matters that affect the employees. Human beings are motivated by requirements that fulfill their needs. These depend on many factors and vary by the individual requirements and necessary situation. Besides basic needs that range from food, clothing, medicine and shelters, there is workplace that needs to be extended for acceptance and self-esteem. The researcher has indicated that each individual experience these factors in different level. Therefore, managers should figure out the basic theories of motivation, how to better change. (Cheng,1995).

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CHAPTER-II COMPANY PROFILE Big Bazaar is a chain of hypermarket in India. Currently, there are 214 stores across 90 cities and towns in India covering around 16 million sq.ft. of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters offering a wide range of merchandise including fashion and apparels, food products, general merchandise, furniture, electronics, books, fast food and leisure and entertainment sections. Big Bazaar is part of Future Group, which also owns the Central Hypermarket, Brand Factory, Pantaloons, eZONE, HomeTown, futurebazaar.com, KB's Fair Price to name a few and is owned through a wholly owned subsidiary of Pantaloon Retail India Limited(BSE: 523574 523574), that is listed on Indian stock exchanges. Big Bazaar was launched in September, 2001 with the opening of its first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days. Within a span of ten years, there are now 152 Big Bazaar stores in 90 cities and towns across India. Big Bazaar was started by Kishore Biyani, the Group CEO and Managing Director of Pantaloon Retail India. Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics, accessory and general merchandise, over the years Big Bazaar has included a wide range of products and service offerings under their retail chain. The current format includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar. The inspiration behind this entire retail format was from Saravana Stores, a local store in T. Nagar, Chennai The stores are customized to provide the feel of mandis and melas
[2]

while offering the modern retail features like Quality, Choice and

Convenience. As the modern Indian family's favorite retail store, Big Bazaar is popularly known as the "Indian Walmart".

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On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar, replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.

Operation:Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well as within shopping malls. These stores offer over 200,000 SKUs in a wide range of categories led primarily by fashion and food products. Food Bazaar, a supermarket format was incorporated within Big Bazaar in 2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big Bazaar is spread across around 50,000 square feet (4,600 m2) of retail space. While the larger metropolises have Big Bazaar Family centres measuring between 75,000 square feet (7,000 m2) and 160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns measure around 30,000 square feet (2,800 m2). Big Bazaar has the facility to purchase products online through its official web page, and offers free shipping on some of their products. INNOVATION Wednesday Bazaar Big Bazaar introduced the Wednesday Bazaar concept and promoted it as Hafte Ka Sabse Sasta Din. It was mainly to draw customers to the stores on Wednesdays, when least number of customers are observed. According to the chain, the aim of the concept is "to give home makers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day".

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Sabse Sasta Din With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar introduced the concept of "Sabse Sasta Din". The idea was to simply create a day in a year that truly belonged to Big Bazaar. This was launched on January 26, 2006 and the result was exceptional that police had to come in to control the mammoth crowd. The concept was such a huge hit that the offer was increased from one day to three days in 2009 (24 to 26 Jan) and to five days in 2011 (22-26 Jan). Maha Bachat Maha Bachat was started off in 2006 as a single day campaign with attractive promotional offers across all Big Bazaar stores. Over the years it has grown into a 6 days biannual campaign. It has attractive offers in all its value formats such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar catering to the entire needs of a consumer. The Great Exchange Offer On February 12, 2009 Big Bazaar launched "The Great Exchange Offer", through with the customers can exchange their old goods in for Big Bazaar coupons. Later, consumers can redeem these coupons for brand new goods across the nation. TIME LINE 2010 Future Value Retail Limited is formed as a specialized subsidiary to spearhead the groups value retail business through Big Bazaar, Food Bazaar and other formats. Big Bazaar wins CNBC Awaaz Consumer Awards for the third consecutive year. Adjudged the Most Preferred Multi Brand Food & Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most Preferred Multi Brand One Stop Shop Big Bazaar connects over 30,000 small and medium Indian manufacturers and entrepreneurs with around 200 million customers visiting its stores Big Bazaar opens its third store in Kanpur at Z Square Mall Page 16

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Big Bazaar opens its fourth store in Kanpur at Jajmau which is the largest leather tannery garrison of Asia Vidya Balan was chosen as the brand ambassador of Big Bazaar's Price Challenge exercise Ranked 6 among the Top 50 Service Brands in India. [10]

2011 Big Bazaar forays into the rural wholesale and distribution business through Aadhaar Wholesale store at Kalol, Gujarat. Big Bazaar has come up a new logo with a new tag line: Naye India Ka Bazaar. 200th store opened in India Future Group has launched its latest venture, Foodhall a premium food destination across 10 metros in India For the convenience of the online customers, Big Bazaar has started free shipping on all orders above Rs. 1000 Entered into an agreement with Hindustan Unilever to co-develop and co-brand bakery products, which would be sold exclusively at Big Bazaar stores. 2012 Big Bazaar entered into a five year multi-million dollar deal with Cognizant Technology Solutions for IT infrastructure services that support Future Group's network of stores, warehouses, offices, and data centers. Partnered with Disney to launch "Kidz Cookies", exclusively for kids across India. Big Bazaar is planning to add further value to its retail services by offering Value added services like grinding, de-seeding, vegetables cutting at free of cost.

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AMRAVATI BIG BAZAAR

Amravati, July 9, 2010: Big Bazaar, one of the largest hypermarket chains in India and part of Future Group, has further enhanced its reach to the customers with launch of its first store in Amravati, one of Maharashtras fastest growing industrial centers. With the opening of this new store, the total count of Big Bazaar stores has reached 133 nationally. The new store is located in the heart of the city at E-Orbit Mall, Badnera Road. Spread over an area of 29,000 sq. ft, this new store will cater to each and every single household need of the citizens of Amravati and will be the onestop-shop destination for the people of this city. Customers would be offered the widest range of products from each section - Food Bazaar, Electronics, GM, Mobile, Fashion, Navaras, Home Fashion and Shringar at unparalleled prices. Big Bazaar will provide right ambience and platform to add to customers delight. From the moment the customers enter to the time they leave, the store is aimed at enhancing a shoppers experience. Located in the heart of Amravati, the store offers a streamlined approach, enabling greater convenience in experiencing the comprehensive range of products. Speaking on the launch, Mr. Sharad Venkta, Business Head, West Zone, said, "Though known as an historical city earlier, Amravati, in modern days has grown to be a major industrial hub. With the advent of industrialization, the needs and tastes of the people of this city is in par with any other modern city which has encouraged us to set up this store. The store would give people the opportunity to shop for all their requirements, save and enjoy the experience with their entire family at the same time. We are happy to launch our first Big Bazaar store in the city and are confident that it will fulfill all household requirements of the customers.
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He further added, Big Bazaar maintains stringent procurement norms and quality control measures to ensure quality products sold at every Big Bazaar store. We are confident of our offerings both in quality and competitive pricing, which have earned us the trust of millions of family across the country. At any given point of time, customers will find an amazing array of products from the following categories Food Bazaar - Wide range of products which include fruits & vegetables, Live Kitchen and Bakery along with other items - personal care, home care, home needs, beauty and more. Fashion - Huge options from ready-to-wear apparels right from an extensive range of T- shirts and jeans to salwar kameez dupattas to kids wear. Navaras - Amazing range of BIS certified gold and diamond jewellery including bangles, rings, pendants, jewellery sets etc. Home - The section consists a wide range of household items like Utensils, Plastic, Crockery, Luggage and Footwear. Electronics & Mobiles - Includes LCDs from leading brands ranging between sizes - 26 to 32 inches to match your home dcor and fit in your budget. Shringar - Host of items such as Imitation Jewellery, Bindis, Bangles etc. to choose from.

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CHAPTER III RESEARCH METHODOLOGY

Introduction Research is a systematic activity to achieve the truth. Research includes the procedure of collecting data, analyzing the data and finding the conclusion or truth. Research depends upon the scientific procedure. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Research methodology involves activities designed to achieve research objectives. In order to ensure that the appropriate information is collected, a detailed research plan must develop. Problem Definition Defining research problems allows the researcher to focus on the how, what, which, why, who, when, where question needed to guide the formulation of research objectives and clarify the pertinent information requirements. All the efforts, time and money execute research will be wasted if the research problem will be misunderstood. The purpose of the study is to assess A Study of role and effect of compensation management on employee motivation with reference Big Bazaar Amravati. It is mainly conducted to identify the factors which will motivate the employees and the organizational functions in Big Bazaar, Amravati. Research Design Here researcher Applied Exploratory Research Designs. Exploratory research studies are also termed as formulate research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working research question which could be worked upon at the later stage.

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The exploratory studies are carried out to explore a subject. The main objective is to help in defining a research problem and generate a set of research questions which could be worked upon at a later stage. Research Objective

To study type of compensation.

To study the effect of compensation management on employee motivation.

To study the factor which affect the employee motivation To study the role of compensation in employee motivation. Data Collection

Collection of Data

Primary Data

Secondary Data

Primary Data: Primary data are those which are collected fresh and for the first time and thus happen to be original in chapters. Primary data has been collected by simple random sampling method from the employees and the managers of the company. Researcher has collected my data through the primary sources:

By talking with the employees of the department By talking with the managers of the department With the help of questionnaire Page 21

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Secondary Data Secondary data are those data which are being already collected by someone else and which have already been passed through the statistical process. Secondary data has been collected through the secondary sources: Office manuals of the Department Magazines, report of the company. Policy documents of various departments.

Sample Design A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design determine before data are collected. Sample Size: For the study the sample size will be 100 respondents from Big Bazaar. 90 employees of the organization 10 managers of the organization

Sampling technique The sampling technique which the research has decided is simple random sampling technique.

SCOPE OF RESEARCH

Research study will be useful to student, researcher and employee. Study helps student, employee and employer to use compensation as tool for motivating.

CBS-IMS, AMRAVATI

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CHAPTER IV DATA INTERPRETATION AND ANANALYSIS FOR EMPLOYEE:Question 4.1:- How long you are working in this organization? Table 4.1:Sr. No 1 2 3 4 Graph 4.1:Working Years 0-5 years 5-10years 10-15years 15 year above No. of Respondent 90 0 0 0 Percentage 100% 0 0 0

Working Years
100% 80% 60% 40% 20% 0%

Working Years

Interpretation:-

The above graph shows that all 100% respondents are working from 0 to 5 years.

Analysis:There is a low attrition rate in the organization and employees are quite loyal to their organization.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question 4.2:- Why you join this organization? Table 4.2:Sr. No 1 2 3 Particular Pay Package Brand Name Employee work Culture No of respondent 10 75 5 Percentage 11.11% 83.33% 5.56%

Graph 4.2:-

6% 11% Pay Package Brand Name 83% Employee work Culture

Interpretation: The above graph shows that 6 employees and 11employees are join the organization due to the employee work culture and pay package. And 83 employees join due to the Brand name.

Analysis:Organization has to create a good employer brand image in market which helps to attract the employee.

CBS-IMS, AMRAVATI

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Question 4.3:- Did you get any appraisal till date? Table 4.3:Sr. No. 1 2 Graph 4.3:Promotion Till Date Yes No No. of Respondent 25 65 Percentage 27.78% 72.22%

70 60 50 40 30 20 10 0 Yes No Promotion Till Date

Interpretation:The above graph shows that 28% employees gets promotion and 72% employees are not getting promoted.

Analysis:Very few are employees getting appraisal as compared total strength of employees are working in organization. Because of their less experience and contribution other employees are not getting appraisal.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

If Yes how Table 4.4:-

Sr. No. 1 2 3

Particular Salary Increment Post Increment Salary and Post Increment

No. of respondent 17 0 8

Percentage 68% 0 32%

Graph 4.4:Salary Increment Post Increment Salary and Post Increment

32%

68% 0%

Interpretation:Above graph shows that 68% of employees promoted through salary increment and 32% of employees through the salary and post increment.

Analysis:Most of the employees are getting benefits from salary increment and remaining can benefit to salary and post increment.

CBS-IMS, AMRAVATI

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Question 4.5:- Do you think you are well compensated? Table 4.5:Sr. No. 1 2 Graph 4.5:Particular Yes No No. of Respondent 70 20 Percentage 77.78% 22.22%

70 60 50 40 30 20 10 0 Yes No

Interpretation:The above graph shows that 78% of employees are think that they well compensated and 28% employees are not.

Analysis:Maximum employees are satisfied with their pay. Because they think that company is not pay them according to their capabilities.

CBS-IMS, AMRAVATI

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Question 4.6:- Irrespective of yes or no in the above question which are the compensatory rewards you expect from your organization? Table 4.6:Sr. No 1 2 3 Graph 4.6:Compensatory Rewards Increase in Basic Increase in allowance Non- monetary Rewards No. of respondent 78 7 5 Percentage 86.67% 7.78% 5.55%

Compensatory Rewards
80 70 60 50 40 30 20 10 0 Increase in Increase in Basic allowance Nonmonetary Rewards

Compensatory Rewards

Interpretation:The above graph shows that 8% and 5% of employees are expecting compensatory rewards from organization in the form of increase in allowance and non-monetary rewards. And 87% of employees are expecting an increase in Basic. Analysis: Maximum employees expect rise in their basic than allowances and non monetary rewards to fulfill their needs and wants.

CBS-IMS, AMRAVATI

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Question 4.7:- In organization which of the following factors motivates you most? Table 4.7:Sr. No. 1 2 3 4 Motivating Factors Salary Increase Promotion Leave Reward, appreciation No. of Respondent 80 6 2 2 Percentage 88.89% 6.67% 2.22% 2.22%

Graph 4.7:-

Motivating Factor
7%2% 2% Salary Increase Promotion 89% Leave Reward, appreciation

Interpretation:The above graph shows that factor salary increase motivate the 89% of employees and 7% of employees motivated by the promotion and 2% and 2% of employees are motivated by leave and reward, appreciation. Analysis:Maximum employees are getting motivated through their salary increment rather than promotions and other rewards, appreciation. It is directly linked to their performance which gives the motivation to perform better.

CBS-IMS, AMRAVATI

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Question 4.8:- Does your compensation policy motivate you?

Table 4.8:Sr. No. 1 2 Graph 4.8:Particular Yes No No. of Respondent 80 10 Percentage 88.89% 11.22%

11%

Yes No 89%

Interpretation:The above graph shows that 89% of employees are motivated with their compensation policy and 11% employees are not motivated. Analysis:Maximum employees are getting motivated through their compensation policies.

CBS-IMS, AMRAVATI

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Question 4.9:- Does intrinsic (self-satisfaction, accomplishment task successfully) factor motivates you? Table 4.9:Sr. No 1 2 Particular Yes No No of Respondent 70 20 Percentage 77.78% 22.22%

Graph4.9:-

80 70 60 50 40 30 20 10 0 Yes No

Interpretation:The above graph shows that 78% of employees are motivated by the intrinsic factor and 22% employees are not motivated.

Analysis: Motivation is the factors which turn their enthusiasm towards work so maximum employees are motivate intrinsically.

CBS-IMS, AMRAVATI

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Question 4.10:- Does extrinsic (Awards, incentives, Bonus, Extra allowances) factor motivates you? Table 4.10:Sr. No 1 2 Particular Yes No No of Respondent 80 10 Percentage 88.89% 11.11%

Graph 4.10:-

80 70 60 50 40 30 20 10 0 Yes No

Interpretation:The above graph shows that 11% of employees are not motivated by extrinsic factors and 89% of employees are motivated.

Analysis:Extrinsic factors can work as a boost for employee. Due to this maximum employees can work hard.

CBS-IMS, AMRAVATI

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Question4.11:- Do you get motivated after hike in salary? Table 4.11:Sr. No. 1 2 Particular Yes No No. of Respondent 90 0 Percentage 100% 0

Graph 4.11:-

90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation:The above graph shows that all the 100 % of employees are motivated after hike in salary.

Analysis: A monetary benefit always helps to raise the moral of work. Employees are motivated after hike in salary. It boosts their moral and gives them a sense of recognisition.

CBS-IMS, AMRAVATI

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Question 4.12:- Please rate your satisfaction level? Table 4.12:Sr. No 1 2 3 Particular Dissatisfied Moderate Satisfied No of Respondent 5 10 75 Percentage 5.56% 11.11% 83.33%

Graph 4.12:-

6%

11% Dissatisfied Moderate

83%

Satisfied

Interpretation:The above graph shows that 83% of employees are well satisfied and 6% of employees are not satisfied. 11% of employees are moderate. Analysis:Maximum employees are giving their preference as they are satisfied with their compensation policies.

CBS-IMS, AMRAVATI

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FOR MANAGER: Question 4.13:- Since how long you are with organization? Table 4.13:Sr. No 1 2 3 4 Graph 4.13:Years 0-3 years 3-6years 6-9years 9-12years No. of Respondent 10 0 0 0 Percentage 100% 0 0 0

Years
10 8 6 4 2 0 0-3 years 3-6years 6-9years 9-12years Years

Interpretation: Above graph shows that all managers are working in organization since last 3 years. Analysis:Managers are working in organization are having the experience of near about 3 years. There is a low attrition rate in the organization.

CBS-IMS, AMRAVATI

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Question 4.14:-Have you got any promotion till date? Table4.14:Sr. No 1 2 Particular Yes No No of respondent 8 2 Percentage 80% 20%

Graph4.14:-

8 6 4 2 0 Yes No

Interpretation:In the above graph shows that out of 100% managers 80% managers get promoted and remaining 20% are not promoted till date.

Analysis:Managers are promoted on the basics of experiences so that maximum managers are promoted. And very few are not promoted due to the less experience. Company gives promotion to the experience people and not to the fresher.

CBS-IMS, AMRAVATI

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Question 4.15:- From your experience which changes you found in the organization till date? Table 4.15:Sr. No. 1 2 3 4 Various Changes Qualitative Monetary Knowledge Base All of the these No. of Respondent 1 2 0 7 Percentage 10% 20% 0 70%

Graph 4.15:-

Various Changes
10% 20% Qualitative Monetary 70% 0% Knowledge Base All of the these

Interpretation:The above graph shows that 10% managers experienced the qualitative changes and 20% managers experienced monetary changes in organization. 70% managers are experienced all the three changes in organization.

Analysis:Change is the ongoing process so that maximum respondent said that they are already going through the knowledge base, monetary and qualitative changes.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question 4.16:- Did you ever felt that you are not well paid for the services provided by you? Table 4.16:Sr. No 1 2 Graph 4.16:Particular Yes No No. of Respondent 0 10 Percentage 0 100%

No

Yes

10

Interpretation:Above graph shows 100% managers are felt that they well paid for the services they are provide. Analysis: Employees are fully satisfied with their remuneration for services which they provided to organization.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question4.17:-Did you ever come across an employee complaining for heavy work and lesser compensation? Table 4.17:Sr. No 1 2 3 Particular Yes No Sometimes No. of Respondent 2 0 8 Percentage 20% 0 80%

Graph4.17:-

20% 0% Yes No Sometimes 80%

Interpretation: Above graph shows that 80% of employees can complaint sometimes about heavy work load and lesser pay. While 20 % can complaint always. Analysis:Sometimes employees can complaint about heavy workload and lesser pay while very few can always complaining.

CBS-IMS, AMRAVATI

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Question 4.18:- Does your compensation policy motivate you? Table 4.18:Sr. No 1 2 Particular Yes No No. of Respondent 10 0 Percentage 100% 0

Graph 4.18:-

No

Yes

0%

20%

40%

60%

80%

100%

Interpretation:Above graph shows that all 100% managers are motivated by the compensation policy. Analysis: Everybody is happy within the organization about their compensation and they are satisfied with what they got for their services.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question 4.19:- Does intrinsic (self-satisfaction, accomplishment task successfully) factor motivates your employee? Table 4.19:Sr. No. 1 2 Particular Yes No No. of Respondent 7 3 Percentage 70% 30%

Graph 4.19:-

30% Yes 70% No

Interpretation:Above graph shows that in organization 70% of managers said that their employees are motivated intrinsically. And remaining 30% are said no.

Analysis: Motivation is the factors which turn their enthusiasm towards work so maximum employees are motivate intrinsically.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question 4.20:- Does the extrinsic (Awards, incentives, Bonus, Extra allowance) factor motivates your employees? Table 4.20:Sr. No 1 2 Particular Yes No No. of Respondent 8 2 Percentage 80% 20%

Graph 4.20:-

8 7 6 5 4 3 2 1 0 Yes No

Interpretation:Above the graph shows that 80% employer said that their employees are motivates by extrinsic factor and remaining 20% managers are said no. Analysis:Motivation comes from inside, but sometimes it needed extrinsic factors. Incentives, bonus, awards and extra allowances plays vital role in motivation of employees.

CBS-IMS, AMRAVATI

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Question4.21:- Do you think after getting extrinsic motivation (Awards, Incentives, Bonus, Extra allowances) employees work hard? Table 4.21:Sr. No 1 2 Particulars Yes No No. of Respondent 70 30 Percentage 70% 30%

Graph 4.21:-

80 60 40 20 0 Yes No

Interpretation:Above graph shows that 70% managers think after getting extrinsic motivation employees were doing hard work. And 30 % managers think vice versa.

Analysis: Extrinsic factors can work as a boost for employee. Due to this maximum employees can work hard.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question 4.22:- Do you come across grievance after giving monitory motivation (Bonus, Incentive)? Table 4.22:Sr. No 1 2 Particular Yes No No. of Respondent 0 10 100% Percentage

Graph 4.22:-

10 8 6 4 2 0 Yes No

Interpretation: Above graph shows that 100% respondent not having any kind of grievance after monitory motivation.

Analysis:Organization paid the monitory benefits to the employees. It helps to avoid the grievance factors.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

Question 4.23:-Do you take feedback of employees after giving monitory rewards? Table 4.23:Sr. No 1 2 Particular Yes No No. of Respondent 10 0 Percentage 100% 0

Graph 4.23:-

No

Yes

10

Interpretation:Above graph shows that 100% employees are giving their feedback to the organization. Analysis:Feedback is regularly taken by organization. Feedback is important part of the two way communication.

CBS-IMS, AMRAVATI

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

CHAPTER V

FINDING, RECOMMENDATION AND CONCLUSION

FINDING: Organization is having a good brand image in market which helps to attract the employee. Employees are satisfied with their compensation policies. Both the intrinsic and extrinsic factor impact on employee motivation. It is found that there is low attrition rate in the organization and employees are quite loyal to their organization. It is found that employees get motivated from their compensation policy. All the employees are motivated after salary hike. It is found that company takes feedback from all the employees after giving monitory rewards.

RECOMMEDETION:

There are still efforts required (like increase in salary, bonus and incentives) to satisfied all the employees as same are not satisfied with their compensation.

Company should generate some competition within employees so that they earn more incentives and get motivates as well as company sales will also increase.

For the employees motivation there should be a regular performance appraisal after some period of time.

CBS-IMS, AMRAVATI

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CONCLUSION:-

It is clear that compensation has directly affect the employee motivation. There is low attrition rate is low in organization. Both the intrinsic (self-satisfaction, accomplishment task successfully) and extrinsic (Awards, incentives, Bonus, Extra allowance) factors play a vital role in employee motivation.

Employees are satisfied with their compensation policies. Employees get motivated from their compensation policy.

CBS-IMS, AMRAVATI

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CBS-IMS, AMRAVATI

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CBS-IMS, AMRAVATI

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