EMPLOYEE MOTIVATION

ANALYSIS


SUBMITTED BY:

ARUN KUMAR PANDA

Program Code: MBA

Semester: IV

Roll No: 521111456

Centre Code: 1556










DECLARATION
















ARUN KUMAR PANDA






I, Arun Kumar Panda student of MBA, SEM IV, SIKKIM
MANIPAL UNIVERSITY, Directorate of Distance Education
have completed the Project on
Empl oyee Moti vati on Anal ysi s
For the Academic Year 2011-13.

The information given in this project is true to the best of
my knowledge.





CERTIFICATE





















Prof. Ahtasham Ansari A.K. Mohapatra
Project Co-ordinator Centre Co-ordinator
(ZAKIR HUSAIN INSTITUTE)




DATE: DATE:






This is to certify that ARUN KUMAR PANDA has completed the project

EMPLOYEE MOTIVATION ANALYSIS

Under the guidance of
Prof. Ahtasham Ansari & A.K. Mohapatra, and has been submitted to
DR. ZAKIR HUSAIN INSTITUTE as a part fulfilment for the
completeition of MBA Degree under SIKKIM MANIPAL
UNIVERSITY, Directorate of Distance Education





ACKNOWLEDGEMENT


This is my 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, I would like to express my gratitude to
Prof. Ahtasham Ansari & A.K. Mohapatra, Centre Coordinator for
agreeing to supervise me during the project. They encouraged me in
every step of the way to propel higher.

Also, I want to show my appreciation to all those who have shown their
continuous and cordial support during our project. Especially, I also
would like to thank my brother and my parents who have helped me
throughout the working of the project.

Finally, I thank to SIKKIM MANIPAL UNIVERSITY for having
project as part of M.B.A curriculum and providing us the opportunities
to work and gain experience of Business Management.






CONTENTS


S.NO TITLE PAGE
1 Introduction 01
2 Definition of Motivation 02
3 Intrinsic & Extrinsic Motivation 03-04
4 Theories of Motivation
Herzbergs Theory
Maslows Theory
Alderfers ERG Theory
McClellands Theory
Theory X & Y
Equity Theory
05-13
5 Employee Motivation 13-15
6. Case Study
HDFC
HSBC
CANARA BANK
16-35
7 Bibliography 36

1

INTRODUCTION
Motivation is essentially about commitment to doing something. In the context of a business,
motivation can be said to be about
The will to work
However, motivation is about more than simply working hard or completing tasks. Entrepreneurs
and staff can find motivation from a variety of sources.
Motivation can come from the enjoyment of the work itself and/or from the desire to achieve
certain goals e.g. earn more money or achieve promotion.
It can also come from the sense of satisfaction gained from completing something, or achieving a
successful outcome after a difficult project or problem solved.
Why does motivation matter in business? In short, peoples behaviour is determined by what
motivates them. The performance of employees is a product of both their abilities (e.g. skills &
experience) and motivation. A talented employee who feels de-motivated is unlikely to perform
well at work, whereas a motivated employee can often deliver far more than is expected from
them!











A well-motivated workforce can provide several advantages:
Better productivity (amount produced per employee).This
can lead to lower unit costs of production and so enable a
firm to sell its product at a lower price
Lower levels of absenteeism as the employees are content
with their working lives
Lower levels of staff turnover (the number of employees
leaving the business). This can lead to lower training and
recruitment costs
Improved industrial relations with trade unions
Contented workers give the firm a good reputation as an
employer so making it easier to recruit the best workers
Motivated employees are likely to improve product quality
or the customer service associated with a product


2

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).



3

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 efficiency, and Ryan and Deci's cognitive evaluation theory. Students are
likely to be intrinsically motivated if they:



4

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 over
justification 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 attitude
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!


5

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 behavior 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 behavior. 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.

6

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 (Dis-satisfiers) 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. Dis-satisfiers, 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 Dis-satisfiers relate to the situation in
which the person does what he or she does.



7

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


8

(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 ones potential and self-

9

fulfillment. It is to maximize ones 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.
Maslows need theory has received wide recognition, particularly among practicing
managers. This can be attributed to the theorys intuitive logic and ease of understanding.
However, research does not validate these theories. Maslow provided no empirical
evidence and other several studies that sought to validate the theory found no support for
it.
3. Alderfers 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.

10

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.
Alderfers regression hypothesis helped explain peoples behavior when frustrated at
meting needs at the next higher level in the hierarchy.
4. McClellands 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 at least some chances of success.

11

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 managers 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.

12

That the way the things are organized, the average human beings 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.

13



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.

14

Most companies have it all wrong. They don't have to motivate their employees. They
have to stop de-motivating 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 monthsand 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 managementboth 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
workand 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 literatures 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.

15

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 Maslows need Hierarchy theory. His theory is also known
as two-factor theory or Hygiene theory. He stated that there are certain satisfiers and Dis-
satisfiers 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 non-presence leads to de-
motivation. In similar manner there are certain factors, the absence of which causes no
dissatisfaction, but their presence has motivational impact.





16







CASE STUDY










17




Company profile:-
Established on 14
th
august 2000, HDFC STANDARD LIFE INSURANACE CO. LTD. is
a joint venture between Housing Development Finance Corporation Limited(HDFC
limited) indias 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.
HDFCS Work:-
HDFC Standard Life Insurance 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 Companys 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.


18


Visions of HDFC:-
The most successful and admired life 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 Indias leading private life
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited. Indias
leading housing finance intuitions and the standard life Assurance 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 stimulating environment with high
levels of motivations, empowerment and recognition. They encourage an open and
informal culture that values integrity, 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 believe their
strength is theirs people, so they endeavor to surpass their expenditure and give them the
best possible work environment and benefits that match the best in the industry.


19


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.



20


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 believe 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, HDFCS efforts have been to provide them with the best
environment, culture and development opportunities possible.









21


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.
HSBCS 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.


22

HSBCS Vision:-
HSBC vision is to be the worlds 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 worlds 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 longterm 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 covers a range of issues including the
size of HSBCs profits, customer indebtedness and executive pay.


23

Being one of the worlds 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 selfesteem. 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.


24

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.


25

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 people have 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.







26

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.













27



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 J une 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.

28

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 endeavor 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.

29

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 vigors of office and take the measure of
the competition. That we have been largely successful in our endeavor 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 molding 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.

30

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 updating 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.



31

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
organization.
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.

32

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 2
nd
world war scenario
when mass industrial production resulted in low quality, high competition, loss of
communication and closeness between Management and workers. J apan, 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 J apanese 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 Banks 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).

33

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 focused 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 marketing
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 organization unlike some of her peers!
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.

34

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 training 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.


35

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 something they truly enjoy.
Consequently money becomes a very in-personal gift. Thus a company should have right
balance of monetary and other facilities.
SUGGESSTIONS:-
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 the private sector bank employees 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.



36


REFERENCES
1. Manoj. K- 9962794639 (HSBC BANK-VISHAKAPATNAM)
2. Santosh Mahapatra 9986724981(HDFC BANK-BANGALORE)
3. Wikipedia.com
4. Google.com
5. Organizational behavior by STEPHEN P.ROBBINS