priyanka employee motivation hewitt associates

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A STUDY ON EMPLOYEE MOTIVATION

A STUDY ON EMPLOYEE MOTIVATION

CHAPTER-11.1 INTRODUCTION

The project work entitled a study on employee motivation with special reference to Hewitt Associates; HYDERABAD is mainly conducted to identify the factors which will motivate the employees and the organizational functions in Hewitt Associates, HYDERABAD.

Managements basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization.Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the will to work among the subordinates. It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them. Hence this studies also focusing on the employee motivation among the employees of Hewitt Associates.The data needed for the study has been collected from the employees through questionnaires and through direct interviews. Analysis and interpretation has been done by using the statistical tools and datas are presented through tables and charts.1.2 RESEARCH PROBLEMThe research problem here in this study is associated with the motivation of employees of HEWITT ASSOSIATES, HYDERABAD. There are a variety of factors that can influence a persons level of motivation; some of these factors include 1. The level of pay and benefits,2. The perceived fairness of promotion system within a company,3. Quality of the working conditions, 4. Leadership and social relationships, 5. Employee recognition 6. Job security 7. Career development opportunities etc.Motivated employees are a great asset to any organisation. It is because the motivation and Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the organisation. The research problem is formulated as follows:

What are the factors which help to motivate the employees?1.3 Significance OF THE STUDYThe 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 is the challenge for future and present HR managers.This means innovation and creativity. It also means a change in the gear for HR polices 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.1.4 Objectives of the study

1.4.1 Primary objective1. To study the important factors which are needed to motivate the employees.1.4.2 Secondary Objective.

1. To study the effect of monetary and non-monetary benefits provided by the organization on the employees performance.2. To study the effect of job promotions on employees.

3. To learn the employees satisfaction on the interpersonal relationship exists in the organization.

4. To provide the practical suggestion for the improvement of organizations performance.

1.5 Research methodology.

Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis

1.5.1 Sampling Design.A sample design is a finite plan for obtaining a sample from a given population. Simple random sampling is used for this study.

1.5.2 Universe.

The universe chooses for the research study is the employees of Hewitt Associates.

1.5.3 Sample Size.

Number of the sampling units selected from the population is called the size of the sample. Sample of 50 respondents were obtained from the population.1.5.4 Sampling Procedure.

The procedure adopted in the present study is probability sampling, which is also known as chance sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in the sample.

1.5.5 Methods of Data Collection.

The datas were collected through Primary and secondary sources.

1.5.5.1 Primary Sources.Primary data are in the form of raw material to which statistical methods are applied for the purpose of analysis and interpretations.

The primary sources are discussion with employees, datas collected through questionnaire.

1.5.5.2 Secondary Sources.Secondary datas are in the form of finished products as they have already been treated statistically in some form or other.

The secondary data mainly consists of data and information collected from records, company websites and also discussion with the management of the organization. Secondary data was also collected from journals, magazines and books.

1.5.6 Nature of Research.

Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity.1.5.7 Questionnaire.

A well defined questionnaire that is used effectively can gather information on both overall performance of the test system as well as information on specific components of the system. A defeated questionnaire was carefully prepared and specially numbered. The questions were arranged in proper order, in accordance with the relevance.

1.5.8 Nature of Questions Asked.

The questionnaire consists of open ended, dichotomous, rating and ranking questions.

1.5.9 Pre-testing

A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and all of them were collected back as completed questionnaire. On the basis of doubts raised by the respondents the questionnaire was redesigned to its present form.1.5.10 Sample

A finite subset of population, selected from it with the objective of investigating its properties called a sample. A sample is a representative part of the population. A sample of 50 respondents in total has been randomly selected. The response to various elements under each questions were totaled for the purpose of various statistical testing.

1.5.11. Variables of the Study.

The direct variable of the study is the employee motivation

Indirect variables are the incentives, interpersonal relations, career development opportunities and performance appraisal system.1.5.12. Presentation of Data.

The data are presented through charts and tables.1.5.13. Tools and Techniques for Analysis.Correlation is used to test the hypothesis and draw inferences.CHAPTER 2

2. literature ReviewRensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force .It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term.Motivation is an important function which every manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities.2.1 The concept of motivation

The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.

2.2 Definition of Motivation.

What is motivation? It is defined as the processes that account for an individuals intensity, direction and persistence of effort towards attaining a goal.

The three key elements in the definition are intensity, direction and persistence.

Intensity is concerned with how hard a person tries. This is the element most of us focus on when we talk about motivation. However, high intensity is unlikely to lead to favourable job performance outcomes unless the effort is channelled in a direction that benefits the organization. Therefore, we have to consider the quality of effort as well as its intensity. Effort that is directed towards, and consistent with, the organizations goals is the kind of effort that we should be seeking. Finally, motivation has a persistence dimension. This is a measure of how long a person can maintain effort. Motivated individuals stay with a task long enough to achieve their goal.

2.3 Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise.2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity.

3. The rates of labors turnover and absenteeism among the workers will be low.4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease.5. The number of complaints and grievances will come down. Accident will also be low.

6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business.

2.4 Motivation Process.

1. Identification of need

2. Tension

3. Course of action

4. Result Positive/Negative

5. Feed back2.5 Theories of Motivation.

Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). The major approaches that have led to our understanding of motivation are Mcclellands Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation, ERG theory of motivation, Herzbergs motivation-hygiene theory, J.S. Adams Equity Theory, Vrooms Expectation Theory, Two factor Theory.

2.5.1 McClellands Achievement Need Theory.In his acquired-needs theory, David McClelland proposed that an individual's specific needs are acquired over time and are shaped by one's life experiences. Most of these needs can be classed as either achievement, affiliation, or power. A person's motivation and effectiveness in certain job functions are influenced by these three needs. McClelland's theory sometimes is referred to as the three need theory or as the learned needs theory.

Achievement

People with a high need for achievement (nAch) seek to excel and thus tend to avoid both low-risk and high-risk situations. Achievers avoid low-risk situations because the easily attained success is not a genuine achievement. In high-risk projects, achievers see the outcome as one of chance rather than one's own effort. High nAch individuals prefer work that has a moderate probability of success, ideally a 50% chance. Achievers need regular feedback in order to monitor the progress of their achievements. They prefer either to work alone or with other high achievers.

Affiliation

Those with a high need for affiliation (nAff) need harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group. High nAff individuals prefer work that provides significant personal interaction. They perform well in customer service and client interaction situations.

Power

A person's need for power (nPow) can be one of two types - personal and institutional. Those who need personal power want to direct others, and this need often is perceived as undesirable. Persons who need institutional power (also known as social power) want to organize the efforts of others to further the goals of the organization. Managers with a high need for institutional power tend to be more effective than those with a high need for personal power.

Thematic Apperception Test

McClelland used the Thematic Apperception Test (TAT) as a tool to measure the individual needs of different people. The TAT is a test of imagination that presents the subject with a series of ambiguous pictures, and the subject is asked to develop a spontaneous story for each picture. The assumption is that the subject will project his or her own needs into the story.

Psychologists have developed fairly reliable scoring techniques for the Thematic Apperception Test. The test determines the individual's score for each of the needs of achievement, affiliation, and power. This score can be used to suggest the types of jobs for which the person might be well suited.

Implications for Management

People with different needs are motivated differently.

High need for achievement - High achievers should be given challenging projects with reachable goals. They should be provided frequent feedback. While money is not an important motivator, it is an effective form of feedback.

High need for affiliation - Employees with a high affiliation need perform best in a cooperative environment.

High need for power - Management should provide power seekers the opportunity to manage others.

Note that McClelland's theory allows for the shaping of a person's needs; training programs can be used to modify one's need profile.2.5.2 Behavioral Modification Theory;

According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives.More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior.2.5.3 Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the Bible of Motivation. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific problems in personnel administration and industrial relations.The crux of Maslows theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators.

Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.

The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off.

Physiological or Body Needs: - The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job.

Safety: - The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements. Social needs: - Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition, respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals.Self realization or Actualization needs: - This upper level need is one which when satisfied provide insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.


If Maslow's theory holds, there are some important implications for management. There are opportunities to motivate employees through management style, job design, company events, and compensation packages, some examples of which follow:

Physiological needs: Provide lunch breaks, rest breaks, and wages that are sufficient to purchase the essentials of life.

Safety Needs: Provide a safe working environment, retirement benefits, and job security.

Social Needs: Create a sense of community via team-based projects and social events.

Esteem Needs: Recognize achievements to make employees feel appreciated and valued. Offer job titles that convey the importance of the position.

Self-Actualization: Provide employees a challenge and the opportunity to reach their full career potential.

However, not all people are driven by the same needs - at any time different people may be motivated by entirely different factors. It is important to understand the needs being pursued by each employee. To motivate an employee, the manager must be able to recognize the needs level at which the employee is operating, and use those needs as levers of motivation.

Limitations of Maslow's Hierarchy

While Maslow's hierarchy makes sense from an intuitive standpoint, there is little evidence to support its hierarchical aspect. In fact, there is evidence that contradicts the order of needs specified by the model. For example, some cultures appear to place social needs before any others. Maslow's hierarchy also has difficulty explaining cases such as the "starving artist" in which a person neglects lower needs in pursuit of higher ones. Finally, there is little evidence to suggest that people are motivated to satisfy only one need level at a time, except in situations where there is a conflict between needs.

Even though Maslow's hierarchy lacks scientific support, it is quite well-known and is the first theory of motivation to which many people they are exposed. To address some of the issues of Maslow's theory, Clayton Alderfer developed the ERG theory, a needs-based model that is more consistent with empirical findings.2.5.4 ERG Theory of Motivation

To bring Maslows need hierarchy theory of motivation in synchronization with empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He recategorized Maslows hierarchy of needs into three simpler and broader classes of needs:

Existence needs- These include need for basic material necessities. In short, it includes an individuals physiological and physical safety needs.

Relatedness needs- These include the aspiration individuals have for maintaining significant interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslows social needs and external component of esteem needs fall under this class of need.

Growth needs- These include need for self-development and personal growth and advancement. Maslows self-actualization needs and intrinsic component of esteem needs fall under this category of need.

The significance of the three classes of needs may vary for each individual.

Implications of the ERG Theory

Managers must understand that an employee has various needs that must be satisfied at the same time. According to the ERG theory, if the manager concentrates solely on one need at a time, this will not effectively motivate the employee. Also, the frustration- regression aspect of ERG Theory has an added effect on workplace motivation. For instance- if an employee is not provided with growth and advancement opportunities in an organization, he might revert to the relatedness need such as socializing needs and to meet those socializing needs, if the environment or circumstances do not permit, he might revert to the need for money to fulfill those socializing needs. The sooner the manager realizes and discovers this, the more immediate steps they will take to fulfil those needs which are frustrated until such time that the employee can again pursue growth.2.5.5 Herzberg's Motivation-Hygiene TheoryThe studies included interviews in which employees where asked what pleased and displeased them about their work. Herzberg found that the factors causing job satisfaction (and presumably motivation) were different from those causing job dissatisfaction. He developed the motivation-hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers hygiene factors, using the term "hygiene" in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide satisfaction.

The following table presents the top six factors causing dissatisfaction and the top six factors causing satisfaction, listed in the order of higher to lower importance.

Factors Affecting Job Attitudes

Leading to Dissatisfaction Leading to Satisfaction

Company policy

Supervision

Relationship w/Boss

Work conditions

Salary

Relationship w/Peers Achievement

Recognition

Work itself

Responsibility

Advancement

Growth

Herzberg reasoned that because the factors causing satisfaction are different from those causing dissatisfaction, the two feelings cannot simply be treated as opposites of one another. The opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction. While at first glance this distinction between the two opposites may sound like a play on words, Herzberg argued that there are two distinct human needs portrayed. First, there are physiological needs that can be fulfilled by money, for example, to purchase food and shelter. Second, there is the psychological need to achieve and grow, and this need is fulfilled by activities that cause one to grow.

From the above table of results, one observes that the factors that determine whether there is dissatisfaction or no dissatisfaction are not part of the work itself, but rather, are external factors. Herzberg often referred to these hygiene factors as "KITA" factors, where KITA is an acronym for Kick In The A..., the process of providing incentives or a threat of punishment to cause someone to do something. Herzberg argues that these provide only short-run success because the motivator factors that determine whether there is satisfaction or no satisfaction are intrinsic to the job itself, and do not result from carrot and stick incentives.


If the motivation-hygiene theory holds, management not only must provide hygiene factors to avoid employee dissatisfaction, but also must provide factors intrinsic to the work itself in order for employees to be satisfied with their jobs.

Herzberg argued that job enrichment is required for intrinsic motivation, and that it is a continuous management process. According to Herzberg:

The job should have sufficient challenge to utilize the full ability of the employee.

Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility.

If a job cannot be designed to use an employee's full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation problem.

Critics of Herzberg's theory argue that the two-factor result is observed because it is natural for people to take credit for satisfaction and to blame dissatisfaction on external factors. Furthermore, job satisfaction does not necessarily imply a high level of motivation or productivity.

Herzberg's theory has been broadly read and despite its weaknesses its enduring value is that it recognizes that true motivation comes from within a person and not from KITA factors.

2.5.6 J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If the employee perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality, increased absenteeism, voluntary resignation.

2.5.7 Vrooms Expectation Theory

Vrooms theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated.

2.5.8 Two Factor Theory

. THEORY X AND THEORY YDouglas McGregor proposed two distinct views of human beings Theory X and Theory Y. The theories basically represent two sets of assumptions about human nature and human behaviour that are relevant to the practice of management. Theory X represents a negative view of human nature that assumes individuals generally dislike work, are irresponsible, and require close supervision to do their jobs. Theory Y denotes a positive view of human nature and assumes individuals are generally industrious, creative, and able to assume responsibility and exercise self-control in their jobs. One would expect, then, that managers holding assumptions about human nature that are consistent with Theory X might exhibit a managerial style that is quite different than managers who hold assumptions consistent with Theory Y.McGregor argued that the conventional approach to managing was based on three major propositions, which he called Theory X:

1. Management is responsible for organizing the elements of productive enterprise-money, materials, equipment, and people-in the interests of economic ends.

2. With respect to people, this is a process of directing their efforts, motivating them, controlling their actions, and modifying their behavior to fit the needs of the organization.

3. Without this active intervention by management, people would be passive-even resistant-to organizational needs. They must therefore be persuaded, rewarded, punished, and controlled. Their activities must be directed. Management's task was thus simply getting things done through other people.

According to McGregor, these tenets of management are based on less explicit assumptions about human nature. The first of these assumptions is that individuals do not like to work and will avoid it if possible. A further assumption is that human beings do not want responsibility and desire explicit direction. Additionally, individuals are assumed to put their individual concerns above that of the organization for which they work and to resist change, valuing security more than other considerations at work. Finally, human beings are assumed to be easily manipulated and controlled. McGregor contended that both the classical and human relations approaches to management depended this same set of assumptions. He called the first style of management "hard" and identified its methods as close supervision, tight controls, and coercion.

The hard style of management led to restriction of output, mutual distrust, unionism, and even sabotage. McGregor called the second style of management "soft" and identified its methods as permissiveness and need satisfaction. McGregor suggested that the soft style of management often led to managers' failure to perform their managerial role. He also pointed out that employees often take advantage of an overly permissive manager by demanding more but performing at lower levels.

McGregor drew upon the work of Abraham Maslow (1908-1970) to explain why Theory X assumptions led to ineffective management. Maslow had proposed that man's needs are arranged in levels, with physical and safety needs at the bottom of the needs hierarchy and social, ego, and self-actualization needs at upper levels of the hierarchy. Maslow's basic point was that once a need is met, it no longer motivates behavior; thus, only unmet needs are motivational. McGregor argued that most employees already had their physical and safety needs met and that the motivational emphasis had shifted to the social, ego, and self-actualization needs. Therefore, management had to provide opportunities for these upper-level needs to be met in the workplace, or employees would not be satisfied or motivated in their jobs.

Such opportunities could be provided by allowing employees to participate in decision making, by redesigning jobs to make them more challenging, or by emphasizing good work group relations, among other things. According to McGregor, neither the hard style of management based on the classical school nor the soft style of management inspired by the human relations movement were sufficient to motivate employees. Thus, he proposed a different set of assumptions about human nature as it pertains to the workplace.

McGregor put forth these assumptions, which he believed could lead to more effective management of people in the organization, under the rubric of Theory Y. The major propositions of Theory Y include the following:

1. Management is responsible for organizing the elements of productive enterprise-money, materials, equipment, and people in the interests of economic ends.

2. People are not by nature passive or resistant to organizational needs. They have become so as a result of experience in organizations.

3. The motivation, potential for development, capacity for assuming responsibility, and readiness to direct behavior toward organizational goals are all present in people-management does not put them there. It is a responsibility of management to make it possible for people to recognize and develop these human characteristics for themselves.

4. The essential task of management is to arrange organizational conditions and methods of operation so that people can achieve their own goals by directing their efforts toward organizational objectives.

Thus, Theory Y has at its core the assumption that the physical and mental effort involved in individuals will actually seek it out under the proper conditions. Theory Y also assumes that the ability to be innovative and creative exists among a large, rather than a small segment of work is natural and that individuals actively seek to engage in work. It also assumes that close supervision and the threat of punishment are not the only means or even the best means for inducing employees to exert productive effort. Instead, if given the opportunity, employees will display self-motivation to put forth the effort necessary to achieve the organization's goals. Thus, avoiding responsibility is not an inherent quality of human nature; the population. Finally, it assumes that rather than valuing security above all other rewards associated with work, individuals desire rewards that satisfy their self-esteem and self-actualization needs. THEORY X AND THEORY Y IN THE TWENTY-FIRST CENTURY

McGregor's work on Theory X and Theory Y has had a significant impact on management thought and practice in the years since he first articulated the concepts. In terms of the study of management, McGregor's concepts are included in the overwhelming majority of basic management textbooks, and they are still routinely presented to students of management. Most textbooks discuss Theory X and Theory Y within the context of motivation theory; others place Theory X and Theory Y within the history of the organizational humanism movement.

Theory X and Theory Y are often studied as a prelude to developing greater understanding of more recent management concepts, such as job enrichment, the job-characteristics model, and self-managed work teams. Although the terminology may have changed since the 1950s, McGregor's ideas have had tremendous influence on the study of management.

In terms of the practice of management, the workplace of the early twenty-first century, with its emphasis on self-managed work teams and other forms of worker involvement programs, is generally consistent with the precepts of Theory Y.

2.6 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)

2.7 Incentives

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.

2.7.1 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 need arises. In order to motivate the employees, the management should try to satisfy their needs. For 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.

INCENTIVES

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 growth2.8 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 =f(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 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.Chapter-33.1 Company ProfilehYDERABAD BRANCH

Address : Sarojini Devi Road,Secunderabad,Hyderabad-500003Email : [email protected] : www.hewittassociates.com

Hewitt Associates, based in Lincolnshire, Illinois is a global human resources (HR) outsourcing and consulting firm delivering a complete range of integrated services to help companies manage their total HR and employee costs, enhance HR services, and improve their workforces.History

Founded in 1940, The Lincolnshire, Illinois-based Hewitt Associates, Inc. is a global management consulting firm specializing in the outsourcing of corporate human resources (HR) programs such as healthcare benefits, payroll administration, stock options and investment accounts, retirement programs, and severance packages. Hewitt represents many Fortune 500 companies, administering their investment and benefit programs and offering their clients a host of related services, many of them online. Hewitt not only pioneered the use of automated benefit programs, but brought the HR industry into the Internet age by launching a series of online programs and software packages.

1940s-70s

Edwin "Ted" Hewitt founded Edwin Shields Hewitt and Associates on October 1, 1940, as a brokerage house focusing on insurance and personal financial services. It was a heady time in the United States; population had grown to 132 million, the economy was robust, and President Franklin Delano Roosevelt was reelected for a record third term. Unfortunately, the war raging in Europe was about to bring the United States into what became World War II.

During and after the war, Hewitt's particular expertise became immensely valuable when the government instituted "pay-as-you-go" income taxes in 1943 and the U.S. cost of living increased more than 25 percent in 1945. Once the war and its rationing ended, Americans returned to work and the economy recovered. Hewitt's clients, many of whom had manufactured goods for the war effort, returned to their customary businesses and thrived. Hewitt began offering its clients statements to track their employee benefits and had pioneered the use of specific financial goals for company investments. Hewitt's programs were the first of their kind to be approved by the Internal Revenue Service; they were so cutting edge the U.S. Department of Labor asked the firm to create forms for the welfare and pension programs of the 1950s.

By the 1960s the Hewitt firm continued to expand its pension and benefit plans, creating more sophisticated programs for its clients. During the decade the firm revolutionized employee benefit packages once again, as the first company to design pension and benefit plans tied to a corporation's revenue and growth projections. While such a practice became commonplace in the pension and employee benefits of larger corporations, it was another in Hewitt's growing list of industry firsts. Hewitt was so respected for its work in the field that it was the only company asked by the U.S. government to consult on the Federal Interagency Task Force from 1964 to 1968. The Task Force was responsible for the design and implementation of the new Employee Retirement Income Security Act.

In the next decade Hewitt began offering its clients an increasing number of innovative products, including its trademarked Benefit Index to track the performance of benefit programs. The Benefit Index was another industry first and soon became the standard to which all aspired. Hewitt also offered its clients several flexible investment strategies for employee benefit packages, which led to the formation of a new consulting firm, the Hewitt Investment Group, in 1974.

1980s and 1990s

Hewitt continually sought to better its programs. The company began to conduct in-depth surveys to find out which benefit programs worked best and which ones needed improvement. In the 1980s Hewitt researched numerous issues and began issuing its findings industry-wide on subjects such as offering benefits to part-time employees, full versus partial hospital reimbursement, fluctuating profit-sharing percentages, mental health benefits, 401(k) programs, and rising health plan deductibles. Another topical issue was computer use for automated benefit calculations.

The use of computers had finally begun to take hold in larger businesses, as Hewitt found automated benefit programs had increased remarkably from 1986 to 1988. In a survey detailed in PC Week (November 6, 1989), Hewitt had surveyed 700 companies to find 71 percent had become either fully or partially automated in their administration of benefits plans, up from 48 percent two years before. Hewitt responded to the expanding use of technology by designing computerized benefit programs and software so companies could manage their benefit plans. Hewitt Technologies was created in 1988 to monitor and respond to the industry's rapidly changing technological needs.

By the beginning of the 1990s Hewitt had ventured abroad and offered tailored benefit programs to corporations in the United Kingdom. The firm had brought in more than $250 million in revenues for 1990 and was ranked the fourth largest benefit management and consulting firm in the world, according to Business Insurance magazine. Yet many of Hewitt's clients were feeling the pinch of a struggling economy and inflation. As companies began looking for ways to bolster the bottom line, benefits were often the first place executives looked for a quick fix. In a time when few received raises and those who did received only cost-of-living increases, Hewitt started retooling retirement packages and healthcare benefits to keep its customers from making drastic changes. Of particular interest were retirement programs since few seniors could withstand the effects of inflation and soaring healthcare costs. Hewitt also researched other benefit additions such as flextime scheduling, child- and elder-care benefits, and HMOs (health management organizations) versus PPOs (preferred provider organizations).

By 1997 more than 100 large companies outsourced their benefit programs to Hewitt, covering about nine million worldwide employees. Hewitt not only managed these HR services but provided both the companies and their employees with the opportunity to view their benefits with ease. The company ran into controversy, however, when it secured lucrative incentives to open a new benefits management center in Orlando, Florida. Public officials decried the incentives, believing that Hewitt was favored over other firms that could have offered more jobs and revenue for the city. Despite the furor, the new office opened in Orlando in 1997, during a fiscal year (ending in September) in which Hewitt's revenues reached close to $700 million.

In 1998 Hewitt partnered with the California-based Financial Engines, an online investment firm, to offer its clients financial advice over the burgeoning "information superhighway" or Internet. Hewitt clients were among the first to view nearly every facet of their company's benefit programs with a few simple keystrokes, and could seek online investment advice and make changes in real-time. Such advancements, along with being the first HR industry firm to launch a corporate web site, landed Hewitt among PC Week's Top Ten Most Technologically Innovative Companies. Hewitt also continued its in-depth surveys, developing the Health Value Initiative in 1999 to measure the effectiveness and quality of more than 2,000 healthcare programs worldwide. The Initiative's findings led to testimony for the government and various agencies in an attempt to reform the U.S. healthcare industry.

As the decade closed, Hewitt was poised for further growth both domestically and abroad. Not only was the company broadening the scope of its operations, but it offered clients advanced tools to outdistance their competitors. Hewitt's HR management services had become known for their cutting-edge technology and the company's ongoing commitment to offer newer, faster, and more comprehensive programs would take it to the top of the industry in the next century.

2000 Onward

By early 2000 Hewitt's expansion moved forward with new offices near Houston, Texas, and an increased presence in Asia with a new office in Kuala Lumpur, Malaysia. The company also announced the merger of its British and Irish operations with the United Kingdom's Bacon & Woodrow, a leading retirement and HR management consulting firm. Hewitt also unveiled plans for Sageo, a comprehensive online service where participants could compare, choose, and enroll in benefit programs. Sageo was designed for retirees and companies with numerous older employees, to offer this growing population the same benefits provided to Hewitt's 150 corporate clients and their 15 million worldwide employees. Hewitt hoped that Sageo's online format would not only simplify the benefits process but lower employer costs as well. Within a few months of its debut, Sageo had enrolled nearly a dozen companies representing 500,000 individuals. However, Sageo never made money and was dismantled shortly thereafter.

In 2001 Hewitt formally announced its intention to become a publicly traded company after nearly six decades as a private firm. Under the ticker symbol HEW on the New York Stock Exchange, Hewitt went public on June 27, 2002, with an initial offering of 11 million shares (at $19 per share). Share prices rose as high as $23 the following day. Hewitt wasted little time in putting its new funds to work, paying off debt, purchasing France's Finance Arbitage, an investment consultancy firm, and spearheading expansion plans for the United Kingdom and China.

In 2003 Hewitt took over the Cork, Ireland-based Becketts, a benefits consultancy, and bought the software programs and payroll services of Cyborg Worldwide Inc. These moves, along with several others, prompted the Chicago-based Crain's Chicago Business to name Hewitt one of the area's fastest growing public firms, with fiscal revenues topping $1.9 billion for the year. In 2004 Hewitt announced the purchase/merger of Irvine, California's Exult Inc., another HR and consulting firm. The deal was valued at close to $700 million and was expected to bring in combined revenues of more than $3 billion by the following fiscal year.

For 2004 Hewitt reached revenues of $2.2 billion and the firm sustained its 43rd consecutive year of growth. Employees numbered more than 22,000 in nearly three dozen countries (including Brazil, China, France, India, Ireland, The Netherlands, Puerto Rico, Singapore, and Switzerland) serving more than 18 million employees for its corporate clients. In addition, the company was named one of America's Most Admired Companies in 2004 by Fortune magazine, ranked as one of the 100 Best Places to Work for the fourth consecutive year by Computer World, and had become the United States' largest and the world's second largest benefits outsourcing company, according to Business Insurance magazine.

By early 2010 Hewitt clinched several significant business processing outsourcing (BPO) contracts, signing publisher Thomson Corporation, Sun Microsystems, hospitality leader Marriott International, beverage giant PepsiCo Inc., Wachovia Corporation, and others to a roster of more than 2,500 international clients. As the year came to a close, Hewitt had fallen a bit short of its $3 billion goal, bringing in revenues of $2.8 billion. With analysts believing the business outsourcing market would top $33 billion or more in 2006, Hewitt continued to dominate the U.S. benefits industry and aimed to be the world's top provider of outsourced business processing.

Chapter-4

4. analysis and interpretation of data

4.1 DESCRIPTIVE STATISTICS

4.1.1 Response about the support from the HR department SL NOPARTICULARNumber of

RespondentsPercentage

1Highly satisfied1836

2Satisfied2958

3Neutral36

4Dissatisfied00

5Highly satisfied00

Total 50100

(Table 4.1)(Chart 4.1)Interpretation The table shows that 58% of the respondents are satisfied with the support they are getting from the HR department.

4.1.2 Management is interested in motivating the employeesSL NOPARTICULARNumber of


1Strongly Agree2754

2Agree2040

3Neutral36

4Disagree00

5Strongly Disagree00

Total 50100

(Table 4.2)

(Chart 4.2)

Interpretation The table shows that 54% of the respondents are strongly agreeing that the management is interested in motivating the employees.

4.1.3 The type of incentives motivates you moreSL NOPARTICULARNumber of


1Financial Incentives1530

2Non financial Incentives918

3Both2652

Total 50100

(Table 4.3)

(Chart 4.3)

Interpretation The table shows that 52% of the respondents are expressing that both financial and non financial incentives will equally motivate them.

4.1.4 Satisfaction with the present incentives schemeSL NOPARTICULARNumber of


1Highly satisfied1836

2Satisfied2958

3Neutral36

4Dissatisfied00

5Highly satisfied00

Total 50100

(Table 4.4)

(Chart 4.4)

Interpretation The table shows that 58% of the respondents are satisfied with the present incentive scheme of the organization.

4.1.5 The company is eagerness in recognizing and acknowledging employees workSL NOPARTICULARNumber of


1Strongly Agree1854

2Agree2958

3Neutral36

4Disagree00


Total 50100

(Table 4.5)

(Chart 4.5)

Interpretation From the study, 58% of employees agreed that the company is eager in recognizing and acknowledging their work, 36% strongly agreed and only 6% showed neutral response.

4.1.6.1 Periodical increase in salarySL NOPARTICULARNumber of


1Strongly Agree1224

2Agree2346

3Neutral36

4Disagree918


Total 50100

(Table 4.6)

(Chart 4.6)

Interpretation The table shows 46% of employees agree that there is a periodical increase in the salary.

4.1.6.2 Job Security existing in the company.

SL NOPARTICULARNumber of


1Strongly Agree1530

2Agree1836

3Neutral1122

4Disagree36


Total 50100

(Table 4.7)

(Chart 4.7)

Interpretation The table shows 35% of employees agree with good job security exist in the company.

4.1.6.3 Good relations with the co-workers. SL NOPARTICULARNumber of


1Strongly Agree1530

2Agree2754

3Neutral816

4Disagree00


Total 50100

(Table 4.8)

(Chart 4.8)

Interpretation The table shows 54% of the respondents agree that they have good relations with co-worker.

4.1.6.4 Effective performance appraisal system.



1Strongly Agree1020

2Agree2346

3Neutral816

4Disagree612


Total 50100

(Table 4.9)

(Chart 4.9)

Interpretation The table shows 46% of the respondents agree to effective performance appraisal system existing in the company.

4.1.6.5 Effective promotional opportunities in present job,



1Strongly Agree918

2Agree2652

3Neutral918

4Disagree36


Total 50100

(Table 4.10)

(Table 4.10)

Interpretation

The table shows 52% of the respondents agree with effective promotional opportunities in their present job.

4.1.6.6 Good safety measures existing in the organization.SL NOPARTICULARNumber of


1Strongly Agree1530

2Agree2346

3Neutral36

4Disagree612


Total 50100

(Table 4.11)

(Chart 4.11)

Interpretation

The table shows 46% of the respondents agree that there is a good safety measure existing in the company.

4.1.6.7 Performance appraisal activities are helpful to get motivated.



1Strongly Agree918

2Agree2346

3Neutral612

4Disagree33


Total 50100

(Table 4.12)

(Chart 4.12)

Interpretation

The table shows 46% of the respondents agree that the performance appraisal activities are helpful to get motivated.

4.1.6.8 Support from the co-worker is helpful to get motivated



1Strongly Agree1220

2Agree2946

3Neutral00

4Disagree612


Total 50100

(Table 4.13)

(Chart 4.13)

Interpretation

The table shows 58% of the respondents agree that the support from the co-worker is helpful to get motivated.

4.1.6.9 Career development opportunities are helpful to get motivatedSL NOPARTICULARNumber of


1Strongly Agree1020

2Agree2652

3Neutral24

4Disagree48


Total 50100

(Table No.4.14)

(Chart 4.14)

Interpretation

The table shows 52% of the respondents agree that the career development opportunities are helpful to get motivated.

4.1.7 Factors which motivates you the most.SL NOPARTICULARNumber of


1Salary increase2142

2Promotion 1530

3Leave 36

4Motivational talk 510

5Recognition 612

Total 50100

(Table 4.15)

(Chart 4.15)

InterpretationThe table shows that the 42% of the respondent is responding that increase in salary will motivate them the most.

4.1.8 Incentives and other benefits will influence your performanceSL NOPARTICULARNumber of


1Influence3264

2Does not influence1224

3No opinion612

Total 50100

(Table 4.16)

(Chart 4.16)

Interpretation

The table shows 64% of the respondents responded that incentives and other benefits will influence their performance

4.1.9 Management involves you in decision making which are connected to your department.SL NOPARTICULARNumber of


1Yes4794

2No00

3Occasionally36

Total 50100

(Table 4.17)

(Chart 4.17)

Interpretation

The table shows 94% of the respondents agree that they the Management involve them in decision making which are connected to your department.

Chapter-5

5.1 Summary

This document aims at providing employees and management members with the information that can be beneficial both personally and professionally. Every business enterprise has multiple objectives including of adequate profit for payment of a reasonable rate of return to the owners and for investment in business through satisfaction of customers, maintenance of a contended workforce and creation of a public image. The basic job of management of any business is the effective utilization of available human resources, technological, financial and physical resources for the achievement of the business objectives. This project entitled as Employee motivation was done to find out the factors which will motivate the employees. The study undertakes various efforts to analyze all of them in great details. The researcher in this project at the outset gives the clear idea of the entire department existing in the company. From the study, the researcher was able to find some of the important factors which motivate the employees. Factors like financial incentives and non financial inventive, performance appraisal system, good relationship with co-workers, promotional opportunities in the present job, employee participation in decision making are very much effect the level employee motivation. It is also clear from the study that the company is so eager in motivating their employees and their present effort for it so far effective.

The human resources can play an important role in the realization of the objectives. Employees work in the organization for the satisfaction of their needs. If the human resources are not properly motivated, the management will not be able to accomplish the desired results. Therefore, human resources should be managed with utmost care to inspire, encourage and impel them to contribute their maximum for the achievement of the business objectives.5.2 FINDINGS

The findings of the study are follows

Hewitt Associates has a well defined organization structure.

There is a harmonious relationship is exist in the organization between employees and management.

The employees are really motivated by the management.

The employees are satisfied with the present incentive plan of the company.

Most of the workers agreed that the company is eager in recognizing and acknowledging their work. The study reveals that there is a good relationship exists among employees.

Majority of the employees agreed that there job security to their present job.

The company is providing good safety measures for ensuring the employees safety.

From the study it is clear that most of employees agrees to the fact that performance appraisal activities and support from the coworkers in helpful to get motivated.

The study reveals that increase in the salary will motivates the employees more.

The incentives and other benefits will influence the performance of the employees.

5.3 Suggestions The suggestions for the findings from the study are follows

Most of the employees agree that the performance appraisal activities are helpful to get motivated, so the company should try to improve performance appraisal system, so that they can improve their performance. Non financial incentive plans should also be implemented; it can improve the productivity level of the employees. Organization should give importance to communication between employees and gain co-ordination through it. Skills of the employees should be appreciated. Better carrier development opportunities should be given to the employees for their improvement. If the centralized system of management is changed to a decentralized one, then there would be active and committed participation of staff for the success of the organization

5.4 LIMITATIONS OF THE STUDY

The limitations of the study are the following

The data was collected through questionnaire. The responds from the respondents may not be accurate.

The sample taken for the study was only 50 and the results drawn may not be accurate.

Since the organization has strict control, it acts as another barrier for getting data.

Another difficulty was very limited time-span of the project. Lack of experience of Researcher.

5.5 CONCLUSION

The study concludes that, the motivational program procedure in Hewitt Associates is found effective but not highly effective. The study on employee motivation highlighted so many factors which will help to motivate the employees. The study was conducted among 50 employees and collected information through structured questionnaire. The study helped to findings which were related with employee motivational programs which are provided in the organization.

The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his satisfaction too. The organization can still concentrate on specific areas which are evolved from this study in order to make the motivational programs more effective. Only if the employees are properly motivated- they work well and only if they work well the organization is going to benefit out it. Steps should be taken to improve the motivational programs procedure in the future. The suggestions of this report may help in this direction.

Self- Actualization

Ego Needs

Social Needs

Safety Needs

Physiological Needs

EMBED Excel.Chart.8 \s

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