HIGHER THE MOTIVATION HIGHER THE PRODUCTIVITY
LOWER THE MOTIVATION LOWER THE PRODUCTIVITY
(PLOT NO.2, SURAJPUR BYPASS,GREATER NOIDA)
VARUN BEVERAGES LIMITED
Submitted for the partial fulfillment of the
requirement for the degree of:
MASTER IN BUSINESS ADMINISTRATION
UTTAR PRADESH TECHNICAL UNIVERSITY
Submitted to:- Submitted by:-
Dr. M.M.Prasad Prithwijit Ghosh
(Director) Roll No- 0515870036
J I E I MBA IIIrd Sem
EXTERNAL GUIDE: INTERNAL GUIDE:
Mr.B.K.JHA Mrs.Kalpana Sharma
(H.R.Manager) (Faculty : JIEI)
JANHIT INSTITUTE OF EDUCATION
38B, KNOWLEDGE PARK, PHASE-1, GREATER NOIDA
UTTAR PRADESH 201308
Human resource management(HRM) has been defined as the field
of management which has to do with planning,organizing,directing
and controlling various operative functions of
procuring,developing,maintaining and utilizing a labour force,such
A) Objectives for which the company is established are attained
economically and effectively;
B) Objectives of all levels of HRM are served to the highest
C) Objectives of the community are duly considered and served
Its objectives is to understand what has happened and and is
happening and to be prepared for what will happen in the area of
working relationships between managers and the managed.
Undergoing summer training with an industry is an essential part
of the management studies programme.As this type of training is
arranged to the student to provide the opportunity to get familiar
with the natural market atmosphere & to get a feel of the corporate
functioning through participation & observation.
I have carried on the topic ’’Higher the motivation higher the
productivity Lower the motivation lower the productivity’’which is
related to motivate the employees In VBL so that the objectives of
the company are achieved.
It is an important friction, which is carried out in order to retain the
employees in an organization.
During this training as a management student,I had to unedergo
training from 30th
of June till 14th
3. It is my firm belief that a report should be such which is easy to
understand and pleasure to read rather than be a huge collection of
After reading this project,I hope that the reader would be able to
appreciate the merits and demerits of not only this venture but also
those of other similar projects.and then only I would consider that
the hard work spent in undertaking the summer training and in
making this report justified.
4. I here by declare that the project report entitled,”A study on Higher
the motivation higher the productivity,Lower the production lower
the productivity at Varun Beverages Limited,greater noida, is an
authentic work done by me as a part of my study.
This project being submitted in partial fulfillment for the award of
Master of Business Administration (Uttar Pradesh Technological
University,Lucknow),to the Janhit Institute of Education and
Information,Greater Noida, is my original work and has not been
submitted for award of any degree,diploma or any other similar
title or prizes.
It was exhilarating experience to be attached with a company i.e,
the market leader in soft drinks industry in INDIA. I express my
great sense of gratitude to VARUN BEVERAGES LIMITED for
providing me an opportunity to complete my summer training
I am grateful to Mrs.Preeti Shrivastava who was my internal guide
and had been of great help.
I am grateful to Mr.B.K.Jha (H.R.MANAGER) to give me such a
brilliant opportunity to work under the amiable presence in such a
BROAD ORGANISATION. It is this change,which made me
possible to give the shape of reality to our knowledge and thus
enhance our skills.
Completing a task is never a one man effort.it is often the result of
invaluable contribution of number of individuals in a direct or
indirect manner that helps in sharing a making success.
I am also thankful to Dr.M.M.Prasad (Director),Mr.Ajit Kumar
Singh,Mrs Kalpana Sharma (H.R.Faculty) and Miss Ruchi
Goel,for their encouragement and support.I am also indebted to all
the faculty members who guided and encouraged me from time to
My deep sense of regards and heartiest gratitude are for my
parents,who have been a constant source of inspiritation for
whatever I am,only because of their blessings.
6. I would like to extend my heartiest thanks to my
friends,classmates,and Anurita for providing me light
moments,patience and affection in times of lonliness and
Last but not the least I would bow before the almighty GOD who
has been the ultimate source of energy.
I am grateful to those who have helped me to complete this
( Prithwijit Ghosh)
7. TABLE OF CONTENTS
1. Objectives of study 7
2. Company Profile 8 - 10
3. Executive Summary of The Research 11 – 12
4. Scope of The Research 13
5. History of the Soft Drinks 15 – 16
6. History of Pepsi Cola 17 – 27
7. About PepsiCo Company 28 – 33
8. R.K.Jaipuria Groups 34 – 39
9. Varun Beverages Ltd. 40 – 43
10. Human Resource Management 44 – 65
11. Introduction of Motivation 66 – 87
12. Research Methodology 88 – 90
13. Finding Data Analysis &
91 – 106
14. Assumptions 107
15. Suggestions 108
16. Recommendation 109
17. Limitation 110
18. Conclusion 111
19. Annexure & Questionnaire 112 – 115
20. Bibliography 116 - 117
8. OBJECTIVE OF THE STUDY
The objectives of the proposed study are …………. .
1) To critically study the HR Policies and Motivational system existing at
Varun Beverages Ltd.
2) To study the various types of Motivational methods.
3) To study the Motivational method being used at Varun Beverages Ltd.
4) To establish a direct relationship between work performance and
5) To identify the level of motivation, job satisfaction and performance
among the employees after & before the conduction of Motivationl
6) To find out the loopholes (if any) in the Motivational System at Varun
7) To point out and suggest the organization to adopt remedial actions to
remove those loopholes, aiming to improve the productivity and
efficiency of the worker and increase the level of job satisfaction among
9. COMPANY PROFILE
In 1983 Caleb Bradham, a young pharmacist from New
Bern,North Carolina,begins experimenting with many different
soft drink concotions;patrons and friends sample them at his
drugstore soda fountain.
In 1898 one of Calebs formulations,known as “BRAD’S DRINK,”
a combination of carbonated water,sugar,vanilla,rare oils and cola
nuts,is renamed “Pepsi- Cola” on August 28,1898.Pepsi-Cola
receives its first logo.
Pepsi-Cola North America,headquarted in purchase, N.Y., is the
refreshment beverage unit of Pepsi Co,Inc. Pepsi Co Beverages
and FoodsNorth America also comprises Pepsi Co’s
Tropica,Gatorade and Quaker Foods businesses in the United
States and Canada.
Pepsi-Cola North America’s carbonated soft dirnks,including:
Pepsi,Diet Pepsi,Pepsi Twist,Mountain Dew,Mountain Dew Code
Red,Sierra Mist,and Mug Root Beer account for nearly one-third
of total soft drink sales in the United States.
Pepsi-Cola North America’s non-carbonated beverages portfolio
includes Aquafina,which is the number one brand of bottled water
in the United States,Dole single-serve juices and SoBe,which
offers a wide range of drinks with herbal ingredients.The company
also makes and markets North America’s best-selling,ready-to-
drink iced-teas and coffee’s via joint ventures with Lipton and
10. PepsiCo,Inc., is one of the world’s largest food and beverage
company.The company’s principal business include:
• Frito-Lays snacks
• Pepsi-cola beverages
• Gatorade Sports Drinks
• Tropicana Juices
• Quaker Foods
PepsiCo,Inc. was founded in 1965 through the merger of
Pepsi-Cola and Frito-Lay.Tropicana was acquired in
1998.In 2001,PepsiCo merged with Qyaker Oats
Company,creating the world’s fifth-largest food and
beverages company,with 15 brands – each generating more
than $1 billion in annual retail sales.PepsiCo’s success is the
result of superior products,high standards of
performance,distinctive competitive strategies and the high
level of integrity of our people.
There are many who feel that Pepsi-Cola had the first move
advantage in India.Little do they know about Pepsi-Cola’s
initial foray into Indain soft drinks industry way back in
Coca-Cola had entered the country just a year back in
1955.But later Pepsi-Cola withdrew from the country in
1961 due to botlling problems.Pepsi-Cola entered India in
April 1989 by setting operation in
beverages,snacks,agribusiness.At this time Parle had 70% of
the market share of the total soft drink market.
11. Initially it faced some trouble in entering the market due to
strong resistance from most of the domestic soft drink
industry and proved to be another “SWADESHI”.
The Indian Economy was not liberalized and proved to be
another barrier.Pepsi-Cola removed these barriers by:
Promising the government to focus considerable selling
efforts in the rural area to help economic development.
“Promising to help boost the expert of agricultural
offering to transfer the food processing,packaging & water
treatment technology to India.
12. EXECUTIVE SUMMARY OF THE
This project is an extensive research on the Performance Appraisal
System at the Varun Beverages Ltd., Greater Noida.
The Project begins with the History of soft drink, Pepsi cola, as well as
the Introduction & Journey of Pepsi in India.
Then after the Project tells about the PepsiCo, R.K.J. Group and the
Varun Beverages Ltd.
This project report also talks about how MOTIVATIONAL
PROGRAMME is valued and carried out at Varun Beverages Ltd.
Moreover the Project deals with the MOTIVATIONAL MODEL used at
Varun Beverages Ltd.
Both Primary and Secondary Data Collection methods has been used for
the sake of reliability and accuracy.
The Questionnaire has been categorized into two category.
First one is meant for the collecting feedback from the Workers & Staff,
while the second one is for the Managers employed at Varun Beverages
This is done due to the Level and Grade differences among the
employees and so the Motivational Techniques may also differs for
The project includes all the facts, figures & graphs based on the
feedback of the company employees regarding Motivational System
carried out in the company.
13. The data are collected, analyzed and graphs has been drawn based on the
Suggestions from the employees has been also put forwarded in the
project with the headings under Suggestions and Recommendations.
All the Assumptions and the Limitations (constraints) has also been
mentioned in the project which was being faced during the making of
the Research Report.
Finally the Conclusion of the Project Report has been made which
concludes the Report and covers the brief summary of the whole Project
14. SCOPE OF THE RESEARCH
The study has a wider scope & covers the following areas of operation,
which will help me as well as to the company to have a look in the present
Performance Appraisal position within the company.
The study deals with ……………
1) The knowledge about the current motivational programme being
carried out at Varun Beverages Ltd.
2) To have an overlook over the changes and improvements made in the
past within the company.
3) To view the strengths & weaknesses after analyzing current
One can have an overlook on the Project for the sake of the knowledge
about the working & Effectiveness of MOTIVATIONAL MODEL
at Varun Bevarages Ltd.
16. HISTORY OF THE SOFT DRINKS
The history of soft drinks began with the end of the last century. Its history
dates back to the civil war in USA in 1860. At the time people were
suffering from several diseases.
Problem at that time was how to cure all those diseases since no remedy was
present at that time. It was a big question for American people.
So in 1885, Mr. Jihn Palmwartion, who lived in Antonica, made a drink
and registered it as French Wine Cola. In the beginning the drink was made
with mixture of Cocaine and Alcohol but later on it was converted and
changed into a soft drink.
Now it is named as Coca-Cola. A new brand named Pepsi-Cola came in the
Around 1984, the first branded soft drink came in the Indian market. This
soft drink was named as Gold Spot.
Parle Exports Pvt. Ltd. was the first Indian Company to introduce a Lemon
soft drink, this drink was known as Limca and it was introduced in 1970s
however, before this drink had introduced Cola Pepino which was withdrew
in face of tough competition.
In the year 1977, Coca-Cola left Indian market and this brought in an
opportunity for various Indian companies to show their caliber.
At this time, a new sot drink was introduced by Parle Products and this was
named as Thumbs-Up.
This was a Coca-Cola drink which has a burnt sugar colour. This drink was
introduced with a mighty Happy Days Are Here Again.
There was another company named Pure Drinks which introduced the soft
drink named Campa Cola along with Orange and Lemon flavour.
Just after this many more companies entered Indian soft drinks market. A
soft drink named Double-7 had been introduced by a company
17. Modern Bakers.
Another company, Mohan Meakins also came with soft drink named
Marry & Puck-up. Mcdowell came with Thrill, Rush, Spirit.
Previously there was no competition in the Indian soft drink market but with
all these companies coming in the Indian market a huge competition was
taking place with high voltage advertisement.
But in the year 1988 Pepsi Cola was given permission to sell its soft drinks
in the Indian market by the Government of India. Coca-Cola also came back
18. HISTORY OF PEPSI COLA
Caleb Bradham, a young pharmacist
from New Bern, North Carolina, begins
experimenting with many different soft drink
Like many pharmacists at the turn of the
century he had a soda fountain in his
drugstore, where he served his customers as a
cure for Dyspepsia (indigestion)
drinks, that he created himself. His most
popular beverage was something he called
"Brad's drink" made of carbonated water,
sugar, vanilla, rare oils, pepsin and cola nuts.
In the summer of 1893
One of Caleb's formulations, known as
"Brad's drink", created and was
later renamed Pepsi Cola after
the pepsin and cola nuts used in
Caleb Bradham wisely bought the trade
name "Pep Cola" for $100
from a competitor from Newark,
New Jersey that had gone broke.
19. In 1902
The instant popularity of this
new drink leads Bradham to devote all
of his energy to developing
Pepsi-Cola into a full-fledged
He applies for a trademark with the
U.S. Patent Office, Washington D.C.,
and forms the first Pepsi-Cola
The first Pepsi-Cola newspaper
advertisements appeared in the
New Bern Weekly Journal.
theme line is "Exhilarating,
Invigorating, Aids Digestion."
On June 16th
The new name was trademarked.
Bradham's neighbor, an artist
designed the first
Bradham purchases a building in New
Bern known as the "Bishop Factory"
for $5,000 and moves all bottling and
syrup operations to this location. Pepsi
is sold in six-ounce bottles.
Sales increase to 19,848 gallons.
Pepsi-Cola's first bottling franchises
established in Charlotte and Durham,
North Carolina. Pepsi receives its new
logo, its first change since
Pepsi gets another logo change, the
third in eight years. The
modified script logo is created
with the slogan, "The Original
Pure Food Drink." There are
15 U.S. Pepsi bottling plants.
The Pepsi trademark is
registered in Canada. Syrup
sales rise to 38,605 gallons.
The federal government passes
the Pure Food and Drug Act,
banning substances such as
arsenic, lead, barium, and
uranium, from food and
beverages. This forced many
soft drink manufacturers,
including Coca-Cola, to change
their formulas. Pepsi-Cola,
21. being free of any such impurities, claimed they already met federal
After seventeen years of success, Caleb
Bradham lost Pepsi Cola. Pepsi
Cola went bankrupt in 1923 and
its assets were sold to a North
Carolina concern; Craven
Holding Corporation for
Roy C. Megargel, a Wall Street
broker, buys the Pepsi trademark,
business and goodwill from
Craven Holding Corporation for
$35,000, forming the Pepsi-Cola
After five continuous losing years,
Megargel reorganizes his company
as the National Pepsi-Cola
Company, becoming the fourth
parent company to own the Pepsi
22. In 1931
Pepsi Cola was bought by the Loft Candy Company. Loft president,
Charles G. Guth who reformulated the popular soft drink. Charles G
Guth, president of the Loft company struggled to make a success of
The drink was a hit and to attract
even more sales,
company begins selling its
cents (the same cost as six
competitive colas). The 12-
ounce bottle debuts in
Baltimore, where it is an
instant success. The
savings proves irresistible to
Americans and sales
The Pepsi Cola company made
history when the first
advertising jingle was
broadcast nationally on the
radio. The jingle was "Nickel
Nickel" an advertisement for
Pepsi Cola that referred to
23. price of Pepsi & the quantity. "Nickel Nickel" became hit record and
was recorded into 55 languages.
Pepsi further refines its target
audience, recognizing the
increasing importance of the
younger, post-war generation
with the theme "Now it's Pepsi,
for those who think young."
The new theme defines youth
as a state of mind as much as a
chronological age, maintaining
the brand's appeal to all market
segments. Pepsi receives its
new logo, the sixth in Pepsi
The 'serrated' bottle cap logo
debuts, accompanying the
brand's groundbreaking "Pepsi
Generation" ad campaign.
Pepsi-Cola continues to lead
the soft drink industry in
packaging innovations, when
12-ounce bottle gives way to the 16-
size. Twelve-ounce Pepsi cans are
introduced to the military to transport
drinks all over the world.
24. In 1964
Diet Pepsi was introduced as America's first
national diet soft drink. Pepsi-Cola acquires
Mountain Dew from the Tip Corporation.
Expansion outside the soft drink
industry begins. Frito-Lay of
Dallas, Texas, and Pepsi-
Cola merge, forming
PepsiCo, Inc. Pepsi is the
first company respond to
consumer preference with the
lightweight, recyclable, plastic
Pepsi becomes the single largest soft
drink brand sold in American
supermarkets. The campaign
is "Have a Pepsi Day!" and a
"Puppies," becomes one of
America's best-loved ads. As
people get back to basics,
Pepsi is there as one of the
simple things in life. The
company experiments with
new flavors. Twelve-pack
cans were introduced.
25. In 1984
Pepsi advertising takes a dramatic
Pepsi becomes "the choice of a
Generation." Lemon Lime Slice,
major soft drink with real fruit juice,
introduced, creating a new soft drink
category, "juice added." In
subsequent line of
extensions, Mandarin Orange Slice
to become the number one orange
drink in the U.S. Diet Pepsi is
with NutraSweet (aspertame) brand
Pepsi lunges into the next decade by
declaring Pepsi lovers "A
26. Generation Ahead." Pepsi-Cola introduces an exciting new flavor,
Wild Cherry Pepsi.
Pepsi introduces the first beverage bottles containing recycled polyethylene
terephthalate (or PET) into the marketplace. The development marks
the first time recycled plastic
is used in direct contact with
food in packaging.
Brand Pepsi introduces its slogan, "Be
Young. Have Fun. Drink Pepsi."
Pepsi-Cola profits surpass $1
billion. Pepsi introduces an
innovative 24-can multi-pack that
satisfies growing consumer demand
for convenient large-size soft drink
packaging. "The Cube" is easier to
carry than the traditional 24-pack
and it fits in the refrigerator.
New advertising introducing Diet
Pepsi's freshness dating
initiative features Pepsi CEO
Craig Weatherup explaining
the relationship between
freshness and superior taste to
consumers. Pepsi Foods
merge, creating the
Foods and Beverages
27. The company declares "Nothing else is a Pepsi" and takes top honors in the
year's national advertising championship. However, Pepsi made
history by launching one of the most ambitious entertainment sites on
the World Wide Web. Pepsi World eventually surpasses all
expectations, and becomes one of the most landed, and copied, sites in
this new media, firmly establishing Pepsi's presence on the Internet.
Pepsi brought Mirinda Orange in
opposite to Fanta.
Pepsi brought Lemon Mirinda to
give competition to Limca.
Pepsi launched Diet Pepsi and 1.5
litre pet bottle for health
Although Pepsi is a great place to
work, Steven Truitt (aka
‘Struitt’) takes his skills and
hard work elsewhere (for
more money of course!),
therefore putting an end to
his Pepsi page.
Pepsi launched Aquafina
Pepsi launched Mountain Dew and
Pepsi-Cola launched “Pepsi Blue”
to get the favour of world cup
28. In 2004
Pepsi launches two biggest new
campaigns: "Dare for more"
with appearance of Beyonce,
Britney, Pink and Enrique
Iglesias, and "Footbattle"
featuring great football talent:
David Beckham, Roberto
Carlos, Francesco Totti,
Ronaldinho, Raul, Quaresma,
Diego Cunha, Fernando Torres
and Van de Vaart.
Pepsi launched Mirinda Lemon
Ginger & 7 UP - Ice.
Pepsi-Cola launched Mirinda in
“Straw Berry” flavour to get the
favour of movie Batman.
Pepsi launched a new flavoured Pepsi
drink named PEPSI CAFÉTINO with
Pepsi launched an Ad named PEPSI
29. ABOUT PEPSICO COMPANY
PepsiCo is a world leader in convenient foods and beverages, with 2004
revenues of more than $29 billion and 153,000 employees. The company
consists of Frito-Lay North America, PepsiCo Beverages North America,
North America, PepsiCo International and Quaker Foods North America.
PepsiCo brands are available in nearly 200 countries and territories and
generate sales at the retail level of about $78 Billion.
Many of PepsiCo’s brand names are more than 100 years old, but the
corporation is relatively young. PepsiCo was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in1998 and
PepsiCo merged with Quaker Oats Company including Gatorade in 2001.
“ To be the world’s premier consumer Products Company focused on
convenient foods and beverages. We seek to produce healthy financial
rewards to investors as we provide opportunities for growth and growth
and enrichment to our employees, business partners and the
communities in which we operate. And n everything we do, we strive
for honesty, fairness and integrity.”
PepsiCo’s world Headquarter
30. PepsiCo’s world Headquarter is located in Purchase, New York,
approximately 45 minutes from New York City. The seven building
headquarters complex was designed by Edward Durrell Stone, one of
America’ foremost architects. The building occupies 10 acres of a 144
acre complex that includes the Donald M. Kendall Sculpture Gardens, a
world acclaimed sculpture collection in a garden setting.
PEPSI – THE INDIAN JOURNEY
Since the entry of Pepsi – Cola to India in 1989, the soft drink
industry has under gone a radical change. When Pepsi-Cola entered
Indian market, Parle was the leader with the Thumps-Up being its
Other products offering by Parle included Limca & GoldSpot, another
upcoming player in the market was, the erstwhile bottler of Coca-
Cola, “Pure Drinks”. Its offering includes Campa-Cola, Campa-
Lemon & Campa-Orange.
With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had
to go in for more aggressive marketing to sustain share.
The chronology of the initial phase of the Cola Wars in India are ……
Parle launched Thumps-Up and pure drinks launched
In September, final approval for the Pepsi Foods Ltd.
Project granted by the “Cabinet Committee” on economic affairs of
the “Rajeev Gandhi Govt.”
31. 1990 Milestone
In March, “Pepsi-Cola and 7-Up” launched markets
in north India.
In May, the Government cleared the Pepsi-Cola project
again but with a change in brand name to “Lehar Pepsi”,
simultaneously it rejects the Coca-Cola application “Citra” from the
Parle, stable hited the market.
Pepsi-Cola extended its soft drinks business and
reached at national scale. Pepsi-cola launched its product in Delhi and
In January, Brito Foods application is cleared by the
FIPB. Pepsi-Cola and Parle start initial negotiation for a strategic
alliance but took break off after a while.
Pepsi-Cola launched “Slice & Teem” captured about
25-30% of the soft drink market in about 2 years.
Pepsi bought “Dukes & Sones”.
32. 1995 Milestone
Pepsi-Cola lunched Cans, having capacity of 330ml in
Pepsi-Cola domestic and International operations
combined into a Pepsi-Cola Company. International and Domestic
operations combined into one business unit called
Pepsi-Cola brought “Mirinda Orange” Opposite to
Pepsi-Cola launched “Mirinda Lemon” opposite to
Pepsi-Cola launched “Diet Pepsi” can and 1.5 Lit.
“PET” bottle for health conscious people.
Pepsi-Cola launched Slice in “Tetra” Pack .
Pepsi-Cola launched “Pepsi Blue” to get the favour of
world cup season.
33. Pepsi-Cola launched Mirinda in “Straw Berry” flavour
to get the favour of movie Batman.
Pepsi-Cola launched 7-up as “7-up ice”.
Pepsi-Cola launched “Mountain Dew” to be more
competitive with Coca-cola.
CELEBRITIES FOR PEPSI
Following are some celebrities for Pepsi : -
 Amitabh Bachchan
 Shahrukh Khan
 Saif Ali Khan
 Fardeen Khan
 Kareena Kapoor
 Preity Zinta
 Sachin Tendulkar
 Saurav Ganguly
 Yuvraj Singh
 Harbhajan Singh
 Rahul Dravid
34.  Zaheer Khan
 Mohammad Kaif
 Priyanka Chopra
FAMOUS CATCH LINES
Some famous lines of Pepsi are : -
• “Yehi Hai Right Choice Baby……Aaha !!”
• “Nothing Official About It”
• “Choice of Next Generation”
• “More Cricket More Pepsi”
• “Yeh Aazadi Hai Dil Ki”
• “Yeh Dil mange More”
• “Zor Ka Jhatka Dheere Se Lage”
• “Pepsi Ke Liye Hum Besharam Hain”
• “Yeh Pyaas Hai Badi”
• “Do The Dew”
35. • “Oye… Bubbly !!”
R .K .JAIPURIA GROUP
It can be said with absolute certainty that the RKJ Group has carved
out a special niche for itself. Our services touch different aspects of
commercial and civilian domains like those of Bottling, food chain
and education. Headed by Mr. R. K. Jaipuria, the group as today can
lay claim to expertise and leadership in the fields of education, food
The business of the company was started in 1991 with tie- up with
Pepsi Foods Limited to manufacture and market Pepsi brand of
beverages in geographically pre-defined territories in which brand and
technical support was provided by the Principles viz., Pepsi foods
Limited. The manufacturing facilities were restricted at Agra Plant,
only Varun Beverages Ltd. is the flagship company of the group.
The group also become the first franchisee for Yum Restaurants
International [formerly Pepsi Co Restaurants (India) Private Limited]
It has exclusive franchise rights for the Northern & Eastern India. It
has total 27 pizza Hut Restaurants under its company.
It diversified into education by opening the first school in Gurgaon
under Management of Delhi Public School Society. The schools of the
36. group are run under a registered Trust namely Champa Devi Jaipuria
Companies are medium sized, professionally managed, unlisted and
closely held between Indian Promoters and Foreign collaborators.
The group added another feather to its cap when the prestigious
PepsiCo “International Bottler of the year” award was presented to
Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at
PepsiCo’s centennial year celebrations at Hawai, USA. The award
was presented by Mr. Donald M. Roger A. Enrico, Chairman of the
Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of
Pepsi Cola Company.
Being the best in everything we touch and handle.
Continuously excel to achieve and maintain leadership position in the
chosen business and delight all stakeholders by making economic value
additions in all corporate functions.
Production of innovative, high quality retail branded beverages
combined with world class packaging.
Driven by management team with a relentless focus on achieving
superior customer service, driving earnings improvement and
RKJ creates an environment where employee enjoy a greater degree of
empowerment – both individually and in their work teams.
37. The employees are equipped with the necessary tools, training and well
management backup for strong performance and accountability, as well
as with an environment of open communication and involvement.
BUSINESS SEGMENTS OF RKJ GROUP :-
The RKJ Group is divided into three business segments namely,
 Food, and
This high profile industry has lot of potential for growth as per capita
consumption in India is 9 bottles a year as compared to 20 bottles in
Sri Lanka, 14 in Pakistan, while 12 bottles a person in Nepal.
The RKJ Group is India’s leading supplier of retailer brand
Carbonated and Non-Carbonated soft drinks, with beverages
manufacturing facilities in India and Nepal.
Its experience in the beverages industry dates back to the sixties when
it had the first franchise at Agra.
The family manufacturers and markets Carbonated and Non-
Carbonated Soft Drinks and Mineral Water under Pepsi Brand.
The various flavours and sub-brands are Pepsi, Mirinda Orange,
Mirinda Lemon, Mountain Dew, 7 Up, Slice Orange, Evervess Soda
38. 2) FOOD:-
India’s sheer size and diversity are enough to make it an attractive
market for nearly every major food, beverages and agribusiness
To capitalize on, the RKJ Group’s significantly relationship with Pepsi
foods, it decided to venture into food sector, which is second largest
business for Pepsi all over the world.
3) Education :-
The RKJ Group has been associated with excellence in education.
The year 2001 witnessed the further spread of the group’s portfolio
with the opening of its first school at Gurgaon under the management
agreement with Delhi Public School Society. To expand in the field of
education it opened its second school at Jaipur under the management
of same Society.
The group has entered into a joint-venture partnership with Modern
Montessori International (MMI), Singapore, to open pre-school
educational institutions across the country. Forming a new entity,
Modern Montessori International (MMI), India in which the group
Will have 51 % equity stake, the company invests Rs. 200 crore
investment in the Indian operations in the next 5 years.
MMI India plans to open four schools by April 2005 and as many as 14
schools by 2008. The company has opened its first school in Gurgaon
and second at Greater Kailash II, New Delhi. The long-term agenda
39. includes starting 20 schools each year with an investment of Rs. 5 crore
in each school.
THE RKJ GROUP INVESTMENT
42. VARUN BEVERAGES LTD,
VARUN BEVERAGES LTD (PEPSI), Plot No – 2, Surajpur Bypass,
Greater Noida is a Bottling Plant of Pepsi Cola Brands. Today, VBL is the
top position holding company among the soft drink bottling companies in
India. Its registered office is located in New Delhi and corporate office at
Noida. It is a Franchise company of PepsiCo India holding. It’s a
“ R.K. JAIPURIA GROUP COMPANY”. The group is a largely diversified
rising group having interest in Soft Drink Bottling, Restaurant chains under
the Brand name of Pizza Hut and Tricon & Creambell Ice Cream
manufacturing, power project, Export and many other projects. It is having
Pepsi Bottling Plants in various places of India as well as out of India. It is
on the rising path under and the wisdom guidance of its chairman
The VBL plant was established in the year 1995 in Greater Noida. It was
the first plant to start its operation in the Greater Noida Industrial
Development Area. Greater Noida Industrial Development Authority has
awarded and given early production incentive for being starting and
competing the project very first in Greater Noida. The company’s mainly
operate the Bottling and marketing of Pepsi Cola Brand.
Its product brand are Pepsi, Mirinda-orange, Mirinda-Lemon, Mirinda-
Apple, Slice, 7-Up, Evervess Soda. Its marketing Network is spread in
Western-UP, Haryana, Rajasthan, Delhi(TRANS YAMUNA) and
VBL has always secured top position in its best quality and marketing.
Mr.R.K.JAIPURIA who is the chairman of the group, received various
award for the best quality and marketing.
He has also been awarded for good quality and marketing in South Asia with
“EXCELLANCY AWARD” by Mr. GEORGE BUSH, former president of
U.S.A. in 1998.
The main aim of VBL Greater Noida plant is to provide soft drink to the
people of India in its assigned territory, which is helpful in keeping cool
The aim of this company is also to provide full satisfaction to the customers.
And most importantly, through a range of customer relevant product
manufactured with care and quality in a fully hygiene environment.
• Deliver the best product in the market place
• The highest Quality
• The best Tasting
46. PRODUCTION SET UP
Greater Noida plant is a dedicated plant for 7 major products.
These are as follows : -
PRODUCT BOTTLING FILLING
PEPSI 300ML, 200ML
MIRINDA ORANGE 300ML, 200ML
MIRINDA LEMON 300ML, 200ML
7- UP 300ML, 200ML
EVERVESS SODA 300ML
MOUNTAIN DEW 200ML & 300ML
Plant is producing 10 million cases every year. Plant has employed
about 200 employees on permanent and casual basis. There are 40
mangers/officers/ supervisors and rest of workmen. Plant is
dispatching near about125-150 trucks in peak seasons per day to
various location. This Plant is spread in peak seasons per day to
various location. This plant is spread over 7.5 acre.
48. HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is a process of bringing people
and organization together so that the goals of each are met. It is that
part of the management process which is concerned with managing
Human Resources in an organization.
Simply put, Human Resource Management is a management function
that helps managers recruit, select, train, and develop members for an
HRM tries to secure the best from people wining their whole hearted
co-operation. In short, it may be defined, as the art of procuring,
developing and maintaining competent work force to achieve the
goals of an organization in an effective and efficient manner.
Followings are the leading definitions of HRM………………………..
“Human Resource Management is a series of
integrated decisions that from the employment relationship: their
quality contributes to the ability of organization and the employees
to achieve their objective”
“Human Resources Management is concerned
with the people dimension in management. Since every organization
is made up of people, acquiring their service, developing their skills/
motivating them to higher levels of performance and ensuring that
they continue to maintain their commitment to the organization are
49. essential to achieving organization objectives. This is true,
regardless of the type of organization–government business,
education, health, recreation, or social action”
“Human Resource Management is the planning, organizing,
directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human
resources to the end individual, organization, and social objectives
Thus, HRM refers to set programs, functions and activities designed
and carried out in order to maximize both employee as well as
50. Features/Characteristics/Nature of HRM
1. PERVASIVE FORCE
HRM is Pervasive in nature. It is present in
all enterprises. It permeates at every level of management within
2. ACTION ORIENTED
HRM focuses attention on action rather than
on record keeping, making procedures or rules.
3. PEOPLE ORIENTED
HRM is all about people at work, both as
individuals and group. It helps people on assigned jobs in order to
produce good results. The resultant gains are due to the people and
it motivates them toward further improvements in productivity.
4. CONTINUOUS FUNCTION
According to Terry, HRM is not a one short
deal. It cannot be practiced only one hour each day or one day a
week. It requires a constant alertness and awareness of human
relation and their importance in every day operations.
5. INDIVIDUAL ORIENTED
HRM tries to help employees develop their
potential fully. It enable them to give out their best to the
organization. It motivates employees through a systematic
manner of recruitment, selection, training and development
coupled with fair wage policies.
51. 6. DEVELOPMENT ORIENTED
HRM intends to develop the full potential of
employees. The reward structure is tuned to the needs of employees.
Training is offered to sharpen and improve their
skills. Employees are rotated on various jobs so that they gain experience
and exposure. Every attempt is made to use their talents fully in the service
of organizational goals.
7. INTEGRATING FUNCTION
HRM builds and maintain cordinal relations
between people working at various levels in the organization.
In short, it tries to integrate human assets in the best possible
manner in the serviceof an organization.
8. INTER-DISCIPLINARY FUNCTION
HRM is a multi-disciplinary activity, utilizing
knowledge and inputs drawn from psychology, sociology,
anthropology, economics etc. to unravel the mystery
surrounding the human brain, managers, need to understand
and appreciate the contributions of all such ‘soft’ disciplines.
52. SCOPE OF HRM
Procurement includes recruitment and selection
of right kinds of personnel to occupy the various posts in the
It includes :-
(a) Determination of manpower requirements
(b) Job Analysis
(c) Nature and scope of recruitment
(d) Employee selection and
(e) Placement of employees
2) TRAINING & DEVELOPMENT
Training & Development is a must to prepare the
worker gaining proficiency in the methods and techniques of work
assigned to them. Efforts may be made to involve the employees in
the actual management situations. Employees participation in
committee and Board meetings may also contribute toward their
3) JOB ANALYSIS & JOB DESCRIPTION
53. Job Analysis and Job Description involves the
studies of job requirements of the enterprises and assignment of
well defined functions to jobs so that qualified employees may be
hired. It also forms the basis of wage determination.
Provision of adequate remuneration for the work
done by an employee involves Job Analysis and Job Evaluation.
It includes determining wage rates, incentives systems of wage
payment, merit-rating and performance appraisal.
5) PERSONNEL RECORDS
The function of personnel records includes
collection bio-data of all employees pertaining to their work e.g.,
training job performance, aptitude payment records.
6) WELFARE AND INDUSTRIAL RELATIONS
It includes health and safety programme, sanity
facilities, recreational facilities, group insurance employee
54. OBJECTIVES OF HRM
The primary objective of HRM is to ensure the availability of a
competent and willing workforce to an organization. Beyond this,
there are other objectives, too.
Specifically, HRM objectives are four fold – Societal, Organisational,
Functional and Personal.
1) SOCIETAL OBJECTIVES
To be ethically and socially responsible to
the needs and challenges of the society while minimizing the negative
impact of such demands upon the organization. The failure of
organizations to use their resources for the society’s benefit in ethical
ways may lead to restrictions.
For example, the society may limit HR decisions through laws that
enforce reservation in hiring and laws that address discrimination,
safety, or other such areas of societal concern.
2) ORGANISATIONAL OBJECTIVES
55. To recognize the role of HRM in bringing
about organizational effectiveness. HRM is not an end itself. It is only
a means to assist the organization with its primary objectives.
Simply stated, the department exists to serve the rest of the
3) FUNCTIONAL OBJECTIVES
To maintain the department’s contribution at
a level appropriate to suit the organisation’s demands. The
department’s level of service must be tailored to fit the organization it
4) PERSONAL OBJECTIVES
To assist employees in achieving their personal
goals, at least insofar as these goals enhance the individual’s
contribution to the organization. Personal objectives of employees
must be met if workers are to be maintained. Retained and motivated.
Otherwise, employee performance and satisfaction may decline and
employees may leave the organization.
56. HRM OBJECTIVES AND FUNCTIONS
HRM OBJECTIVES SUPPORTING FUNCTIONS
1. Societal Objectives
a) Legal Compliance
c) Union-management Relations
2. Organisational Objectives
a) Human Resource Planning
d) Training & Development
3. Functional Objective
57. c) Assessment
4. Personal Objective
a) Training & Development
FUNCTIONS OF HRM
The functions of HRM can be broadly classified into two categories,
1) MANAGERIAL FUNCTIONS
2) OPERATIVE FUNCTIONS
i) Job Analysis
ii) Human Resource Planning
vi) Induction & Orientation
B) Human Resource Development
i) Performance Appraisal
58. ii) Training
iii) Management Development
iv) Career Planning & Development
a) Internal Mobility
v) Organization Development
A) Job Evaluation
B) Wage & Salary Administration
E) Fringe Benefits
F) Social Security Measures
4) Human Relations
5) Effectiveness of HRM
A) Human Resource Accounting
B) Human Resource Audit
C) Human Resources Research
59. All the above maintained Categories and their respective sub
headings are discussed in details as follows :-
1) Managerial Functions :-
It is pre-determined course of action. Planning is determination of
personnel programmes and changes in advance that will contribute to the
organizational goals. In other words, it involves planning of human
resources, requirement, recruitment, selection, training etc. It also involves
forecasting of personnel needs, changing values, attitudes and behavior of
employees and their impact on organization.
An organization is a means to an end. It is essential to carry out the
determined course of action. Thus, organization establishes relationships
among the employees so that they can collectively contribute to the
attainment of company goals.
The next logical function after completing planning and organizing is
the execution of the plan. The basic function of personnel management at
60. any level is motivating commanding, leading and activating and human
relations besides securing employee contributions.
After planning, organizing and directing the various activities of the
personnel management, the performance is to be verified in order to know
that the personnel functions are performed in conformity with the plans and
directions. Controlling also involves checking, verifying and comparing of
the accruals with the plans, identification of deviations if any and controlling
of identified deviations.
2) OPERATIVE FUNCTIONS
The Operative Functions of personnel management are related to specific
activities of personnel management, viz., employment, development,
compensation and relations. All these functions are interacted by managerial
It is the first operative function of HRM. Employment is concerned
with securing and employing the people possessing required kind and level
of Human Resources necessary to achieve the organizational objectives. It
covers the functions such as job analysis, human resources planning,
recruitment, selection, placement, induction and internal mobility.
i) JOB ANALYSIS
It is the process of study and collection of information relating to the
operations and responsibilities of a specific job.
It includes :-
 Collection of data, information, facts and ideas relating to
various aspects of jobs including man, machines and materials.
61.  Preparation of job description, job specification, job
requirements and employees specification which will help in
identifying the nature, levels and quantum of human resources.
 Providing the guides, plans and basis for the job design and for
all operative functions of HRM.
ii) HUMAN RESOURCE PLANNING
It is a process for determination and securing that the organization
will have an adequate number of qualified persons, available at proper times,
performing jobs which would meet the needs of the organization and which
would provide satisfaction for the individuals involved.
It involves :-
 Estimation of present and future requirements and supply
of human resources basing on objectives and long range
plans of the organization.
 Calculation of net human resources requirements based
on present inventory of human resources.
 Taking steps to mould, change, and develop the strength
of existing employees in the organization so as to meet
the future human resource requirements.
 Preparation of action programmes to get the rest o human
resources from outside the organization and too develop
the human resources of existing employees.
62. iii) RECRUITMENT
It is the process of searching for prospective employees and
stimulating them to apply for jobs in an organization.
It deals with :-
 Identification of existing sources of applicants and
 Creation/Identification of new sources of applicants.
 Stimulating the candidates to apply for jobs in the
 Striking a balance between internal and external sources.
It is the process of ascertaining the qualifications, experience, skill,
knowledge etc., of an applicant with a view to appraising his/her suitability
to a job appraising.
This function includes :-
 Framing and developing application blanks
 Creating and developing valid and reliable testing
 Formulating interviewing techniques.
 Checking of references
 Setting up medical examination policy and procedure
 Sending letter of appointment and rejection
 Employing the selected candidates who report for duty.
63. iv) SELECTION
It is the process of ascertaining the qualifications, experience, skill,
knowledge etc., of an applicant with a view to appraising his/her suitability
to a job appraising.
This function includes :-
 Framing and developing application blanks
 Creating and developing valid and reliable testing
 Formulating interviewing techniques.
 Checking of references
 Setting up medical examination policy and procedure
 Sending letter of appointment and rejection
 Employing the selected candidates who report for duty.
It is the process of assigning the selected candidate with the most
suitable job in terms of job requirements. It is matching of employee
specifications with job requirements.
This includes :-
 Counseling the functional managers regarding
 Conducting the follow-up-study, appraising employee
performance in order to determine employee adjustment
with the job.
64.  Correcting misplacements, if any.
vi) INDUCTION AND ORIENTATION
Induction and orientation are the techniques by which a new
employee is rehabilitated in the changed surrounding and introduced to the
practices, policies, purposes and people etc., of the organization.
This includes :-
 Acquaint the employee with the company philosophy,
objectives, policies, career planning and development,
opportunities, product, market share, social and
community standing, company history, culture etc.
 Introduce the employee to the people with whom he has
to work such as peers, supervisors and subordinates.
 Mould the employee attitude by orienting him to the
new working and social environment.
B) HUMAN RESOURCE DEVELOPMENT :-
i) PERFORMANCE APPRAISAL
It is the systematic evaluation of individuals with respect to their
performance on the job and their potential for development.
It includes :-
 Developing policies, procedures and techniques
 Helping the functional managers
 Reviewing of reports and consolidation of reports
 Evaluating the effectiveness of various programmes
65. ii) TRAINING
It is the process of imparting the employees the technical and
operating skill of employees.
It includes :-
 Identification of training needs of the individuals and
 Developing suitable training programmes.
 Evaluating the effectiveness of training programmes
iii) MANAGEMENT DEVELOPMENT
It is the process of designing and conducting suitable executive
development programmes so as to develop the managerial and human
relation skill of employees.
It includes :-
 Identification of the areas in which management
development is needed
 Conduction of development programmes
 Evaluating the effectiveness of executive development
66. iv) CAREER PLANNING AND DEVELOPMENT
It is the planning of one’s career and implementation of career
plans by means of education, training, job search and acquisition of work
It includes :-
a) INTERNAL MOBILITY
It includes vertical and horizontal movement of an
employee within an organization. It consists of Transfer, Promotion and
It is the process of placing employees in the same level jobs
where they can be utilized more effectively in consistence with their
potentialities and needs of the employees and the organization.
It deals with upward reassignment given to an employee in
the organization to occupy higher position, which commands better status,
and / or pay keeping in view the human resources of the employees and the
It deals with downward reassignment to an employee in the
v) ORGANIZATION DEVELOPMENT
It is a planned process designed to improve organization effectiveness
and health through modifications in individual and group behavior, culture
and systems of the organization using knowledge and technology of applied
67. C) COMPENSATION
It is the process of providing adequate, equitable and fair remuneration to
It includes :-
i) JOB EVALUATION
It is the process of determining relative worth of jobs :
 Select suitable job evaluation techniques
 Classify jobs into various categories
 Determining relative value of jobs in various categories
ii) WAGE & SALARY ADMINISTRATION
This is the process of developing and operating a suitable wage and
It includes :-
 Conducting wage and salary survey
 Determining wage and salary rates based on various factors
 Administering wage and salary programmes
 Evaluating its effectiveness
It is the process of formulating, administering and reviewing the
schemes of financial incentives in addition to regular payment of wages and
68. iv) BONUS
It includes payment of statutory bonus according to the payment of
Bonus Act, 1965, and its latest amendments.
v) FRINGE BENEFITS
These are the various benefits at the fringe of the wage management
to provide these benefits to motivate the employees and to meet their life’s
These benefits includes :
 Housing facilities
 Canteen facilities
 Recreational facilities
 Credit facilities
 Educational facilities to employees and their children
 Medical, Maternity and Welfare facilities etc.
vi) SOCIAL SECURITY MEASURES
Management provide social security to their employees in addition to
the fringe benefits.
These measures includes :
 Maternity benefits to women employees
 Sickness benefits and medical benefits
 Retirement benefits like Provident Fund, Pension, Gratuity etc.
 Workmen’s compensation to those workers (or their
dependents) who get involved in accidents.
D) HUMAN RELATIONS
It is the process of interacting among human being.
It includes :
 Motivating the employees
 Boosting employee morale
 Developing the communication skills
 Developing Leadership skills
69. E) EfFFECTIVENESS OF HRM
Effectiveness of various personnel programmes and practices can be
measured or evaluated by means of organizational health and Human
Resource Accounting etcs.
i) ORGANISATIONAL HEALTH
Organizational health may be studied through the result of
employees’ contribution to the organization and the employee job
ii) HUMAN RESOURCE ACCOUNTING, AUDIT AND
a) HUMAN RESOURCE ACCOUNTING
It is a measurement of the cost and value of human resource to
b) HUMAN RESOURCE AUDIT
It refers to the examination and evaluation of Policies,
procedures and practices to determine the effectiveness of HRM.
c) HUMAN RESOURCE RESEARCH
It is the process of evaluating the effectiveness of human
resources policies and practices and developing more appropriate ones.
It includes :
 Conducting morale , attitude , job satisfaction and behavior
 Collecting data and information regarding wages, cost-
benefit analysis of training, benefits, productivity,
absenteeism, employee turnover, strikes, accidents,
operations, working hours, shifts etc
 Tabulating, computing and analyzing of the data and
 Finding out of defects and shortcomings in the existing policies,
70. INTRODUCTION TO MOTIVATION
At one time, employees were considered just another input into the
production of goods and services. What perhaps changed this way of
thinking about employees was research, referred to as the Hawthorne
Studies, conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This
study found employees are not motivated solely by money and employee
behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies
began the human relations approach to management, whereby the needs and
motivation of employees become the primary focus of managers (Bedeian,
WHAT IS MOTIVATION?
The word "motivation" is often used to describe certain sorts of behaviour. A
student who studies hard and tries for top grades may be described as being
"highly motivated", while her friend may say that he is "finding it hard to get
motivated" to study for an exam or to start an assignment. Such statements
imply that motivation has a major influence on our behaviour but they don't
really tell us how
Motivation can be defined as a concept used to describe the factors within
an individual which arouse, maintain and channel behaviour towards a
Another way to say this is that motivation is goal-directed behaviour.
While it is easy to see the things that a person does, it is much harder to
guess at why they are doing it. As an example let us look at our hard-
working student. It may be that that student is working hard because she
wants to get high marks, but it might also be that she really enjoys learning
that subject. She may be striving for high marks because she wants to
impress her friends or because she wants a good job, so that the marks
themselves are really a step toward another goal. It is dangerous to assume
71. that you know what is motivating someone because you really can't "read
Since it is part of a manager's job to get their work done through others,
managers need to understand why people do things (that is, what motivates
them?) so that s/he can convince their employees to work towards the goals
of the organization.
A good first step towards understanding what motivates people is to ask
"What do people want from their jobs?" We might answer, "money" or
"power" but really it is very difficult to judge because depending on our own
individual values and beliefs, we are not all motivated by the same things to
the same degree. Managers need to be aware that the things that motivate
them may not necessarily motivate their employees. Consider the following
discussion between two workers. It is clear that the things that they think are
important in their jobs are quite different.
Jim - I think that you are crazy for quitting your job at the factory. The work
may have been boring but it pays better than any other job around here.
Frank - Maybe your right but I couldn't hack it. The job drove me up the
wall. Even though I don't earn as much money in my new job, I enjoy it.
There's something new every day and I'm glad I made the move.
Managers need to provide the right organisational climate to ensure that their
employees can see that by working towards the organisational goals they are
also achieving some of their own goals. These goals could be such things as
financial rewards or personal rewards such as the respect of their colleagues
or job satisfaction or a combination of any number of things that the
employee considers to be important. It is no good giving someone a pay rise
if they are dissatisfied with the job and they do not see money as a very
important factor in their working life.
Yvonne McLaughlin suggests that there is an equation which gives a good
model of the basic requirements and how they relate to each other in order to
achieve the best staff performance in your organisation.
Performance = Ability x Effort x Organisational support
The performance of your organisation's staff is an equation of their ability to
do the job (what they can do) multiplied by the effort that they are actually
72. willing to put into the job multiplied by the amount that the organisation
helps them to achieve their tasks.
APPROACHES TO UNDERSTANDING
Theories are ways that we try to explain and understand complex and
abstract issues and ideas. Abstract ideas are ideas like truth or love. They are
very difficult to talk about because they are very hard to describe and define.
They are not clear cut or concrete. Motivation is a fairly difficult area and
there are a number of theories which have been developed to try to explain
why people behave in the ways that they do and to try to predict or guess
what people actually will do, based on these theories.
Basically there are two general approaches to motivational theory.
Content Theories - what makes people tick. what turns them on or off.
Process Theories - how and by what goals people are motivated.
THE ROLE OF 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
73. motivator (Kovach, 1987). Also, as employees get older, interesting work
becomes more of a motivator.
The purpose of this study was to describe the importance of certain factors
in motivating employees at the Piketon Research and Extension Center and
Enterprise Center. Specifically, the study sought to describe the ranked
importance of the following ten motivating factors: (a) job security, (b)
sympathetic help with personal problems, (c) personal loyalty to employees,
(d) interesting work, (e) good working conditions, (f) tactful discipline, (g)
good wages, (h) promotions and growth in the organization, (i) feeling of
being in on things, and (j) full appreciation of work done. A secondary
purpose of the study was to compare the results of this study with the study
results from other populations.
The research design for this study employed a descriptive survey method.
The target population of this study included employees at the Piketon
Research and Extension Center and Enterprise Center (centers). The sample
size included all 25 employees of the target population. Twenty-three of the
25 employees participated in the survey for a participation rate of 92%. The
centers are in Piketon, Ohio.
The mission of the Enterprise Center is to facilitate individual and
community leader awareness and provide assistance in preparing and
accessing economic opportunities in southern Ohio. The Enterprise Center
has three programs: alternatives in agriculture, small business development,
and women's business development. The mission of the Piketon Research
and Extension Center is to conduct research and educational programs
designed to enhance economic development in southern Ohio. The Piketon
Research and Extension Center has five programs: aquaculture, community
economic development, horticulture, forestry, and soil and water resources.
74. From a review of literature, a survey questionnaire was developed to collect
data for the study (Bowen & Radhakrishna, 1991; Harpaz, 1990; Kovach,
1987). Data was collected through use of a written questionnaire hand-
delivered to participants. Questionnaires were filled out by participants and
returned to an intra-departmental mailbox. The questionnaire asked
participants to rank the importance of ten factors that motivated them in
doing their work: 1=most important . . . 10=least important. Face and
content validity for the instrument were established using two administrative
and professional employees at The Ohio State University. The instrument
was pilot tested with three similarly situated employees within the
university. As a result of the pilot test, minor changes in word selection and
instructions were made to the questionnaire.
Basic principles of motivation exist that are
applicable to learning in any situation.
1. The environment can be used to focus the student's attention on what
needs to be learned.
Teachers who create warm and accepting yet business-like atmospheres will
promote persistent effort and favorable attitudes toward learning. This
strategy will be successful in children and in adults. Interesting visual aids,
such as booklets, posters, or practice equipment, motivate learners by
capturing their attention and curiosity.
2. Incentives motivate learning.
Incentives include privileges and receiving praise from the instructor. The
instructor determines an incentive that is likely to motivate an individual at a
particular time. In a general learning situation, self-motivation without
rewards will not succeed. Students must find satisfaction in learning based on
the understanding that the goals are useful to them or, less commonly, based
on the pure enjoyment of exploring new things.
3. Internal motivation is longer lasting and more self-directive than is
external motivation, which must be repeatedly reinforced by praise or
Some individuals -- particularly children of certain ages and some adults --
have little capacity for internal motivation and must be guided and reinforced
constantly. The use of incentives is based on the principle that learning occurs
more effectively when the student experiences feelings of satisfaction.
75. Caution should be exercised in using external rewards when they are not
absolutely necessary. Their use may be followed by a decline in internal
Learning is most effective when an individual is ready to learn, that is, when one
wants to know something.
Sometimes the student's readiness to learn comes with time, and the
instructor's role is to encourage its development. If a desired change in
behavior is urgent, the instructor may need to supervised directly to ensure
that the desired behavior occurs. If a student is not ready to learn, he or she
may not be reliable in following instructions and therefore must be supervised
and have the instructions repeated again and again.
4. Motivation is enhanced by the way in which the instructional material is
In general, the best organized material makes the information meaningful to
the individual. One method of organization includes relating new tasks to
those already known. Other ways to relay meaning are to determine whether
the persons being taught understand the final outcome desired and instruct
them to compare and contrast ideas.
None of the techniques will produce sustained motivation unless the goals are
realistic for the learner. The basic learning principle involved is that success is more
predictably motivating than is failure. Ordinarily, people will choose activities of
intermediate uncertainty rather than those that are difficult (little likelihood of
success) or easy (high probability of success). For goals of high value there is less
tendency to choose more difficult conditions. Having learners assist in defining goals
increases the probability that they will understand them and want to reach them.
However, students sometimes have unrealistic notions about what they can
accomplish. Possibly they do not understand the precision with which a skill must be
carried out or have the depth of knowledge to master some material. To identify
realistic goals, instructors must be skilled in assessing a student's readiness or a
student's progress toward goals.
1. Because learning requires changed in beliefs and behavior, it normally
produces a mild level of anxiety.
This is useful in motivating the individual. However, severe anxiety is
incapacitating. A high degree of stress is inherent in some educational
situations. If anxiety is severe, the individual's perception of what is going on
around him or her is limited. Instructors must be able to identify anxiety and
76. understand its effect on learning. They also have a responsibility to avoid
causing severe anxiety in learners by setting ambiguous of unrealistically high
goals for them.
It is important to help each student set goals and to provide informative
feedback regarding progress toward the goals.
Setting a goal demonstrates an intention to achieve and activates learning
from one day to the next. It also directs the student's activities toward the goal
and offers an opportunity to experience success.
2. Both affiliation and approval are strong motivators.
People seek others with whom to compare their abilities, opinions, and
emotions. Affiliation can also result in direct anxiety reduction by the social
acceptance and the mere presence of others. However, these motivators can
also lead to conformity, competition, and other behaviors that may seem as
3. Many behaviors result from a combination of motives.
It is recognized that no grand theory of motivation exists. However,
motivation is so necessary for learning that strategies should be planned to
organize a continuous and interactive motivational dynamic for maximum
effectiveness. The general principles of motivation are interrelated. A single
teaching action can use many of them simultaneously.
Finally, it should be said that an enormous gap exists between knowing that learning
must be motivated and identifying the specific motivational components of any
particular act. Instructors must focus on learning patterns of motivation for an
individual or group, with the realization that errors will be common.
77. MOTIVATION THEORIES
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). Five major approaches that have led to our
understanding of motivation are Maslow's need-hierarchy theory, Herzberg's
two- factor theory, Vroom's expectancy theory, Adams' equity theory, and
Skinner's reinforcement theory.
According to Maslow, employees have five levels of needs (Maslow, 1943):
physiological, safety, social, ego, and self- actualizing. Maslow argued that
lower level needs had to be satisfied before the next higher level need would
motivate employees. Herzberg's work categorized motivation into two
factors: motivators and hygienes (Herzberg, Mausner, & Snyderman, 1959).
Motivator or intrinsic factors, such as achievement and recognition, produce
job satisfaction. Hygiene or extrinsic factors, such as pay and job security,
produce job dissatisfaction.
Vroom's theory is based on the belief that employee effort will lead to
performance and performance will lead to rewards (Vroom, 1964). Rewards
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.
Adams' theory states that employees strive for equity between themselves
and other workers. Equity is achieved when the ratio of employee outcomes
over inputs is equal to other employee outcomes over inputs (Adams, 1965).
Skinner's theory simply states those employees' behaviors that lead to
positive outcomes will be repeated and behaviors that lead to negative
outcomes will not be repeated (Skinner, 1953). Managers should positively
reinforce employee behaviors that lead to positive outcomes. Managers
should negatively reinforce employee behavior that leads to negative
78. MOTIVATION THEORISTS AND THEIR
Although the process of management is as old as history,
scientific management as we know it today is basically a
twentieth century phenomenon. Also, as in some other
fields, practice has been far ahead of theory. This is still
true in the field of management, contrary to the situation in
some of the pure sciences. A giant of a man, like Albert
Einstein, formulates a theory, which is later proved by
decades of intensive research and experimentation. Not so
in the field of management.
In fact this field has been so devoid of real fundamental work so far, that
Herbert A. Simon is the first management theoretician to win the Nobel
Prize for Economics in 1978. His contribution itself gives a clue to the
difficulty, bordering on impossibility, of real fundamental work in this field
concerned with people. In order to arrive at a correct decision, the manager
must have all the information necessary relevant to the various factors and
all the time in the world to analyze the same.
This is seldom, if ever, the case. Both the information available and the time
at the managers disposal are limited, but he or she must make a decision.
And the decision is, therefore, not the optimum one but a 'satisficing' one -
in effect, a satisfactory compromise under the real conditions prevailing in
the management 'arena'.
TRADITIONAL THEORY 'X'
This can best be ascribed to Sigmund Freud who was no lover of people, and
was far from being optimistic. Theory X assumes that people are lazy; they
hate work to the extent that they avoid it; they have no ambition, take no
initiative and avoid taking any responsibility; all they want is security, and
to get them to do any work, they must be rewarded, coerced, intimidated and
punished. This is the so-called 'stick and carrot' philosophy of management.
If this theory were valid, managers will have to constantly police their staff,
whom they cannot trust and who will refuse to cooperate. In such an
79. oppressive and frustrating atmosphere, both for the manager and the
managed, there is no possibility of any achievement or any creative work.
But fortunately, as we know, this is not the case.
THEORY 'Y' - Douglas McGregor
This is in sharp contrast to theory 'X'. McGregor believed that people want
to learn and that work is their natural activity to the extent that they develop
self-discipline and self-development. They see their reward not so much in
cash payments as in the freedom to do difficult and challenging work by
themselves. The managers job is to 'dovetail' the human wish for self-
development into the organizations need for maximum productive
efficiency. The basic objectives of both are therefore met and with
imagination and sincerity, the enormous potential can be tapped.
Does it sound too good to be true? It could be construed, by some, that
Theory 'Y' management is soft and slack. This is not true and the proof is in
the 'pudding', for it has already proved its worth in the USA and elsewhere.
For best results, the persons must be carefully selected to form a
homogeneous group. A good leader of such a group may conveniently
'absent' from group meetings so they can discuss the matters freely and help
select and 'groom' a new leader. The leader does no longer hanker after
power, lets people develop freely, and may even (it is hoped) enjoy watching
the development and actualization of people, as if, by themselves. Everyone,
and most of all the organization, gains as a result.
THEORY 'Z' - Abraham Maslow
This is a refreshing change from the theory X of Freud, by a fellow
psychologist, Abraham Maslow. Maslow totally rejects the dark and dingy
Freudian basement and takes us out into the fresh, open, sunny and cheerful
atmosphere. He is the main founder of the humanistic school or the third
force which holds that all the good qualities are inherent in people, at least,
at birth, although later they are gradually lost.
Maslow's central theme revolves around the meaning and significance of
human work and seems to epitomize Voltaire's observation in Candide,
'work banishes the three great evils -boredom, vice and poverty'. The great
sage Yajnavalkya explains in the Brihadaranyaka Upanishad that by good
works a man becomes holy, by evil works evil. A mans personality is the
80. sum total of his works and that only his works survive a man at death. This
is perhaps the essence of Maslow's hierarchy of needs theory, as it is more
Maslow's major works include the standard textbook (in collaboration with
Mittlemann), Principles of Abnormal Psychology (1941), a seminal paper,
'A Theory of Human Motivation' (1943) and the book, Eupsychian
Management (pronounced yew-sigh-keyan) published in 1965. Maslow's
theory of human motivation is, in fact, the basis of McGregor's theory 'Y'
briefly described above. The basic human needs, according to Maslow, are:
• physiological needs (Lowest)
• safety needs;
• love needs;
• esteem needs; and
• self-actualization needs (Highest)
Mans behavior is seen as dominated by his unsatisfied needs and he is a
'perpetually wanting animal', for when one need is satisfied he aspires for the
next higher one. This is, therefore, seen as an ongoing activity, in which the
man is totally absorbed in order to attain perfection through self-
The highest state of self-actualization is characterized by integrity,
responsibility, magnanimity, simplicity and naturalness. Self-actualizers
focus on problems external to themselves. His prescription for human
salvation is simple, but not easy: 'Hard work and total commitment to doing
well the job that fate or personal destiny calls you to do, or any important
job that "calls for" doing'.
Maslow has had his share of critics, but he has been able to achieve a
refreshing synthesis of divergent and influential philosophies of:
• Marx - economic and physical needs;
• Freud - physical and love needs;
• Adler - esteem needs;
• Goldstein - self-actualization.
81. EMPLOYEE MOTIVATION IN THE
The job of a manager in the workplace is to get things done through
employees. To do this the manager should be able to motivate employees.
But that's easier said than done! Motivation practice and theory are difficult
subjects, touching on several disciplines.
In spite of enormous research, basic as well as applied, the subject of
motivation is not clearly understood and more often than not poorly
practiced. To understand motivation one must understand human nature
itself. And there lies the problem!
Human nature can be very simple, yet very complex too. An understanding
and appreciation of this is a prerequisite to effective employee motivation in
the workplace and therefore effective management and leadership.
Our articles on motivation theory and practice concentrate on various
theories regarding human nature in general and motivation in particular.
Included are articles on the practical aspects of motivation in the workplace
and the research that has been undertaken in this field, notably by Douglas
McGregor (theory y), Frederick Herzberg (two factor motivation hygiene theory,)
Abraham Maslow (theory z, hierarchy of needs), Elton Mayo (Hawthorne
Experiments) Chris Argyris Rensis Likert and David McClelland (achievement
82. Why study and apply employee motivation
Quite apart from the benefit and moral value of an altruistic approach to
treating colleagues as human beings and respecting human dignity in all its
forms, research and observations show that well motivated employees are
more productive and creative. The inverse also holds true. The schematic
below indicates the potential contribution the practical application of the
principles this paper has on reducing work content in the organization.
83. MOTIVATION IS THE KEY TO
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.
• 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
These are the basic strategies, though the mix in the final 'recipe' will vary
from workplace situation to situation. 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. It is
inducing others in a specific way towards goals specifically stated by the
motivator. Naturally, these goals as also the motivation system must
84. conform to the corporate policy of the organization. The motivational
system must be tailored to the situation and to the organization.
In one of the most elaborate studies on employee motivation, involving
31,000 men and 13,000 women, the Minneapolis Gas Company sought to
determine what their potential employees desire most from a job. This study
was carried out during a 20 year period from 1945 to 1965 and was quite
revealing. The ratings for the various factors differed only slightly between
men and women, but both groups considered security as the highest rated
factor. The next three factors were;
• type of work
• company - proud to work for
Surprisingly, factors such as pay, benefits and working conditions were
given a low rating by both groups. So after all, and contrary to common
belief, money is not the prime motivator. (Though this should not be
regarded as a signal to reward employees poorly or unfairly.)
85. Clearing Up Common Myths About Employee
The topic of motivating employees is extremely important to managers and
supervisors. Despite the important of the topic, several myths persist --
especially among new managers and supervisors. Before looking at what
management can do to support the motivation of employees, it's important
first to clear up these common myths.
1. Myth #1 -- "I can motivate people"
Not really -- they have to motivate themselves. You can't motivate people
anymore than you can empower them. Employees have to motivate and
empower themselves. However, you can set up an environment where they
best motivate and empower themselves. The key is knowing how to set up
the environment for each of your employees.
2. Myth #2 -- "Money is a good motivator"
Not really. Certain things like money, a nice office and job security can help
people from becoming less motivated, but they usually don't help people to
become more motivated. A key goal is to understand the motivations of each
of your employees.
3. Myth #3 -- "Fear is a damn good motivator"
Fear is a great motivator -- for a very short time. That's why a lot of yelling
from the boss won't seem to "light a spark under employees" for a very long
4. Myth #4 -- "I know what motivates me, so I know what motivates my
Not really. Different people are motivated by different things. I may be
greatly motivated by earning time away from my job to spend more time my
family. You might be motivated much more by recognition of a job well
done. People are not motivated by the same things. Again, a key goal is to
understand what motivates each of your employees.
86. 5. Myth #5 -- "Increased job satisfaction means increased job
Research shows this isn't necessarily true at all. Increased job satisfaction
does not necessarily mean increased job performance. If the goals of the
organization are not aligned with the goals of employees, then employees
aren't effectively working toward the mission of the organization.
6. Myth #6 -- "I can't comprehend employee motivation -- it's a science
Nah. Not true. There are some very basic steps you can take that will go a
long way toward supporting your employees to motivate themselves toward
increased performance in their jobs. (More about these steps is provided
later on in this article.)
It's amazing how, if you hate your job, it seems like everyone else does, too.
If you are very stressed out, it seems like everyone else is, too. Enthusiasm
is contagious. If you're enthusiastic about your job, it's much easier for
others to be, too. Also, if you're doing a good job of taking care of yourself
and your own job, you'll have much clearer perspective on how others are
doing in theirs.
A great place to start learning about motivation is to start understanding your
own motivations. The key to helping to motivate your employees is to
understand what motivates them. So what motivates you? Consider, for
example, time with family, recognition, a job well done, service, learning,
etc. How is your job configured to support your own motivations? What can
you do to better motivate yourself?
2. Always work to align goals of the organization with goals of
As mentioned above, employees can be all fired up about their work and be
working very hard. However, if the results of their work don't contribute to
the goals of the organization, then the organization is not any better off than
if the employees were sitting on their hands -- maybe worse off! Therefore,
it's critical that managers and supervisors know what they want from their
employees. These preferences should be worded in terms of goals for the
organization. Identifying the goals for the organization is usually done
during strategic planning. Whatever steps you take to support the motivation
87. of your employees (various steps are suggested below), ensure that
employees have strong input to identifying their goals and that these goals
are aligned with goals of the organization. (Goals should be worded to be
"SMARTER". More about this later on below.)
3. Key to supporting the motivation of your employees is understanding
what motivates each of them
Each person is motivated by different things. Whatever steps you take to
support the motivation of your employees, they should first include finding
out what it is that really motivates each of your employees. You can find this
out by asking them, listening to them and observing them. (More about this
later on below.)
4. Recognize that supporting employee motivation is a process, not a
Organizations change all the time, as do people. Indeed, it is an ongoing
process to sustain an environment where each employee can strongly
motivate themselves. If you look at sustaining employee motivation as an
ongoing process, then you'll be much more fulfilled and motivated yourself.
5. Support employee motivation by using organizational systems (for
example, policies and procedures) -- don't just count on good intentions
Don't just count on cultivating strong interpersonal relationships with
employees to help motivate them. The nature of these relationships can
change greatly, for example, during times of stress. Instead, use reliable and
comprehensive systems in the workplace to help motivate employees. For
example, establish compensation systems, employee performance systems,
organizational policies and procedures, etc., to support employee motivation.
Also, establishing various systems and structures helps ensure clear
understanding and equitable treatment of employees.
88. STEPS YOU CAN TAKE
The following specific steps can help you go a long way toward supporting
your employees to motivate themselves in your organization.
1. Do more than read this article -- apply what you're reading here
This maxim is true when reading any management publication.
2. Briefly write down the motivational factors that sustain you and what
you can do to sustain them
This little bit of "motivation planning" can give you strong perspective on
how to think about supporting the motivations of your employees.
3. Make of list of three to five things that motivate each of your
Read the article Checklist of Categories of Typical Motivators. Fill out the
list yourself for each of your employees and then have each of your
employees fill out the list for themselves. Compare your answers to theirs.
Recognize the differences between your impression of what you think is
important to them and what they think is important to them. Then meet with
each of your employees to discuss what they think are the most important
motivational factors to them. Lastly, take some time alone to write down
how you will modify your approaches with each employee to ensure their
motivational factors are being met. (NOTE: This may seem like a "soft,
touchy-feely exercise" to you. If it does, then talk to a peer or your boss
about it. Much of what's important in management is based very much on
"soft, touchy-feely exercises". Learn to become more comfortable with
them. The place to start is to recognize their importance.)
4. Work with each employee to ensure their motivational factors are
taken into consideration in your reward systems
For example, their jobs might be redesigned to be more fulfilling. You might
find more means to provide recognition, if that is important to them. You
might develop a personnel policy that rewards employees with more family
89. 5. Have one-on-one meetings with each employee
Employees are motivated more by your care and concern for them than by
your attention to them. Get to know your employees, their families, their
favorite foods, names of their children, etc. This can sound manipulative --
and it will be if not done sincerely. However, even if you sincerely want to
get to know each of your employees, it may not happen unless you
intentionally set aside time to be with each of them.
6. Cultivate strong skills in delegation
Delegation includes conveying responsibility and authority to your
employees so they can carry out certain tasks. However, you leave it up to
your employees to decide how they will carry out the tasks. Skills in
delegation can free up a great deal of time for managers and supervisors. It
also allows employees to take a stronger role in their jobs, which usually
means more fulfillment and motivation in their jobs, as well.
7. Reward it when you see it
A critical lesson for new managers and supervisors is to learn to focus on
employee behaviors, not on employee personalities. Performance in the
workplace should be based on behaviors toward goals, not on popularity of
employees. You can get in a great deal of trouble (legally, morally and
interpersonally) for focusing only on how you feel about your employees
rather than on what you're seeing with your eyeballs.
8. Reward it soon after you see it
This helps to reinforce the notion that you highly prefer the behaviors that
you're currently seeing from your employees. Often, the shorter the time
between an employee's action and your reward for the action, the clearer it is
to the employee that you highly prefer that action.
9. Implement at least the basic principles of performance management
Good performance management includes identifying goals, measures to
indicate if the goals are being met or not, ongoing attention and feedback
about measures toward the goals, and corrective actions to redirect activities
back toward achieving the goals when necessary. Performance management
can focus on organizations, groups, processes in the organization and
90. 10. Establish goals that are SMARTER
SMARTER goals are: specific, measurable, acceptable, realistic, timely,
extending of capabilities, and rewarding to those involved.
11. Clearly convey how employee results contribute to organizational
Employees often feel strong fulfillment from realizing that they're actually
making a difference. This realization often requires clear communication
about organizational goals, employee progress toward those goals and
celebration when the goals are met.
12. Celebrate achievements
This critical step is often forgotten. New managers and supervisors are often
focused on a getting "a lot done". This usually means identifying and solving
problems. Experienced managers come to understand that acknowledging
and celebrating a solution to a problem can be every bit as important as the
solution itself. Without ongoing acknowledgement of success, employees
become frustrated, skeptical and even cynical about efforts in the
13. Let employees hear from their customers (internal or external)
Let employees hear customers proclaim the benefits of the efforts of the
employee . For example, if the employee is working to keep internal
computer systems running for other employees (internal customers) in the
organization, then have other employees express their gratitude to the
employee. If an employee is providing a product or service to external
customers, then bring in a customer to express their appreciation to the
14. Admit to yourself (and to an appropriate someone else) if you don't
like an employee --
Managers and supervisors are people. It's not unusual to just not like
someone who works for you. That someone could, for example, look like an
uncle you don't like. In this case, admit to yourself that you don't like the
employee. Then talk to someone else who is appropriate to hear about your
distaste for the employee, for example, a peer, your boss, your spouse, etc.
Indicate to the appropriate person that you want to explore what it is that you
don't like about the employee and would like to come to a clearer perception
of how you can accomplish a positive working relationship with the
employee. It often helps a great deal just to talk out loud about how you feel
91. and get someone else's opinion about the situation. As noted above, if you
continue to focus on what you see about employee performance, you'll go a
long way toward ensuring that your treatment of employees remains fair and
93. RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem
involving a study of various steps that are adopted br the researcher in
studying his/her research problem.
This includes :-
 Defending the research problem
 Sampling Design
 Research Design
 Method of Data collection
 Data Analysis & Interpretation
Defending the Research Problem
Problem under the study was finding out the Motivational System being
carried on at Varun Beverages Ltd.
Probability sampling design i.e. Random Sampling was adopted as a definite
plan for obtaining a sample from the population.
The Selection technique was a Stratified Random Sampling a restricted
An overall “Rigid” descriptive research design has been used focusing
attention on :-
 Formulation of Objective of the Study
 Designing methods for the Data Collection
 Selecting the sample size
 Collecting the Data
 Processing & Analysis of data
 Reporting the finding
94. Methods of Data Collection
Primary data is that kind of data which is collected by the
investigator himself for the purpose of the specific study. The data
such collected is original in character. The advantage of this
method of collection is the authentic. Primary data was collected
When an investigator uses the data that has been already
collected by others is called Secondary Data. The secondary adapt
could be collected from Journals, Reports and various publications,
web sites. The advantages of the secondary data can be- it is
economical, both in terms of money and time spent.
Universe - Employees from every departments having their
respective Grades & Designation
Sampling Unit - The sampling unit was limited to Varun Beverages Ltd.
Sampling Size - Workers - 20, Satff Members - 20 & Mangers - 40
Sample Design - Convenience sampling method without any
stratification to obtain an uniform size of respondents of every Grade &
Analysis has been made on the data collected by means of Questionnaires.
For this purpose, I prepared two questionnaires – First for the permanent
Workers and Staff members and Second for the Managers of Varun
The Questionnaires have been prepared keeping in mind the level and
magnitude of activities carried out by the Workers, Staff & Managers. The
basic aim of questionnaire is to find out the mental perspective of the
respondent towards the Motivational Programme followed at Varun
The Questionnaire also aims at finding the level of motivation of the
respondent with reference to the motivational exercise i.e. whether the
respondent feels motivated after his appraisal and works hard for the same.
The questionnaire also highlights some suggestions given by the respondents
as alternatives which the organization can practice for better working and for
improving satisfaction level of the employees.
97. Analysis based on questionnaires
Q: What motivates you to work in VBL ?
a) Job Satisfaction 42%
b) Self Esteem 35%
c) Salary 14%
d) Work environment 4%
e) Job Security 3%
f) Others 0
Self Esteem Salary Work
Job Security Others
From the above bar diagram we can make out that Job Satisfaction
is what that motivates most of the employees,followed by Self
98. Q: By whom you are Motivated the most ?
a) Self 45%
b) Supervisors 25%
c) Peers 15%
d) Subordinates 5%
Self Supervisors Peers Subrdinates
From the above bar dagram we can conclude that most of the
employees are self motivated,and the second best role is played by
99. Q : Has Varun Beverages Ltd. Organized any Motivational
programme for its employees?
YES [ 60% ] NO [ 40% ]
According to the data collected more than half of the people are
satisfied with the Motivational programme that has taken place at
100. Q : Is Motivational Programme strictly followed or its just a
a) Strictly Followed 30%
b) Moderately Followed 50%
c) Formality 20%
Strictly Followed Moderately Followed Formality
From the above graph we find out that motivational programme are
not regularly followed at VBL.
101. Q : Is your Supervisor?
a) Rigid 5%
b) Understandable 75%
c) Co-operative 20%
d) Rude no
Rigid Understandable Co-operative Rude
From the above graph we can conclude that the employees
majority found the supervisor nderstanding. 20% found him to be
co-operative and 5% thought him to be rigid.
102. Q : If given a choice to work with another company at
the same pay,will you opt for it ?
a) Yes 10%
b) No 90%
From the above diagram it can be made out that none of the
employees were ready to leave VBL i.e, 90% and the rest 10%
thought to leave the organization.
103. Q : What type of non financial incentives acts as a
a) Status 5%
b) Promotion 80%
c) Recognition 10%
d) Job Security 5%
e) Others 0
Status Promotion Recognition Job Security Others
From the above diagram it is clear that its PROMOTION that
motivates maximum number of employees,followed by
RECOGNITION,STATUS, and JOB SECURITY.
104. Q : What demotivates you in VBL?
a) attitude of controlling officer 45%
b) Poor Pay 45%
c) Lack of Recognition 5%
d) Work Profile 5%
e) Others NONE
The major reason for Demotivation of the employees is Attitude Of
Officer And Poor Pay,which affects their day to day work
heavily.these are followed by Lack of Recognition and Work
105. Q: Which statement better describes your personal
motivation and self discipline?
a) I take pride in my ability to motivate myself
b) I sometimes need others to motivate and encourage me
c) I often need supervision to complete my assigned task
d) I am always full of motivation
I take pride
in my ability
I often need
I am always
The employees mostly considered their ability that motivate
themselves and very few thought the need of external motivation.
106. Q: What do people want from their jobs?
a) an interesting job profile
b) a good supervisor
c) recognition & appreciation for the work I do
d) the opportunity for advancement
e) a satisfying personal life
f) a prestigious or a status job
g) job responsibility
h) sensible company rules,regulations,procedures & policies
a b c d e f g h
From the above chart we can conclude that it is the recognition and
appreciation for the particular work done is the it thing for which
most of the people do their job in VBL,apart from that it is the
107. opportunity for advancement and a good supervisor that people
look out for their jobs.
Q: Which are the most important ingredients of team
spirit for motivating the employees?
c) awareness of his own role
d) conflict resolution power
contribution openness awareness of
his own role
we can make out from the above chart that it is the contribution
that matters the most in team spirit for motivating the
employees,which is followed by the particular role that is being
played by an individual,while openness and conflict resolution
power also plays vital role.
108. Q: Which technique for motivation the employees like the
a) Job Enrichment
b) Job Enlargement
c) Job Rotation
job enrichment job
job rotation empowerment
As we can clearly make out from the above information that it is
empowerment which maximum employees like to have as the
motivation technique.empowerment is what young job aspirants
are looking for in organizations.more than monetary rewards,it is
109. the feeling that the employee ‘owns’ the job that motivates him or
Q: Any improvement to be done to increase the morale
of the employees?
110. Q: As a supervisor how would you like to motivate your
 Sources of Primary data like Structured Questionnaires and
schedules are the valid instruments to access the Motivational
 All the sources of Secondary data like, Induction, Manual,
Websites of Pepsi are supposed to be reliable and authentic
 Responses obtained from the questionnaires are true to the
best of the knowledge of the respondents.
 It is supposed that to a large extent that the sample is free from
 The sample size is adequate for forecast of population i.e.
sample is representative of the population
Some of the Suggestions given by the Workers & Staff Members are as
 Working Hours are too strict to be followed
 Salary should be increased after motivational exercise has
 Salary paid as shown in the papers is not actually paid.
This fault should be checked
 Nepotism & Favouratism should be eliminated from appraisal
 Training & Development Programme should be undertaken to
improve the productivity and efficiency of the employees
Some of the suggestions given by the Managers are as follows :-
 MDP should be undertaken as a major development Programme
 Salary Should be increased considerably to motivate the
 PA should be undertaken at a Unit level and not on an overall
 Regular interaction between the Superiors and the Employees
113. should be undertaken fro effective supervision and rectification
Certain recommendations can be made after interviewing various
employees at different levels with the help of my data sheet.
Some recommendations are as follows :-
 Good performer should not only be rewarded by promotion etc.,
but also by appreciation of their performance in public
 Worker’s opinion regarding their job should be given more
priority. The work related benefits like overtime, production
incentives expenses should be provided to the employees
 There should be proper utilization of existing manpower
 Employees should be given recognition at proper intervals.
 Suggestions from the employees should be welcomed with
open arms and if found suitable should be implemented
 More opportunities should be given to the employees regarding,
T&D, MDPs, participation in decision makings etcs.
Every Study suffers from certain limitations and so does this project.
So, the applicability of the findings and recommendations is subjected to the
following mentioned constraints/limitations
 Respondents were reluctant to give their views on data or open
 Shortage of time duration for the research work
 Hiding of some true facts by the respondents due to the fear of
 Though care has been taken, judgement errors may have
 Employees being very busy did not get enough time to give
 Some of the responses given by the respondents were not
legible and clear.
After analysis of the data collected and compiled we can say that,
VBL is doing well but a major area for the concern is that the
employees feel themselves are not being involved in the decision
making activity. This may bring down the moral of the employees.
Thus, the company should feel more free to work and accomplish the
In conducting this study, it was found some employees are satisfied
with the company’s motivation technique whereas some are not.
This is bringing down the motivation level of the employees. Thus,
the management should pay heed to the problems faced by the
dissatisfied employees and may even implement the suggestions
given by them.
The company should have manageable working hours and equitable
pay to ensure employee satisfaction. The company should also
reward the efficient employees occasionally to motivate them. Public
appreciation of his/her performance may also prove fruitful to this
If the organization does so, one can say for sure that the company
will have a brighter future.
( On the study of the level of Motivation and its causes at
Varun Beverages Pvt. Ltd., Greater Noida. )
Name of the Respondent :-
Designation :- ………………………………..
Age :- Below 25 yrs [ ] Below 45 yrs [ ]
Below 35 yrs [ ] 45 & above [ ]
Gender :- Male [ ] Female [ ]
Educational Profile :- Matriculation [ ] Intermediate [ ]
Graduate [ ] Post Graduate [ ]
Financial Profile :- Earning upto Rs.-5000 per month [ ]
Earning between Rs 5000-Rs 15000 per month [ ]
Earning above Rs 15000 per month [ ]
Que:- What motivates you to work in VBL?
a) Job Satisfaction
b) Self Esteem
d) Work Environment
e) Job Security
Que:- By whom you are Motivated?
118. a) Self
Que:- Has Varun Beverages Ltd. Organized any Motivational programme for its
Yes [ ] No [ ]
Que:- Is Motivational Programme strictly followed or its just a formality?
Strictly followed [ ] Moderately followed [ ] Formality [ ]
Que:- Is your supervisor
Que:- If given a choice to work with another company at the same pay,will you opt
Que:- What type of non-financial incentives acts as a motivator?
d) job security
Que:- What demotivates you?
a) attitude of controlling officer
b) poor pay
c) lack of recognition
d) work profile
119. Que:- Which statement better describe your personal motivation and self discipline?
a) i take pride in my ability to motivate myself.
b) i sometimes need others to motivate and encourage me.
c) i often need supervision to complete my assigned task.
d) i am always full of motivation.
Que:- What do people wants from their jobs?
a) an interesting job profile
b) a good supevisor
c) recognition & appreciation for the work I do.
d) The opportunity for advancement
e) A satisfying personal life
f) A prestigious or a status job
g) Job responsibility
h) Sensible company rules,regulations,procedures and policies
Que:- Which are the most important ingredients of team spirit for motivating the
d) awareness of his own role
c) conflict resolution power
Que:- Which technique for motivation the employees like the most?
a) job enrichment
b) job enlargement
c) job rotation
e) all of the above.
Que:- Any improvement to be done to increase the morale of the
Que:- As a supervisor how would you like to motivate your subordinates?