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  • 1. ON HIGHER THE MOTIVATION HIGHER THE PRODUCTIVITY LOWER THE MOTIVATION LOWER THE PRODUCTIVITY (PLOT NO.2, SURAJPUR BYPASS,GREATER NOIDA) AT VARUN BEVERAGES LIMITED Submitted for the partial fulfillment of the requirement for the degree of: MASTER IN BUSINESS ADMINISTRATION OF 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) Mr.VIKASH MATHURIA (H.R.Executive) JANHIT INSTITUTE OF EDUCATION AND INFORMATION 38B, KNOWLEDGE PARK, PHASE-1, GREATER NOIDA UTTAR PRADESH 201308 1
  • 2. PREFACE 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 that the: 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 pssible degrees; 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 of August. 2
  • 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 irrelevant information. 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. DECLARATION 3
  • 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. (Prithwijit Ghosh) 4
  • 5. ACKNOWLEDGEMENT 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 project. 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 time. 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. 5
  • 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 hopelessness. 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 project. ( Prithwijit Ghosh) 6
  • 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 & Interpretation 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 7
  • 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 Motivational system. 5) To identify the level of motivation, job satisfaction and performance among the employees after & before the conduction of Motivationl Exercise. 6) To find out the loopholes (if any) in the Motivational System at Varun Beverages Ltd. 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 them. 8
  • 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 Starbucks,respectively. 9
  • 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 1956. 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. 10
  • 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 products” offering to transfer the food processing,packaging & water treatment technology to India. 11
  • 12. EXECUTIVE SUMMARY OF THE RESEARCH 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 Ltd. This is done due to the Level and Grade differences among the employees and so the Motivational Techniques may also differs for them. The project includes all the facts, figures & graphs based on the feedback of the company employees regarding Motivational System carried out in the company. 12
  • 13. The data are collected, analyzed and graphs has been drawn based on the questionnaires. 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 Report. 13
  • 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 Motivational programme 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. 14
  • 15. 15
  • 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 year 1887. 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 16
  • 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 in 1993. 17
  • 18. HISTORY OF PEPSI COLA In 1893 Caleb Bradham, a young pharmacist from New Bern, North Carolina, begins experimenting with many different soft drink concoctions. 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 the recipe. In 1898 Caleb Bradham wisely bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. 18
  • 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 business. He applies for a trademark with the U.S. Patent Office, Washington D.C., and forms the first Pepsi-Cola Company. The first Pepsi-Cola newspaper advertisements appeared in the New Bern Weekly Journal. Pepsi's theme line is "Exhilarating, Invigorating, Aids Digestion." On June 16th 1903 The new name was trademarked. Bradham's neighbor, an artist designed the first Pepsi logo. In 1904 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. 19
  • 20. In1905 Pepsi-Cola's first bottling franchises are established in Charlotte and Durham, North Carolina. Pepsi receives its new logo, its first change since 1898. In 1906 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, 20
  • 21. being free of any such impurities, claimed they already met federal requirements. In 1923 In 1923 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 $30,000. 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 Corporation. In 1928 After five continuous losing years, Megargel reorganizes his company as the National Pepsi-Cola Company, becoming the fourth parent company to own the Pepsi trademark. 21
  • 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 Pepsi. In 1934 The drink was a hit and to attract even more sales, the company begins selling its 12-ounce drink for five cents (the same cost as six ounces of competitive colas). The 12- ounce bottle debuts in Baltimore, where it is an instant success. The Cost savings proves irresistible to Depression- worn Americans and sales skyrocket nationally. In 1940 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 22
  • 23. price of Pepsi & the quantity. "Nickel Nickel" became hit record and was recorded into 55 languages. In 1961 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 history. 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 the 12-ounce bottle gives way to the 16- ounce size. Twelve-ounce Pepsi cans are first introduced to the military to transport soft drinks all over the world. 23
  • 24. In 1964 Diet Pepsi was introduced as America's first national diet soft drink. Pepsi-Cola acquires Mountain Dew from the Tip Corporation. In 1965 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 bottles. In 1976 Pepsi becomes the single largest soft drink brand sold in American supermarkets. The campaign is "Have a Pepsi Day!" and a classic commercial, "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. 24
  • 25. In 1984 Pepsi advertising takes a dramatic turn as Pepsi becomes "the choice of a New Generation." Lemon Lime Slice, the first major soft drink with real fruit juice, is introduced, creating a new soft drink category, "juice added." In subsequent line of extensions, Mandarin Orange Slice goes on to become the number one orange soft drink in the U.S. Diet Pepsi is reformulated with NutraSweet (aspertame) brand sweetener. In 1989 Pepsi lunges into the next decade by declaring Pepsi lovers "A 25
  • 26. Generation Ahead." Pepsi-Cola introduces an exciting new flavor, Wild Cherry Pepsi. In 1991 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. In 1993 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. In 1994 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 International and Pepsi-Cola International merge, creating the PepsiCo Foods and Beverages Company. In 1995 26
  • 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. In 1997 Pepsi brought Mirinda Orange in opposite to Fanta. In 1998 Pepsi brought Lemon Mirinda to give competition to Limca. In 1999 Pepsi launched Diet Pepsi and 1.5 litre pet bottle for health conscious people. In 2000 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. In 2001 Pepsi launched Aquafina In 2003 Pepsi launched Mountain Dew and Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season. 27
  • 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. In 2005 Pepsi launched Mirinda Lemon Ginger & 7 UP - Ice. Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie Batman. In 2006 Pepsi launched a new flavoured Pepsi drink named PEPSI CAFÉTINO with Coffee flavour. Pepsi launched an Ad named PEPSI TV 28
  • 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. PepsiCo’s Mission “ 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 29
  • 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 flagship brand. 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 …… 1977 Milestone Parle launched Thumps-Up and pure drinks launched Coca-Cola. 1998 Milestone In September, final approval for the Pepsi Foods Ltd. Project granted by the “Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.” 30
  • 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. 1991 Milestone Pepsi-Cola extended its soft drinks business and reached at national scale. Pepsi-cola launched its product in Delhi and Bombay. 1992 Milestone 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. 1993 Milestone Pepsi-Cola launched “Slice & Teem” captured about 25-30% of the soft drink market in about 2 years. 1994 Milestone Pepsi bought “Dukes & Sones”. 31
  • 32. 1995 Milestone Pepsi-Cola lunched Cans, having capacity of 330ml in various flavours. 1996 Milestone Pepsi-Cola domestic and International operations combined into a Pepsi-Cola Company. International and Domestic operations combined into one business unit called “Frito-lay Company”. 1997 Milestone Pepsi-Cola brought “Mirinda Orange” Opposite to “Fanta”. 1998 Milestone Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”. 1999 Milestone Pepsi-Cola launched “Diet Pepsi” can and 1.5 Lit. “PET” bottle for health conscious people. 2001 Milestone Pepsi-Cola launched Slice in “Tetra” Pack . 2003 Milestone Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season. 2005-Milestone 32
  • 33. Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie Batman. 2005-Milestone 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 33
  • 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” 34
  • 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 beverages. 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] in India. 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 35
  • 36. group are run under a registered Trust namely Champa Devi Jaipuria Charitable Trust. 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. VISION:- Being the best in everything we touch and handle. MISSION:- 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. SUCCESS:- 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 shareholder value. PEOPLE:- RKJ creates an environment where employee enjoy a greater degree of empowerment – both individually and in their work teams. 36
  • 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,  Beverages  Food, and  Education 1 )BEVERAGES:- 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 and Aquafina. 37
  • 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 company. 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 38
  • 39. includes starting 20 schools each year with an investment of Rs. 5 crore in each school. THE RKJ GROUP INVESTMENT COMPANIES CHART 39
  • 40. 40
  • 41. 41
  • 42. VARUN BEVERAGES LTD, GREATER NOIDA 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 Mr. R.K.JAIPURIA. 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 Uttaranchal. 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. 42
  • 43. AIM 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 their mind. 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. QUALITY POLICY • Deliver the best product in the market place • The highest Quality • The best Tasting 43
  • 44. ORGANISATIONAL CHART 44
  • 45. CHAIRMAN NNNN BOARD OF DIRECTORS EXECUTIVE DIRECTOR- FIN ED HR C.S UNIT MANAGERS MARKETING UNIT MANAGERS PLANT V.P. FINANC E G.M. FINANCE MGR. FINANCE/ A/C OFFICERS FINANCE/ A/C EXECUTIV ES MANAGERS HRD OFFICERS HRD EXECUTIVES HRD T.D.M. MKT. A.D.M. MKT. C.E. MKT. SALES MGR GM SHIPPING GM PORODUCTION MANAGER SHIPPING SUPERVISOR SHIPPING EXECUTIVE SHIPPING SHIPPERS MGR PROD. MGR MAIN. MGR QLT. CTRL ASSIT. MGR. ASSIT. MGR. ASSIT. MGR. SHIFT SUPV. SHIFT SUPV. SHIFT SUPV. OPER- ATOR OPER- ATOR OPER- ATOR 45
  • 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 SLICE 250ML 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. 46
  • 47. 47
  • 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 organization. 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 48
  • 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 are accomplished. Thus, HRM refers to set programs, functions and activities designed and carried out in order to maximize both employee as well as organization effectiveness. 49
  • 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 an organization. 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. 50
  • 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. 51
  • 52. SCOPE OF HRM 1) PROCUREMENT Procurement includes recruitment and selection of right kinds of personnel to occupy the various posts in the organization. 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 development. 3) JOB ANALYSIS & JOB DESCRIPTION 52
  • 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. 4) REMUNERATION 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 association etc. 53
  • 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 54
  • 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 organization. 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 serves. 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. 55
  • 56. HRM OBJECTIVES AND FUNCTIONS HRM OBJECTIVES SUPPORTING FUNCTIONS 1. Societal Objectives a) Legal Compliance b) Benefits c) Union-management Relations 2. Organisational Objectives a) Human Resource Planning b) Recruitment c) Selection d) Training & Development e) Appraisal f) Placement g) Assessment 3. Functional Objective a) Appraisal b) Placement 56
  • 57. c) Assessment 4. Personal Objective a) Training & Development b) Appraisal c) Placement d) Compensation e) Assessment FUNCTIONS OF HRM The functions of HRM can be broadly classified into two categories, viz., 1) MANAGERIAL FUNCTIONS A) Planning B) Organizing C) Directing D) Controlling 2) OPERATIVE FUNCTIONS A) Employment i) Job Analysis ii) Human Resource Planning iii) Recruitment iv) Selection v) Placement vi) Induction & Orientation B) Human Resource Development i) Performance Appraisal 57
  • 58. ii) Training iii) Management Development iv) Career Planning & Development a) Internal Mobility b) Transfer c) Promotion d) Demotion v) Organization Development 3) Compensation A) Job Evaluation B) Wage & Salary Administration C) Incentives D) Bonus 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 58
  • 59. All the above maintained Categories and their respective sub headings are discussed in details as follows :- 1) Managerial Functions :- A) PLANNING 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. B) ORGANIZING 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. C) DIRECTING The next logical function after completing planning and organizing is the execution of the plan. The basic function of personnel management at 59
  • 60. any level is motivating commanding, leading and activating and human relations besides securing employee contributions. D) CONTROLLING 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 functions. A) EMPLOYMENT 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. 60
  • 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. 61
  • 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 developing them  Creation/Identification of new sources of applicants.  Stimulating the candidates to apply for jobs in the organization.  Striking a balance between internal and external sources. 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 techniques  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. 62
  • 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 techniques  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. V) PLACEMENT 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 placement.  Conducting the follow-up-study, appraising employee performance in order to determine employee adjustment with the job. 63
  • 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 64
  • 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 the company  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 programmes 65
  • 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 experiences. It includes :- a) INTERNAL MOBILITY It includes vertical and horizontal movement of an employee within an organization. It consists of Transfer, Promotion and Demotion. b) TRANSFER 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. c) PROMOTION 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 job requirements. d) DEMOTION It deals with downward reassignment to an employee in the organization. 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 behavioral sciences. 66
  • 67. C) COMPENSATION It is the process of providing adequate, equitable and fair remuneration to the employees. 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 salary programme. It includes :-  Conducting wage and salary survey  Determining wage and salary rates based on various factors  Administering wage and salary programmes  Evaluating its effectiveness iii) INCENTIVES It is the process of formulating, administering and reviewing the schemes of financial incentives in addition to regular payment of wages and salary. 67
  • 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 contingencies. 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 68
  • 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 satisfaction. ii) HUMAN RESOURCE ACCOUNTING, AUDIT AND RESEARCH a) HUMAN RESOURCE ACCOUNTING It is a measurement of the cost and value of human resource to the organization. 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 surveys  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 information  Finding out of defects and shortcomings in the existing policies, practices etc 69
  • 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, 1993). 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 goal. 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 70
  • 71. that you know what is motivating someone because you really can't "read their mind". 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 71
  • 72. willing to put into the job multiplied by the amount that the organisation helps them to achieve their tasks. APPROACHES TO UNDERSTANDING MOTIVATION 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 72
  • 73. motivator (Kovach, 1987). Also, as employees get older, interesting work becomes more of a motivator. PURPOSE 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. METHODOLOGY 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. 73
  • 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 concrete rewards. 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. 74
  • 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 motivation. 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 organized. 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 75
  • 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 negative. 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. 76
  • 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 outcomes. 77
  • 78. MOTIVATION THEORISTS AND THEIR THEORISTS 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 78
  • 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 79
  • 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 commonly know. 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- development. 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. 80
  • 81. EMPLOYEE MOTIVATION IN THE WORKPLACE 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 motivation.) 81
  • 82. Why study and apply employee motivation principles? 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. 82
  • 83. MOTIVATION IS THE KEY TO PERFORMANCE IMPROVEMENT There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus: • Job performance =f(ability)(motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. • 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 83
  • 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; • advancement • 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.) 84
  • 85. Clearing Up Common Myths About Employee Motivation 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 time. 4. Myth #4 -- "I know what motivates me, so I know what motivates my employees" 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. 85
  • 86. 5. Myth #5 -- "Increased job satisfaction means increased job performance" 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 employees 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 86
  • 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 task 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. 87
  • 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 employees 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 time, etc. 88
  • 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 employees. 89
  • 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 results 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 organization. 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 employee. 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 90
  • 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 equitable. 91
  • 92. 92
  • 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. Sampling Design 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 probability sampling. Research Design 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 93
  • 94. Methods of Data Collection Primary Data 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 using Questionnaire Secondary Data 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. Sampling Technique 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 & Designation 94
  • 95. 95
  • 96. ANALYSIS 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 Beverages Ltd. 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 Beverages Lt. 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. 96
  • 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 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Job Satisfaction Self Esteem Salary Work Environment 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 Esteem. 97
  • 98. Q: By whom you are Motivated the most ? a) Self 45% b) Supervisors 25% c) Peers 15% d) Subordinates 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Self Supervisors Peers Subrdinates Series1 From the above bar dagram we can conclude that most of the employees are self motivated,and the second best role is played by the supervisors. 98
  • 99. Q : Has Varun Beverages Ltd. Organized any Motivational programme for its employees? YES [ 60% ] NO [ 40% ] 0% 10% 20% 30% 40% 50% 60% 70% Yes No Series1 According to the data collected more than half of the people are satisfied with the Motivational programme that has taken place at VBL. 99
  • 100. Q : Is Motivational Programme strictly followed or its just a formality? a) Strictly Followed 30% b) Moderately Followed 50% c) Formality 20% 0% 10% 20% 30% 40% 50% 60% Strictly Followed Moderately Followed Formality Series1 From the above graph we find out that motivational programme are not regularly followed at VBL. 100
  • 101. Q : Is your Supervisor? a) Rigid 5% b) Understandable 75% c) Co-operative 20% d) Rude no 0% 10% 20% 30% 40% 50% 60% 70% 80% Rigid Understandable Co-operative Rude Series1 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. 101
  • 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% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Series1 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. 102
  • 103. Q : What type of non financial incentives acts as a motivator? a) Status 5% b) Promotion 80% c) Recognition 10% d) Job Security 5% e) Others 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Status Promotion Recognition Job Security Others Series1 From the above diagram it is clear that its PROMOTION that motivates maximum number of employees,followed by RECOGNITION,STATUS, and JOB SECURITY. 103
  • 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 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Attitudeof controlling Officer PoorPay LackOf Recognition Work Profile Others Series1 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 Profile. 104
  • 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 0% 10% 20% 30% 40% 50% 60% 70% I take pride in my ability to motivate myself I sometimes need others to motivate and encourage I often need supervision to complete my assigned I am always full of motivation Series1 The employees mostly considered their ability that motivate themselves and very few thought the need of external motivation. 105
  • 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 0% 5% 10% 15% 20% 25% 30% a b c d e f g h Series1 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 106
  • 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? a) contribution b) openness c) awareness of his own role d) conflict resolution power 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% contribution openness awareness of his own role conflict resolution power Series1 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. 107
  • 108. Q: Which technique for motivation the employees like the most? a) Job Enrichment b) Job Enlargement c) Job Rotation d) Empowerment 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% job enrichment job enlargement job rotation empowerment Series1 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 108
  • 109. the feeling that the employee ‘owns’ the job that motivates him or her nowadays. Q: Any improvement to be done to increase the morale of the employees? Ans:- ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… …………………………………………………………................................ 109
  • 110. Q: As a supervisor how would you like to motivate your subordinates? Ans:- ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………….. 110
  • 111. ASSUMPTIONS  Sources of Primary data like Structured Questionnaires and schedules are the valid instruments to access the Motivational exercise  All the sources of Secondary data like, Induction, Manual, Websites of Pepsi are supposed to be reliable and authentic sources.  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 Biasness  The sample size is adequate for forecast of population i.e. sample is representative of the population 111
  • 112. SUGGESTIONS Some of the Suggestions given by the Workers & Staff Members are as follows :-  Working Hours are too strict to be followed  Salary should be increased after motivational exercise has beenconducted.  Salary paid as shown in the papers is not actually paid. This fault should be checked  Nepotism & Favouratism should be eliminated from appraisal system  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 employees.  PA should be undertaken at a Unit level and not on an overall basis  Regular interaction between the Superiors and the Employees 112
  • 113. should be undertaken fro effective supervision and rectification of error RECOMMENDATIONS 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. 113
  • 114. LIMITATIONS 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 to other  Shortage of time duration for the research work  Hiding of some true facts by the respondents due to the fear of the management  Though care has been taken, judgement errors may have occurred  Employees being very busy did not get enough time to give responses whole-heartedly  Some of the responses given by the respondents were not legible and clear. 114
  • 115. CONCLUSION 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 maximum results. 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 purpose. If the organization does so, one can say for sure that the company will have a brighter future. 115
  • 116. 116
  • 117. QUESTIONNAIRE ( 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 c) Salary d) Work Environment e) Job Security f) Others…………………………………………………. Que:- By whom you are Motivated? 117
  • 118. a) Self b) Supervisors c) Peers d) Subordinates Que:- Has Varun Beverages Ltd. Organized any Motivational programme for its workers Yes [ ] No [ ] Que:- Is Motivational Programme strictly followed or its just a formality? Strictly followed [ ] Moderately followed [ ] Formality [ ] Que:- Is your supervisor a) rigid b) understandable c) co-operative d) rude Que:- If given a choice to work with another company at the same pay,will you opt for it? a) yes b) no Que:- What type of non-financial incentives acts as a motivator? a) status b) promotion c) recognition d) job security e) others………………………………………………………… Que:- What demotivates you? a) attitude of controlling officer b) poor pay c) lack of recognition d) work profile e) others………………………………………………………… 118
  • 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 employees? a) contribution b) openness 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 d) empowerment e) all of the above. Que:- Any improvement to be done to increase the morale of the employees………………………………………………………………………………… …………………………………………………………………………………………… ………………………………………………….... Que:- As a supervisor how would you like to motivate your subordinates? …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………… 119
  • 120. Signature: - …………………………………………. Date:- ………………… 120
  • 121. BOOKS HUMAN RESOURCE MANAGEMENT  Human Resource Management & Personnel Management - K. Aswathapa  Human Resource Management - T.N. Chabra RESEARH METHODOLOGY  Research Methodology - C.R. Kothari MARKETING RESEARH  Marketing Research - Rajendra Nargundkar WEBSITES  www.pepsi.com  www.pepsiworld.com  www.pepsico.com  www.pbg.com  www.rkjgroup.com  www.google.com  www.accel-team.com  www.managementhelp.org 121
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