Arya Project.pdf

A STUDY ON EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS ON EMPLOYEE PERFORMANCE AT FERTILISERS AND CHEMICALS TRAVANCORE LTD.,UDYOGAMANDAL PROJECT REPORT Submitted by

ARYA R NAIR MLM16MBA11 Under the guidance of Mrs. RESHMA RAVEENDRANATH (Assistant Professor, Department of management studies) In partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION of A P J Abdul Kalam Technological University

DEPARTMENT OF MANAGEMENT STUDIES MANGALAM COLLEGE OF ENGINEERING ETTUMANOOR-KOTTAYAM

MAY 2018 i

ii

iii

ACKNOWLEDGEMENT

Through this acknowledgement I express my sincere gratitude towards all those people who helped me in this project, which has been a learning experience. I express my sincere thanks to Dr. M.M Paulose, MTECH, phD principal of Mangalam college of Engineering for giving me the opportunity to do the project work. I express my sincere thanks to Prof JOHN T VARUGHESE, MCOM, MPHIL, DEAN, Managalam college of Engineering for his proper guidance and support. I sincerely express my deep sense of gratitude and profound thanks to Dr. SIBU C. CHITHRAN, MBA, MPHIL, phD (Management), FDP(IIMK), AMT (AIMA), MAIMSI (USA), Professor and head, Department management studies, Mangalam college of Engineering, whole hearted co-operation and suggestions throughout the completion of this project. I sincerely express my deep sense of gratitude and profound thanks to project guide Mrs. RESHMA RAVEENDRANATH (Assistant Prof Department of Management Studies) Mangalam College of Engineering, Ettumanoor for her valuable guidance, co-operation and suggestions throughout the completion of my project. I express my thanks to Mrs. DIVYA GEORGE (Assistant HR of FERTILISERS AND CHEMICALS TRAVANCORE LTD.,UDYOGAMANDAL) for the extreme support and guidance showed throughout the study. I express my sincere thanks to the management and staffs of all the departments for the encouragement and valuable guidance for the work.

I sincerely thank my friends who help me during the study.

ARYA R NAIR

iv

LIST OF TABLES

Table

Title of Table

No

Page No

5.1

Employees opinion about managements support

51

5.2

Employees satisfaction level at present job

52

5.3

Employees opinion about salary and perks provided by the 53

organisation 5.4

Employees opinion about promotion avenues provided by the 54

organisation 5.5

Support from co- workers and management

5.6

Employees opinion about communication channel exist in the 56

organisation 5.7

Employees opinion about grievance redressal system in the 57

organisation 5.8

55

Employees opinion about welfare and safety measures provided by 58

the organisation 5.9

Employees opinion about employees participation in management

5.10

Employees opinion about interpersonal relationship exist in the

59

60

organisation 5.11

Employees opinion about the incentives provided by the company

61

5.12

Employees opinion about the motivation factors

62

v

5.13 5.14

Employees opinion about most motivating type of benefit Employees opinion about their role in decision making in the department

5.15

Opinion of employee relating to highly motivating incentive

5.16

Employees opinion about periodic increment in salary as a motivating factor

5.17

Employees opinion about job security as a motivating factor

5.18

Employees opinion about interpersonal relationship as a motivating factor

5.19

63

64 65

66 67

68

Employees opinion about existence of effective performance appraisal system

69

5.20

Opinion about performance appraisal as a motivating factor

70

5.21

Opinion about safety measures adopted by the organisation as a

71

motivating factor 5.22

Employees opinion about recognition and acknowledgement provided by the company

5.23

72

Employees opinion about welfare measure as a motivating factor 73

5.24

Employees opinion about the interest of management in motivating the performance of employees

5.25

74

Employees opinion about the satisfaction of working environment in the organisation

vi

75

List of Figures

Table No

Title of Table

Page No

5.1

Employees opinion about managements support

51

5.2

Employees satisfaction level at present job

52

5.3

Employees opinion about salary and perks provided by the 53

organisation 5.4

Employees opinion about promotion avenues provided by the 54

organisation 5.5

Support from co- workers and management

5.6

Employees opinion about communication channel exist in the 56

organisation 5.7

Employees opinion about grievance redressal system in the 57

organisation 5.8

Employees opinion about welfare and safety measures provided by the 58

organisation 5.9

Employees opinion about employees participation in management

5.10

Employees opinion about interpersonal relationship exist in the

59

60

organisation 5.11

55

Employees opinion about the incentives provided by the company

vii

61

5.12

Employees opinion about the motivation factors

62

5.13

Employees opinion about most motivating type of benefit

63

5.14

Employees opinion about their role in decision making in the 64

department 5.15

Opinion of employee relating to highly motivating incentive

5.16

Employees opinion about periodic increment in salary as a motivating 66

factor 5.17

Employees opinion about job security as a motivating factor

5.18

Employees opinion about interpersonal relationship as a motivating

Employees opinion about existence of effective performance appraisal 69

system 5.20

5.21

67

68

factor 5.19

65

Opinion about performance appraisal as a motivating factor

70

Opinion about safety measures adopted by the organisation as a

71

motivating factor Employees opinion about recognition and acknowledgement

5.22 5.23

72

provided by the company Employees opinion about welfare measure as a motivating factor

73 5.24

Employees opinion about the interest of management in motivating 74

the performance of employees 5.25

Employees opinion about the satisfaction of working environment in 75

the organisation

viii

List of Symbols/Abbreviations Symbol/ Abbreviation FACT LTD.

Explanation Fertiliser and Chemicals Travancore Limited.

Pvt

Private

DAP

Diammonium phosphate

GDP

Gross Domestic Product

MT

Metric Tonne

MOP

Muriate of Potash

ix

TABLE OF CONTENTS Sl No

Topic

1

INTRODUCTION

1.1

Background of the study

2

1.2

Need and Significance of the study

3

1.3

Statement of problem

3

1.4

Objectives of the study

3

1.5

Scope of the study

4

1.6

Limitations of the study

4

1.7

Organization of the report

4

2

LITERATURE REVIEW

2.1

Industry profile

8

2.2

Company profile

13

2.3

Product profile

17

3

THEORITICAL FRAMEWORK

3.1

Meaning

21

3.2

Various definitions of motivation

21

3.3

Theories of motivation

22

3.4

Types of motivation

26

4

RESEARCH METHODOLOGY

4.1

Objectives

35

4.2

Hypothesis

35

4.3

Research Design

35

4.4

Sources of data

36

4.5

Primary and secondary data

36

4.6

Population

39

x

Page No

4.7

Sample design

39

4.8

Sampling method

39

4.9

Method of data collection

41

4.10

Drafting a questionnaire

43

4.11

Pilot survey

45

4.12

Data analysis techniques

47

5

DATA ANALYSIS

51-79

6

FINDINGS

81

7

RECOMMENDATIONS

84

8

CONCLUSIONS

86

REFERENCES

88

APPENDIX APPENDIX A

xi

EXECUTIVE SUMMARY

A Study on “Employee Motivation and its effectiveness on employee performance at FERTILISERS AND CHEMICALS TRAVANCORE LTD., UDYOGAMANDAL. The main objective of the research was to find the Motivation level of employees and its effectiveness on employee performance. Employee motivation is essential to the success of any business. The important factors that are to be considered in the job motivation of employees are salary, promotion, working environment, additional benefits and so on... The study was done as part of Descriptive Research. Convenience sampling technique was employed for selecting the sample. The primary data was collected by means of questionnaire. Sample size is 150 for this study. The secondary data was collected from the company records and websites. A structured questionnaire was given to fifty employees and the data was collected based on the same. The data was analyzed using percentage method, chi square and correlation . Utmost care has been taken from the beginning of the preparation of the questionnaire till the analysis, findings and suggestions. The analysis leads over to the conclusion that some of the employees are motivated. Dissatisfaction with reference to some of the motivational factors was also reported. It was found that dissatisfaction among employees will affect the work performance and productivity of the organization. Valuable suggestions and recommendations are also given to the company for the better prospects.

xii

CHAPTER 1 INTRODUCTION

INTRODUCTION 1.1 BACKGROUND OF THE STUDY Motivation is an effective instrument in the hand of the management to inspiring the work force. It is the major task of every manager to motivate this subordinates or creates willing to work among the subordinates. It should also be remembered that the worker immensely capable of doing some work, nothing can be achieved if he is not willing to work. Creation of a will to work is motivation in simple but true sense of term. Motivation is an important function which every manager performs for actuating the people to work for accomplishment of objective of the organisation. Issuance of well conceived instructions and order does not mean that they will be followed. A manager has to make appropriate use of motivation to enthuse the employee to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining determination to see that it is executed efficiently and effectively. In order to motivate workers to work for the organisational goal, the manager must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction. If the management is successful in doing so; it will also be successful in increasing the willingness of workers to work. This will increase efficiency and effectiveness of the organisation. There will be better utilisation of resource and workers abilities and capabilities. Motivation has variety of effects. These effects may be seen in the context of an individual‟s physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers. The study help to realise the importance of motivation and its impact on employee performance. The research study types and level of employee motivational programme and also discuss management ideas that can be utilised to innovate employee motivation. It help to provide insight to support future research regarding strategic guidance for the organisation that are both providing and using reward recognition programme.

2

1.2 NEED AND SIGNIFICANCE OF STUDY FACT, Ltd is a largest central public sector undertaking and employing around 3500 peoples. The company has two production units in Udyogamandal and Ambalamedu. Its employees are working in different fields like production, marketing , finance, personal management etc. The study intended to study how the management motivate workforce and its impact on employees performance at this organisation . A good motivational programme is essential to inspire the work force for achieving the goal of the organisation. Higher motivation lead to job satisfaction ,employee loyalty, employee efficiency and motivation is also useful to reduce absenteeism, labour turnover and labour unrest. The study help to understand importance of motivation in an organisation and how far motivation is influencing employees performance in FACT.

1.3 STATEMENT OF THE PROBLEM The present study entitled on “A study on employee motivation and its effectiveness on employee

performance

at

FERTILISERS

AND

CHEMICALS

TRAVANCORE

LTD,UDYOGAMANDAL.

1.4 OBJECTIVES OF THE STUDY Primary objective  Find out the effectiveness of employee motivation in performance. Secondary objective  To analyse and examine effectiveness of motivation programme in FACT.  To study the effect monitory and non-monitory benefits provided by the organisation  To study the employees opinion about the motivation provided by FACT.  To study which kind of motivation is highly influencing the employee performance  To know the attitude of management in employee motivation.

3

1.5 SCOPE OF THE STUDY  This study aims at finding the relationship between employee motivation and employee performance

 To find out whether the financial or non- financial motivation will influence employee performance

 In order to identify factors which motivate the employee more  In order to identify various motivation techniques used by the organisation.

1.6 LIMITATION OF THE STUDY  Due to shift arrangement it is difficult to collect data from all employees.  Majority of the employees were busy with their works.  The time allotted for the study was limited.  Due to the short span of time a detailed study was not able to make.  Most of the answers of the respondent were influenced by the comments of others.

1.7 ORGANIZATION OF THE REPORT The report of the study is presented in 5 chapters. 

CHAPTER 1 : INTRODUCTION 

This chapter contains introduction to the study, statement of problem, significance of the study, objective of the study, Scope of the study, hypothesis, and methodology, period of the study, chapter scheme, assumptions and limitation of the study. 

CHAPTER 2 : REVIEW OF RELATED LITERATURE 

This Chapter deals with Industry profile, company profile, Theoretical background of the study, recent studies on the topic, and review on research methodology

4

 

CHAPTER 3 : RESEARCH METHODOLOGY  This Chapter Contains Research design, study approach, techniques of data collection,

sampling techniques, techniques used for data analysis 

CHAPTER 4 : DATA ANALYSIS & INTERPRETATION  This Chapter Includes Data Analysis and Interpretation



CHAPTER 5 : SUMMARY & CONCLUSIONS  This chapter contains summary, methodology, findings, suggestions, scope for further studies and conclusion



BIBLIOGRAPHY & REFERENCES  This chapter include bibliography, webliography, covering letter to the researcher, questionnaire and other related documents.

5

CHAPTER 2 REVIEW OF LITERATURE

6

LITERATURE REVIEW Employees' motivation is "The heart of giving the people what they really want most from work" (Dell, 1988). The more you are able to provide what they want, the more you should expect what you really want, namely: productivity, quality, and service. Jones and George (2010) argue that employees' motivation is as the "psychological forces that determine the direction of a person's behaviour in an organisation, a person's level of effort, and a person's level of persistence." The behavioural direction of a person is described as "the many possible behaviours that a person could engage in." Effort indicates how hard people work. Persistence on the other hand refers to whether, when dealing with roadblocks and obstacles, employees keep trying or give up. When employees follow an effective and efficient direction, contribute in high levels of effort and are persistent, then high motivation occurs. Maslow (1943) sets money at the lowest hierarchy level and shows that other needs work as better motivators to staff. Herzberg (1959) based on Maslow's' pyramid supports that money tends to have a motivating effect on employees that lasts only a short period of time (two-factor model of motivation). McGregor (2002) places money in his Theory X category and feels it is a poor motivator. Praise and recognition are placed in the Theory Y category and are considered stronger motivators than money. If money is the only reward that someone receives by doing his job right, this undoubtedly will have a negative reflect on the organisation. The employee will react each time by thinking of his pocket and ignore about the operations goals and the promotion of them. The rewards must have the form of influencing the employee to feel better concerning his/her achievements inside the company and from this success to feel as a part of this business and not as "just a worker" who simply gets paid for his/her services (Rollinson, 2004). Opportunities for job development, skills improvement, and job commitment are excellent examples of making an employee stop thinking of himself as just an employee and motivate him/her to start feeling as a real member of the company that he belongs too and perform better (Armstrong and Baron, 2004).

7

2.1 INDUSTRY PROFILE Fertilizer is generally defined as “any material organic or inorganic, natural or synthetic which supplies one or more”. The most necessary requirements of human being are food. The accelerated growth in a nation needs remarkable expansion of food production from time to time. Agriculture must rely upon a primary source for increase in food production. The fertilizer industry has played a significant role in the development of agriculture in India. Majority of the rural population in India still depend on agriculture for their livelihood and allied activities contribute about 30% of GDP in India. Growth and development of agriculture in India derives a significant stimulus in fertilizer industry. Development and growth of this vital industry is crucial for their sustainable growth of agriculture and to ensure food security of the nation. The main issue confronting the fertilizer industry in India is the volatility in the process of food stock or raw material coupled with the limited availability and uncertain policy environment. In India, there has been a surge in the demand for fertilizers in the past few years. However the robust growth in consumption propensity has not been met with the required surge in the fertilizer production. This has widened the gap between demand and supply of fertilizers. Therefore India has depended on import of large quantity of fertilizer to meet domestic demand. India is the third largest producer and consumer of chemical fertilizers in the world and account for about 12% of world fertilizers‟ consumption. The country produces several straight nitrogenous fertilizers such as Urea, Ammonia, Sulphate, Calcium, Ammonium, Nitrate etc. As well as fertilizers such as DAP and several NPK complexes. Urea and DAP are the main fertilizers produced in India. Agriculture is the backbone of Indian economy still holds its relative importance for more than a billion people. The government of India from time to time has taken considerable steps for the upliftment of agriculture sector. Here we have analyzed the performance of fertilizer industry being one of the vital parts in agriculture production and government policy initiatives for the same.

8

Six industries in India have been identified as energy intensive industry. Aluminum, Cement, Fertilizer, Iron & Steel, Glass and Paper together they account for 16.8% of manufacturing value of output (V0) and consume 38.8% of all fuels consumed in the manufacturing sector. The fertilizer sector holds a considerable share within these energy intensive industries. In 1993, it accounted for 23% of value of output within the six industries and for 3.8% in the manufacturing sector. The Indian fertilizer industry has succeeded in meeting almost fully the demand of all chemical fertilizers except for MOP. The industry had a very humble beginning in 1906, when the first manufacturing unit of Single Super Phosphate (SSP) was set up in Ran pat here Chennai with an annual capacity of 6000 MT. Fertilizers And Chemicals Travancore of India Limited (FACT) at Cochin in Kerala and the Fertilizers Corporation of India(FCI) in Sandra in Bihar were the first large sized fertilizers plants set up in the forties and fifties with a view to establish an industrial base to achieve self- sufficiency in food grains. Subsequently, green revolution in the late sixties gave an impetus to the growth of fertilizer industry in India. In seventies and eighties they witnessed a significant addition to the fertilizer production capacity. The installed capacity as on 30-01-2013 has reached level of 121.10 lakh MT of nitrogen (inclusive of installed capacity of 2008.42 lakh MT of Urea after reassessment of capacity) and 53.60 lakh MT of Phosphate Nutrient, making India the third largest fertilizer producer in the world rapid build-up of fertilizer production capacity in the country has been achieved as a result of a favorable policy environment facilitating large investment in the public, co-operative and private sectors. Recently, there are 57 large sized fertilizers plant in the country manufacturing a wide range of nitrogenous, phosphate and complex fertilizers. Out of these, 29 unit produce Urea, 20 unit produce DAP and complex fertilizers, 13 plants manufacture Ammonium Sulphate (AS), Calcium Ammonium Nitrate (CAN) and other low analysis nitrogenous fertilizers. Besides, there are about 64 medium and small-scale units in producing SSP. Investment in Fertilizer Industry Fertilizer production is capital intensive and presently the cost of production of indigenous material is high and returns on investment are low. The Indian fertilizer industry, which achieved phenomenal growth in eighties, witnessed decline in the growth rate during the nineties. In the 9

recent past, the fertilizer industry has not attracted any significant investment. No multinational has invested in fertilizer sector in India. Due to sufficient indigenous capacity and low international prices of Urea, the government of India in February 2000 decided that no new grassroots project will be allowed during the next 3 years in public, private or co-operative sector. So even if the government reviews its decision the earliest a project could start would be by 2004-05. Government is also considering disinvestment of its equity of public sector fertilizer units up to 51% or even more. This handover the management control of the company to a strategic buyer. The dis-investment in National Fertilizer Limited (NFL), a major Urea producer in the country is underway. Lack of availability of natural gas in the country had prompted investors to collaborate for joint ventures abroad for urea production. Gulf countries due to abundant availability of gas, nearness to Indian shores and investment friendly environment, are becoming the first choice for joint ventures. Among the Public Sector Units, the Fertilizer Corporation of India Limited (FCI), Hindustan Fertilizer Corporation Limited (HFC), Projects &Development India Limited (PDIL), and Pyrites, Phosphates & Chemicals Limited (PPCL) were declared sick. They are under consideration of Bureau of Industrial and Financial Restructure (BIFR). As India does not have potential rock phosphate reserve, it is completely dependent on import of either rock phosphate or phos acid or DAP. There has been new capacity addition by way of importing rock phosphate and converting it into phos acid and then to DAP/NPK or conversion of phos acid at rock phosphate mines abroad in JV and importing phosphoric acid for further conversion to DAP/NPK. It is heartening to know that apart from the operating joint venture for phosphoric acid in Senegal, Jordan and Morocco some more projects and expansions are being contemplated by the Indian companies. INTERNATIONAL SCENARIO When there are large area of unused frontier land in the world, it was often more economical for farmers to move on to new unfarmed land then to invest additional money in fertilizers for the land they were then farming, a practice continued in second half of the 20th century

10

in some underdeveloped areas of the world. The use of manure and composites are probably as old as agriculture itself and many other material such as ground bones, wood ash from burning the fallen trees, dried blood and fish were employed long before the chemistry of soil and crops was understood. The disappearance of fertilizers combined with improvements in the technology of fertilizers manufacture and more effective transportation lead to a growing role of fertilizers for producing the needed food. NATIONAL SCENARIO India is one of the world‟s largest producers and consumer of fertilizers, both Phosphorescent and Nitrogenous. The fertilizer industry in the country is also among the fast growing sector in the world. There are around 25 chemical fertilizers used in the country at present. They fall under four broad categories namely Nitrogenous, Phosphate and Potassium and Complex fertilizers. 71% of the total fertilizer consumption during 1994-1995 was of the Nitrogenous variety whereas the Phosphorescent and fertilizers accounted for 22% and 7% in the same order. While Urea, Calcium and Ammonium Phosphate are the major Nitrogenous fertilizers, Single Super Phosphate falls under the Phosphate category. Ammonium Phosphate is the main Complex fertilizer are nine public sector under takings and two co-operative societies under the administrative control of the Department of Fertilizers. At present, there are 63 large size fertilizer units in the country, manufacturing a wide range of nitrogenous and Prophetic/complex fertilizers. Of these, 38units produce urea whereas 9 units produce Ammonium Sulphate as a by-product. Besides, there are about 79 small and medium scale units producing single superphosphate. STATE SCENARIO Kerala has a high degree of the land and cropping industry. The states agriculture productivity is decreasing year by year. The production and cultivation of rice is decreasing and the farmers are attached to the cultivation of commercial crops like rubber etc. due to the 11

decrease in the cultivation of rice, the consumption of Nitrate and Potash has come down. Kerala is one of the low ranking states in the consumption of fertilizers. The state has good fertile land and suitable climate for agriculture. Even though the states agricultural productivity is decreasing year by year. Especially production and cultivation of commercial crops like rubber shows declining trend in production. Industry's production had shown increasing trend during past few years. Industry leaders sought Governances support in reducing the time period for mandatory environmental. GENERAL HEALTH OF THE INDUSTRY It is feared that several fertilizer units will be closed down in the process of switch over from the present administrated pricing mechanism to a market based regime. This would mean substantial loss of domestic fertilizer production and corresponding increase in import of raw material (Urea) to meet the demand. Even under the present circumstances health of the industry is not good and several units have become loss making. According to Expenditure Reform Committee (ERC) recommendations, instead of unit wise retention price there will be a group wise lump sum concession per ton of urea based on feed stock which will harm some units and benefit others and there will be wide spread sickness in the Urea industry. IMPLICATIONS FOR FUTURE India has become third largest country with a total capacity of 14.07 million tonnes of P205in the year 2000-2001 further capacity addition for N now been started for the time being due to very narrow demand supply gap at present and costly feed stock. However there will be some addition to the Phosphatic capacity. Domestic production of Nitrogen fertilizers were 11.004 million tonnes in 2000-2001 whereas production of Phosphatic fertilizers were 4.703 million tonnes which are marginal higher compared to the last year production. All India capacity utilization has gradually improved over the years and was maintained at most cent percentage level for N, however, during 2000-2001 Vestrichous were imposed on capacity utilization of Urea at 92%. The increase in production of total Nis observed due to previous year. The capacity utilization for P205 fertilizers were cent percentage.

12

2.2 COMPANY PROFILE Name

: The Fertilizers and Chemicals Travancore Limited.

Slogan

: Pioneers in Progress

Establishment

: 1944

Incorporation

: 22 September, 1943

Promoters

: Central Government and State Government

Head office

: Udyogamandal, Eloor

Nature of business

: Manufacturing and Production

Commencement of business : 26 June, 1947 Laison offices

: Mumbai, New Delhi

Area office

: Udyogamandal, Chennai, Bangalore, Hyderabad

Listing

: NSE

Products

:Ammonium Sulphate, Factomfos 20-20-0-13, Fact mix, Caprolactum, Gypsum, Urea, Di- Ammonium Phosphate, Anhydrous Ammonia,

Sulphuric Acid, Nitric Acid, Bio

Fertilizers, Soda Ash, Ammonia, Synthesis Gas, Phosphoric Acid, SO2 Gas Divisions

: Udyogamandal, Petrochemical & Cochin division

Trading of scrips

: Electronic form, paper form

VISION “With a decade FACT will emerge as a leader in the business of agricultural inputs, industrial intermediaries and engineering consultancy and construction of industrial infrastructure facilities”. 13

MISSION “FACT‟s mission is to function as a dependable and competitive producer of fertilizers and other allied products and to develop self-reliance in the field of engineering and technology especially in the field of fertilizers, chemicals and petrochemicals, oil and gas industries”.

FACT DEPARTMENTS There are six departments in FACT. They are:  Human Resource Department  Material Department  Production Department  Marketing Department  Finance Department  Quality Control Department 1. HUMAN RESOURCE DEPARTMENT The main functions of Human Resource Department are:  Organizational Planning And Development  Recruitment And Selection  Training And Development  Wage And Salary Administration  Welfare Programme  Job Evaluation  Employee Record Maintaining The Human Resource Department of FACT consists of three sections. They are: 1. Establishment 2. Training and Industrial Engineering 3.

Industrial Relation

14

2. 2. MATERIALS DEPARTMENT Deputy General Manager heads Materials Department. Material Department is divided into three sections. They are: 1. Raw Materials (RM) 2. Stores and Transportation Services (STS) 3. Equipment Spares and Supplies (ESS) 3. PRODUCTION DEPARTMENT Annual production targets for the next year are prepared based on installed production capacity of the plant and production data for the previous year. Necessary feedback is also taken from marketing while fixing the production targets. The production targets is presented to the corporate office for the review and approval by CMD, the Plant Manager are informed the same. Various sections in Production Department are: 1. Ammonia Plant 2. Sulphuric Acid Plant 3. Phosphoric Acid Plant 4. Ammonium Complex Plant

4. MARKETING DEPARTMENT The Marketing Division is headed by a GM who reports to the Director (Marketing). FACT has two Marketing Departments namely: Petrochemical Marketing and Fertilizers Marketing Departments. The Marketing Department consists of various sections organized on the basis of their functions. They are: 1. Sales Department 2. Distribution Department 3. Marketing Research Department

15

5. FINANCE DEPARTMENT The functions within the Finance Department are diverse with distinction procedure for accounts related to personnel, purchase, costing, budgets, tax and duties, audit, general accounts, bank and payrolls, bills, etc. Main functions of Finance Department are:  Preparation of final accounts  Preparation of bank advice statements  Budget preparation  Payroll systems  Preparation of monthly journal, ledger and trail balance  Calculation of attendance bonus  Auditing  Preparation of cost sheet 6. QUALITY CONTROL DEPARTMENT At FACT, quality has always been articles of faith and strictest international standards are adhered to tin producing the various products. The sophisticated micro processors based digital distribution control system brings about efficiency in information management and process optimization. The process control based on time analysis, assures consistency in quality throughout the manufacturing process and in the finished products. OWNERSHIP PATTERN OF FACT FACT, a „Schedule A‟ category Government of India enterprise, under the administrative control of Department of Fertilizers in the Ministry of Chemicals and Fertilizers. FACT took shape in 22 September, 1943 and in 1960‟s it came under Public Sector and the Government of India became the major shareholder. Board of Directors manages FACT. The Chairman of the Board is the Managing Director. They have a full time Finance Director, a Technical Director, and a Managing .

16

. There are also six part time directors on the Board, nominees of Central and State Government. 97% of shares of the company are owned by Central and State Government and the remaining 3% by public.

COMPETITORS OF FACT  Southern Petro Industrial Chemicals  Madras Fertilizers Limited  Nagarjuna Fertilizers Limited  Mangalore Fertilizers Limited  Rastria Chemical Fertilizers  India Farmers Fertilizers Cooperation

2.3 PRODUCT PROFILE PRODUCT AT GLANCE

Fertilizers : Urea, Sulphate, Factamfose, Ammonium Sulphate, Fact mix Petrochemicals

:

Caprolactum

Chemicals : Ammonia, Sulphuric Acid, Soda Ash, Nitric Acid FACT manufactures Straight fertilizers, Complex fertilizers, Fert mixtures and Chemicals. They are:  Straight Fertilizers 

Ammonium Sulphate



Urea

 Complex Fertilizers 

Factamfos 20-20-0-13



Di- Ammonium Phosphate

 Fertilizer Mixtures 17



NPK Mixtures



Rose Mixtures



Vegetable Mixtures



Garden Mixtures

 Chemicals 

Anhydrous Ammonia



Sulphuric Acid



Caprolactum



Nitric Acid

FINISHED PRODUCTS  Ammonium Sulphate - Udyogamandal Division  Ammonium Phosphate – Udyogamandal and Cochin Division  Urea – Cochin Division  Caprolactum – Petrochemical Division  Bio-fertilizers – R&D Division BYPRODUCTS  Gypsum – Udyogamandal and Cochin Division

INTERMEDIARY PRODUCTS  Ammonia - Udyogamandal and Cochin Division  Sulphuric Acid - Udyogamandal and Cochin Division  Synthesis Gas - Udyogamandal Division  Phosphoric Acid - Udyogamandal and Cochin Division  So2 Gas - Udyogamandal Division  Nitric Acid and Soda Ash – Petrochemical Division EXPORTED PRODUCTS  Caprolactum – Petrochemical Division  Ammonium Sulphate - Udyogamandal Division 18

CHAPTER 3 THEORETICAL FRAMEWORK

19

THEORITICAL FRAMEWORK 3.1 MEANING The word motivation is derived from the Latin word “movere”, meaning to “move”. In simple term, the term may be used as the state or condition of being induced to do something. Essentially, motivation involves individual needs and the extent to which they are met by the organisation or the extent to which they are met by the organisation or the extent to which the workers perceive that his or her needs are met by the organisation. Motivation is an important way of promoting productivity of employees.

3.2 VARIOUS DEFINITIONS OF MOTIVATION 

Dubin has defined motivation as,” complex of forces starting and keeping a person at work in an organisation”.



According to Dalton E. McFarland,” motivation refers to the way in which urges, drisers, aspirations, strivings or needs direct, control or explain the behaviour of human beings” Management can do its job effectively through motivating people to work for the

accomplishment of organisational objectives. But according to authors like McGregor, Maslow, Herzberg etc, it is difficult to motivate the people without considering what they want and expect from the work. Maslow‟s theory is considered an important theory of motivation because it highlights the need of people. Human need can be classified into two categories 1) Basic psychological or primary need. 2) Social and psychological needs or secondary needs Some of the psychological need are food, water, sleep, air to breath, sex, clothing and shelter. These need arise out of the basic physiology of life and are important for the survival of people.

20

Secondary motivation related to mind and spirit rather than the psychology of life. Many of these need develop as one mature. Instances are belongingness, recognition, self –esteem, sense of duty, self-assertion and so on. The theories of motivation which explain human behaviour in terms of human needs are called „content theories‟. For instance, Maslow‟s and Herzberg‟s models propose that human beings are engaged in certain activities to satisfy their needs. But theories which explain how motivation occur are known as process theory. For instances, Vroom‟s theory identifies the variables that go into motivation and their relationship with each other.

3.3 THEORIES OF MOTIVATION MASLOW’S NEED HIERARCHY THEORY. This theory was developed by Abraham Maslow. He was a clinical psychologist in U.S.A. Abraham Maslow saw human needs in the form of a hierarchy starting in an ascending order from the lowest to the highest needs and concluded that when one set on need is satisfied, it ceases to be a motivator. Therefore the next set of needs in the hierarchy takes its place. The basic human needs as identified by Maslow in the ascending importance are as follows: 

Psychological Need. These are the basic needs for sustaining human life- food, clothing, shelter, sleep and

sexual satisfaction. Until these needs are satisfied to the required extent, other need do not motivate a person. 

Security or Safety Need These are the needs to be free from physical dangers and fear of loss of job, property,

food, clothing, or shelter. 

Affiliation or Acceptance Need Since human beings are social animals, they desire to belong to others and to be

accepted by others. Every person wishes to be affiliated to a particular social group. 

Esteem Need.

21

Once a person gets satisfied his needs to belong, he expected to be held in esteem both by himself and by others. This kind of need produces satisfaction as power, prestige, status and self-confidence. 

Need for self-actualisation Maslow regarded this as the highest level need in his hierarchy. It is the desire to

become what one is capable of becoming to maximise one‟s potential and to accomplish something in the life as cherished goal. HERZBERG’S MOTIVATION- HYGIENE THEORY The two factor theory (also known as Herzberg‟s motivation –hygiene theory )was developed by Frederick Herzberg, a behavioural scientist. Herzberg started his theory with a distinction between motivational and maintenance factor in job situation. A research study was made by Herzberg and his associates based on the interview of 200 engineers and accounts who worked in eleven different firms in Pittsburgh areas. On the basis of these research, two job factors were identified ; 

Motivators or satisfiers



Hygiene or maintenance factors That‟s why, Herzberg‟s theory is also called two factor theory. Some job conditions operate primarily to dissatisfy employees when the

condition are absent, but there presence does not motivate the employees in a strong way. Many of these factors are traditionally perceived by the management as motivators, but these are really more potent as dissatisfies .. The potent dissatisfies are called maintance factors in a job because they are necessary to maintain a reasonable level of satisfaction among the employees. They are also known as dissatisfies or „hygienic factors‟ because they support employees mental health. Another set of job conditions operates primarily to build strong motivation and high job satisfaction, but their absence rarely proves strong dissatisfies. Hygiene factors include wages, fringe benefits, physical conditions, and overall company policies, administration etc. The presence of these factors at a satisfactory level prevents job dissatistisfaction, but does not provide motivation to the employees. So they are not considered as motivational factors. Motivational factors on the other hand are essential for 22

increasing the productivity of employees. They are also known as satisfiers and include such factors as recognition, feeling of accomplishment and achievement, opportunity of advancement and potential for personal growth, responsibility and sense of job and individual importance, new experience and challenging work. Herzberg further stated that managers have hitherto been very much concerned with Hygienic factors. As a result, they have not been able to obtain the desired behaviour from employees. In order to increase the motivation of employees, it is necessary to pay attention to satisfiers or motivational factors. Herzberg also said that to-day‟s motivators are tomorrow‟s hygienes because they stop influencing the behaviour of persons when they get them. When a person gets one thing, then something else will motivate him and the need which has been fulfilled will have only negative significance in determining his behaviour. McCLELLANDS’S THREE NEEDS MODEL David C. McClelland model is concerned with three motives, namely, 

The need for achievement



The need for power



The need for affiliation Everyone posses these need in varying degree. However, one of the needs will tend to be

more characteristics of the individual rather than the other two. Individuals with a high need for achievement thrive on jobs and projects that tax their skill and abilities. Such individuals are goal-oriented in their activities, seek a challenge and want relevant feedback. Individual with high affiliation needs value interpersonal relationships and exhibit sensitivity towards other peoples‟s feelings. But individuals with high power needs seeks to dominate, influence or have control over people. It appears that McClelland‟s concept of achievement motivation is related to Herzberg‟s motivation –hygiene theory. People with high achievement motivation tend to be interested in the motivators and with low achievement motivation rend to be interested in environment or hygiene factors.

23

VROOM’S VALENCE-EXPECTANCY THEORY This theory was offered by Vroom. According to him, a person‟s motivation towards an action at any time would be determined by an individual‟s perception that a certain type of action would lead to a specific outcome and his personal preference for this outcome. There are three variables in Vroom‟s model given in the form of an equation. Since the model is multiplicative, all the three variables must have high positive values to imply motivated performance choices. If any of the variables approaches zero, the probability of motivated performance approaches zero. Motivation=Valence* expectancy *Instrumentality Valence is the strength of an individual‟s preference for a reward, expectancy is the probability that a particular action will lead to a desired reward and instrumentality denotes an individual‟s estimate that performance will result in achieving the reward. Thus, if an individual has a particular goal, some behaviour has to be produced in order to achieve that goal. He will weigh the likelihood that various behaviours will achieve the desired goal and if certain behaviour is expected to be more successful than other, that particular behaviour will be preferred by the individual.Motivation is the product of valence, expectancy, and instrumentality. These three factors in the expectancy model may exist in an infinite number of combinations depending upon the range of valence and degree of expectancy and instrumentality. The combination of that produces the strongest motivation is high positive valence, high expectancy and high instrumentality. If all the three are low, the resulting motivation will be weak. In other cases, motivation will be moderate similarly the strength of avoidance behaviour will be determined by the negative valence and expectancy and instrumental factors. As said above, the motivational force will be highest when expectancy, instrumentality and valence are all height. The management must recognize and determine the situation as is exists and take steps to improve upon these factors for behavioural modification so that these three elements achieve the highest value individually.

24

PORTER AND LAWLER EXPECTNCY MODEL Porter and lawler model is an improvement over vroom‟s expectancy modal. It is based on four assumption about behaviour in organisation; (I)

Behaviour is determined by a combination of factors in the individual and in the environment.

(II)

Individuals make-conscious decisions about there behaviour in the organisation.

(III)

Individuals have different needs, desires and goals

(IV)

Individuals decide between alternative behaviours on the basis of their expectations that a given behaviour will lead to a desired outcome.

Porter and Lawler applied there model to study the behaviour of managers and concluded that there exist a complex relationship between job attitude and performance.

3.4 TYPES OF MOTIVATION Motivation is an important function which every manager performs for actuating the people to work for the accomplishment of objectives of the organisation. In order to motivate workers to work for the organisational goals, the manager must determines the need of the workers. Motivation can be classified into two; 1. Financial motivation 2. Non financial motivation FINANCIAL MOTIVATION Following are the important financial motivation provided by FACT; 1) Bonus 2) Salary increment 3) Incentives 4) Welfare measures

25

NON FINANCIAL MOTIVATION 1. Recreation 2. Workers participation in management 3. Communication 4. Suggestion

INCENTIVE SCHEMES Following are the incentive schemes provided by FACT; 

Attendance bonus



Incentives schemes for employees acquiring higher qualifications while in service



Incentive schemes for employee passing Hindi and Hindi type writing/Hindi stenography examination



Schemes for utilisation of the service of employee acquiring specialised qualification



Incentive bonus



Incentive scheme for promoting “small family “norms



Production incentives

ATTENDANCE BONUS This scheme cover all non-managerial employees who have punch card attendance. Calculation of attendance bonus will be based on the attendance of an employee during a leave year. Attendance bonus of a leave year will be computed and paid during the succeeding leave year. Leave year computed as per calendar year. INCENTIVE SCHEME FOR EMPLOYEES ACQUIRING HIGHER QUALIFICATION WHILE IN SERVICE. It is available to managerial and non-managerial employees. It consistent with management policy of encouraging employees to improve their academic achievement and thereby their expertise and merits for career advancement. The incentive permissible under these scheme will be in the form of a one time, lump sum payment after the employee has completed the course of education and acquire the relevant degree or diploma. 26

INCENTIVE SCHEME FOR EMPLOYEES PASSING HINDI AND HINDI TYPE WRITING /HINDI STENOGRAPHY EXAMINATION. An incentive scheme for managerial and non-managerial employees passing Hindi and Hindi typewriting /Hindi stenography examination.

SCHEME FOR UTILISATION OF SERVICE OF EMPLOYEES ACQUIRING SPECIALISED QUALIFICATION. The management is introduced this scheme for improving the career prospects and better utilisation of service of the employees who acquires various qualifications in various disciplines. INCENTIVE SCHEMES FOR PROMOTING “SMALL FAMILY” NORMS Government of India introduced a scheme in the form of a special increment to employees undergoing sterilisation for promoting ”small family” norms. A similar scheme was introduced with the approval of our board of directors for the benefit of our employees who undergo sterilisation operation. INCENTIVE BONUS It is the bonus for bulk shipment was introduced in Udyogamandal. The bonus cover various class of labour working on the operation of unloading and payment of this bonus is based on the contribution of employee to the unload operation. PRODUCTION INCENTIVES The scheme of Fact Udyogamandal division is a multi factor group incentive scheme. The factors on which incentive scheme are ;  Production capacity utilisation  Material efficiency utilisation  Man power utilisation The objective of the scheme are ; 

To increase output



To increase production



To reduce production cost



To improve material efficiency‟ 27

The scheme cover all managerial employees . ANNUAL INCREMENT AND PROMOTION Annual increment is provided for both managerial and non-managerial employees. Grand of increment is conscious and positive acting of management .It is not automatic. The performance and conduct of the personnel concerned is taken into account by the recommending and sanctioning authority. In FACT increment are sanctioned only within scale of pay.

SPECIAL INCREMENT FOR EXCELLENCE Management at its discretion may grant to a special increment for achieving excellence in national and international events. None of them can demand it as a right and it is purely of the discretion of management.

WELFARE ACTIVITIES. Welfare activities can be classified into two  Statutory schemes  Non-statutory schemes STATUTORY SCHEMES Following are the statutory welfare schemes: 

Dispensary



Canteen



Locker for employees

 Dispensary. These are well equipped dispensaries within the factory premises managed by qualified staff for administrating first aid ,and medicines for minor ailments.  Canteen Vegetarian cafeterias cater to employees in all the 3 shifts. Tiffin items are supplied to those who worked in the night shift(12-8)

28

Locker for employees Lockers for employees working in the shift are given for keeping their working uniform and tools. NON –STATUTORY SCHEMES Following are the non statutory welfare schemes;  Benefits for medical treatment. Normally workers who are covered under the Employees State Insurance or contributory Health Scheme should avail medical facilities and other benefits offered by the scheme. Financial aid from the fund shall be given only on loan. Loan above Rs.500 shall be give only recommendation of WFA committee or at the direction of Chairman.  Benefits for education. Members shall be eligible for loan from the fund for their own or their dependants education. 

Pre-degree course –Rs.300 p.a



Degree-Rs.400 p.a



diploma -Rs 300 p.a



Post graduation course- Rs.500 p.a



Professional course-Rs750 p.a



ITI-Rs.200 p.a

Education in outside university (other than Kerala state) shall be given Rs.450 loan for graduate. Application fee for education should be submitted in the prescribed form supported by the certificate from the Head of the institution concerned.  Benefits towards damages to dwelling house. Benefits from the fund shall be given for damages to the dwelling house owned by the members due to natural calamities like fire, flood etc. Aid shall be given as loan on the basis of assessment of real damages and only to own house and not for rental house.  Benefit on retirement of superannuation.

29

The member shall be eligible for Rs.4000 as ex-gratia from the welfare fund when he \she retires on superannuation irrespective of whether the member receive any benefit or from the welfare fund during his /her service .the amount shall be paid one month prior to retirement.  Benefit of death while in service. The dependants of member shall be eligible for Rs. 2000 as ex-gratia from the fund when the member dies while in service.  Benefits for family planning. The amount of Rs.151will be given as ex-gratia benefit towards family planning operation adopted by member or their spouse.  Benefit on special cases. Benefit from welfare fund shall be given to member‟s on special cases. Who actually deserve aid on genuine ground. This shall be only given on the advise of welfare fund advisory committee.

OTHER WELFARE FACILITIES Following are the other welfare facilities provided by FACT;  Sports and Recreation The Sports Control Board was setup in 1984.the sports control board wikk co-ordinate and promote all sports activities in all the division of the company. To encourage participation in sports and games the members of the participating games are granted special leave with pay when they play for tournaments at state or inter state level. Those who sustain injuries at sports and game are provided medical attention at companies expenses. There are 2 FACT Sports Association at Udhyogamandal AND COCHIN DIVISION respectively. They promote sports and recreation activities. The FACT sports association at Udyogamandal and Cochin division provides sports games and other recreation facilities. Both associations have been provide rent free building by the company. The building have facilities for Table Tennis, Caarms, Chess, Cards, and such indoor games. Besides there are play ground in both places for food ball, cricket, hockey, volley ball etc..  FACT Lalithakala Kendra

30

The FACT Lalithakala Kendra setup in 1966 with the object of promoting fine arts and cultural activities. The objectives of Kalakandra are as follows; 

Arranging music, drama programme



Organise meeting, competition, seminar, lectures, discussion, classes etc on fine arts and other allied subjects



Organise and conduct exhibition and film shows



Running well equipped library and reading room.

 Consumer co-operative society FACT Co-operative Society is dealing provisions ,textiles, stationery, and routine good. It as also running a medical store and a flour mill. The company is providing rent free accommodation, free power, and water to the society. The society gives credit to the employees which are settled by monthly payroll deduction.  School facilities The company has setup schools to educate the children of employees.  Uniform and food wear It is given to all non- managerial employees. They also given washing allowance, switching charge and food wear as well  Aid facilities for funeral expense RS.300 to family of those employees who died while in service.  Aid for family planning Rs.50 to family planning operation to employees. The company also will give additional increment if he/ she or spouse undergo family planning operation  Special leave for Blood Donation One day special leave for donating blood to meter employees who undergo medical treatment  Sleeping shed Sleeping shed have 100 birth for employees who work in shift .  Free milk supply 31

The employees who are working in the hazardous area in the factory are given quarter litre milk at free of cost in all the 3 shifts.  Calcium Tablet Supply The employees who working in certain plants like phosphate plant are supplied calcium tablets every day. It is issued through company dispensaries.  Meals Subsidy It is provided to workmen who are not provided with canteen facility will be given meals subsidy. Other welfare facilities include Provision for Sleeping Centres, Temples and other places for worship, Waiting Shed, SUGGESTION SCHEME The suggestion scheme is to encourage creative potential of employees, in order to effect economy improvement in production and productivity in material and labour and to improve working condition. The suggestion scheme offer recognition and reward for constructive ideas which can be effectively translated into practice. Managerial and non- managerial employees can participate in the suggestion scheme. Suggestion are accepted if they are anonymous and deposited in the suggestion box. PARTICIPATIVE MANAGEMENT

FACT is a government of India undertaking and one of the leading companies in this sector. The company has two production units at Udhyogamandal and Ambalamedu. FACT is the producer of Fertiliser, Chemicals and Petrochemicals. FACT always gives importance to the welfare of employees and workers participation in management. Some of the common form of workers participation in management is Working Committee, Joint Management Council, Joint Labour Management Action Group, Shop Committee

32

CHAPTER 4 RESEARCH METHODOLOGY

33

RESEARCH METHODOLOGY 4.1 OBJECTIVES 

To find out the relationship between Motivation and employee performance



To find out the factors influencing Motivation



To know the effectiveness of motivation on employee performance



To provide suggestions to improve the satisfaction level of the employees

4.2 HYPOTHESIS The word hypothesis is a compound of two words “hypo” and “thesi”. Literally hypo means under or below and thesis means a reasoned theory or rational viewpoint. Accordingly, hypothesis would mean a theory which is not fully reasoned. In other words, hypothesis is a theory entertained in order to study the facts and examine the validity of the theory To determine there is any relationship between Job satisfaction and employee performance. 

Null Hypothesis (Ho)

There is a significance relationship between Job satisfaction and employee performance. 

Alternative Hypothesis

There is no significance relationship between Job satisfaction and employee performance

4.3 RESEARCH DESIGN A research is a plan of the proposed research work. It is a systematic self-critical enquiry. This enquiry is aimed at understanding a thing, or phenomenon or solving a problem. The research designs simply a specific presentation of the various steps in the process of research. Design adopting that type of technique of research which is most suited for the research and study of the problem. It constitutes the blue print for the collection, measurement and analysis of data. After selecting the topic and problems, defining concepts, and frame hypothesis, a researcher has to think about the research design.

34

4.4 SOURCES OF DATA For the study purpose both primary and secondary data are used. The primary data collected from sales men of the companies, customers and dealers dealing in the products of the company. The secondary data collected from records of the company, retailers and dealers. The data of past sales also have been collected. The primary and secondary data have been collected to cover every aspect of the study. The primary data are related to behaviour and response of employees, dealers and customers. The secondary data shows the sales of the company product wise. These data used in combination as per need of the study. These data having different merits and demerits and have serves our purpose of the research study. The sources of data are:

4.5 PRIMARY AND SECONDARY DATA (a) Primary Data Primary data are information collected by a researcher specifically for a research assignment. In other words, primary data are information that a company must gather because no one has compiled and published the information in a forum accessible to the public. Companies generally take the time and allocate the resources required to gather 8 primary data only when a question, issue or problem presents itself that is sufficiently important or unique that it warrants the expenditure necessary to gather the primary data. Primary data are original in nature and directly related to the issue or problem and current data. Primary data are the data which the researcher collects through various methods like interviews, surveys, questionnaires etc. The primary data have own advantages and disadvantages: (i)

Advantages of primary data: Advantages of primary data are as follows: • The primary data are original and relevant to the topic of the research study so the degree of accuracy is very high. • Primary data is that it can be collected from a number of ways like interviews, telephone surveys, focus groups etc. It can be also collected across the national borders through emails and posts. It can include a large population and wide geographical coverage. 35

• Moreover, primary data is current and it can better give a realistic view to the researcher about the topic under consideration. • Reliability of primary data is very high because these are collected by the concerned and reliable party. (ii)

Disadvantages of primary data Following are the disadvantages of primary data: • For collection of primary data where interview is to be conducted the coverage is limited and for wider coverage a more number of researchers are required. • A lot of time and efforts are required for data collection. By the time the data collected, analysed and report is ready the problem of the research becomes very serious or out dated. So the purpose of the research may be defeated. • It has design problems like how to design the surveys. The questions must be simple to understand and respond. • Some respondents do not give timely responses. Sometimes, the respondents may give fake, socially acceptable and sweet answers and try to cover up the realities. • With more people, time and efforts involvement the cost of the data collection goes high. The importance of the research may go down. • In some primary data collection methods there is no control over the data collection. Incomplete questionnaire always give a negative impact on research. • Trained persons are required for data collection. In experienced person in data collection may give inadequate data of the research.

(b) Secondary Data Secondary data are the data collected by a party not related to the research study but

collected

these data for some other purpose and at different time in the past. If the researcher uses these data then these become secondary data for the current users. These may be available in written, 36

typed or in electronic forms. A variety of secondary information sources is available to the researcher gathering data on an industry, potential product applications and the market place. Secondary data is also used to gain initial insight into the research problem. Secondary data is classified in terms of its source – either internal or external. Internal, or in-house data, is secondary information acquired within the organization where research is being carried out. External secondary data is obtained from outside sources. There are various advantages and disadvantages of using secondary data. (i)

Advantages of Secondary Data:

Advantages of secondary data are following: • The primary advantage of secondary data is that it is cheaper and faster to access. • Secondly, it provides a way to access the work of the best scholars all over the world. • Thirdly, secondary data gives a frame of mind to the researcher that in which direction he/she should go for the specific research. • Fourthly secondary data save time, efforts and money and add to the value of the research study. (ii)

Disadvantages of Secondary data: Following are the disadvantage of secondary data: • The data collected by the third party may not be a reliable party so the reliability and accuracy of data go down. • Data collected in one location may not be suitable for the other one due variable environmental factor. • With the passage of time the data becomes obsolete and very old • Secondary data collected can distort the results of the research. For using secondary data a special care is required to amend or modify for use. • Secondary data can also raise issues of authenticity and copyright.

37

4.6 POPULATION A population is the entire set of cases in which a study is interested. It is the full set of individual or of objects having some common characteristics The target population shall comprise of all the 150 employees in FACT.

4.7 SAMPLE DESIGNS Sampling is a subset of the total population. It is the act, process or techniques of selecting a suitable sample, or a representative part of population for the purpose of determining parameters or characteristics of whole population. Sample Unit In this study the sample unit is taken from the different department of FACT Sample size The sample size of the study is 150

4.8 SAMPLING METHODS There are different types of sample design based on two factor namely the representation basis and the element selection technique. On the representation basis, the sample may be probability sampling or it may be non-probability sampling. Probability sampling is based on the concept of random selection, whereas non-probability sampling is non-random sampling. On element selection basis, the sample may be restricted or unrestricted. When each sample element is drawn individually from the population at large, then the sample so drawn as unrestricted sampling where as all other forms of sampling are covered under the term restricted sample. Sample design suggests how many items are to be included in the sample i.e. it gives about the size of the sample .Thus, sample designs are basically of two types:Probability Sampling Non-probability Sampling 38

 PROBABILITY (RANDOM/CHANCE) SAMPLING It is also known as random sampling or chance sampling. Under this sampling design, every item of the universe has an equal chance of inclusion in the sample. Probability sampling is based on the concept of random selection; the sample may be either unrestricted or restricted. The most frequently used probability samples are: Simple Random Sampling: A simple random sample is a sample selected from a population in such a way that every member of the population has an equal chance of being selected and the selection of individual does not influence the selection of any other. It consists of two methods: lottery method and table of random numbers. Stratified Sampling: In this method, population is divided into different sub populations known as strata such that the items in each strata are homogeneous. Systematic Sampling: This method is popularly used where complete list of the population from which sample is to be drawn is available. Cluster Sampling: In this, sample is chosen from the population in groups or clusters rather than singly. Area Sampling: Under this, total geographical area (when it is large) is divided into a number of smaller non-overlapping areas and then some of the smaller areas are selected and all units of the selected areas constitute the sample. Quota Sampling: In this method, the investigator engaged in the primary collection of data is assigned a quota for investigation. Multistage Sampling: Sampling procedure is conducted in several stages. Sequential Sampling: This method is adopted in acceptance with the sampling plans in Statistical Quality Control  NON-PROBABILITY SAMPLING Non-probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. 39

Purposive (Judgement / Deliberate) Sampling: Under this method, the investigator exercises his discretion in the matter of selecting the items that are to be included in the sample. Convenience (Accidental) Sampling: It is based on the convenience of the researcher who is to select a sample. This type of sampling is also called „accidental sampling‟ as the respondents in the sample are included in it, merely on account of their being available on the spot, where the survey is in progress. Non-Stratified Sampling: A sampling technique where a group of subjects (a sample) for study is selected from a larger group (a population). Each individual is chosen entirely by chance and each member of the population has an equal chance of being included in the sample. Haphazard Sampling: In this method, the investigator selects the sample without following a structured technique. In this study convenient sampling is used to form the sample for conducting the study.

4.9 METHOD OF DATA COLLECTION

(a) Questionnaire Questionnaire is a set of questions has been prepared to ask a number of questions and collect answers from respondents relating to the research topic. A number of questions usually in printed or electronic form are to be answered by the individuals. The forms often have blank spaces in which the answers can be written. Sets of such forms are distributed to groups and the answers are collected relating to research topic. A questionnaire is a series of questions asked to individuals to obtain statistically useful information about a given topic. When properly constructed and responsibly administered, questionnaires become a vital instrument by which statements can be made about specific groups or people or entire populations. Inappropriate questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire format can make the survey valueless. (b) Telephone

40

Mobile Phone and Facsimile Telephone and other devices can be used for collecting data verbally and written on fax from respondents located away from the researcher and having these facilities plus the researcher having their contact numbers. Use of interviewers encourages sample persons to respond, leading to higher response rates. Interviewers can increase comprehension of questions by answering respondents' questions. It is fairly cost efficient, depending on local call charge structure. It is good for large national or international respondents and gives wider coverage. It cannot be used for non-audio information (graphics, demonstrations, taste/smell samples) this instrument is not suitable for the respondents where the telephone facility is not available. (c) Mails Mail For collection of data from the respondents who are located at a long distance and do not have any communication facility. They can be contacted through mailed questionnaire. Only thing is required that the researcher should have the postal addresses of the respondents. The questionnaire may be handed to the respondents or mailed to them, but in all cases they are returned to the researcher via mail. The cost involved is very less but no clarification can be given to the respondents if required. Respondents can answer at their own convenience. The respondents cannot be biased by the researchers and the detail information can be collected 12 for the research purpose. Only one disadvantage this instrument gives is that the response rate is very less due to lack of interest in the topic of respondents and low literacy rate. (d)Interview In this method the interviewer personally meets the informants and asks necessary questions to them regarding the subject of enquiry. Usually a set of questions or a questionnaire is carried by him and questions are also asked according to that. The interviewer efficiently collects the data from the informants by cross examining them. The interviewer must be very efficient and tactful to get the accurate and relevant data from the informants. Interviews like personal interview/depth interview or telephone interview can be conducted as per the need of the study. (e) Observation Method

41

The production process in the company is come into view through method of observation. The healthy relationship between the workers and the managers is also an example of observation method of data collection.

4.10 DRAFTING A QUESTIONNARE Questionnaires are commonly used to gather first-hand information from a large audience, in the form of a survey. There are different types of questionnaires in practice and the type of questionnaire to be used usually depends on the purpose of the survey and the type of data that has to be collected. Questionnaires are highly practical and can be carried out by any number of people, and the results can be quickly quantified as well. Over the years, this form of conducting research has also been proven to be more scientifically accurate, as compared to other quantitative research tools. Questionnaire Formats

Depending upon the nature of the questions in a questionnaire, there can be different types of questions in questionnaire 1. Questions in Open Ended Format Questions that allow the target audience to voice their feelings and notions freely are called open-format questions or open-ended questions. These questions are not based on pre-determined responses, giving respondents an opportunity to express what they feel is right, and often provide real, perceptional, and at times, startling proposals. Open -ended questions placed at the end of a questionnaire tend to draw accurate feedback and suggestions from respondents as well. 2. Questions in Closed Ended Format Questions which have multiple options as answers and allow respondents to select a single option from amongst them are called closed-format or closed-ended questions. This type of questionnaire is especially useful when conducting preliminary analysis. As a fixed 42

answer set is provided, these are ideal for calculation of statistical information and percentages of various types. Closed-ended questions help to arrive at opinions about a product or service, and sometimes, about a company, in a more efficient manner. Types of Closed Format Questions Closed-ended questions which are aimed at collecting accurate statistical data can be classified into the following seven types: Leading Questions A question forcing the target audience to opt for a specific kind of answer is calle d a leading question. All answers for a leading question are almost similar. Leading questions are usually prepared to derive audience opinion within a set of limited words. Importance Questions Questions which ask respondents to rate the importance of some specific matter on a rating scale of 1 to 5 are called importance questions. Such questions facilitate drawing what respondents consider significant - enabling vital business decision-making. Likert Questions The degree to which respondents agree to a specific statement can be ascertained using Likert questions. Customers' feelings about a topic, product or service can be easily gauged by asking them these questions. Dichotomous Questions Questions that make respondents answer with a simple "yes" or "no" are called dichotomous questions. These questions carry one disadvantage-there is no other way of analyzing the answer between a "yes" and "no". A middle perspective is not possible. Bipolar Questions Questions that have two answers with different levels of extremities, written at opposite ends of a scale, are called bipolar questions. Respondents have to mark their response anywhere between these two extremities, showing their opinion.

43

Rating Scale Questions Questions that ask respondents to provide a rating on a specific matter on a scale of 1 to 10 or on a scale of "poor" to "good" are called rating scale questions. Normally, these questions have an even number of choices, so as to prevent respondents to choose a middle way out. Buying Propensity Questions These are aimed at assessing customers' future intentions, determining their propensity toward buying a specific product or service. Buying propensity questions help marketers to understand the needs of customers and the probability of their buying a cer tain product or a service.

4.11 PILOT SURVEY A pilot survey is a strategy used to test the questionnaire using a smaller sample compared to the planned sample size. In this phase of conducting a survey, the questionnaire is administered to a percentage of the total sample population, or in more informal cases just to a convenience sample. Advantages of a Pilot Survey Conducting a pilot survey prior to the actual, large-scale survey presents many benefits and advantages for the researcher. One of these is the exploration of the particular issues that may potentially have an antagonistic impact on the survey results. These issues include the appropriateness of questions to the target population. A pilot survey also tests the correctness of the instructions to be measured by whether all the respondents in the pilot sample are able to follow the directions as indicated. It also provides better information on whether the type of survey is effective in fulfilling the purpose of the study. Practically speaking, pilot surveys save financial resources because if errors are found in the questionnaire or interview early on, there would be a lesser chance of unreliable results or worse, that you would need to start over again after conducting the survey.

44

All in all, the main objective of a pilot study is to determine whether conducting a large-scale survey is worth the effort. TYPES OF PILOT SURVEY A. According to Organization There are two types of pilot survey according to organization – external and internal. An external pilot survey intends to administer the questionnaire to a small group of target participants who will not be included in the main survey. On the other hand, an internal pilot survey will consider the respondents in the pilot as the first participants in the main survey. B. According to Respondent Participation There are two types of pilot survey according to the participation of the respondents – undeclared and participatory. In an undeclared pilot survey, you administer the survey to a certain number of respondents as if it is the real and full scale survey, not a pretest one. On the other hand, participatory pilot surveys involve informing the respondents that they are in the pre-test phase. The respondents are to be asked what they can say about the questionnaire, specifically their reactions, comments and suggestions. Validity and Reliability Validity and reliability are two factors which any researcher should be concerned about while designing a study, analyzing results and judging the quality of the study. validity , explain that validity determines whether the research truly measures that which it was intended to measure or how truthful the research results are. It estimates how accurately the data obtained in the study represents a given variable or construct in the study. The questionnaire will be given to other experts in research to seek their opinion about the adequacy and representativeness of the instrument to ensure it covers all the variables being measured as a way of eliminating content validity. The study has ensured reduction of construct validity by deriving the research variables from existing theoretical frameworks. The study has adequately reviewed related literature and modelled the study on sound theoretical models. 30 A pilot study will also 45

be conducted on the data collection instrument to pre-test the instrument before the main survey. Saunders et al, (2009), agree that in any research, it is expedient as a matter of validity and reliability to check that the instrument is pre-tested before the final administration. The pilot study will enable the researcher to assess the clarity of the questionnaire so that those items found to be redundant and misunderstood will be either discarded or modified to improve the quality of the research instrument, thus increasing its validity. Reliability, assert that reliability is the extent to which results are consistent over time and an accurate representation of the total population under study. Cronbach‟s Alpha will be used as a measure of reliability and internal consistency. Cronbach‟s Alpha is a reliability coefficient that indicates how well items in a set are positively correlated to one another. It measures the intercorrelations among test items, with a measure of 1 being higher in terms of internal consistency and reliability and 0.7 to 0.9 being acceptable. The following mathematical formula for Cronbach‟s alpha will be used to measure the reliability and internal consistency.

Where: K is the number of test items is the average variance, and is the average of all covariance between the components across the current sample.

4.12 DATA ANALYSIS TECHNIQUE Statistical techniques are to obtain findings and analysing information in logical sequence from the questionnaire After tabulation of data research have used the following quantitative technique. 

Percentage analysis



Chi-square analysis



Correlation coefficient,

Percentage Analysis 46

A percentage is a way of expressing a number, especially a ratio, as a fraction of 100. Percentages are used to express how large/ small one quantity is relative to another quantity. The first quantity usually represents a part of, or a change in, the second quantity, which should be greater than zero and one, any ratio can be expressed as a percentage. The present value is computed by multiplying the numeric value of the ratio by 100. To calculate a percentage of a percentage, convert both percentage to fractions of 100, or to decimals, and multiply them. Chi-square Test This test is used when we are dealing with the collection of values that include adding up squares. Variance of samples requires adding a collection of squared quantities and thus having distribution that is related to chi-square distribution. This method is used for judging the significance of difference between observed and expected frequencies. Chi-square is an important non-parametric test as such no test is necessary in respect of the type of population. We require only the degree of freedom (implicitly of course the size of the sample) for using this test. As a non-parametric test, chi-square can be used (1) as a test of goodness of fit and (2) as a test of independence. Chi-square test enables us to explain whether or not two attributes are associated. In order that we may apply the chi-square test either as attest to judge the significance of association between attributes, it is necessary that the observed as well as theoretical or expected frequencies must be grouped in same way and theoretical distribution must be adjusted to give the same total frequencies as we find the case of observed distribution. Karl Pearson developed a test for testing the significance of discrepancy between the experimental value and the theoretical value obtained under some theory or hypothesis. This test is

as

chi-square

test

of

goodness

of

fit,

Karl

(

)

Pearson

that

the

statistics

Chi- square is used to test whether the different between observed and expected frequencies are frequent. Observed frequencies are available in a given problem. But expected frequencies are to be computed. To find chi-square table value degree of freedom should be calculated. Degree of 47

freedom is calculated using the formula (r-1)(c-1). The table of this degree of freedom is seen using 5% or 1% of significance. If chi-square table value is greater than chi-square calculated value, Null hypothesis is accepted or Null hypothesis is rejected. Correlation Correlation means relationship between two variables. When two variables move together then we called it as correlated. When the one variable changes and if there is a corresponding change in another variable then that is called correlation. It can be defined as "Tendency of two or more variables of items varies together directly or indirectly." That means an increase or decrease in one variable is found in connection with an increase or decrease of other variable. There are several methods and formulas are used to measure correlation. Among that Karl Pearson coefficient of correlation is widely used. Karl Pearsons coefficient of correlation is denoted by using the symbol „r‟. It can be expressed in the following way.

Conditions; Where, r = 0; there is no correlation between the variables r = -1; there is negative perfect correlation r = + 1; there is positive perfect correlation r = 0.9; there is high positive correlation r = 0.2; there is low positive correlation r = 0.5; there is moderate positive correlation

48

CHAPTER 5 DATA ANALYSIS

49

5.1 DATA ANALYSIS Table No: 5.1 Employees opinion about management support. Particulars

Respondents

Percentage

Highly Satisfied

12

8

Satisfied

88

59

Neutral

26

17

Dissatisfied

14

9

Highly Dissatisfied

10

7

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Highly satisfied

Satisfied

Nutral

Dissatisfied

Highly dissatisfied

Figure No:5.1

INTERPRETATION From the above data it is clear that 59% of the employees are satisfied with management support. 17% of the employees are of neutral opinion. 8% says that they are highly satisfied with management support. 9%of the employees are dissatisfied and 7% of the employees are highly dissatisfied with the management support.

50

Table no:5.2 Employees satisfaction level at present job Particulars

Respondents

Percentage

Highly Satisfied

15

10

Satisfied

91

61

Neutral

20

13

Dissatisfied

10

7

Highly dissatisfied

14

9

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Figure no:5.2

INTERPRETATION Respondents says that, 61% of the employees are satisfied with the present job. 13% of them have neutral opinion. 10% of them are highly satisfied and 9% of them are highly dissatisfied with present job.

51

Table No:5.3 .Employees opinion about salary and perks provided by the organisation.

Particulars

Respondents

Percentage

Highly Satisfied

12

8

Satisfied

90

60

Neutral

20

13

Dissatisfied

18

12

Highly Dissatisfied

10

7

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Figure No:5.3

INTERPRETATION From the above data, 60% of the employees are satisfied with salary and perks provided by the organization . 13% of them have neutral opinion. 12% of them are dissatisfied, 8% of them are highly satisfied and 7% of them are highly dissatisfied with the salary and the perks provided by the organization.

52

Table No: 5.4 Employees opinion about promotion avenues provided by the organisation

Particulars

Respondents

Percentage

Highly Satisfied

6

4

Satisfied

42

28

Neutral

44

29

Dissatisfied

40

27

Highly Dissatisfied

18

12

Total

150

100

Source –Primary data 50 45 40 35 30 25 20 15 10 5 0 Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Figure No:5.4

INTERPRETATION From the above data 29% of the employees says that they have neutral opinion about the promotion avenues provided by the organisation. 28% of them are satisfied. 27% of them are dissatisfied then 12% of the employees are highly dissatisfied with the promotion avenues. 4% of the are highly satisfied.

53

Table no:5.5 Support from co- workers and management

Particular

Respondents

Percentage

Highly Satisfied

22

15

Satisfied

87

58

Neutral

20

13

Dissatisfied

16

11

Highly Dissatisfied

5

3

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Highly satisfied

Satisfied

Neutal

Dissatisfied

Highly dissatisfied

Figure No:5.5

INTERPRETATION Respondents says that 58% them are satisfied with the support of co-workers and management. 15% of them are highly satisfied. 30% of them have neutral

opinion and 11% them are

dissatisfied and 3% of them are highly dissatisfied with the support of co-workers and management.

54

Table No: 5.6 Employees opinion about Communication channel exist in the organisation.

Particular

Respondents

Percentage

Highly Satisfied

10

7

Satisfied

90

60

Neutral

30

20

Dissatisfied

12

8

Highly Dissatisfied

8

5

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

Figure no :5.6 INTERPRETATION From the above data, 60% of the employees are satisfied with the communication channel exist in the organisation. 20% of them have neutral opinion. 8% of them are dissatisfied with the communication channel exist in the organisation. 5% of the employees are highly dissatisfied with the same.

55

Table No: 5.7 Employees opinion about grievance redressal system in the Organisation Particulars

Respondents

Percentage

Highly Satisfied

8

5

Satisfied

75

50

Neutral

40

27

Dissatisfied

21

14

Highly Dissatisfied

6

4

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

Figure No:5.7

INTERPRETATION Respondents says that 50% them are satisfied with the grievance redressal system exist in the organisation. 27% of them have neutral opinion and 14% them are dissatisfied and 5% of them are highly satisfied and 4% of the employees are highly dissatisfied with the same.

56

Table No:5.8 Employees opinion about the welfare and safety measures provided by the organisation. Particulars

Respondents

Percentage

Highly Satisfied

8

5

Satisfied

90

60

Neutral

34

23

Dissatisfied

10

7

Highly Dissatisfied

8

5

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

Figure No5.8

INTERPRETATION From the above data 60% employees are satisfied with the welfare and safety measures provided by the organisation, 23% of them are of neutral opinion , 7% employees are dissatisfied and 5% employees are highly satisfied and dissatisfied.

57

Table No: 5.9 Employees opinion about employees participation in management

Particulars

Respondents

Percentage

Highly Satisfied

10

7

Satisfied

68

45

Neutral

52

35

Dissatisfied

15

10

Highly Dissatisfied

5

3

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

Figure No:5.9 INTERPRETATION From the above data 45% employees are

satisfied with the workers participation in

management, 35% employees are of the opinion neutral , 10% employees are dissatisfied and 7% are highly satisfied with the workers participation in management, 3% employees are highly dissatisfied with the same.

58

Table No:5.10 Employees opinion about interpersonal relationships exist in the organisation Particulars

Respondents

Percentage

Highly Satisfied

22

15

Satisfied

72

48

Neutral

32

21

Dissatisfied

16

11

Highly Dissatisfied

8

5

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

Figure No:5.10

INTERPRETATION This table shows that 48% employees are satisfied with the interpersonal relationship exist in the organisation, 21% of them are of neutral opinion ,15% of employees are highly satisfied ,11% employees are dissatisfied with the interpersonal relation exist in the organisation and 5% employees are highly dissatisfied. 59

Table No: 5.11 Employees opinion about the incentives provided by the company Particulars

Respondents

Percentage

Strongly Agree

30

20

Agree

76

51

Neutral

18

12

Disagree

15

10

Strongly Disagree

11

7

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.11

INTERPRETATION This table shows that 51% employees agree that motivation will affect employees performance, 20% employees strongly agree, 12% of them are of neutral opinion, 10 % employees disagree that motivation will not affect employees performance, 7% employees strongly disagree with the same.

60

Table No:5.12 Employees opinion about the motivation factors

Particulars

Respondents

Percentage

Salary increase

9

6

Promotion

10

7

Leave

48

32

Motivational Talk

26

17

Recognition

57

38

Total

150

100

Source –Primary data 60 50 40 30 20 10 0 Salary increase Promotion

Leave

Motivational Talk

Recognition

Figure No:5.12 INTERPRETATION This table shows that 6% of the employees are of the opinion that salary increase is the motivating factor. 7% of employees says it is promotion. 32% are of the opinion that leave is the motivating factor for them. 17% says it is motivational talks and remaining 38% are of the opinion that the motivating factor is recognition

61

Table No:5.13 Employees opinion about most motivating type of benefit

Particulars

Respondents

Percentage

High Salary

16

11

Challenging jobs

22

15

Job Recognition

60

40

Rewards

25

16

Other benefits

27

18

Total

150

100

Source –Primary data 70 60 50 40 30 20 10 0 High Salary

Challenging Job Recognition jobs

Rewards

Other benefits

Figure No:5.13 INTERPRETATION From the above table it shows that 11% of employees are of the opinion that high salary is the most motivating type of benefit. 15% of employees says it is challenging jobs. 40% are of the opinion that job recognition is the most motivating type of benefit. 16% says rewards and remaining 18% says other benefits.

62

Table No:5.14 Employees opinion about their role in decision making in the department Particulars

Respondents

Percentage

Yes

30

20

No

72

48

Occasionally

48

32

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Particulars

Yes

No Occasionally

Figure No:5.14

INTERPRETATION From the above table 20% employees says that they are having role in decision making in the department , 48% says no role and remaining 32% says they gets role occasionally in decision making.

63

Table No:5.15 Opinion of employee relating to highly motivating incentive

Particulars

Respondents

Percentage

Financial incentives

53

35

Non- Financial incentives

32

22

Both

65

43

Total

150

100

Source –Primary data 70 60 50 40 30 20 10 0 Financial incentives

Non- Financial incentives

Both

Figure No:5.15

INTERPRETATION This shows that, 53% employees says financial incentives are highly motivating incentive, 22% employees says non-financial incentives and remaining 43% says both financial and nonfinancial incentives are highly motivating incentive.

64

Table No:5.16 Employees opinion about periodic increment in salary as a motivating factor Particulars

Respondents

Percentage

Strongly Agree

22

15

Agree

80

53

Neutral

16

11

Disagree

24

16

Strongly Disagree

8

5

Total

150

100

Source –Primary data 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.16 INTERPRETATION This shows that 53% of employees agree about periodic increment in salary as a motivating factor, 16% disagree with it and 15% strongly agree that periodic increment in salary as a motivating factor , 11% of them are of neutral opinion remaining 5% strongly disagree with the opinion regarding periodic increment in salary as a motivating factor.

65

Table No:5.17 Employees opinion about job security as a motivating factor Particulars

Respondents

Percentage

Strongly Agree

18

12

Agree

86

57

Neutral

24

16

Disagree

16

11

Strongly Disagree

6

4

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.17 INTERPRETATION From the above data 57% of employees agree that job security as a motivating factor, 16% of them have neutral opinion. 12% of employees strongly agree and 11 % disagree with it, remaining 4% strongly disagree with the same.

66

Table No:5.18 Employees opinion about interpersonal relationship as a motivating factor.

Particulars

Respondents

Percentage

Strongly Agree

22

15

Agree

80

53

Neutral

24

16

Disagree

16

11

Strongly Disagree

8

5

Total

150

100

Source –Primary data 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.18 INTERPRETATION This shows that 15% employees strongly agree about interpersonal relationship as a motivating factor, 53% employees agree, 16% employees are of the opinion neutral, 11% disagree about the interpersonal relationship as a motivating factor, remaining 5% employees strongly disagree with the same.

67

Table No:5.19 Employees opinion about existence of effective performance appraisal system. Particulars

Respondents

Percentage

Strongly Agree

18

12

Agree

86

57

Neutral

24

16

Disagree

16

11

Strongly Disagree

6

4

Total

150

100

Source –Primary data 100 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.19 INTERPRETATION This shows that, 12% employees strongly agree about existence of effective performance appraisal system , 57% employees agree, 16% employees are of the opinion neutral ,11% employees disagree about existence of effective performance appraisal system, 4% employees strongly disagree with the same.

68

Table No:5.20 Opinion about performance appraisal as a motivating factor. Particulars

Respondents

Percentage

Strongly Agree

22

15

Agree

82

54

Neutral

24

16

Disagree

16

11

Strongly Disagree

6

4

Total

150

100

Source –Primary data 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.20 INTERPRETATION This shows that 54% employees agree about performance appraisal as a motivating factor, 16% employees are saying its neutral , 15% employees strongly agree with it. 11% employees disagree about performance appraisal as a motivating factor remaining 4% employees strongly disagree with the same.

69

Table No:5.21 Opinion about safety measures adopted by the organisation as a motivating factor.

Particulars

Respondents

Percentage

Strongly Agree

12

8

Agree

74

49

Neutral

40

27

Disagree

14

9

Strongly Disagree

10

7

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

Figure No:5.21 INTERPRETATION This shows that , 49% employees agree about safety measures adopted by the organisation as a motivating factor, 27% employees are of the opinion neutral ,9% employees disagree , 8% of employees strongly agree and remaining 7% employees strongly disagree agree about safety measures adopted by the organisation as a motivating factor.

70

Table No: 5.22 Employees opinion about recognition and acknowledgement provided by the company Particulars

Respondents

Percentage

Strongly Agree

12

8

Agree

76

51

Neutral

32

21

Disagree

20

13

Strongly Disagree

10

7

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.22 INTERPRETATION This shows that 8% employees are strongly agree about recognition and acknowledgement provided by the company, 51% employees agree,21% employees are of the opinion neutral, 13% employees disagree about recognition and acknowledgement provided by the company, 7% employees strongly disagree.

71

Table No:5.23 Employees opinion about welfare measure as a motivating factor Particulars

Respondents

Percentage

Strongly Agree

15

10

Agree

85

57

Neutral

20

13

Disagree

18

12

Strongly Disagree

12

8

Total

150

100

Source –Primary data 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.23 INTERPRETATION This shows that ,10% employees strongly agree about welfare measure as a motivating factor, 57% employees agree, 13% employees are of the opinion neutral , 12% disagree about welfare measure as a motivating factor, 8% employees strongly disagree with the same.

72

Table No: 5.24 Employees opinion about the interest of management in motivating the performance of employees Particulars

Respondents

Percentage

Strongly Agree

14

9

Agree

76

51

Neutral

32

21

Disagree

18

12

Strongly Disagree

10

7

Total

150

100

Source –Primary data 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.24 INTERPRETATION From the above data 51% employees agree about the interest of management in motivating the performance of employees, 21% of them are of neutral opinion ,12% employees disagree about the interest of management in motivating the performance of employees, 9% strongly disagree and remaining 7% employees strongly disagree with the same.

73

Table No:5.25 Employees opinion about the satisfaction of working environment in the organisation Particulars

Respondents

Percentage

Strongly Agree

15

10

Agree

82

55

Neutral

23

15

Disagree

17

11

Strongly Disagree

13

9

Total

150

100

Source –Primary data 90 80 70 60 50 40 30 20 10 0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Figure No:5.25 INTERPRETATION This shows that 55% employees agree that welfare measures affect employee motivation, 55% employees agree, 15% employees are of the opinion neutral , 11% employees disagree,10% strongly agree about the satisfaction of working environment in the organisation and remaining 9% employees strongly disagree with the same.

74

CHI-SQUARE TEST To determine there is any relationship between motivation and employee performance. Null Hypothesis (Ho) There is a significance difference between motivation and employee performance Alternative Hypothesis There is no significance difference between motivation and employee performance. QUESTION; Do you think motivation will affect your performance? Particulars

Respondents

Strongly Agree

30

Agree

78

Neutral

18

Disagree

15

Strongly Disagree

9

Total

150

X2= ∑ (

) ∕E

Where “E” Is the expected frequency. “O” is the observed frequency

75

E

O

(O-E)2

O-E

(O-E)2/E

30

30

0

0

0

78

30

48

2304

768

18

30

-12

144

4.8

15

30

-15

225

7.5

9

30

-21

441

14.7 795

E =150/5 30 Degree of Freedom =N-1 5-1 4 Table Value =9.448 Calculated value = 795 Table value < Calculated value So motivation will affect employee performance.

Interpretation: From the above hypothesis we identify that the calculated value of the chi square is 795 and the table value is 9.448. So we reject the null hypothesis. So, it can be concluded that motivation will affect employee performance.

76

CORRELATION The relationship between managements interest in motivating employees and welfare measures as a motivating factor

x 9

y

X2

Y2

xy

15

81

225

135

57

82

3249

6724

4674

48

23

2304

529

1104

26

17

676

289

442

10

13

100

169

130

∑X = 150 ∑Y=150 ∑X2 = 6410 ∑Y2 = 7936 ∑XY = 6485 n =5

77

Conditions; Where, r = 0; there is no correlation between the variables r = -1; there is negative perfect correlation r = + 1; there is positive perfect correlation r = 0.9; there is high positive correlation r = 0.2; there is low positive correlation r = 0.5; there is moderate positive correlation r=

5 x 6485 - (150 x 150)

√ 5 x 6410 – ( 150 x150) x √ 5 x7936 – 150 x15

r=

32425-22500 √ 9550

r =

x √ 17180

9925 7630

r=

1.300

Interpretation From the above analysis r is 1.300 from that we can interpret that there is positive perfect correlation between management and welfare measures.

78

CHAPTER 6 FINDINGS

79

FINDINGS 

Fertilisers and Chemicals Travancore Limited has well- defined organisational structure.



The study indicates that there is a relationship between motivation and employee performance.



59% employees says that they are satisfied with the managements support.



In FACT 61% employees are satisfied with their present job.



FACT provide good remuneration to its employees. 60% employees are satisfied with salary and perks provided by the organisation.



Since promotion opportunities is an important factor which can motivate employees. Employees in FACT is not highly satisfied with promotion and career development opportunities provided by the organisation.



There is a good interpersonal relationship exist in the company.58% employees are satisfied with the interpersonal relationship exist in the company . Interpersonal relationship exist in the company is an important factor which motives employee performance.



There is a good communication cannel exist in the company.60% employees are satisfied with the communication channel exist in the company. It is also an important factor which can influence employee performance. 55% employees agree that communication channel exist in the organisation motives them.



50% Employees are satisfied with the grievance redressal system exist in the organisation. FACT give considerations to employees grievance and it takes various measures redress employee grievance.



Employees in FACT has good opinion about the welfare and safety measures provided by the organisation. 60% employees are satisfied with the welfare and safety measures provided by the organisation. Welfare and safety measure are important factors which influence employee performance.

80



Employees in FACT are not highly satisfied with employees participation in management. Company should try to give more opportunities for employee participation in management.



Both the financial as well as non- financial incentives motivates the employees in FACT



FACT provides various types of incentives for motivating the employees, 61 % employees are satisfied with the incentives provided by the organisation. Incentives provided by the organisation is also an important factor of motivation.



Since FACT is a public organisation and there is large of job security exist in the organisation. It is also an important factor of motivating the employees.

81

CHAPTER 7 RECOMMENDATIONS

82

RECOMMENDATIONS



This study reveal that both financial and non- financial incentives motivates an employee. So the company should try to provide more effective financial and non- financial motivations to the employees.



Employees should be identified by their better performance and should give some type of incentives, promotions etc. So that employee will be boosted up and will work better.



Management should try to include employee‟s opinion in decision making.



Promotions should be given on the basis of performance only.



Company should try to provide incentives by considering the needs and wants of employees.



The motivation review discussion should be practiced well to encourage the open communication between both the appraiser and appraise.



Better development opportunities should be given to the employees for their improvement



The management should study motivation theories for better motivation.



Employees in FACT are not satisfied with the promotion and career development opportunities provided by the organisation, so the company should try to give more promotion and career development opportunities to the employees.

83

CHAPTER 8 CONCLUSION

84

CONCLUSION The study concluded that motivational programmes in FACT are highly effective and it make impact on employees performance. THE STUDY ON EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS ON EMPLOYEE PERFORMANCE IN FACT LTD,UDYOGAMANDAL identify various motivational factors which influence employee performance. The study also reveal that both financial and non-financial incentives motives the employees. The study was conducted among 150 employees and collected information through structured questionnaire. The incentives, salary increments, promotions play a major role in motivating the employees of the organisation. It is major factor that make employee feel good in workplace make changes in employee performance. The organisation can concentrate on specific area which are evolved from the study in order to make motivation programme more effective . Only if the employee are properly motivated – they work well and only if they work well the organisation is going to benefit out of it. Steps should be taken to improve the motivational programme in future. The suggestion of this report may help in this direction.

85

REFERENCES

86

BIBILIOGRAPHY  Kothari C.R “Research Methodology‟‟,New Age International Private Limited, New Delhi

 Meyer , J.P, Allen, N. J & Smith ,C.A “Commitment to organization and occupations: Extension

and test of a three- component conceptualization‟‟ Journal of applied

psychology , 1993.

 Robbins ,S.P. “Organizational Behaviour‟‟,14/e :Pearson Education India,2001 

Chahbra T.N, “Human Resource Management- Concept and Issues New Delhi: Dhanpant Ra&CO (P) Ltd ,2008



Silverthorne, C. “The Impact of Organizational I Commitment Job satisfaction,‟‟ The Leadership and Organization Development Journal, 2004

WEBLIOGRAPHY www.factltd.com www.slideshare.net/employeecommitment

87

APPENDIX

88

APPENDIX A

89

A STUDY ON EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS ON EMPLOYEE PERFORMANCE IN FACT LTD, UDYOGAMANDAL.. QUESTIONNAIRE

Dear Sir/Madam, I ARYA R NAIR, MBA student of Mangalam college of Engineering conducting a project study on

“EMPLOYEE

MOTIVATION

AND

ITS

EFFECTIVENESS

ON

EMPLOYEE

PERFORMANCE IN FACT LTD, UDYOGAMANDAL”. I will be grateful if you kindly fill up the below questionnaire. I assure that all the data I collect will be kept strictly confidential and will use them only for academic purpose.

ARYA R NAIR

90



Name:



Age:



Sex: Male Female



Department:



Experience:

0-10 Years

10-20 Years

25-30 Years

30 above

20-25 Years

 Please Tick (  ) one box per phrase.

Factors

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

1. Support from management 2. Present job 3. Salary and perks 4. Promotion avenues

91

5. Support from co-workers and management 6. Communication channel 7. Grievance redressal system 8. Welfare and safety measures 9. Employee participation in management 10. Interpersonal relationship 11. Incentives provided by the organization

12. Rank the following factors which motivate you most ? 1 , 2, 3, 4, 5 respectively. Salary increase

Promotion

Motivational talk

Recognition

Leave

13. What factor motivates you? High Salary Rewards

Challenging jobs

Job Recognition

Other benefits (like insurance, bonus, loan facility)

92

14. Does the management involve you in decision making which are connected to your department? Yes

No

Occasionally

15. Which type of incentives motivates you more? Financial incentives

Non-financial incentives

Both

 Please Tick (  ) one box per phrase.

Factors

Strongly

Agree

agree

Neutral

Disagree

Strongly disagree

16. Do you think Reasonable periodic increase in salary influence your performance? 17. Do you think job security exist in the company influence your performance? 18. Do you think good interpersonal relationship motivates you? 19. Do you think effective performance appraisal system exist in the organization? 20. Performance appraisal activities are helpful to get motivated? 21. Do you think safety measures adopted in the organization motivates you?

93

22. Do you think company recognise and acknowledge your work?

23. Does welfare measures motivates you? 24. Do you think management is really interested in motivating the Performance of Employees? 25. Are you satisfied with the working environment in the organization?

94