A RESEARCH PROPOSAL ON A STUDY ON EFFECTIVENESS OF REWARD SYSTEM ON MOTIVATIONAL LEVELS OF EMPLOYEE

IN PARTIAL FULFILLMENT OF DEGREE MBA AT LDRP-ITR AFFILIATED TO KADI SARVA VISHWAVIDYALAYA

SUBMITTED TO:
PROF. VINIT MISTRI FACULTY (MBA DEPARTMENT) LDRP-ITR, GANDHINAGAR

SUBMITTED BY:
PANCHAL MIHIR-1214MBA30267 JOSHI YAKIN MBA (SEM-3RD) - 1214MBA30257

DATE:-21/09/2013

APPROVED BY:PROF. VENKAT ADUSUMILLI

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Today an organizations result is highly dependent on the employees work motivation. It is therefore important for a company to find out what motivates its employees so that it can plan a suitable reward system and gain better results. The right combination of immaterial and material rewards can boost up the employees' work motivation and enhance their commitment to the company. The aim of this study is to investigate and analyze how well the current reward system, more specifically it aims to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. The research has been made on employee work motivation and attitudes towards the reward systems in the company. The driving force behind this study is to enable the employees of company to give feedback on their work motivation and their attitudes towards the reward systems and hence perhaps increase their commitment to the company Reward systems serve several purposes in organizations. Effective reward systems help an organization be more competitive, retain key employees, and reduce turnover. Reward systems also can enhance employee motivation and reinforce the image of an organization among key stakeholders or future employees. This research study presents the methods of employee motivation and the rewarding system adopted by the Company. This project is a result of a theoretical study of available literature as well as empirical research conducted at the company in order to analyze the effectiveness of the implemented methods and system.

 According to Ajila (1997): An employee will be committed to his work to the extent to
which the job inherently contains tasks that are rewarding to him or her. And an extrinsically motivated person will be committed to the extent that he can gain or receive external rewards for his or her job. If the reward is intrinsic to the job, such desire or motivation is intrinsic. But, if the reward is described as external to the job, the motivation is described as extrinsic. According to Lawler (2003), there are at least two factors that determine the attractiveness of a reward; one is how much of the reward is being offered and the second is how much the individual values the type of reward that is being offered. He argues that the more the individual values the type of reward and the more of it is being offered, the greater the motivational potential. Deeprose (1994, p. 26) posits the view that effective reward management can help an organization to achieve its business objectives by attracting and retaining competent people. Reward management is defined as: the process of developing and implementing strategies, policies and systems which help the organization to achieve its objectives by obtaining and keeping the people it needs, and by increasing their motivation and commitment. According to Lawler (2003), a truly motivational reward system must be designed with a few parameters in mind: it must motivate employees to perform through valued and truly sufficient rewards, provide them with a clear line of sight, give them the power to influence their performance, and deliver on its promise.

According to Martocchio (1998), compensation denotes both the intrinsic and extrinsic rewards employees receive for performing their jobs. Intrinsic compensation refers to the employees psychological mindsets that result from performing their jobs. It refers to the enjoyment and the sense of achievement that employees experience as a result of their work. Extrinsic compensation includes both monetary and non-monetary rewards. Non-monetary reward includes the benefits that employees receive apart from pay.

 Surveying employees attitudes toward total rewards can generate additional valuable information for the project team during the assessment phase. To know what kind of employee behaviorsand values should be rewarded? To know how much should employees participate in designing and implementing the new total rewards system? Make more information aboutthe total rewards system availableto employees, especially detailsabout how the system operates. Personalize total rewards by creating a statementfor each employee detailing the rewards he or she has received. How company Encourage one-on-oneconversations betweensupervisors and employees abouttotal rewards. The purpose of the study was to investigate and analyze the impact of reward system on employee motivation and how well the current reward system was helping to generate employee motivation.

 It will improve the literature on effectiveness of reward system on motivational level of employees. It will be helpful to the future researchers, management students and faculties. They will know what and how much research has been done on effectiveness of reward system on motivational level of employees. It might be useful to the managers of the organizations in understanding the need for the application of effectiveness of reward system on motivational level of employees.

RESEARCH OBJECTIVES

To determine if there is a relationship between reward and employee motivation. To determine the impact of rewards on motivation. To determine which factors contribute to work motivation. To determine the impact of biographical variables on work motivation. The aim of this study is to investigate and analyze how well the current reward system of company it helps to generates employee motivation. The driving force behind this study is to enable the employees of company to give feedback on their work motivation and their attitudes towards the reward systems.

RESEARCH DESIGN
DEFINITION: A research design is the framework or plan for a study used as a guide in collecting and analyzing data. There are three basic types of research design: exploratory, descriptive, and causal. The names of the three types of research design describe their purpose very well.

The goal of exploratory research is to discover ideas and insights. Descriptive research is usually concerned with describing a population with respect to important variables. Causal research is used to establish cause-and-effect relationships between variables. Experiments are commonly used in causal research designs because they are best suited to determine cause and effect. The proposed research study will be descriptive and quantitative in nature where questionnaire will be used as a tool for assessment.

Methods of data collection: The key for useful systems is the selection of the method
for collecting data and linking it to analysis and decision issue of the action to be taken. The accuracy of the collected data is of great importance for drawing correct and valid conclusions from the detailed investigations.

Primary data: The primary data are those which are collected a fresh hand for the first time
and thus happen to be original in character. There are several methods of collecting primary data, particularly in survey and descriptive research.

Secondary data: Secondary data are used means that are already available i.e. they refer
to the data which have already been collected and analyzed by someone else and which have already been passed through the statistical process. Secondary data may either be published data or unpublished data.

 Population:The total element of the universe from which sample is selected for the purpose of study is known as population.

Sampling size:All the items consideration in any field of inquiry constitutes a universe of population. In this research, only a few items are selected to form the population for our study purpose. The items selected constitute what is technically called a sample.

Sampling method:Sampling method used for this study is convenience sampling. When population elements are selected for inclusion in the sample based on the ease of access, it can be called convenience sampling.

Data Analysis Tools:1. Graphical Analysis 2. T Test (One sample) 3. Percentage analysis

REFERENCES

http://publications.theseus.fi/bitstream/handle/10024/16956/carolina_mik ander.pdf http://www.management4all.org/2008/11/reward-system.html http://team-rewards.de/files/Project_Team_Rewards--eBook_Medium_Quality_(c).pdf http://www.slideshare.net/sivapriya28/tcs-reward-system-detailed-report