Organizational Behavior

Study of Motivation & Reward Practices in Current Organization

Assignment I

Kamal Kishore Jaiswal Roll No. S-34 MBA (Part Time) First year

Name: Kamal Kishore Jaiswal

Class: MBA Part Time First Year

Roll No.: S-34

Contents
Objective..3 Introduction to current organization.3 Motivation and rewards policy currently adopted by our organization3 Evaluation Process.4 Relation between the theories and our organizations policies..4

Name: Kamal Kishore Jaiswal

Class: MBA Part Time First Year

Roll No.: S-34

Objective: The objective of this document is to identify various motivation & reward practices which are followed by my current organization. With an understanding of various motivational theories an attempt is being made to identify how it can be related to our current organizational practices. Introduction of current organization: Radico Khaitan Ltd. is liquor manufacturing and marketing company. Radico is 2 nd largest player in India. Company is engaged in production and marketing quality liquor products for human consumption. Company has around 1500 employees handing different functions. To manage expectation of such a huge group, HR department is always in action in consultation with different functional heads.

Motivation and rewards policy currently adopted by our organization:

1. Company offers competitive remuneration, excellent working condition to attract and retain talent. 2. Company encourages employee participation/representation in decision making. 3. Company has a transparent & well defined reward & recognition policy (Performance bonus, best performance awards, ESOP etc.). 4. Company provides training to employees for skill development, conduct workshops & classroom sessions for keeping employees updated on technical subjects. 5. Company has a well defined structure of monitoring and evaluating the performance of each employee.

Name: Kamal Kishore Jaiswal

Class: MBA Part Time First Year

Roll No.: S-34

Evaluation Process:
Each year the expectations from the organization as a whole is worked out and translated into measurable figures. Further the organizational expectations are broken up as expectations from different functions. Functional expectation is then further broken up to individual levels. This helps in having clarity in the understanding of the expectations at all levels. Management provides support to employees by imparting training and giving a proper environment to enable the employees to achieve objectives. Periodic review mechanism is established in the organization. These reviews identify gaps in the actual and desired results. Timely corrective actions are taken to bridge the gaps to ensure achievement of individual & organizational goals. Our organization evaluates the performance against Key Result Area (KRAs) of each individual and rewards them on the basis of performance. Every year Employee satisfaction survey is conducted. This survey helps to figure out issues which can lead to dissatisfaction.

Relation between the theories and our organizations policies: It is clearly evident that the company policies have influence of most of the theories of Motivation. In relation to hygiene factors the our organization provides above average base salaries and excellent working conditions to assure that a failure to satisfy hygiene needs will not create any disincentives to perform among the members of the organization. The above mentioned motivational approach has clear influence of Two-Factor Theory (Frederick Herzberg)

Name: Kamal Kishore Jaiswal

Class: MBA Part Time First Year

Roll No.: S-34

In relation to motivation factors, our organization provides autonomy to employee to develop solutions to needs and wants of customers (Internal & External). The mentioned motivational model is influenced by Job Design theory In the case of our organization the goals are defined & agreed with each functional leader. These functional goals are then discussed with each employee, agreed and converted into individual KRAs. Periodic evaluation is being done to access the performance. This process enables the managers to bridge the gaps in case they find any problem which can lead to non achievement of the targets through feedbacks. The theory of Goal Setting also states - specific and difficult goals, with feedback, lead to higher performance. Reinforcement Theory: The assumption of this theory is behavior is a function of its consequences. A transparent reward policy is an example of the applicability of Reinforcement Theory. Our company has a transparent reward policy, which motivates the employee to achieve the desired objectives. As the theory says behavior is a function of its consequences, employees are aware that their performance can get monetary rewards and recognition in the organization. The reward programs are responsible for motivation levels of the employees. This is also in sync with the various known motivation theories. The various reward practices prevailing in my organization are based on the assumption behind the Theory Y(Douglas McGregor) that employees like work, are creative, seek responsibility, and can exercise self-direction.