CHAPTER-1 Executive Summary

Executive Summary
Monitory & non-monitory benefits are considered as the most significant and indispensable tool for an organization. It helps to motivate the employees like promotions, career growth, training and development,bonus,remuneration etc. The study was decided to be conducted to know the attitude of the employees towards monitory and non monitory benefits provided by the company and also how it makes important to the organization. In earlier days there was few monitory and non monitory benefits was practiced by many organization later according to the latest trend many benefits to the employees in the way motivation came into existence where it make drastic change to increase the productivity. The main objective of this study is to understand the various monitory and non-monitory benefits provided by the company and also how the employees response about those benifits. The entire study has been carried out from the point of both employees and employers perspective. This report represents the importance of the both monitory and the nonmonitory benefits which leads to motivation which is adopted by the HAL. On the basis of responses got through questionnaires data was classified,tabulated,analyzed and interpreted.

CHAPTER-2 INDUSTRY PROFILE AND COMPANY PROFILE

INDUSTRY PROFILE

Aviation industry in india

Aviation industry in india is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people. The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial Airways. However the actual instigation of India Aviation Industry was in the form of Tata Airline by JRD Tata in 1932. He was also the first Indian to get an A-License. In 1946, Tata Airlines was transformed into Air India. At the dawn of independence, India had nine air transport companies providing both cargo and passenger services. At the time of independence, nine air transport companies were carrying both air cargo and passengers. These were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition Orient Airways shifted to Pakistan. In early 1948, Government of India established a joint sector company, Air India International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on the Mumbai-London air route. The
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Government nationalized nine airline companies vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines Corporation (IAC) to cater to domestic air travel passengers and Air India International (AI) for international air travel passengers. The assets of the existing airline companies were transferred to these two corporations. This Act ensured that IAC and AI had a monopoly over the Indian skies. A third government-owned airline, Vayudoot, which provided feeder services between smaller cities, was merged with IAC in 1994. These government-owned airlines dominated Indian aviation industry till the mid-1990s. In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to operate flights from any airport, both on a charter and a non charter basis and to decide their own flight schedules, cargo and passenger fares. In 1994, the Indian Government, as part of its open sky policy, ended the monopoly of IA and AI in the air transport services by repealing the Air Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident Indian) investment of up to 100 percent equity stake were permitted through the automatic FDI route in the domestic air transport services sector. However, no foreign airline could directly or indirectly hold equity in a domestic airline company. By 1995, several private airlines had ventured into the aviation business and accounted for more than 10 percent of the domestic air traffic. These included Jet Airways Sahara, NEPC Airlines, East West Airlines, ModiLuft Airlines, Jagsons Airlines, Continental Aviation, and Damania Airways. But only Jet Airways and Sahara managed to survive the competition. Meanwhile, Indian Airlines, which had dominated the Indian air travel industry, began to lose market share to Jet Airways and Sahara. Today, Indian aviation industry is dominated by private airlines and these include low cost carriers such as Deccan Airlines, GoAir, SpiceJet etc, who have made air travel affordable.

Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labor costs and shortage of skilled labor, rapid fleet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to continue its success story.
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Some steps have been taken in this direction. Two of India's largest airports-Mumbai and New Delhi-were privatized recently. Two greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments are pouring into almost all aspects of the industry, including aircraft maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright. Indian carriers currently have a fleet size of 310 aircrafts, but have 480 aircrafts on order, scheduled for delivery by 2012. Earlier, air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people. Furthermore, the price of aviation turbine fuel (ATF) crashed drastically in December 2008, hitting US$ 0.665- US$ 0.789, which is its lowest level since the last four to five years. With this move, airlines are likely to prune their airfares considerably. Jet Airways, the country's largest private carrier, has slashed domestic fares by 40 per cent and national carrier Air India has announced that it will cut basic fares anywhere between 45 per cent and 60 per cent in February 2009 following a drop in ATF prices. India has jumped to 9th position in world's aviation market from 12th in 2006. The scheduled domestic air services are now available from 82 airports as against 75 in 2006. Further, Kapil Kaul, CEO India & Middle East, Centre for Asia Pacific Aviation, has said, "India's civil aviation passenger growth, at 20 per cent, is among the highest in the world. The sector is slated to cruise far ahead of other Asian giants like China or even strong economies like France and Australia. The number of passengers who will be airborne by 2020 is a whopping 400 million." Potential for Growth According to recent estimates by The International Air Transport Association (IATA), India is likely to be a significant player in the global civil aviation business, which was estimated at US$ 5.6 billion in 2008. The Indian Civil Aviation market grew at a compound annual growth rate (CAGR) of 18 per cent, and was worth US$ 5.6 billion in 2008.

The government is planning to upgrade 45 big and small airports across India. For greenfield airports, foreign equity up to 100 per cent is allowed through automatic approvals. For upgrading present airports, foreign equity up to 74 per cent is allowed through automatic approvals and 100 per cent through special permission (from FIPB). The Centre for Asia Pacific Aviation (CAPA) has forecast that domestic traffic will increase by 25 per cent to 30 per cent till 2010 and international traffic growth by 15 per cent, taking the total market to more than 100 million passengers by 2010. India's civil aviation passenger growth, presently at 20 per cent, is one of the highest in the world, and is expected to surpass countries like China, France and Australia. By 2020, 400 million Indian passengers are likely to be airborne. By 2020, Indian airports are expected to handle more than 100 million passengers including 60 million domestic passengers and around 3.4 million tonnes of cargo per annum. Domestic air traffic is likely to more than double and touch 86.1 million passengers by 2010, up from 32.2 million passengers in 2007, states the market research firm PhoCus. Moreover, significant measures to propel growth in the civil aviation sector are on the anvil. The government plans to invest US$ 9 billion to modernise existing airports by 2010. The government is also planning to develop around 300 unused airstrips, and subsequently, Boeing and Airbus, along with Embraer (Brazil), Bombardier (Canada), Sukhoi (Russia), ATR (France) and BAE System (UK) are now looking at foraying into the Indian jet market.

Top players

Players in Indian aviation industry can be categorized in three groups:

Public players Private players Start up players

There are three public players: Air India, Indian Airlines and Alliance Air. The private players include Jet Airways, Air Sahara,Paramount airways, Go Air Airlines, Kingfisher Airlines, Spice Jet, Air Deccan and many more. The start up players are those which are planning to enter into the markets. Some of them are Omega Air, Magic Air, Premier Star Air and MDLR Airlines. COMPANY PROFILE Hindustan Aeronautics Limited Aviation is one of the most significant influences of our time and it empowers a nation with technological strength. It is a major tool for economic development and has a significant role in national security and international relations. India has been fortunate to have launched its Aeronautics industry in 1940, with the establishment of HAL. Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942. Today, HAL has 19 Production Units and 9 Research and Design Centres in 7 locations in India. The Company has an impressive product track record - 12 types of aircraft manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3550 aircraft , 3600 engines and overhauled over 8150 aircraft and 27300 engines. HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors. HAL has made substantial progress in its current projects : * Dhruv, which is Advanced Light Helicopter (ALH)
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* * *

Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades.

HAL has formed the following Joint Ventures (JVs) : * * * * * * * BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma HAL Aerospace Pvt Ltd SAMTEL HAL Display System Limited HALBIT Avionics Pvt Ltd HAL-Edgewood Technologies Pvt Ltd INFOTECH HAL Ltd

Apart from these seven, other major diversification projects are Industrial Marine Gas Turbine and Airport Services. Several Co-production and Joint Ventures with international participation are under consideration. HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness.

Awards: HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and
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Fulfillment of Social Responsibilities. * HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for

Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the International Information and Marketing Centre (IIMC). * HAL was presented the International - ARCH OF EUROPE Award in Gold

Category in recognition for its commitment to Quality, Leadership, Technology and Innovation. * At the National level, HAL won the "GOLD TROPHY" for excellence in Public

Sector Management, instituted by the Standing Conference of Public Enterprises (SCOPE).

PROGRESS: The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7,783.61 Crores. HAL, over the last six decades, has grown progressively into an integrated Aerospace Organisation and has spread its wings to cover various activities in the areas of design, development, manufacture and maintenance of advanced fighters, piston and jet engine Trainers, commercial aircraft, helicopters and the associated aero-engines, aircraft systems, equipment and avionics. Present achievements in the area of indigenous design and development are the Advanced Light Helicopter (ALH-Dhruv) and Intermediate Jet Trainer (IJT). These developments have helped HAL in establishing a competitive edge among the global aerospace companies. HAL being major Design partner for aircraft and system / equipment as well as for system integration of Light Combat Aircraft (LCA), has made a significant contribution to its successful development. HALs current major programmes include production of military and civil versions of the
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ALH, Jaguar - the deep penetration strike aircraft, Dornier Do-228 - Multi-mission Aircraft, LANCER- the Light Attack Helicopter as well as upgrades of MiG-21 BiS, MiG-27M and Jaguar. License manufacture of SU-30 MKI has been launched and the first batch of indigenously produced SU-30 MKI aircraft has been handed over to the Indian Air Force. Facilities for license production of Advanced Jet Trainer HAWK are being established. The new initiatives in R & D include Weapon System Integration (WSI) on ALH, development of Light Combat Helicopter (LCH), Combat Air Trainer (CAT), Naval & Trainer versions of LCA. HAL has also taken the initiatives for participation in new generation civil passenger / transport aircraft with international partnership aiming to expand its activities in the civil aviation Sector. Design capabilities, state-of-the-art facilities and excellent skill level make HAL a valuable partner for challenging programmes in Aerospace. HALs participation in the outsourcing programmes of global aerospace Companies like Airbus, Boeing, BAe Systems, Snecma, Rolls Royce etc. has established its credibility in the export front. Present initiatives like Lean Management, setting up of Centres of Excellence- worldclass facilities, company-wide implementation of ERP and Strategic Alliance with reputed Global Aerospace Companies will help HAL to march ahead on its mission.

OUR MISSION " To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace defence equipment and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence ".

OUR VALUES * CUSTOMER SATISFACTION

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We are dedicated to building a relationship with our customers where we become partners in fulfilling their mission. We strive to understand our customers ' needs and to deliver products and services that fulfill and exceed all their requirements. * COMMITMENT TO TOTAL QUALITY We are committed to continuous improvement of all our activities. We will supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers. * COST AND TIME CONSCIOUSNESS We believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. We will achieve this by eliminating waste in all activities and continuously improving all processes in every area of our work. * INNOVATION AND CREATIVITY We believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking ,experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness.

* TRUST AND TEAM SPIRIT We believe in achieving harmony in work life through mutual trust, transparency, cooperation, and a sense of belonging. We will strive for building empowered teams to work towards achieving organisational goals. * RESPECT FOR THE INDIVIDUAL We value our people. We will treat each other with dignity and respect and strive for individual growth and realisation of everyone's full potential. * INTEGRITY

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We believe in a commitment to be honest, trustworthy, and fair in all our dealings. We commit to be loyal and devoted to our organisation. We will practise self discipline and own responsibility for our actions. We will comply with all requirements so as to ensure that our organisation is always worthy of trust. CUSTOMERS: INTERNATIONAL CUSTOMERS Airbus Industrie, France * APPH Bolton, UK * BAE Systems, UK * Chelton, UK * Coast Guard, Mauritius * Corporate Air, Philippines * Cosmic Air, Nepal * Dassault Aviation, France * Dowty Aerospace Hydraulics, UK * EADS, France, Etc., DOMESTIC CUSTOMERS * Air India * Air Sahara * Airports Authority of India * Bharat Electronics

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* Border Security Force * Coal India * Defence Research & Development Organisation * Govt. of Andhra Pradesh * Govt. of Jammu & Kashmir * Govt. of Karnataka

HAL Management Academy HAL Management Academy (HMA) was established by the corporate management of Hindustan Aeronautics Limited, way back in August 1969, under the then name of HAL Staff College. It was re-named HAL Management Academy in June 2001 to reflect its focus on management development, consultancy and research. HMA has now competed 35 years of fruitful contribution to the cause of management education. Responding to the need amongst practising managers to constantly refresh and update their managerial skills, HMA offers a variety of programs in an open and short duration format. These programs form a part of a larger focus on Executive education. HMAs programs prepare practising managers to meet the challenges of todays dynamic business milieu. These programs provide exposure to the latest development in managerial practice at a global as well as local level. HMAs programs break fresh ground in management thinking as well as practice. Participants gain insight into both theory as well as application of the latest in management. Participants are encouraged to apply learning in their organizational contexts, with a view to formulate strategies for post-program implementations. Programs at HMA provide not just individual learning, but also the opportunity to network with other practising managers in the area, providing for active sharing of experience as

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well as building useful contacts. The programs offered are conducted by HMA Faculty, who provide a unique blend of academic, research as well as consulting skills. In addition, all participants have access to the vast infrastructure as well as resources of the institute. MANAGEMENT DEVELOPMENT PROGRAMS The Programs conducted at HMA are broadly categorized into * Individual Development * General Management * Functional/ Technical Programs * Leadership Programs Certain programs provide opportunity for experiential learning inside and outside the classroom. Action oriented learning is imparted through outbound training in serene settings away from the hustle bustle of the city.

INFRASTRUCTURE Training Halls HMA has five air-conditioned and acoustically-treated training halls with seating capacity varying from 15 to 50, with flexible seating arrangements. Each classroom is equipped with an Overhead projector, writing board, Public Address System, Digital Light Processing Projector (DLP), computer with the necessary state-of-the-art software to make presentations. Library A good library with over 12000 books mainly on management topics, a number of professional journals and an impressive collection of audio-visual aids supplement
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classroom learning and assignments. Auditorium An auditorium air-conditioned and acoustically designed with 180 seats is also available for viewing films / videos and conducting seminars. A well-lit dais is also suitable for cultural Programs by participants. Accommodation Forty fully furnished twin occupancy rooms and five dormitories provide accommodation for a hundred participants. A neat and tidy cafeteria within the campus provides nutritious food and caters to the palate of the participants from all over the country Recreation Centre The recreation centre is equipped with a home-gym, facilities for indoor and outdoor sports and also a television set, which provide the participants the much needed relaxation during the off-hours and holidays. A lot of newspapers and magazines are also available.

SERVICES: HAL is providing services by different divisions in the different locatons,as they performs their own functons.

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R & D CENTRES

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In the year 1951, when HT-2 the first indigenously designed primary trainer made its first flight, it heralded the era of Research & Design at HAL This aircraft served as the back bone of IAF's training fleet for more than three decades. Subsequently, HAL's R&D capabilities have grown from strength to strength and have been harnessed to achieve greater heights of self reliance. The Advanced Light Helicopter ALH (DHRUV) is the latest new generation helicopter designed and developed by HAL. It is under production since 2002. The test flights on Technology Demonstrators (TD-I and II) and Prototype Vehicles (PV-1 and 2) of Light Combat Aircraft - LCA (Tejas) are progressing satisfactorily. The Intermediate Jet Trainer (IJT) is undergoing test flights. In addition, HAL has successfully completed many systems updates and integration tasks. HAL has 9 Research & Design Centres engaged in the design and development of combat aircraft, helicopters, aeroengines, gas turbines, engine test beds, aircraft communication and navigation systems and mechanical system accessories. The indigenously upgraded MiG-27M aircraft has received Initial Operation Clearance (IOC) and the first batch of aircraft has been delivered. First flight test on Jaguar Nav WASS upgraded aircraft with indigenously developed mission computer with weapon delivery capabilities has been carried out and retromod of fleet has been taken up. Equipped with the latest facilities, the company is backed by high profile, highly skilled manpower with an impressive track record of more than five decades of rich experience in all disciplines of aeronautics.

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CHAPTER-3 THEORETICAL-FRAMEWORK

Theoretical framework.
Introduction to Rewards A reward is a benefit for performing a given task. It assumes someone in a position to evaluate and judge goodness. "Rewarding" means providing incentives to and recognition of employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. There are many ways to acknowledge good performance, from a sincere "Thank You!" for a specific job well done to granting the highest level, agency-specific honors and establishing formal cash
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incentive and recognition award programs. Concepts like risk and reward, reward and punishment are based on the idea that people do things, or avoid doing things, due to rewards. In psychology there is evidence that they do not, and that conditioning and affective factors are much more important than the rewards or punishments of outsiders. Goals and Objectives of rewards Improve performance Employee Motivation Enhancing team spirit Employee retention Employee development Monetary Rewards The purpose of monetary incentives is to reward associates for excellent job performance through money. Monetary incentives include profit sharing, project bonuses, stock options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), and additional paid vacation time. Traditionally, these have helped maintain a positive motivational environment for associates (Kepner, 2001). Non-Monetary Rewards The purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities. Non-monetary incentives include flexible work hours, training, pleasant work environment, and sabbaticals. Introduction to Rewards A reward is a benefit for performing a given task. It assumes someone in a position to evaluate and judge goodness. "Rewarding" means providing incentives to and recognition of employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. There are many ways to acknowledge good performance, from a sincere "Thank You!" for a specific job well done to granting the highest level, agency-specific honors and establishing formal cash incentive and recognition award programs. Concepts like risk and reward, reward and punishment are based on the idea that people do things, or avoid doing things, due to rewards. In psychology there is evidence that they do not, and that conditioning and affective factors are much more important than the rewards or punishments of outsiders. Goals and Objectives of rewards Improve performance
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 Employee Motivation Enhancing team spirit Employee retention Employee development Monetary Rewards The purpose of monetary incentives is to reward associates for excellent job performance through money. Monetary incentives include profit sharing, project bonuses, stock options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), and additional paid vacation time. Traditionally, these have helped maintain a positive motivational environment for associates (Kepner, 2001). Non-Monetary Rewards The purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities. Non-monetary incentives include flexible workhours, training, pleasant work environment, and sabbaticals. Introduction to Attitude An attitude can be defined as persistent tendency to feel and behave in a particular way toward some object. The Nature and Dimensions of Attitudes Attitudes can be characterized three ways. First, they tend to persist unless something is done to change them. Second, attitudes can fall anywhere along attitude may be moderately unfavorable. Third, attitudes are directed toward some object about which a person has feelings (sometimes called "affect") and beliefs. Attitudes can be broken down into three components; emotional, informational, and behavioral. The emotional component, the informational component and the behavioral component . Functions of Attitudes An understanding of the functions of attitudes is important to the study of organizational behavior. Based on extensive review of surveys of employers, a recent analysis concluded "the most important consideration in hiring and the biggest deficit among new workforce entrants are the attitudes concerning work that they bring with them to their jobs. Mr. Katz has noted that attitudes serve four important functions in this process. The Adjustment Functions.

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 The Ego Defensive Function The Value Expressed Function. The Knowledge Function. Changing Attitudes Employee attitudes can be changed, and sometimes it is in the best interests of management to try to do so. Sometimes attitude change is difficult to accomplish because of certain barriers. After these barriers are identified, some ways of overcoming them and effectively changing attitudes are examined. 2.9 Effect of Rewards on Retention Getting people to work for and with the organization as a team-and keeping them working is never simple. When making a decision to join (or stay with) n organization, most people sort through and try to prioritize a complex bundle of personal requirements. This hierarchy of needsas originally conceptualized by Abraham Maslow (as explained in the illustration)range from basic survival needs to the utmost psychological desire for self-actualization. Many of these needs do not relate directly to either salary or benefits. Maslows hierarchy teaches that when an individual accomplishes each level, satisfaction wont necessarily be the result. Rather, the individual is likely to start yearning for achievement at the next-higher level. For example, once the individual obtains reasonable physical comfort (housing and clothing) and physical safety (money in the bank, home equity, life insurance), the next step might be to seek association with a prestigious firm. After reaching that milestone, the individual might aspire for professional recognition, and so on. Of the various hierarchical needs described by Maslow, only some have a direct link to compensation. Clearly, money is a primary factor enabling the individual to meet physical needs. Money also is key in achieving safety and security, primarily in the form of adequate insurance and retirement savings. Even the need for prestige and status, as satisfied by a new BMW or a spacious beach house, requires substantial funding. However, over the full range of Maslows hierarchy, the majority of other needs are NOT tied directly to base salary, bonus, or benefits. Rather, most of Maslows hierarchy addresses needs associated with work activity and the workplace itself.

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Self-actualization Teaching professionals place professional considerations well ahead of their bank balances. One or more of these scenarios are often familiar in the industry: Competent teaching professionals chase money (by changing institutions) only to return to more modest compensation at a institution where they have greater opportunity for self-expression. Talented teaching professionals struggle at close-to-starvation wages to stay involved in teaching. Each scenario illustrates the teaching professionals strong motivation to reach the peak of Maslows hierarchy, i.e., self-actualization. Maslow illuminates the concept thusly: A musician must make music, an artist must paint, a poet must write, if he is to be at peace with himself. What a man can be, he must be. This is the need we call self-actualization...it refers to mans desire for fulfillment While teaching professionals probably have greater need for self-actualization than do individuals in other careers, self-actualization is a VERY important part of the teaching professionals psychology. The idea that a teacher must teach has important implications for compensation administration and management of the overall organization. Money alone will not offset a bad working environment or the lack of true career opportunity. Employees rarely join (or leave) firms solely because of compensation or benefits. Using the lessons taught by Maslows hierarchy, management of education institutions must look to the whole institution and employment experience to attract and retain appropriate staff. When conditions are right, employees derive non-monetary compensation from those aspects of the employment experience that provides value or satisfaction without necessarily delivering a measurable reward. Said differently, non-monetary compensation is nothing more complicated than psychic income. It rewards the employee in some uniquely psychological way, largely unrelated to salary or employee benefits. The hierarchy links the search for such opportunities directly to Maslows selfactualization
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concept. Firms that ignore these needs will tend to have higher turnover and operating costs and lower motivation and morale. The essential question about monetary vs. non-monetary rewards is not an either-or question. The best firms endeavor to deliver both. In the end, every employee makes a subconscious calculation of the two Monetary income + Psychic income = Total income When available in reasonable quantities, psychic income helps the teaching professional see a clear path toward advancement and satisfaction. Most faculties are able to make rational decisions about the trade-off between professional satisfaction and economic reward. Ultimately, most teaching professionals will choose the option that provides the highest total income. We should bear in mind, this is not an invitation to take advantage of the staffthe management of education institutions should always research the true market value for faculties and compensate their people fairly. The goal is to deliver and maintain a reasonable balance between monetary and psychic income. In the end, institutions that deliver both monetary income and physic income in a fair, and innovative manner will attract, retain, and develop quality personnel, keep them satisfied, and foster organization loyalty. Above all, the institutions should remember that the employees are people, each one an important part of the business family-not just a cog in a human machine that goes through certain muscular motions every day with time out for refueling and maintenance. The management should remember that their staff has heart and brains, feelings and ideas-and is made of the same raw materials as them. Their energies are there to be used for their own good and for the management. Some ways of harnessing these energies are: 1. Seeking and using employee's own ideas. 2. Keeping employees informed. 3. Expressing personal interest in employees. 4. Instilling pride in work well done. These techniques concern various methods of directing employees toward main objective - building a profitable business by satisfying customers. As one put these techniques to use, we will find the job only half begun. The employee still needs more answers to this
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very important personal question: "What is there in it for me?" This is not a cynical question. It is another way of asking: "How much am I worth? And the management must provide answers for them as well as for itself. Management must encourage employee ideas and provide the necessary mechanism for obtaining them. Suggestion boxes and idea-discussion employee meetings are a couple of possibilities. Encourage employees to think about problems of the business. Some excellent ideas for their solution may be forthcoming. The management can carefully consider all ideas, and if adopted, can commend or reward the giver. If not adopted, a word of explanation and appreciation can always be given. To effectively motivate, a definite system of incentives or rewards is necessary. Such a system requires a combination of several groups of incentives, the most important of which are: 1. Recognition-both monetary and non-monetary. 2. Social prestige. 3. Achievement. 4. Self-esteem Recognition Recognition-Monetary The first thought concerning recognition is usually money. Good pay is vital. Good pay is essential to employee satisfaction and must be carefully considered in all personnel matters. The employee should not feel that he is underpaid. Pay is the best and most tangible form of recognition of the employee's worth to the company. Besides actual pay increases, other form of monetary recognition commonly used is a bonus plan. Recognition-Non-monetary Non-monetary recognition can be tangible or intangible. Examples of tangible recognition: highlighting the key personnels training, experience, and outstanding services. Intangible means of recognition are less formal and might be in the form of a kind word of praise. Social Prestige
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Present-day management theory says it is no longer sufficient to satisfy only subsistence needs. Employee retention will be obtained only when his social and self-esteem needs are supplied on the job. "More money" often becomes an insistent demand when management is concerned only with satisfying minimum cost-of-living needs. When the "whole person" is involved within an enterprise, the employee is often content with less money than he might make elsewhere, simply because he enjoys his work and experiences self-esteem and accomplishment through his work. Achievement Ambition falls off when employees do not have enough to do. The only way to solve this problem is to establish reasonable work output standards for each job. Study and evaluation of standards and employee worker contribution should result in a reasonable level of output for each position. Living up to these standards brings a sense of achievement.

Self-Esteem This group of needs differs from others in that it is concerned with the employee's view of himself. Examples are the opportunity for recognition, status in the community, respect, distinction, attention, importance, and appreciation. These are the most difficult needs to provide. Thus by observing above data it can be said that employee retention is a burning issue in education field and there is a positive relation between monetary and non-monetary rewards with attrition rate. Further part of the report focuses on the empirical evidencesand researches which gives a base to the study.

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CHAPTER-3 RESEARCH METHODOLOGY

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Research methodology: TITLE: EMPLOYEES ATTITUDE TOWARDS MONITORY AND NONMONITORY BENIFITS AT HAL(ARDC) Ltd., Bangalore.

STATEMENT OF PROBLEM: This particular topic is chosen because how employees shows their attitude towards monetary and non-monetary benifits,in what extent it motivates the worker to perform their work effectively. Motivation is necessary for work performance because if people do not feel inclined to engage themselves in work behaviour, they will not put in necessary efforts to perform well. However, performance of an individual in the organization depends on a variety of factors besides motivation.
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 PURPOSE OF THE STUDY: The purpose of the study is to get practical knowledge and to get experience and also to know the various challenges that are faced in the corporate world. The main intention of choosing this topic is to study,
The attitude of the employees towards monitory and non-monitory

benefits.

The project helps the organisation to improve the system of monitory and

non-monitory benefits according to the feedbacks of the employees. OBJECTIVES OF STUDY: To find the how the company providing monitory and non-monitory benefits to its employees. To identify attitude of employees towards the monitory and nonmonitory benefits. To find out the areas where it is possible to make changes for effectiveness on the system and bringing out these changes. To study how the feedback is given by the employees for development.

SCOPE OF THE STUDY: The study ensures to determine the following;

Study covered all departments of employees. Study conducted in ARDC division of HAL only. To know the monitory and non-monitory benefits provided by the company.

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The company can make use of the study to make improvement in providing monitory and non-monitory benefits to employees. DATA COLLECTION APPROACH: The questionnaire was specifically framed keeping in mind all the aspects and requirements that would fulfil the objectives and give the exact picture and that would help the organization to take better decisions. Primary data was collected by administrative questionnaire of 60 respondents. In the questionnaire all the questions were specifically framed as per the survey requirements and following are its details. Direct conduct was made with the respondents through the random sampling and all the respondents are the employees of the ARDC division of HAL Ltd., The study was conducted in different departments of the ARDC division of HAL Ltd., the information was collected through questionnaire. The questionnaire was administered and collected on the spot. The information necessary for this survey is collected by tapping primary and secondary sources. Primary data: a) Questionnaire b) Personal interaction Secondary data: a) Related information from internet b) Books and publications c) Organization report

SAMPLE SIZE:
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Sample size for the survey is 60 employees

Research Design:

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Data source

Primarily(field survey) Secondary data(internet)

Area of research

ARDC division, HAL Ltd., Bangalore.

Population

Employee from ARDC division, HAL Ltd.,

Research approach Sample unit Research instrument Sampling Method Sample size

Survey method Employee of HAL Ltd., Questionnaire Random sampling 60 employee

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Measuring tools: The measuring tools used for the study is Graphical and Simple percentage Method.

Limitations of the study:

Generalization:

The

study

was

done

at

HAL

Ltd.,(ARDC

Division),Bangalore. Therefore the findings, conclusions and suggestions pertaining to opinion of employees about the monitory and non-monitory benefits of the company, are relevant only to this division. Some part of the study cant be generalized to entire HAL which has its divisions in other places.

Sample size: The researcher could not collect the information from more

employees because of time constraint. Hence the sample size was restricted to 60 respondents. However the sample size was adequate to draw the conclusion.

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Assumption: The study was conducted on the assumption that information

elicited from the respondents in correct.

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CHAPTER-5 ANALYSIS AND INTERPRETATION

35

ANALYSIS AND INTERPRETATION In this part ,I would like to give my survey analysis and interpretation of data.this data is collected through the questionnaire and accordingly the interpretation is presented in order.

Q 1)How do you comment on your attitude towards monitory rewards in your organization?

Opinion Very Positive Positive Very Negative Negative Total

No. of respondents 12 36 4 8 60

Percentage 20 60 6.67 13.33 100

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From the above graph tells the attitude of the employees towards monitory benefits provided by the company, here 20% of respondents said that very positive,60% of respondents said that positive,6.67% respondents said that very negative and 13.33% respondents said that negative.

Q 2) What sort of monetary benefits would you prefer in your organization?

Opinion ESOPs Bonus Incentives Good compensation Total

No. of respondents 6 30 18 6 60

Percentage 10 50 30 10 100

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The above graph says about the monitory benefits which are preferred by the employees, among the above options 10% respondents preferred ESOPs, 50 respondents preferred bonus, 30% respondents preferred incentives, and 10 respondents preferred good compensation.

Q 3) How do you comment on your attitude towards non-monitory rewards in your organization?

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Opinion Very Positive Positive Very negative Negative Total

No. of respondents 12 24 16 8 60

Percentage 20 40 26.67 13.33 100

The above graph represents the attitude of the employees towards non-monitory benefits, 20% respondents said very positive, 40% respondents said positive, 26.67 respondents said very negative and 13.33% said negative.

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Q 4) What sort of non-monitory benefits would you prefer in your organization?

Opinion Training facilities Flexible working hours Leave benefits Recognition Total

No. of respondents 25 15 6 14 60

Percentage 41.67 25 10 23.33 100

The above graph shows the preference of the employees about the non-monitory benefits in the organization, among the above options 41.67% respondents said training facilities, 25% respondents said flexible working hours, 10% respondents said leave benefits and23.33% respondents said recognition. Q 5) Does compensation leads to motivation directly?
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Opinion Agreed Partially agreed Partially disagreed Disagreed Total

No. of respondents 16 30 8 6 60

Percentage 26.67 50 13.33 10 100

The above graph represents is the compensation leads to motivation directly,26.67% respondents agreed,50% of respondents partially agreed,13..33% respondents partially disagreed and10% of respondents disagreed.

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Q 6) According to you what factors indicate motivation directly?

Opinion Good compensation Recognition Working conditions Promotions Total

No. of respondents 8 25 16 11 60

Percentage 13.33 41.67 26.67 18.33 100

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The above graph represents the factors which indicates motivation directly,13.33% respondents promotions. opted good compensation,41.67% respondents opted recognition,26.67% opted working conditions and 18.33% respondents opted

Q 7) Are compensation plans fair in your organization?

Opinion Fully agreed Agreed Disagreed Fully disagreed Total

No. of respondents 6 30 18 6 60

Percentage 10 50 30 10 100

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The above graph represents the statement is compensation plans is fair in the organization,10% of respondents are fully agreed it,509% of respondents are agreed it, 30% of respondents disagreed it and 10% of respondents fully disagreed it.

Q 8) Are the insurance schemes for employees good in your organization?

Opinion Good Partially good

No. of respondents 12 24
44

Percentage 20 40

Bad Partially bad Total

16 8 60

26.67 13.33 100

The above graph represents that is the insurance schemes are good in the organization,20% of respondents said its good, 40% of respondents said its partially good,26.67% of respondents said its bad and 13.33% of respondents said its partially bad.

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Q 9) The company is providing health & safety to the employees?

Opinion Agreed Partially agreed Disagreed Partially disagreed Total

No. of respondents 26 20 8 6 60

Percentage 43.33 33.33 13.34 10 100

The above graph says about the health and safety provided by the company to the employees,43.33% of respondents agreed it,33.33% of respondents partially agreed it,13.34% of the respondents disagreed it and 10% of the employees partially disagreed it.

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Q 10) Are pay and allowance in accordance to the market standard?

Opinion Agreed Partially agreed Disagreed Partially disagreed Total

No. of respondents 10 28 12 10 60

Percentage 16.67 46.66 20 16.67 100

The above graph represents is the company provides the pay and allowance according to the market standars,16.67% respondents agreed that the company is providing the pay and allowances according to the market standards,46.66 of

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respondents have partially agreed it, 20% of the respondents have disagreed it and 16.67% of the respondents have partially disagreed it.

Q 11) In your organization, the welfare facilities provided are satisfactory?

Opinion Fully satisfactory Satisfactory Dis-satisfactory Fully dissatisfactory Total

No. of respondents 10 22 16 12 60

Percentage 16.67 36.66 26.67 20 100

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The above graph gives the information about the welfare facilities provided by the organization is satisfactory to the employees,16.67 of respondents are fully satisfied,36.66% of the respondents are just satisfied, 26,67% of respondents are dis satisfied and 20% of the respondents are fully dissatisfied.

Q 12) What kind of in-house recreational facilities provided by your organization?

Opinion Indoor games Gym & fitness centre Others None Total

No. of respondents 14 14 10 22 60

Percentage 23.34 23.34 16.66 36.66 100

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This graph tells the opinion of the respondents, about the in house recreational facilities provided by the company, among the options 23.34% of the respondents opted for indoor games, 23.34% of the respondents opted for gym and fitness centre,16.66% of the respondents opted for the other facilities and 36.66% of the respondents opted for none.

Q 13) Does company allows employees to participate in decision making?

Opinion Allowed

No. of respondents 14
50

Percentage 23.34

Sometimes allowed Not allowed Total

28 18 60

46.66 30 100

This graph shows that the company will allow the employees for the participation, 23.34% of the respondents said company allows,46.66% of the respondents said sometimes allowed and 30% of the respondents said it not allowed.

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Q 14) How does the company rewarding the employees?

Opinion On group performance On individual performance Both Total

No. of respondents 18 16 26 60

Percentage 30 26.67 43.33 100

The above graph says about the rewarding system by the company to the employees, 30% of the respondents said that the company is rewarding on the group performance, 26.67% of the respondents said company is rewarding on individual performance, and 43.33% of the respondents said that the company is rewarding on the basis of both.
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Q 15) What sort of pay programme practiced by the company?

Opinion Piece-rate pay Designation based pay others Total

No. of respondents 2 40 18 60

Percentage 3.34 66.66 30 100

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This graph says about the pay programme practiced by the company, 3.34% of the respondents said piece-rate pay, 66.66% of the respondents said designation based pay and 30% of the respondents opted others.

Q 16) Rate how well do career counselling, career planning & developments programmes match the organization needs with employees career needs?

Opinion Poor Adequate Good Excellent Total

No. of respondents 10 26 16 8 60

Percentage 16.66 43.34 26.66 13.34 100

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This graph says about the development programmes held by the company,16.66% of the respondents said its poor, 43.34% of the respondents said its adequate, 26.66% of the respondents said its good and 13.34% of the respondents said its excellent.

Q 17) Rate how well the HR department reflects a balance of organizational needs and employee needs and acts as effective intermediary for both?

Opinion Poor Adequate Good Excellent Total

No. of respondents 24 18 12 6 60
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Percentage 40 30 20 10 100

The above graph rates how the hr department balance the both organizational and employee needs,40% of the respondents said its poor,30% of the respondents said its adequate,20% of the respondents said its good and 10% of the respondents said its excellent.

Q 18) Rate how well training programmes related to organizational objectives? Opinion Poor No. of respondents 8
56

Percentage 13.34

Adequate Good Excellent Total

28 18 6 60

46.66 30 10 100

This graph represents how well the training programme is held in the organization, 13.34 of the respondents said its poor, 46.66% of the respondents said its adequate, 30 % of the respondents said its good and 10% of the respondents said its excellent.

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ANNEXURE AND BIBLOGRAPHY

58

Questionnaire

Department: Grade: Years of Experience: 1. How do you comment on your attitude towards monitory rewards?

a.Very positive

b. Positive

c. Very negative

d.Negative
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Comment:

2. What sort of monetary benefits would you prefer?

a.ESOPs

b.Bonus

c. Incentives

d.Good compensation

Comment: 3. How do you comment on your attitude towards non monetary rewards? a.Very positive c. Very negative Comment: 4. What sort of non monetary benefits would you prefer? a.Training facilities c. Leave benefits Comment: 5.Does compensation lead to motivation directly? a. Agreed b.Partially agreed
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b. Positive d. Negative

b.Flexible working hours d.Recognition

c. Partially disagreed

d.Disagreed

Comment: 6. According to you what factors indicate motivation directly? a. Good compensation c.Working conditions Comment: 7. Are Compensation plans fair in your organization? a. Fully agreed c. Disagreed Comment: b. Agreed d. Fully disagreed b. Recognition d. Promotions

8. Are the insurance schemes for employees good in your organization? a.Good c.Bad Comment: 9. The company is providing health & safety to the employees. a. Agreed b. Partially agreed
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b.Partially good d.Partially bad

c. Disagreed Comment:

d.Partially disagreed

10. Are pay and allowance in accordance to the market standard? a. Agreed c. Disagreed Comment: 11. In your organization, the welfare facilities provided are satisfactory? a. Fully satisfactory c. Dis-satisfactory Comment: b. satisfactory d.. Fully dis- satisfactory b.Partially agreed d.Partially disagreed

12. What kind of in-house recreational facilities provided by the company? a. Indoor games b.Gym & fitness centre

c. Others

d.None

Comment:

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13.Does company allows employees to participate in decision making?

a. Allowed c.Not allowed Comment:

b.Sometimes allowed

14. How does the company rewarding the employees?

a. On group performance c. Both Comment:

b. On individual performance

15. What sort of pay programme practiced by the company?

a. Piece-rate pay

b. Designation based pay

c.Others Comment:

16.Rate how well do career counselling,career planning & developments programmes match the organizations needs with employees career needs?

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a. Poor

b. Adequate

c. Good

d. Excellent

Comment:

17.Rate how well the HR department reflects a balance of organizational needs and employee needs and acts as effective intermediary for both? a. Poor b. Adequate c. Good d. Excellent

Comment:

18. Rate how well training programmes related to organizational objectives? a. Poor b.Adequate C.Good d.Excellant

Comment:

BIBILIOGRAPHY:
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 Primary data was collected by conducting the survey of 60 employees in

the organisation of different departments, and asking direct questions to the respondents. Secondary data is collected through using websites,

www.google.com

www.hal.com

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