CHAPTER-1

INTRODUCTION

OBJECTIVES OF THE STUDY

The objective of the project is to study the factors which help in motivating employees in the
ESCORTS.

To find out the dominant hygiene factors which prevent dissatisfaction among
employees?

To find out the dominant motivators this employees towards their jobs.

To evaluate the job satisfaction level of employees.

To know the employee turnover and absenteeism level.

To study the various welfare scheme provided by company.

SCOPE OF THE STUDY

The study of the project covers a wide range of managers. The purpose of the research is to
fulfill the need for know if the organization, the market, the economy or another area of
uncertainty. The entire question would require information about how the environment,
employees, customer or the economy will respond to executive decisions.
Research is the principle tool for answering these practical questions. Research helps decision
makers in information gathering to systematic & objective investigation.
The study EMPLOYEE MOTIVATION helps the employees in increasing the production of
company. They take part in the management planning and solve the problems of the
organization. With the help of motivation, employees are satisfy and happy and they create
good human relation at work place.

RESEARCH METHODOLOGY
Research is a systematized effort to gain new knowledge. It is a systematic study
consisting of a problem formulating a hypothesis collecting the facts and data, analyzing the
facts and reaching for certain conclusions, which can be in the form of either solution towards
a problem.
Research design
A research design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure. The research design used in my study is basically descriptive in nature.
Types of Research

Exploratory research

Descriptive research

Causal research

Applied research

Basic research

Exploratory research
Exploratory studies are conducted to clarify the ambiguous problems. Ambiguity
means that the nature of problem to be solved is unclear.
Descriptive research
The research design in my study is descriptive. Its studies are concern with describing the
characteristics of a particular group or individual. Studies concerned with specific prediction
with narration of facts and characteristics concerning individual, group or situations are
examples of descriptive research .it is also known as social research.
Causal research
The mean purpose of causal research is to identify the cause and effect relationship
between variables.

Applied research
Applied research is conducted when a decision is to be made about a specific
real-like problem.
Basic research
Basic or pure research (fundamental research) attempts to expand the limits of
knowledge.
Sample design
A sample design is a definite plan for obtaining a sample from a given population. It refers
to the technique or the procedure the researcher would adopt in selecting items for the sample
i.e. the size of the sample. Stratified sample method is adopted to select the sample.
Sample size
It includes the number of sampling unit selected from the population for
investigation. The sample size must be optimum or adequate. If the sample size is small it
may not appropriately represent the population.
Too large sample would be costly in terms of money &time. The optimum sampling size
would fulfill the requirements of efficiency, representativeness, reliability, and flexibility.
The sample size is taken of 100 employees. It is because of the shortage of time & their busy
schedule.

METHODS OF DATA COLLECTION

Data collection is an art. Sometime it is very time consuming affair. The source
information falls under two categories:
Primary Data
Secondary Data
Primary data
We collect primary data either through observation or through direct
communication with respondents in one form or other personal interviews.

Observation method

Interview method

Schedules & Questionnaire method

Internet

I collect the primary data in the form of observation and questionnaire.

Secondary Data
The secondary data means data that are already available in various reports,
diaries, letters, books, etc.

Life history, diaries, autobiographies, letters and testaments.

Reports published by various Research Organizations.

Sampling Method
Stratified method of sampling was used for face-to-face survey while
snowball sampling method was used while conducting telephonic survey.

LIMITATIONS OF THE STUDY

Lack of proper participation of employees in decision-making.

Positive feedback is not given regularly to employees on their performance.

Lack of accountability of job between superiors and employees.

Employees are always motivated through money.

CHAPTER-2

REVIEW OF LITERATURE

EMPLOYEE MOTIVATION
Motivation is derived from the word MOTIVE which means the power in a person which
impels him to do a work or job.
Many contemporary authors have defined the concept of motivation has been defined as: the
psychological process that gives behavior purpose and direction ( kreitner, 1995 ); a
predisposition process to behave in a purposive manner to achieve specify, unmet
needs ( Buford, Bedeian, Linder, 1995); an internal drive to satisfy an unsatisfied need
(Higgins, 1994); and the will to achieve (Bedeian, 1993). For this paper, motivation is
operationally defined as the inner force that drives individuals to accomplish and
organizational goals.
A basic principle is that the performance of an individual depends on his or her
ability backed motivation stated algebraically the principle is:

Performance= f (Ability * Motivation)

Ability refers to skill & competence of a given task. However ability alone is not enough. The
persons desire to accomplish the task is necessary. Organizations become successful when
employees have abilities & desire to accomplish given tasks.

FRAMEWORK OF MOTIVATION

2.
SEARCHES
FOR WAYS
TO SATISFY
NEEDS

1.
IDENTIFIES

NEEDS

6.
REASSESS
NEEDS
DEFICIENC
IES

3.
ENGAGE
GOAD
DIRECTED
BEHAVIOR

EMPLOYEE

5.
RECEIVES
EITHER
REWARD
OR
PUNISHMENT

4.
PERFORMS

NATURE OF MOTIVATION
A manager gets results through other people. His or her effectiveness depends, to a large
extent, on the willingness of his or her employees to do the assigned tasks with
interest

and

enthusiasm. Motivation is the work a manager performs to inspire and

encourage people to take required action. According to SCOTT, Motivation is a process of

stimulating people to action to accomplish goals.

Motivation is a personal and internal feeling. The feeling arises from needs wants. Human
needs are limited. Fulfillment of one set of needs gives rise to other needs. Therefore,
motivation is a continuous process. Since needs are interrelated, a person cannot be partly
motivated as he is a self-contained and inseparable unit. The success of an organization
ultimately depends on how effectively managers are able to motivate their subordinates. In
the words of Allen, poorly motivated people can nullify the soundest organization. It is not
easy to understand the complexities involved in motivating people. If an employee has an
argument with his boss and fails to report to work the next day, it may appear that his
behavior is a result of the confrontation. However, his behavior may actually be motivated by
a combination of factors including overwork, family illness or some other problems. As
things stand now, the whys of behavior cannot be explained easily? Let us examine some of
the factors that complicate this process:

MULTIPLE CAUSES
Different people may have different visions for behaving in the same manner. For example, a
bank officer may join a service club because it is a good place to have business contacts;
another may join because of social atmosphere; still another joins because of the interesting
programmer and speakers at the club. Thus, three different why can underline the same
behaviors, further complicating the process of inferring motivation from behaviors? For
example, the motivations of people trying to pursue a certain behavior can spring from quit
difference reason personality background experience group effects or many others factor and
impact a person carrier choice.

MULTIPLE BEHAVIOUR:
Further the same motive or derive may result in different behavior for example, if Rio wants
a promotion he may concentrate on performing his job exceptionally well But Siddharta, who
also wants a promotion my take a different approach he may try to apple polish the boss get
the promotion another manager who also want the promotion very badly may be afraid to do
anything at all for fear he will fail the motivation for these three behaviors is the same but it
cannot be determine simply by viewing the behavior of three managers.

10

Motivation, obviously, is a complex subject it is difficult to explain and predict

the behavior of employees. The introduction of an apparently favorable motivation device
may not necessary produce the desired ends if it brings opposite into play. In a factory, when
blue- green lighting was introduced to reduce eye strain, the output of men workers increased
but that of women workers decreased. On investigation it was found that the latter disliked
the change in lighting because they felt that new lighting made them look simple ghastly!
an intelligent manager is expected to look into the complex factors that go into the behavior
of employees carefully and initiate steps to motivate them.

FEATURE OF MOTIVATION

It results from a felt need. Motivation triggers behavior impelling a person to action.

It is goal directed. Motivation is a driving state that channels behavior into a specific
course that is fulfillment of a felt need.

It sustain behavior in progress it persist until the satisfaction or reduction of a need

state occurs.

It is a dynamic function.

It is needed at all level of organization.

It increases the willingness of the people to do the work.

Motivation is related with human factor of production.

Motivation can be positive or negative.

11

THE ROLE OF EMPLOYEE MOTIVATION

At one time employees were considered just another input into the production of goods and
services .Now that employees have been hired, trained and remunerated they need to be
motivated for better performance The HR specialist must use several ways to motivate the
employees.

WHY DO NEED MOTIVATE EMPLOYEES?

The answer is survival. Motivated employees are needed in our rapidly changing workplaces
employees. Motivated employees help organization survive. They are more productive. To be
effective, manager need to understand what motivate within the context of the roles they
perform. Of all the functions a manager performs, motivating employees is arguably the most
complex. This is due, in part to the fact that what motivate employees changes constantly.

DETERMINANTS OF EMPLOYEE MOTIVATION

Traditionally it is believed that employees are motivated by the opportunity to make as
much money as possible and will act rationally to maximize their earnings. The
assumption is that money , because what it can buy, is the most important motivator
of all people. If this is so, why do some employees oppose the introduction of piece
rate plans and others refuse to take overtime. Obviously, in place of the above
monistic approach, a pluralistic explanation is required.

According to the pluralistic approach, men work to fulfill a variety of needs. Three types of
forces generally influence human behavior

Forces operating within the individual,

Forces operating within the organization and
Forces operating in the environment.

12

THE INDIVIDUAL
Human needs are both numerous and complex. Some of these needs cannot be

described and identified because people hide their real needs under the cover of
socially accepted behavior. Further, each person is different and a variety of items may
prove to be motivating, depending upon the needs of the individual, the situation the
individual is in and what rewards the individual is in and what rewards the individual
experts for the work done. It is the duty of the manager to match individual needs and
expectations to the type of reward available in the job settings.

THE ORGANISATION
The climate in the organization must be conducive to human performance. Climate
plays an important part in determining workers motivation. The climate

in an

organization is determined by a no. of variables such as its leadership style,

autonomy enjoyed by member, growth

popsicles,

emotional

support

from

members, reward structure.

THE ENVIRONMENT
A worker does not live in two separates worlds, one inside the factory and the other
outside it. The troubles and pleasures of off the job life cannot be put aside when
reporting for work in the morning, nor can factory matters be dropped when retuning
home after work. On-the-job experience and off-the-job experience are experience are
inextricably interwoven and cannot be separated into water tight compartments.
Culture, norms, customs, images, and attributes according by society to particular
jobs, professions and occupations and the workers home life all play a strong
motivational role. An individual may prefer to do the job of an officer (because it has
social status and gives lot of power) rather than serve to do a college teacher
(powerless position). In other words, factors such as social status and social
acceptance play an important role in shaping the motivations of people.

13

MOTIVATIONAL TECHNIQUES
POSITIVE OR NEGATIVE MOTIVATION
POSITIVE MOTIVATION
It means that motivation with which the employees are motivated in respect of their
work by offering some economic or non-economic incentive. This type of motivation
may be: giving suggestion about work, giving information, taking personal, interest in
the subordinate etc.

NEGATIVE MOTIVATION
It means that motivation which created by the manager by giving threat, punishment
or fear to get the work done according to their wishes. It may be: criticizing the
workers, ignoring the workers etc.

FINANCIAL OR NON FINANCIAL

FINATIONAL MOTIVATION
They are those motivations which are evaluated in terms of money. It includes
increase in salary, giving bonus and commission etc.

NON FINANCIAL
This motivation is not directly with money. These are related internal feelings of
employees. These include employee participation in management, job security,
opportunity of promotion etc.

INDIVIDUAL OR GROUP MOTIVATION

INDIVIDUAL MOTIVATION
Under this motivation an employee is individually motivated to inspire him to do
more work. This motivation can be either positive or negative.
14

GROUP MOTIVATION
It is related to a group rather than a particular individual. Under it the performance of
the entire group member is appreciated as a group rather than as an individual.

INTRINSIC AND EXTRINSIC MOTIVATION

EXTRINSIC MOTIVATION
These are those motivations which impress the employee by working but they get
them afterward. Such as retirement benefit, insurance etc.

INTRINSIC MOTIVATION
These are those motivations which are received at the time of job. It means the
time of their receipt by the employees and effect of their efficiency happens to be the
same. Such as, any financial or non financial motivation.

IMPORTANCE OF MOTIVATION
HIGH LEVEL OF PERFORMANCE
With the help of motivation the efficiency of employee increases & this
efficiency is positively related with the performance.

EASY ACCEPTANCE OF ORGANIZATIONAL CHANGES

The changes in the org. are necessary with time & this change can be made
acceptable with help of motivation because motivated people will accept them
more zeal.

GOOD HUMAN RELATION

With the help of motivation the employees will be more satisfy and happy. It
reduces

the

frustration

between management and the lab our

developing between human relation.

15

and

help in

 GOOD IMAGE OF ORGANISATION

When the employees are motivated then they will be fully dedicated to the
organization. It helps in increasing the image of organization.

PROPER USE OF HUMAN RESOURCES

Motivation helps in making fuller utilization of human resources because they will
work at their full capacity willingly.

HERZBERGS THEORY OF MOTIVATION

In the late 1950s, Frederick Herzberg, considered by many to be a pioneer in

motivation theory, interviewed a group of employees to find out what made them
satisfied and dissatisfied on the job. He asked the employees essentially to sets of
questions:

Think of a time when u felt especially good about your job. Why did you fill that
way?

Think of a time when u felt especially bad about your job. Why did you fill that
way?

From these interviews Herzberg went on to develop his theory that there are to
dimension

to job

satisfaction:

motivation and hygiene. Hygiene issues, according to

Herzberg, cannot motivate employees but can minimize dissatisfaction, handled properly. In
other words, they can only dissatisfy if they are absent or mishandled. Hygiene topics include
company policies, supervision, salary, interpersonal relations and working conditions. They
are issues related to the employees environment. Motivators, on the other hand, create
satisfaction by fulfilling individuals need for meaning and personal growth. They are issues
such as achievement, recognition, the work itself, responsibility and advancement. Once
the hygiene areas are addressed, said Herzberg, the motivators will promote job
satisfaction and encourage production
16

There are two factors which affects the job motivation

HYGINE FACTORS(MAINTENANCE FACTORS)
Hygiene factors represent the need to avoid pain in the environment. They are not an
intrinsic part of a job, but they are related to the conditions under which a job is
performed. They are associated with feeling.
MOTIVATORS
Motivators are associated with positive feeling of employees about the job. They are
related to the content of the job. They make people satisfied with their jobs.
Motivators are necessary to keeps job satisfaction & jobs performance high.

TABLE 2.1 VARIABLES AFFECTING MOTIVATION

HYGIENE FACTORS

MOTIVATOR

COMPANY POLICIES

WORK ITSELF

SUPERVISION

ACHIEVEMENT

SALARY

RECOGNITION

INTERPERSONAL RELATIONS RESPONSIBILITY

WORKING CONDITION

ADVACEMENT

HYGIENE FACTORS
COMPANY AND ADMINISTRATIVE POLICIES
An organizations policies can be a great source of frustration for employees if the
policies are unclear or unnecessary or if not everyone is required to follow them.
Although employees will never feel a great sense of motivation or satisfaction due to
company & by making sure that policies are fair and apply equally to all. Also,
printed copies should be made of policies and procedures manual that should be
17

easily accessible to all member of the staff. The manual should be updated regularly
(again, with staff input).

SUPERVISION
To decrease dissatisfaction in this area, one must begin by making wise decision
when a new appointment is made to the role of supervisor be aware that good
employees do not always make good supervisions. The role of supervisor is extremely
difficult. It requires leadership skills and ability to treat all employees fairly. One
should teach their supervisors to use positive feedback whenever possible feedback
whenever possible & feedback so that no feels signed out.

SALARY
The old adage you get what you pay for tends to be true when it comes to staff
members. Salary is not a motivator for employees, but they do want it comes to staff
members. Salary is not the motivators for employees, but they do want to be paid
fairly. If individuals believe they are not compensated well, they will be unhappy
working for the company. Consult salary survey or even their local help-wanted ads
to see whether the salaries and benefits company are offering are comparable to those
of others offices in that area. In addition, make sure they have clear policies related
to salaries, raises and bonuses.

INTERPERSONAL RELATION
Remember that part of the satisfaction of being employee is the social contact
it brings, so allow employees a reasonable amount of time for socialization (e.g., over
lunch, during breaks, between patients). This will help them to develop a sense of
camaraderie and teamwork. At the same time, one should crack down on rudeness,
inappropriate behavior, and offensive comments. If an individual continues to be
disruptive comment. Take charge of the situation, perhaps by dismissing him or her
from the practice.

WORKING CONDITIONS
The environment in which people work has a tremendous effect on their level of
pride for themselves and for the work they are doing. Equipments and facilities
should be kept up to date. Even a nice chair can make a world of difference to an
18

individuals psyche. Also, if possible, avoid overcrowding and allow each employee
his or her own personal space, whether it is a desk, a locker, or even just a drawer

MOTIVATORS
WORK ITSELF
Perhaps most important to employee motivation is helping individuals believes that the
work they are doing is important and that their tasks are meaningful. Emphasize that
their contribution to the practice result in positive outcomes and good health care for
the patients. Share stories of success about how an employees actions made a real
difference in the life of the patient, or in making a process better. Make a big deal
out of meaningful task that may have become ordinary, such a new baby visits. Of
course employees may not find all their tasks interesting or rewarding, but one should
show the employee how those tasks are essentials to the over all processes that make
the practice the succeed.
Tasks should be find out that are truly unnecessary and can be eliminated or
streamlined, resulting in greater efficiency and satisfaction.

ACHIEVEMENT:
One premises inherent in Herzbergs theory is that most individuals sincerely
want to do a good job. To help them, make sure that the company has placed them
in positions that use their talents and are not set up for failure set clear achievable
goals and standard for each positions, and make sure employees know what those
goals and standards are. Individuals should also receive regular, timely feedback on
how they are doing & should feel they are being adequately challenged in their jobs.
Be careful, however, not to overload individuals with challenged that are too difficult
or impossible, as that can be paralyzing.

RECOGNITION
Individuals at all levels of the organization want to be recognized for their
achievements on the job. Their success dont have to be monumental before they
deserve recognition, but the praise should be sincere. If employees are doing
something well, take the time to acknowledge their good work immediately. Publicly
thank them for handling a situation particularly well. Write them a kind note of praise.
19

Or give them a bonus, if appropriate. Company should establish a formal recognition

program, such as employee of the month:.

RESPONSIBILITY
Employee will be more motivated to do their jobs well if they have ownership of
their work. This require giving employees enough freedom and and power to carry
out their tasks so that they feel own the result. As individuals nature in their jobs,
provide opportunities for added responsibility. Be careful, however, that simply
addition of more work should not be there.
Instead, find way to add challenging & meaningful work, perhaps giving the
employee greater freedom and authority.

ADVANCEMENT
Reward loyalty and performance with advancement. If company do not have an open
position to which to promote a valuable employee, consider giving him or her a new
title that reflects the levels of work he or she has achieved. When feasible, support
employees by allowing them to pursue further education, which will make them more
valuable to companys practice and more fulfilled professionally.
Employee motivation is an important concept that have receiving considerable from
academicians, researchers & practicing HR managers. In its essence, employee
motivation comprises important elements such as the need or content, search & choice
of strategies , goal directed behavior, social comparison of rewards, reinforcement &
performance satisfaction.
The increasing attention paid towards job motivation is justified because of several
reasons. Motivated & satisfied employees come out with new ways of doing jobs.
They are quality oriented. They are more productive. Any technology needs motivated
employees to adopt it successfully.

HOW TO MOTIVATE EMPLOYEES?

RECOGNISE INDIVIDUAL DIFFERENCES

20

Employee are not homogenous. They have different needs. They also differ in
terms of attributes, personalities & other important variable. So, recognize

these

differences and handle the motivational issues carefully.

MATCH PEOPLE TO JOBS

When the right job is given to the right person, the organization benefits in
innumerable ways. A person with high growth needs performs better on challenging
jobs. Achievers will do best when the job provides opportunities to anticipatively set
goals and when there is autonomy and feedback. At the same time, keep in mind
that, not everybody is motivated in jobs with increased

autonomy, variety and

responsibility.

USE GOALS
Provide specific goals, so that the employees know what he is going. Also, let people
know what you expect of them. Make people understand that they can achieve the
goals in a smooth way. If you expect resistance to goals, invite people to participate
in the goal-setting process.

INDIVIDUALISE REWARDS
Use rewards selectively keeping the individual requirement in the mind. Some
employees have different needs; what acts as motivators for one may not work
foranother. Individualize rewards such as, pay, promotion, autonomy, challenging jobs,
participative management must be used keeping the mental make- up of the employees
in question, in view.

LINK REWARDS TO THE PERFORMANCE

Make rewards contingent on performance. To reward factors other then performance
(favourtism ,nepotism, regionalism, apple polishing, yes- sir culture, etc.) will only act
to reinforce those other factors. Employees should be rewarded immediately after
attaining the goals. At the same time, managers should look for ways to increase the
21

visibility of rewards. Publicize the award of performance bonus, lump sum payments
for showing excellence discussing rewards structure with people openly-these will go
a long in increasing the awareness of people regarding the reward performance
linkage.

CHECK THE SYSTEM OF EQUITY

The inputs for job in the form of experience, abilities, efforts, special skills, must be
weighed carefully before arriving at the compensation package for employees.
Employees must see equity between the rewards\recognition obtained from the
organization & the efforts put in by them.

NON FINANCAL INCENTIVES

Non-financial incentives play an important role in motivating people towards the job.
Incentives which cannot be offered in terms of money are known non-monetary/ nonfinancial incentives. Often, money alone is not sufficient to satisfy higher level needs,
such as status, recognition, realization of ones potential etc. people working at levels
do not always work for money. They expect a challenging job, interesting work that
grants them enough power to control environment , work that allows men to use their
talent fully. Over the years organization have developed a variety of incentives to
meet the higher order needs of the people working in the organization. These are
discussed below broadly under three categories.

TABLE 2.2 NON FINANCIAL INCENTIVES

Individual Incentives

Group Incentives

Organizational
Incentive

22

1. Status: It is the ranking

1.Social importance of

1. Participation: People

of position, rights and

work: People want jobs

prefer organizations that

duties in the

with high social status.

offer them good

organizational. Research

They are prepared to

opportunities to

indicated the fact that

accept such jobs, even

participate in the

middle and higher level

when the pay is

decision

employees prefer

comparatively less.

escalations in status to
increment in pay.
2. Promotion: It is the

2. Team spirit: People

2. Sound human

vertical movement of a

prefer to work in well-

relations: A positive

person in the organization.

knit groups. Those

work climate where

Promotion is accompanied

organizations that

people are treated as

by increased

encourage their

human beings is an

responsibilities. Enhanced

employees to do the

important reward. It

prestige and power

jobs in a cooperative

permits people to work

usually. Since a

manner, attract people

with enthusing and

promotion depends on

automatically. When

spirit and contribute their

good performance, most

team spirit is

best.

employees try to attain

encouraged among

these if the organization

employees, they will

provide the organization

put in their maximum

provides the opportunities.

in the service of the

organization.

3 Responsibility: People

3.Healthy competition :

3. Morale: Morale refers

want to handle responsible

Promoting healthy

to the atmosphere created

and challenging jobs. If

competition among

by the attitudes of the

the job is responsible, it

employees through

members of an

satisfies people in more

carefully chosen

organization.

than one way.

rewards schemes spurs

people to work harder.

23

SUMMARY
The study

EMPLOYEE MOTIVATION was conducted as a part of the one-month

training Programme.
The objectives of the project is

to study the factors which helps in motivating

employees in the ESCORTS.

In the success of ESCORTS employees impart the major contribution. So this
organization emphasis on making employees satisfies with their job and motivates them
for the challenging job.

The project which has been undertaken by me on job motivation thus has the prime
objective to study the factors which helps in motivating employees at the middle
level of management.
The method adopted to find the job satisfaction & motivational factor in middle
management is based on questionnaire method. Through question it has been tried to
find out the dominant factor which prevent dissatisfaction & the dominant factor which
motivate

employees.

The

parameter are

recognition etc. are taken for the study.

24

such

as

salary, supervision, work itself,

Through out the study, the subject matter has been discussed in a simple language,
the practical applications of the present day condition have given and attempt has
been made the latest trend

CHAPTER-3
COMPANY PROFILE

25

A small beginning for a dynamic enterprise was made in 1944 by two brothers Late Shri Yudi
Nanda and Late Shri Hari Nanda witch little else but guts, imagination and a determined will
as their man capital.
The foundation of ESCORTS Limited was laid in the formation of Escorts (Agents) Ltd., on
17th October, 1944 and of Escorts (Agriculture and machines) Ltd. in 1948. These two were
later merged in 1953 to form Escorts Agents Pvt. Ltd. The companys incorporation in its
present name, Escorts Ltd. was effected on 21 December 1959.
Having started initially as a franchise for wresting houses domestic appliances, Escorts has
come a long way in manufacturing and marketing a range of products. It has pioneered farm
mechanization in India through import and distribution of agricultural tractors.
The manufacturing operations commenced in 1954, and since then a wide range of new
products have been introduced in the country.
In over five decades Escorts has grown to become one of the top industrial conglomerates in
the country. The Escorts Group is operating in the field of Agri machinery, Railways
Equipment, Auto suspension products, Construction and Material Handling Equipments and
financial services.

About ESCORTS
26

The hexagon is a symbol of precision when enterprises as nut. It symbolizes craftsmanship

and unending production productivity.

Full Form of ESCORTS

E - Ensure the built quality
S - Save energy
C - Cultivate process norms
O - Observe process norms
R - Reduce wastage
T - Take care of machine
S - Strive for excellence

LEADERSHIP TEAM
Mr. Rajan Nanda
Chairman
Mr. Nikhil Nanda
Joint Managing Director
Mr. Rohtash Mal
Executive Director and Chief Executive Officer Agri Machinery
Mr. Manoj jha
Business Head Engineering Division
Mr. G.B. Mathur
Vice President Law & Company Secretary
Mr. Rakesh Kumar Budhiraja
Group Chief financial Officer

HISTORY OF COMPANY

27

Group

The genesis of Escorts goes back to 1944 when two brothers, Mr.H.P.NANDA and Mr.Yudi
Nanda, launched a small agency house, Escort agent ltd. in Lahore. Over the years, Escorts
has surged ahead and evolved into one of Indias largest conglomerates. In this journey of six
decades, Escorts has had the privilege of being associated with some of the world leaders in
the engineering manufacturing space like Minneapolis Moline, Massy Ferguson, Goetze,
Mahel, URSUS, CEKOP, Ford motor company, J C Bamford Excavators, Yamaha, Class,
Cararo, lucky Goldstar, first Pacific Company, Hughes Communications, Jeumont Schneider,
Dynapac. These valued relationships be it technological or marketing, are our highly
cherished experiences treasures, witch have helped us inculcate best in class manufacturing
practices and to emerge as a technologically independent world class engineering
organization.
1944- Launch of Escorts (Agents) ltd.
1948- Pioneered farm mechanization in the country by launching Escorts agricultural
machine limited, with a franchise from the U.S. based Minneapolis Moline, for marketing
tractors, implements, engines & other farm equipments. Launch of Escorts (Agriculture and
machine) ltd.
1949- Franchise of Massey Ferguson tractors for northern India.
1951- Escorts established India first private Institute of farm Mechanization at Delhi.
1953- Escorts (Agents) Ltd. and Escorts (Agriculture and Machine) Ltd. merged to form
Escorts Agents Pvt. Ltd.
1954- 1st industrial venture of Escorts to manufacture piston rings in collaboration with
Goetze of Germany, in an era when joint venture of Indian firm with foreign companies were
virtually unheard of.
1958- Started Importing Massey Ferguson tractors from Yugoslavia for marketing the same in
India.
1959- Collaboration with Mahle of Germany to manufacture pistons. Soon Escorts became
the largest producer of piston assemblies in India.
28

1960- Set up of Escort limited.

1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in
collaboration with URSUS of Poland and 50% indigenous components. Launch of Escort
brand of tractors. Collaboration with CEKOP of Poland for manufacture of motorcyle and
scooters. Escorts moves into high gear by nurturing the two wheeler culture. The first Rajdoot
motorcycle rolls off the assembly line.
1969- Escorts Tractor limited was born. A technical and financial joint venture with the
global giant Ford Motor Company, USA, to manufacture Ford tractors in India. The years
ahead saw Escorts grow as the largest tractor manufacturer in India.
Escorts Institute of Farm Mechanization (EIFM) establish at Bangalore.
Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial democracy comes
into being.
1971- 1st February, the first tractor FORD 3000 rolled out of the factory.
Escorts diversifies and starts manufacturing construction equipment.
1974- Crossing national boundaries, Escorts export for first time. After winning a global
tender, 400 tractors were exported to Afghanistan, which was perhaps the world largest ever
airlift of tractor.
1976- FORD 3600, advancement in farm mechanization launched. Trial production of inplant manufacturing of engine parts (Block & Head).
1977- Escorts enter the world of self development technology by setting up its first
independent R&D center. Escorts scientific research center marked

its beginning at

Faridabad by developing its owns Engines for E-27 and E-37. Due to constant technology
absorption,

29

Indigenization level touched 72% for FORD tractors. 2 nd plant at Bangalore for
manufacturing piston assemblies was set up. 1979- Collaboration with JCB Excavators Ltd.,
UK for manufacture of excavators.
1980- Foray into healthcare, Escorts hospital and Research center set up in Faridabad.
1983- Escorts tractors Ltd. (ETL) establish a state-of-the-art research and development centre
to spearhead newer breakthroughs in Farm mechanization and to maintain industry
leadership. Line concept introduced for engine block machining. 11,000 ton floating dry-dock
Escorts I launched.
1984- JV Escorts Yamaha to manufacture motorcycle. Signing of agreement with the
Japanese bike giant Yamaha to manufacture motorcycle with Yamaha technology.
Collaboration with Jeumont Schneider of France to manufacture EPABX systems
collaboration with Dynapac of Sweden to manufacture vibratory road compactors.
1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).
1988 - Escorts Heart Institute and Research Center (EHIRC), a world class cardiac care
facility launched in New Delhi.
1989 - Joint Venture with Class of Germany to manufacture harvester combines.
1990-91 - First Public Issue in February 1991, over subscribed four times. Shares listed
Delhi and Bombay Stock Exchange.
1993 - FORD 3620 tractor launched.
1996 - Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.
1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of transmission
and axels.

30

Joint Venture with First Pacific Company of Hong Kong Escotel Mobile Communications.
1998 - POWERTRAC series of tractors launched.
MoU was signed with Long Manufacturing Company, USA for setting up a Joint Venture in
USA.
1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for assembly,
manufacturing and marketing of Farm Machinery.
2004 - Divested Escotel Mobile Telecommunications to Idea Cellular
TS16949 certification for Agri Machinery Group.
2005 - Divested Escorts Hearts Institute and Research Centre (EHIRC) to Fortis Healthcare.
2006 Divested in Carraro India Ltd.
Set up new manufacturing facility in Rudrapur for manufacture of new range of railway
equipment.

OBJECTIVES OF ESCORTS

Expand new markets and consolidate further in the existing strong markets.

Meet the growing demand of markets through increased productivity.

Production and maintaining quality standards.

Offer quality products with top of the line specification supremacy in design
performance and operation.

31

QUALITY OBJECTIVES

Escorts limited-AMG plant-1 Quality Objectives are derived for the quality policy and are
intended to provide quality direction to employees in the day-to-day operation of the plant.
The quality objectives are applicable to AME Plant-1 is approved by the plant head. The
quality objectives are below:

Escorts limited-AGM plant quality objectives are derived from the quality policy and are

intended to provide quality director to employees in the day-to-day operation of the company.

We will attempt to give our customers the best value for their money by supplying

products to match customers specification/ needs.

We will attempt full customer perception and brand image of our product through market

survey and brand image of our product through market surveys periodic survey and periodic
direct customer contact in the market place.

We will pursue continuing improvement in product quality and productivity by suitable

indicator to measure the trends of improvement resulting from our efforts.

We will work together as a TEAM across department and organizational levels using task

forces to develop a common focus and greater effectiveness in solving problems.

Specific corporate and department objectives for a particular year will be derived from

the above used to monitor and control and control company operations.
Best value of money, customer satisfaction, and continued improvement in product quality,
productivity conformance to quality management system in each area of work, prompt
corrective action and team building are the major focus area of quality objectives of AMG
plant-1.

32

AGM STRATEGIES 2008-2009

Improve response time for the development and introduction of technologically

superior &cost competitive products.

Global quality standards of products and management.

Build an R&D organizational capable of meeting market requirement of quality, price

and speed.

Institutionalize system to continuously assess customer needs and concerns.

Focused and aggressive marketing, selling and customer services strategies.

World-class distribution system adapted to the Indian context.

Ensure rapid growth in Europe & North America markets.

Institutionalize system for timely business intelligence on product ma, markets,

strategies, tactics and system etc.

Low cost base-fixed and variable.

Optimization of manpower numbers action AMG.

Institutionalize project management to enhance efficient implementation across AMG.

Enhance transparency and relationship with suppliers and improve vendors process
for long-term cost advantages.

Improved efficiency and productivity at all levels through continuous improvement or

system and process.
33

ESCORTS GROUP INFRASTRUCTURE

Escorts has full fledged R&D facility, 24 regional marketing offices, nearly 1000
sales/services outlets, over 2500 auxiliaries forming vendor base, 4 financial services
companies Asias best farm mechanization training institute with 100 acre demonstration
farm, dealer development association providing management and financial support to dealers
Today with nearly 24000, employees and 19 modern manufacturing facilities, the Escorts
group rank among Indias leading engineering conglomerates. At every step of the way
Escorts has included the latest technology by forming alliances with worlds more advanced
Engineering to Indian situations.
The company has got various divisions namely.
Tractor equipment division:
This division is for manufacturing and marketing of tractors
Industrial equipment division:
This division is for manufacturing of cranes leaders and earth movers.
Railways equipments division:
This division is for manufacturing of rail equipments like railways brakes and speedometer
etc.
Motorcycles & scooter division manufacturing division:
This division manufacture motorcycles, scooters etc

FUCTIONS OF ESCORTS

1. MANUFACTURING

34

Escorts AMG has Tractor manufacturing capacity of 98,940 trs / annum which is the
highest in Asia at one location. Its manufacturing operations are divided in three plants as

Component plant

Tractor Assembly plant

Crankshaft & Hydraulic Plant.

QUALITY ASSURANCE
Quality Management History and Achievements

Collaborated with leading European tractor manufacturers in 1960s and 1970s.

Thus world best practices and Quality system in manufacturing and vendor
development were already in use much before they were started by any other Tractor.

MATERIAL MANAGEMENT
Material Department- Strategic Sourcing Department

Presently procuring materials for 72,000 tractors per annum.

Present procurement value over US$30 million.

Production will rise to 100,000 tractors per annum in 2 years.

Procurement value will rise to almost US$ 45 million in that period.

Presently 387 suppliers of which over 95% are India domestic.

Advantages of low costs of materials in India.

Items procured are:

Castings

Forging

Machined parts

Proprietary

Sheet Metal

Hardware

SALES & MARKETING

35

Vision: Create the PULL for AMGS Products and Services such that we actualize our
aspirations of sustained profitable growth. We will do this through appropriate Brand
positioning and creation of Brand Value, which will focus on each of the 4 Ps of the
Marketing Mix Product, Price, Promotion, and Place.
Brand Propositions: Escorts AMG has three powerful and well accepted brands farmtrac,
Powertrac and Escorts, the brand propositions of which have been designed in a manner
that they complement each other in the market place.
The 3 brands are based on distinct technologies designed to suit varied soil conditions and
applications for agricultural and commercial usage.
We have institutionalized the Proactive Approach of identifying the latent needs of the
customer and offering the right product design for right application.
The Offering: The Product offering to our valued customers is our Tri Offering of:

Product

Services

Spares

Based on the foundation of customer Relationship, Dealer Management and Innovation.

The Brand Propositions, our offering and the distinct technological advantages of our
products are promoted in the market place through various ATL (Above the Line) and BTL
(Below the Line) activities which are arrived at scientifically through an iterative process.
The Marketing efforts are deployed through the National Sales and Service Grid of:
o Over 1200 national dealers, sub dealers, distributors and stockiest, backed
effectively by systematic micro efforts for effective development right down to
the village level.
o Over 200 sales offices strategically located across the country.
o Tractor sales to over 41 countries of the globe.

36

The value set of the entire Sales Effort is the 3 Pillars of Integrity, Self Esteem and
Ownership based on the foundation of Transparency, Trust and confidence.
The Sales Management follows a Virtuous Cash Cycle and its important components are:

Sales/Collection

Channel Management

Retail/Channel finance

CRM

Trade-In

Supply And Logistics

Customer Satisfaction is vital for us. We perform customer follow-up after a sale is made.
Satisfaction ratings are ascertained. Similarly we
Evaluate our Dealers and Services Centers by inviting Customer feedback is an essential part
our efforts to serve the customer better and better.

Manufacture2002-2003- Adoption of Oracle ERP

2002-2003- Adoption of Oracle ERP

2001-2004 Implementation of TS 16949 based Quality system and Certification

2006 till date TQM Principles with new and focused understanding.

37

CHAPTER-4
DATA ANALYSIS
&
38

INTERPRETATIONS

Q.1 Are all the employees motivated through monetary incentives?

Options
Yes
No

% of Respondents
90
10

Table 4.1: Employee motivated through monetary incentives

Figure 4.1: Employee motivated through monetary incentives

39

INTERPRETATION:
The above table shows that, 90% employees are motivated through monetary incentives
while 10% are not.

Q.2 Are all the employees motivated through supervision?

Options
Yes
No

% of Respondents
80
20

Table 4.2: Employee motivated through supervision

Figure 4.2: Employee motivated through supervision

40

INTERPRETATION:
The above table shows that, 80% employees are motivated through supervision while 20%
are not.

Q.3 Is the employees often take part in the management planning?

Options
Yes
No

% of Respondents
70
30

Table 4.3: Employees take part in management planning

Figure 4.3: Employees take part in management planning

41

INTERPRETATION:
The above table shows that, 70% employees are take part in management planning while
30% are not.

Q.4 Does

the

working

condition

effects

the

employees

towards the organization?

Options
Yes
No

% of Respondents
75
25

Table 4.4: Working condition effects employees attitude

42

attitude

Figure 4.4: Working condition effects employees attitude

INTERPRETATION:
The above table shows that, 75% employees are say that working condition effects their
attitude while 25% are not say.

Q.5 Is the responsibility affects the employees motivation?

Options
Yes
No

% of Respondents
80
20

Table 4.5: Responsibility affects the employees motivation

Figure 4.5: Responsibility affects the employees motivation

43

INTERPRETATION:
The above table shows that, 80% responsibility affects the employees motivation while 20%
are not say.

Q.6 Choose the factor from below that helps you in getting motivation?
Options

% of Respondents

Hard work

25

Serial sub-ordinate relationship

45

Skill & management

30

Table 4.6: Factors helpful in getting motivation

44

Figure 4.6: Factors helpful in getting motivation

INTERPRETATION:
The above table shows that, sub ordinate relation will be best preferable for getting
motivation but hard work and skill also get 35% and 26% respectively.

Q.7 On what factor motivation is based upon?

Options
% of Respondents
Performance
40
experience
20
Both
40
Table 4.7: Fundamental factors for motivation

Figure 4.7: Fundamental factors for motivation

45

INTERPRETATION:
The above table shows that, performance and experience; both will be the factor considered
during motivation.

Q.8 Do you think motivation policies being adopted in your company are same for all
dept?
Options
% of Respondents
Yes
60
No
20
To some event
20
Table 4.8: Uniformity of motivation policies

Figure 4.8: Uniformity of motivation policies

46

INTERPRETATION:
The above table shows that, 60% of employees want uniformity in motivation policy of the
company because may believe that it will improve management employee relationship. But
on other hand 20% are not in favor of the uniform in all dept.

Q.9 Is employee are satisfied with the motivation policy methods?

Options
% of Respondents
Yes
65
No
35
Table 4.9: Satisfaction level of employees towards motivation policy.

Figure 4.9: Satisfaction level of employees towards motivation policy.

INTERPRETATION:

47

The above table shows that, 65% employee are satisfied with their companys motivation
policy but 355 are not so.

Q.10 Rate your companys motivation policies?

Options
Poor
Moderate
Good
Excellent

% of Respondents
5
10
25
60

Table 4.10: Rating of motivation policies

Figure 4.10: Rating of motivation policies

48

INTERPRETATION:
The above table shows that, 60% of the employee rate their motivation policy as an excellent
to be adopted but some as good; moderate and some as poor also.

Q.11 Do you think there should be any change in motivation policy?

Options
Yes
No
Cant say

% of Respondents
25
40
35

Table 4.11: Change in existing motivation policy

Figure 4.11: Change in existing motivation policy

INTERPRETATION:

49

The above table shows that, 40% of employees say no; but 25% say yes and 35% havent said
the answer.

Q.12 What are the important of motivation?

Options
Yes
No

% of Respondents
85
15

Table 4.12: Important of motivational factors

Figure 4.12: Important of motivational factors

INTERPRETATION:
The above table shows that, 85% of employees say yes; but 15% say no.

50

CHAPTER - 5
RECOMMENDATION &
CONCLUSIONS

51

RECOMMENDATIONS

In this orgnisation positive feedback is given to employees but feedback is not given
regularly on their performance. So, a regular feedback should be given that will have
employee to know where they need to improve

Accounting of job is given but it needs to be increase so that employees will fell more
responsible and accounting towards their jobs

Management should link rewards with the performance of the employees for
motivating then toward their job.

The entire employee should obey the rules and regulations of the organization.

52

CONCLUSIONS

Good working conditions are available for the employees & the superior.

Opportunity are given for advancement of the organization to the employees.

Employees are happy with the changing culture because they are motivated
through that way.

Organization makes their employees feel that their work is important for the
organization.

Good human relations are found in the organization & between the employees
& superior.

Good public image of the organization.

All the employees are efficient and sincere.

Company

policies,

supervision,

salary,

interpersonal

relations,

working

conditions, work itself, achievement, recognition, responsibility, & advancement

are the factor that affects the employee motivation.

53

BIBLIOGRAPHY

54

BOOKS

Chabbra T.N., Human Resources Management, Dhanpat Rai & co. (p) Ltd. India, Ninth
Edition.

Kothari C.R., Research Methodology, New Delhi, New Age International Publisher,
Second Edition.

Gupta C.B.,Human Resource Management, Sultan Chand &Sons, Sixth Edition.

Ashwathapa K.,Human Resource Management,Mcgiaw Hill, Fourth Edition.

Prasad L.M., Organizational behavior, Sultan Chand & Sons, Fifth Edition.

WEBSITES

www.escorts.com

www.escortsgroup.com

www.ecel.com

www.passionhr.com

www.citehr.com

55

ANNEXURE
QUESTIONNAIRE

56

QUESTIONNAIRE

Q.1 Are all the employees motivated through monetary incentives?

i.

yes

ii.

no

Q.2 Are all the employees motivated through supervision?

i.

yes

ii.

no

Q.3 Is the employees often take part in the management planning?

Q.4 Does

i.

yes

ii.

no

the

working

condition

effects

the

towards the organization?

i.

yes

ii.

no

Q.5 Is the responsibility affects the employees motivation?

i.

yes

ii.

no

57

employees

attitude

Q.6 Choose the factor from below that helps you in getting motivation?
i.

Hard work

ii.

Serial sub-ordinate relationship

iii.

Skill & management

Q.7 On what factor motivation is based upon?

i.

Performance

ii.

experience

iii.

Both

Q.8 Do you think motivation policies being adopted in your company are same for all dept?
i.

yes

ii.

no

Q.9 Is employee are satisfied with the motivation policy methods?

i.

yes

ii.

no

Q.10 Rate your companys motivation policies?

i.

Poor

ii.

Moderate

iii.

Good

iv.

Excellent

Q.11 Do you think there should be any change in motivation policy?

i.

yes

ii.

no

iii.

Cant say

Q.12 What are the important of motivation?

i.

yes

ii.

no

58