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DECLARATION
We, the students of T.Y.B.B.A (HR) Zeel Choksi , Juhi Chorawala , Helina
Desai and Riddhi Desai hereby declare that the research report entitled IMPACT
OF MONETARY AND NON-MONETARY BENEFITS ON EMPLOYEE
PERFORMANCE presented herein ; submitted to NIM-BBA , Surat , is a record of an
original and genuine work done by us under the guidance of Mr.Baxis Patel, professor
for the subject RESEARCH METHODOLOGY a n d t h i s p r o j e c t w o r k i s
s u b m i t t e d i n t h e p a r t i a l f u l f i l l m e n t o f t h e s a m e s u b j e c t . The
results obtained through this research have not been submitted to any other University or
Institute for a similar purpose. Any literature, data or works done by others and cited
within this report have been listed in the reference section.
ACKNOWLEDGEMENT
We would like to express our gratitude towards our college principal Mr. Narendra Jadav,
Navnirman Institute of Management for giving us this opportunity for carrying out the research
on this topic. We sincerely thank our professor for Research Methodology-II, Mr.Baxis Patel, for
his constant guidance, help and support throughout the research work, without whom this project
wouldnt be possible. We also thank the respondents, friends, family and relatives for the support
by filling out the survey forms and giving their valuable opinion.
PREFACE
This research work was conducted in partial fulfillment of the requirement for the subject
RESEARCH METHODOLOGY-II of BBA Programme sem-VI to find out the impact of both
monetary and non-monetary incentives on the performance of employees. In the course of the
study some basic research questions include are: What are the incentives that motivate
employees to higher performance; How effective is the payment of incentives on employees
performance; Whether the payment of non-monetary incentive motivates employees to higher
performance; and What would be the attitude of employees towards job performance if they are
provided with security of job. In an attempt to find answers to the above questions, set of
questionnaire was designed for the study. Study of male and female employees of banking and
production sector was done. A total number of 80 employees were around at the time were
interviewed through questionnaire filling through personal interview and internet survey was
done. Thereafter, their responses were collated and analysed. Thus, the data used is primary data.
Secondary data used was theories.
EXECUTIVE SUMMARY
Project report on the study the impact of monetary and non monetary benefit on employee
performance we studied that the main objective of this research is to determine if
organizations are utilizing both monetary and non monetary rewards within their rewards
reward programmes as competitive advantage tool in motivating employees and how they
affect on employees performance this:What are the elements that form part of the reward and
incentive offering to employees in oraganisations? Do various rewards and incentive options
have specific impacts on employees from a motivation perspective? To what extent are
organistions utlising non monetary rewards and monetary rewards in their offering to
motivate employees?What are the rewards preferences by employees.The effect of intrinsic
rewards on employees performance.The effect of extrinsic rewards on employees
performance.The relationship between extrinsic and intrinsic rewards.Through what ways
increase employee s interest towards job and their motivation towards organizational
goals.Decide the role of intrinsic and extrinsic motivation to enhance organizational
performance.Also look into a matter that how status is more important than money and why
motivate employees towards the organizational goal is possible by assigning them good
status. The tool that has been chosen to collect data was a filling up questionnaire
Respondents were asked to fill in the questionnaire and they were able to read the
instructions on their own. questionnaires were filled personally by going through some of
the production related companies likes Reliance, Larsen and Turbo Nj India Invest and ca
institutes and banks like State Bank of India, ICICI, Bank Of Baroda. Some data we
collected for literature review and theories of motivation from website,books. Our sample
size in study of impact of monetary was 80.From this study we found out and concluded that
The maximum no. of respondents are freshers working for over a period of 0-5 years
constituting 41.25% of the total respondents
Maximum no. of respondents have monthly income of rs.20,000-50,000 . constituting of
38.75% of respondents. Only 8.75% respondents have monthly income of rs.10,000 or below
Maximum number of respondents , i.e. 90% respondents have a salary system for
remuneration
we can make out that PAY RISE, BONUS, PROMOTION, FINANCIAL BENEFITS ,JOB
UPGRADATION are the benefits which are provided in the highest number to the employees
by the organization
Among Non-monetary benefits CAREER DEVELOPMENT AND MANAGEMENT,WORK
PERFORMANCE AND RECONGNITION AND GOOD WORKING ENVIRONMENT top
the list
PROMOTION motivates most of the respondents highest , followed by APPRECIATION
LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally constituting a
15%.
74 respondents answered and We can see that Company Socials/ parties/celebrations)
motivates employees the most and performance motivates them the least
78.75% employees agree to the fact that incentives and benefits does affect their motivation
level , performance and productivity
most respondents are given insurance as the additional benefits , followed by vacation tours ,
gift vouchers and coupons and only a few respondents get education for children as a benefit
from work place.
48% of the employees agree to the fact that competing for rewards influences their
performance. On the other hand, about 31% people dont agree to the fact that competition
influences performance in any ways. 21% of the people agree upon not having any opinion
regarding the influence of competition for rewards on the performance.
54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of
employees are not entitled to getting a bonus.
According to this survey, 69% of people agree to the fact that they do get motivated by
bonus. Whereas, the other 31% say that getting a bonus is not a factor that would motivate
them.
According to this survey, people are retaining their present jobs due to various reasons, out of
which the most influencing reasons are challenging job assignments and a convenient
location of the organization. The least preferred reason being vacations and other reasons.
75% of the people are involved in the decisions taken related to their department. This survey
also tells us that 25% people are not involved or given any privilege of involvement in the
decision making of their departmental issues
Involvement in decision making effects the performance and improves it, says 81% of the
people that are surveyed, whereas 19% say that it does not really influence their performance
or improve it when these people are involved in the decision making process
1. 81% Repondents agree and are satisfied on being given different opportunities ,
competitive tasks to excel in the organsation.19% respondents deny the fact being given
competitive opportunities in the organsation
2. The percentage of respondents having an ongoing recongnition programme and not
having an recongnition programme is equal . ie. 50%
3. Maximum number of respondents have an annual recongnition programme ie. 45% ,
followed by a 27.5% respondents having a quarter recongnition programme. Respondents
having a monthly recongnition programme constitute 25%.
4. we conclude that out of 80 respondents 25 respondents ie. 31.25% were nominated for
employee of the year award and 20 respondents constituting about 25% have received
the award.
5. 75% respondents feel motivated about employee recongnition programmes whereas for
25% respondents such programmes do not create much pressure on performance
and non monetary benefit on employee performance was 80.
CHAPTER 3
Theoretical framework
And literature review
Theoretical framework
3.1 Definition of motivation
"Motivation is the art of getting people to do what you want them to do
because they want to do it."
--Dwight D. Eisenhower
Motivation is derived from a Latin word, movere, which means to move.
The author of book Motivation, beliefs, and organizational transformation
(1999), Dr. Green and Butkus (1999), says that motivation is derived from a
word motivate, which means to move, push or persuade to act for satisfying
a need. Further motivation can be explained as acting of such forces within a
person that cause a stimulation of effort, direction and goal direction.
Motivation is the total involvement of a person in his tasks to carry out with
dedication, devotion, happiness, excitements, and voluntarily, Mol (1992).
3.2Features of Motivation
1.
2.
3.
5.
6.
7.
8.
9.
10.
(fig3.1)
(A) Monetary or Financial Incentives
Monetary incentives are offered in terms of money. Such incentives provide
more cash or purchasing power to employees. Monetary incentives are
extremely attractive to employees (particularly those working at lower levels)
as they get the benefit quickly and in concrete terms. At the higher levels of
management, non-monetary incentives are more important than monetary
incentives. Workers prefer monetary incentives as compared to non-monetary
incentives. Managements also offer liberal monetary incentives to all
categories of workers.
Monetary incentives may be further classified as following:1.
workers give more production and get higher reward in terms of wage
payment.
2.
Job security and job enrichment: Job security is useful for the
motivation of employees. Such security keeps the employee away from the
tension of becoming unemployed. Job enrichment provides an opportunity for
greater recognition and advancement. Job enrichment refers to redesign of
jobs.
2.
3.
5.
6.
7.
8.
9.
10.
Fig 3.2
Physiological needs: These are the basic needs for example food, water, air, and
all other things that are necessary for the survival. In order to enhance
workplace motivation by achieving the target of fulfilling the needs of
employee give proper breaks for lunch, and offer such salary to employees that
enable them to buy basic needs of life. Provide ample breaks for lunch
and recuperation and pay salaries that allow workers to buy life's essentials.
Security needs: it includes security regarding the physical environment, living in
a safe area, medical insurance, and job security. These needs can simply be
fulfilled by giving all these securities to employees.
Belongingness needs: it includes friendships trust and satisfaction, feeling right
in a group, giving and receiving care and love. It can be achieved by
generating a feeling of acceptance.
Esteem needs: It includes recognition, attention, social status, accomplishment,
self-respect. It can be achieved by recognizing the achievements of the
employee, by assigning them some projects, make them feel important and
valued asset for organization.
Self-actualization needs: it includes ones own potential, creative capabilities
etc, it can be achieved by offering challenging and meaningful work
moving towards higher motivators, the order of needs may differ from person
to person, there is a frustration- regression principle and according to it if
high order need is frustrated a person may regress to increase the satisfaction
of a lower need which appears easier to satisfy.
3.5.3Frederick Herzbergs Motivator hygiene theory:
Herzbergs motivator hygiene theory (1959) is closely related to Maslow's
theory but it is more closely related to how to motivate individuals at their
workplace. According to him individuals are influenced by two sets of factors;
Hygiene factors: These are said to be lower level of needs by Herzberg.
Motivator factors: These are said to high level of needs by Herzberg.
Fig3.3
According to him meeting hygiene factors will not motivate individuals to put
their effort or to improve their performance, it will just help them from being
getting dissatisfied, but if motivator factors will be combined with this it will
help individuals to motivate.
McClelland's theory states that individuals learn needs from their culture and
life experiences. There are three basic needs of an individual;
Need for affiliation it is the need of establishing social relationships with the
people, communities, getting accepted by them.
Need for power It is divided in two parts, desire to control ones environment
and second to influence others.
Need for achievement It involves the aspiration to take accountability, set
challenging goals and get feedback of their performance.
McClelland states that a person has full strong capability in any one of the
above categories, thus it has prospective to motivated people that leads to
satisfaction. Management should understand these needs of the individuals and
then structure their jobs to satisfy them. Those who have high n Aff such
people perform well in customer service jobs or where customer interaction is
involved. Those who have high n Pow management should provide them the
opportunity to manage others. Those who have high n Ach such people should
be given challenging but achievable goals.
Process Theories: These theories of motivation focus on known human
decision behaviors for the explanation if motivation. These theories determine
that how an individuals behavior can be energized, maintained in willed and
self directed cognitive process.
3.5.5Victor Vrooms Expectancy Theory:
Victor Vroom (1964), theory is based on three beliefs;
Valence: is the extend of the expected outcomes of an individual are attractive
or unattractive.
Expectancy: is the extend to which employees believe that they are giving
enough effort that they will achieve the target of given level of performance.
Instrumentality: is the level to which employees believe that achieving a given
performance level resulting in the form of certain reward.
Motivation = Valence x Expectancy (Instrumentality)
If even one of these is zero the employee will have not motivation for the task,
so managers ensure increase in effort will improve performance and improved
performance will result in high rewards.
The theory says employees have different goals to achieve and can be
motivated if they believe that; there exists a positive correlation between
efforts and performance, good performance will result in a reward, and this
reward will satisfy an important need, and the wish for satisfying that need is
powerful enough to make effort valuable.
Fig3.5
3.5.6Equity Theory:
Equity theory was first time developed by John Stacey Adams in 1963.
Individuals in the society make comparison of their efforts (inputs) and
rewards (outputs) that they get. The fairness regarding the rewards influences
the level of motivation of individuals a lot. Equity exists when individuals
identify that the ratio between there efforts and rewards is similar to whom
they are comparing.
Individuals Rewards (output) / Individuals Efforts (Input) = other persons
Rewards (output) / other persons Efforts (Input)
Similarly inequity occurs when there is difference in ratio in comparison to
others. Inequity has two types;
Under-Reward: this type occurs when an individual starts believing that he is
putting more efforts as compare to others, but receiving the same rewards that
others are getting for relatively less effort.
Over-Reward: this type occurs when an individual starts believing that his
equity ratio is higher other individuals. Thus getting more rewards by putting
less efforts.
Under-Rewarded individual may get motivate to do more work to meet his
performance level while on the other hand he may get dis-hearted from this.
Over-Reward individual start putting less efforts as he may assume that he is
getting much more rewards from little effort. For managers equity theory states
that rewards should be fair to all employees.
3.5.7Gary Latham and Edwin Lockes goal setting theory:
E. Locke and G. Latham (1990), states that goals are important factors in
affecting the behaviors and motivation levels of employees. Motivated
behavior of employees can be achieved by setting challenging goals for them
that usually involve the quantitative targets. Such goals of performance are
better than those in which you just say, you did a great job, well done.
Researches have shown that challenging goals are more motivational than any
other goals that are easily achievable. The more the dedicated is employee the
more he will put his effort to achieve those goals. Researchers show that
individuals that perform in goal setting have increases goal commitment. If an
individual has high self-efficiency he will respond more positively to achieve
goals rather than those who are low-efficient.
3.5.8B.F. Skinners Reinforcement Theory:
In Reinforcement theory B.F. Skinner (1957), considered a motivation theory
along with learning theory. The theory state that motivated behavior is the
outcome of reinforces which are actually the resultants from the behavior that
cause it more likely to occur again. It further says that it is essential to measure
the consequences of behavior rather than to understand cognitive or processes
motivation. Such behavior that was previously rewarded will be continued in
future as well from an individual rather than that behavior which was not
rewarded or for which he was being punished. The theory suggests to
managers that they can handle the behavior modifications by reinforce desired
behaviors and punish undesired behaviors.
3.6Importance of Rewards and Motivation
Searle, John G. (1990), rewards is basically to motivate the behaviors of
employees towards their work. Rewards should be given as a result to effective
performance. Following are some conditions that are necessary for the creation
of motivation among employees; Employees must have faith that their
effective performance will surely be appreciated and rewarded.
The rewards that will be being offered by management are attractive. The
believe of employees that their effort is really contributing worthwhile to attain
the organizations goals.
Organizations must pay attention towards the Monetary as well as NonMonetary rewards, because the balanced combination of both creates
motivation. An individuals goals and organizations goals are independent
goals that are linked by the work motivation. Individuals provide their services
to organizations to attain organizations goals in order to meet their personal
goals. So, we can say that an individuals goals are directly proportional to the
organizational goals.
Mosley, Megginson, Pietri (2001), reports that the there are three levels of
employee motivation;
Behavior: the direction of those behaviors of an employee that he selects to
perform.
Effort: the level of willingness of an employee to put their effort on their work.
Persistence: the level of willingness to work regardless of difficult situations.
3.7Reward Systems:
This study involves intrinsic and extrinsic rewards as independent variables. In
independent variable extrinsic reward includes three dimensions such as basic
pay, merit pay and performance bonus. As for the intrinsic reward, it includes
four dimensions such as recognition, learning opportunity, challenging work
and career advancement
Employees Performance:
This study involves employees performance as dependent variable. In
dependent variable employee performance encompasses threedimensions such
as productivity, job quality and job accomplishment.
workers whose pride shows in the quantity and quality of their work.
Enthusiasm, commitment, pride and productivity are cornerstones of employee
engagement. Although these all may sound like ambiguous and extremely
subjective aspects of employee performance, they constitute employee
engagement, an aspect of employment that can indeed be measured.
Recognition
Competitiveness
job, the natural tendency is to continue the performance that garners attention.
There also is a competitive spirit that emerges throughout the workforce when
recognition is the prize. Competition itself fosters ingenuity and innovation,
both of which are factors that improve performance.
Satisfaction
LITERATURE REVIEW
1. According to Jon-Chao Hong, Sung-De Yang, Li-Jung Wang, En-Fu Chiou, Fan-Yin
Su, sui-Lan Huang, (1995) "Impact of employee benefits on work motivation and
performance", International Journal of Career Management, Vol. 7 Iss: 6, pp.10
14 publisher : MCB UP Ltd. To understand the impact of employee benefits on
Wycombe, J. (2002). Rewards get results: Put away your cash. Workforce, 8(1), 42-47
study suggests evidence that there exists a robust relationship between non-monetary
rewards and better job performance. An organizations reward system is an important tool
that can lead to employee motivation. Understanding the impact of both monetary and
non-monetary rewards, based on employee preferences, is crucial for an organization to
deliver growth and shareholder value. Lawler, E.E., (2003). Treat employee right. San
Francisco: Jossey-Bass Inc argues that for a reward programmed to work, it must be
developed with a few limitations. A reward programme must provide necessary rewards
to motivate employees; provide employees with a clear view of their roles going into the
near future; give employees the authority to influence their performance and deliver on it.
3. Syptak, J. M., Marsland, D. W., & Ulmer, D. (1999). Job satisfaction: Putting theory
into practice. Family Practice Management, 6(9), 2630. Fulfilled and motivated
employees incline to be more committed and productive to their organization. Edward P.
Lazear, 2000. "Performance Pay and Performance," American Economic Review,
American Economic Association, vol. 90(5), pages 1346-1361, December identifies the
causal impact of different prize schedules on effort and outcome quality in a real-world
elite coding challenge. Past studies by Lazear 2000; Dohmen and Falk 2011 have found
evidence that higher-skilled employees tend to have a greater likelihood of preferring
competitive environments and high-powered incentive schemes
4. Employee benefits have grown in importance over the past several decades. Employee
benefits are the membership-based and nonfinancial rewards offered to attract and keep
employees. Along with the increasing costs of employee benefits, the effects of such
programs have received more attention. Much research has explored issues related to
effects of employee benefits at individual levels. Articles or case studies examined the
impact of employee benefits on firm performance. Beam and McFadden, 1988; Evers,
1998; Federico and Goldsmith, 1998; Steere, 2000; Laabs, 2000; Kurlander and
Barton, 2003. Benefits may be valuable in recruiting and retaining employees, but are
typically unrelated to performance Adigun and Stephenson, 1992; Mondy et al., 2002.
Furthermore, citing various studies, Hennessey (1989) argued that benefits cannot help
firms achieve competitive advantages. Similarly, Huseman et al. (1978), Sutton (1986),
and McCaffrey (1987) argued that benefits can be seen a means to meet organizational
objectives, such as increasing morale and retaining and attracting good employees;
however, they claimed that benefits can affect employee attitudes and performance
through operation of benefit programs..
5. Performance in multi-action settings has been the focus of an increasing amount of
research. It was studied that though employees exerted the desired level of effort but still
not benefit the firm because they do not allocate their effort well. Therefore Considerable
analytic and empirical research by Kachelmeier, Reichert, & Williamson 2008;
Brggen & Moers 2007; Dataret al. 2001 has focused on the ability to motivate the
desired mix of effort by using monetary incentives tied to multiple measures. A rich
literature in economics Dataret al. 2001; Feltham & Xie 1994; Banker & Datar 1989;
Holmstrom 1979 explore how the monetary incentives associated with measures of
performance influence actions. Dambisya, 2007 investigated that the use of nonfinancial
incentives for health leads to satisfaction of employees. This study was conducted in
health sector and found that non--financial rewards affect the performance of an
individual.
Chapter 4
Research
Methodology
4.1Problem definition
The objective of this research is to determine if organizations are utilizing both monetary and
non monetary rewards within their rewards reward programmes as competitive advantage tool in
motivating employees and how they affect on employees performance and following resesearch
questions will assist in the exploration of this:
What are the elements that form part of the reward and incentive offering to employees in
organizations?
Do various rewards and incentive options have specific impacts on employees from a
motivation perspective?
To what extent are organizations utilizing non monetary rewards and monetary rewards in
Secondary objectives:
Through what ways increase employee s interest towards job and their motivation
towards organizational goals.
performance.
To find out whether Pay dissatisfaction has numerous undesirable consequences or not
4.3Nature of research:
Basic research
Basic research is conducted to expand the knowledge and understanding by developing or testing
theorey.Basic research is also known as fundamental or pure research. Basic research is driven
by scientists curiosity o interest in scientific way. Basic research lays down the foundation for
the applied science.
Applied research
Applied research is research conducted to further redevelopment of effective policies and
programme. Applied research is designed to solve practical problems. Goals of applied research
are to improve the human conditions.
So here in our study impact of monetary and non monetary benefits on employees performance
in surat city the nature of research is applied research because we are doing research is to
discover whether a reward programme or framework results in the motivation of the employees
and strategic fit between employee and the organization. How we can improve on the basis of
basic research by studying theories of motivation models programmes.
4.4 Scope
This applies to all going academic and professional and technical employees all the type of
companies. this helps us to know how are employees are motivated affected with different
benefits whether it is monetary rewards or whether it is non monetary rewards what types of
benefits affects the most to the employees performance in this way organization can know what
type of rewards affects the performance and in this way they can design their programmes of
giving rewards.
Primary data
Secondary data
Primary data
The tool that has been chosen to collect data was a filling up questionnaire .respondents were
asked to fill in the questionnaire and they were able to read the instructions on their own.
questionnaires some were filled personally by going through some of the production related
companies likes Reliance Larsen and Turbo Nj India Invest and ca institutes and banks like
State Bank of India,ICICI, Bank Of Baroda and some questionnaire were filled by calling
respondents.
Secondary data
We have also kept questionnaire online through www.google.docs.com. Some data we collected
for literature review and theories of motivation from website and books.
i. Sample size:
Total no of selected units from the population for the study is called sample size. Our sample
size in study of impact of monetary and non monetary benefit on employee performance was 80.
V.Survey tool:
We used structured questionnaire to do our survey. A questionnaire is a series of questions asked
to individuals to obtain statistically useful information about a given topic. When properly
constructed and responsibly administered, questionnaires become a vital instrument by which
statements can be made about specific groups or people or entire populations.
The broad area of survey research encompasses any measurement procedures that involve asking
questions of respondents. A "survey" can be anything forms a short paper-and-pencil feedback
form to an intensive one-on-one in-depth interview.
We'll begin by looking at the different types of surveys that are possible. These are roughly
divided into two broad areas: Questionnaires and Interviews. Next, we'll look at how we select
the survey method that is best for your situation. Once selected the survey method, we have to
construct the survey itself. Here, we will be address a number of issues including: the different
types of questions; decisions about question content; decisions about question wording; decisions
about response format; and, question placement and sequence in your instrument. We turn next to
some of the special issues involved in administering a personal interview
In a survey, researchers sample a population. A population is any set of persons or objects that
possesses at least one common characteristic. Data are usually collected through the use of
questionnaires, although sometimes researchers directly interview subjects. Surveys can use
qualitative (e.g. ask open-ended questions) or quantitative (e.g. use forced-choice questions)
measures. There are two basic types of surveys: cross-sectional surveys and longitudinal surveys.
Cross-sectional surveys are used to gather information on a population at a single point in time.
We conducted our survey by personally visiting in offices and some questionnaire was filled
through telephone and some through online survey (google.docs.co.in).
RESPONSE RATE
The targeted population for conducting this survey was general. The sample size, meant to be a
100 people filling the questionnaire, we approached the same for the responses regarding the
effects of monetary and non-monetary incentives on the job performance of individuals in an
organization.
Out of a total of 100 people approached, about 80 people responded by correctly filling the
questionnaire and provided the right information needed in order to find the solutions to the
problems, for which the survey had been undertaken. The responses of these 80 people have been
properly analyzed to reach up to an appropriate conclusion.
The method used for the survey was partly individual and partly electronic means. The responses
of people approached directly face to face were quick and they readily agreed to provide their
valuable time to fill it up. These people, approached directly, had to be explained in detail
regarding the motto and aim behind conducting the survey. While on the other hand, the people
approached via Electronic means were not so prompt in responding to filling the questionnaire.
There had to be some persuasion and promotion of the survey, to make people aware about it and
draw their attention towards the importance of responding to the survey.
Thus, the response rate of the people, not being 100% but it was still quite co-operative of them
to help carry out this research on Effects of Monetary and Non-monetary benefits on Job
performance.
Total Response Rate in this research survey: 80%
The pilot survey that was conducted regarding the Effects of Monetary and Non-Monetary
benefits on job performance, turned out to be very helpful in finding the errors in the designing
of the questionnaire.
A total of 5 questionnaires were used for the pilot survey on friends. This survey was conducted
individually and through this we found certain errors which we later improvised upon. Following
were some of the errors that were pointed out:
1)
2)
3)
4)
These errors were then taken care of and a perfect questionnaire was then formed through which
we could generate appropriate responses from the individuals.
Thus, Pilot Survey turned out to be of great importance in designing the right kind of
questionnaire for carrying out the survey research.
LIMITATIONS
There were certain problems faced during the conduction of the research on the effects of
monetary and non-monetary benefits on job performance of individuals in an organization. These
limitations were mostly pertaining to the respondents that were approached for the survey. The 2
main limitations being:
1) Unawareness of the respondent on the topic of survey
1) UNAWARENESS: Out of the total individuals approached (100); few were of the
kind who was not at all aware about the different types of rewards and benefits that they
can be entitled to. They had no knowledge regarding the same and seemed to be
confused. Hence, they could not be given the questionnaire to be filled out for the right
kind of answers.
2) UNWILLINGNESS: A few individuals we also came across, who knew everything
about the survey, and had appropriate knowledge too. Still due to the embarrassment of
answering correctly they might specifically change their answers and provide a different
response. This is a huge drawback in conducting an effective research.
Other than these, we also faced limitations of Electronic method used for conducting the survey.
Many of the people, in this day and age do not possess a PC or internet at their homes. Hence,
they are unable to fill out such surveys and give their valuable responses to the same. Hence, a
justice cannot be made to few of these people who are willing to, but are unable to respond the
questionnaire.
Thus, as a result of a few such limitations the survey couldnt get a cent percent response and
hence provisions should be made in order to find solutions and eradicate such limitations faced
in conduction of such research.
CH: 5
1) Since how many years you have been working in this organization?
Responses
No. of Respondents
Percentage
0-5 years
33
41.25%
10-15 years
25
31.25%
15-20 years
10%
14
17.5%
TOTAL
80
responses
35
33
30
25
25
20
14
15
8
10
5
0
0-5 years
10-15years
15-20years
15+years
INTERPRETATION:
From the above figures we find that the maximum no. of respondents are freshers working for
over a period of 0-5 years constituting 41.25% of the total respondents.
Responses
No. of Respondents
Percentage
below 10,000 Rs
10,000 20,000
20,000-50000
7
15
31
27
80
8.75%
18.75%
38.75%
33.75%
monthly income
9%
34%
19%
below 10,000
10,000-20,000
20,000-50,000
50,000+
39%
INTERPRETATION:
Maximum no. of respondents has monthly income of rs.20, 000-50,000. Constituting of 38.75%
of respondents. Only 8.75% respondents have monthly income of rs.10, 000 or below.
No. of Respondents
Percentage
Hourly
Salary
Other:
3
72
5
3.75%
90%
6.25%
TOTAL
80
remuneration
6% 4%
hourly
salary
other
90%
INTERPRETATION:
Maximum number of respondents, i.e. 90% respondents has a salary system for remuneration.
4) What kind of benefits are you entitled in the organization? (Multiple checks is
allowed)
Monetary
Responses
No. of Respondents
Financial benefits
Pay rise
Bonus
Cash rewards
Promotion
Personal bonus
32
47
35
19
34
15
Job upgradation
Cash recognitions
INTERPRETATION:
25
6
From the above table we can make out that PAY RISE, BONUS, PROMOTION,
FINANCIAL BENEFITS, JOB UPGRADATION are the benefits which are provided in
the highest number to the employees by the organization.
Non monetary
Responses
No. of Respondents
Org. benefits
Career development and management
Work life benefits
Work performance & recognition
20
39
28
35
Coaching / mentoring
Working environment
INTERPRETATION:
25
33
37%
31%
32%
30%
26%
15%
9% 8%
monetary benefits
4%
non-monetary benefits
0%
Responses
No. of Respondents
Percentage
Monetary
Non-monetary
Monetary
Non-
Highly agree
25
18
31.25%
monetary
15%
Agree
24
26
30%
32.
Neutral
21
30
26.25%
37.5%
Disagree
8.75%
7.5%
Highly Disagree
3.75%
0%
TOTAL
80
100%
INTERPRETATION:
Here we compare the satisfaction level of employees with the benefits provided by the
organization.
Preferences
Incentive Awards
Promotion
15%
40%
10%
20%
15%
non-monetary
Appreciation letters
Monetary
incentive preferances
15%
incentive awards
15%
promotion
non-monetary
appreciation letters
20%
10%
monetary
40%
INTERPRETATION:
PROMOTION motivates most of the respondents highest, followed by APPRECIATION
LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally
constituting a 15%.
7) Please rank the following incentives from Most Motivating to Least Motivating by
giving 1- 8 rankings.
Responses
Averages
4.2
5.3
4.2
Performance
3.8
Based bonuses
4.5
Scheduled flexibility
5.3
responses
6
5
4
3
2
1
0
5.3
4.2
4.2
5
3.8
4.5
5.3
responses
INTERPRETATION:
74 respondents answered and we can see that Company Socials/ parties/celebrations) motivates
employees the most and performance motivates them the least.
8) Do you think that the incentives and other benefits will influence your
performance??
Responses
No. of Respondents
Percentage
Yes
No
TOTAL
63
19
80
78.75%
21.25%
performance influence
78.75%
80.00%
70.00%
60.00%
performance influence
50.00%
40.00%
21.25%
30.00%
20.00%
10.00%
0.00%
yes
no
INTERPRETATION:
78.75% employees agree to the fact that incentives and benefits do affect their motivation level,
performance and productivity.
Benefits Ranked
4
1
2
3
5
INTERPRETATION:
The table shows Additional benefits provided to the respondents. We can see that most
respondents are given insurance as the additional benefits, followed by vacation tours, gift
vouchers and coupons and only a few respondents get education for children as a benefit from
work place.
No. of
Percentage
YES
respondents
38
48%
NO
25
31%
NO OPINION
17
21%
TOTAL
80
100%
RESPONSES
YES
21%
NO
48%
NO OPINION
31%
INTERPRETATION:
48% of the employees agree to the fact that competing for rewards influences their performance. On the
other hand, about 31% people dont agree to the fact that competition influences performance in any
ways. 21% of the people agree upon not having any opinion regarding the influence of competition for
rewards on the performance.
No. of
Percentage
YES
respondents
43
54%
NO
37
46%
TOTAL
80
100%
RESPONSES
YES
NO
46%
54%
INTERPRETATION:
54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of employees are not
entitled to getting a bonus.
No. of
Percentage
respondents
YES
55
69%
NO
25
31%
TOTAL
80
100%
RESPONSES
YES
31%
NO
69%
INTERPRETATION:
According to this survey, 69% of people agree to the fact that they do get motivated by bonus. Whereas,
the other 31% say that getting a bonus is not a factor that would motivate them.
Q.13) what are the reasons that you stay at your present job?
REASONS
No. of Responses
37
Vacation
Salary/ Security
50
25
Good boss
28
Promotional opportunities
25
Training
28
12
Retirement benefits
10
Location is convenient
37
Vacation leave
16
Other
REASONS
60
50
40
30
20
10
0
REASONS
INTERPRETATION:
According to this survey, people are retaining their present jobs due to various reasons, out of which the
most influencing reasons are challenging job assignments and a convenient location of the organization.
The least preferred reason being vacations and other reasons.
Q.14) Does the management includes you in the decision making which are connected to your
department?
Responses
No. of respondents
Percentage
YES
60
75%
NO
20
25%
TOTAL
80
100%
RESPONSES
25%
YES
NO
75%
INTERPRETATION:
75% of the people are involved in the decisions taken related to their department. This survey also tells us
that 25% people are not involved or given any privilege of involvement in the decision making of their
departmental issues.
No. of respondents
Percentage
YES
65
81%
NO
15
19%
TOTAL
80
100%
RESPONSES
19%
YES
NO
81%
INTERPRETATION:
Involvement in decision making effects the performance and improves it, says 81% of the people that are
surveyed, whereas 19% say that it does not really influence their performance or improve it when these
people are involved in the decision making process.
Q.16) Are you given opportunities to enhance your skills by doing a different task within
your company/organization?
Responses
No. of
Percentage
Respondents
YES
65
81%
NO
15
19%
TOTAL
80
100%
RESPONSE
YES
15
NO
65
INTERPRETATION:
Responses
No. of
Percentage
Respondents
YES
40
50%
NO
40
50%
TOTAL
80
100%
RESPONSES
YES
40
NO
40
INTERPRETATION:
The percentage of respondents having an ongoing recognition programme and not having a
recognition programme is equal. I.e. 50%
No. of
Percentage
Respondents
MONTHLY
10
25%
QUARTERLY
11
27.5%
ANNUALLY
18
45%
OTHER
2.5%
TOTAL
40
100%
INTERPRETATION:
Maximum number of respondents has an annual recognition programme i.e. 45%, followed by
27.5% respondents having a quarter recongnition programmes. Respondents having a monthly
recognition programme constitute 25%.
Q.18) A) Have you ever been nominated for EMPLOYEE OF THE YEAR award?
B) Have you ever received EMPLOYEE OF THE YEAR award?
Responses
No. of
No. of
Percentage of
Percentage of
Respondents
respondents
Respondents
Respondents
nominated
received award
nominated
received
YES
25
20
31.25%
25%
NO
55
60
68.75%
75%
TOTAL
80
80
100%
100%
70
60
60
55
50
40
YES
30
NO
25
20
20
10
0
NOMINATED
RECEIVED
INTERPRETATION:
From the above given figures we conclude that out of 80 respondents 25 respondents i.e. 31.25%
were nominated for employee of the year award and 20 respondents constituting about 25%
have received the award.
Responses
No. of
Percentage
Respondents
YES
60
75%
NO
20
25%
Q.19) Do you feel motivated about the
programme?
TOTAL
80
100%
RESPONSES
YES
20
NO
60
INTERPRETATION:
75% respondents feel motivated about employee recognition programmers whereas for 25%
respondents such programmes do not create much pressure on performance
Q.20) what would be the greatest additional employee benefits, your employer could
implement that would assist in moral enhancement?
20 out of 80 respondents i.e. 25% respondents answered this question.
Major answers include:
MONETARY
NON-MONETARY
1.Promotion
2.public holidays
3.cash rewards
3.complain box
4.more leaves
5.achievable targets
5.coaching
7.achievable targets
8.regular advances
8.better facilities
9.better infrastructure
10.good salary
CH: 6
FINDINGS
FINDINGS
From the above analysis and interpretations we find the following:
6. The maximum no. of respondents are freshers working for over a period of 0-5 years constituting
41.25% of the total respondents
13. 78.75% employees agree to the fact that incentives and benefits does affect their
motivation level , performance and productivity
14. Most respondents are given insurance as the additional benefits, followed by vacation
tours, gift vouchers and coupons and only a few respondents get education for children as
a benefit from work place.
15. 48% of the employees agree to the fact that competing for rewards influences their performance.
On the other hand, about 31% people dont agree to the fact that competition influences
performance in any ways. 21% of the people agree upon not having any opinion regarding the
influence of competition for rewards on the performance.
16. 54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of
employees are not entitled to getting a bonus.
17. According to this survey, 69% of people agree to the fact that they do get motivated by bonus.
Whereas, the other 31% say that getting a bonus is not a factor that would motivate them
18. According to this survey, people are retaining their present jobs due to various reasons, out of
which the most influencing reasons are challenging job assignments and a convenient location
of the organization. The least preferred reason being vacations and other reasons.
19. 75% of the people are involved in the decisions taken related to their department. This survey
also tells us that 25% people are not involved or given any privilege of involvement in the
decision making of their departmental issues
20. Involvement in decision making effects the performance and improves it, says 81% of the people
that are surveyed, whereas 19% say that it does not really influence their performance or improve
it when these people are involved in the decision making process
21. 81% Respondents agree and are satisfied on being given different opportunities ,
competitive tasks to excel in the organsation.19% respondents deny the fact being given
competitive opportunities in the origination
22. The percentage of respondents having an ongoing recognition programmed and not
having a recognition programmed is equal. i.e. 50%
23. Maximum number of respondents have an annual recognition programmed i.e. 45%,
followed by a 27.5% respondents having a quarter recongnition programme. Respondents
having a monthly recognition programmed constitute 25%.
24. We conclude that out of 80 respondents 25 respondents i.e. 31.25% were nominated for
employee of the year award and 20 respondents constituting about 25% have received the
award.
25. 75% respondents feel motivated about employee recognition programmers whereas for
25% respondents such programmers do not create much pressure on performance
CONCLUSION
Incentives and benefits does affect employee motivation level , performance and
productivity
Organisations should focus on providing benefits to the employee and his family
Organisations should know that bonus works as one of the major motivational tool
ANNEXURE
Dear Respondent ,
I , the Student of Auro University, Surat is conducting a survey to study the Impact of
Monetary and Non-Monetary Benefits on Employees Performance in Surat city . Data
which I collect from you will be used for academic purpose only .
Thank You
1) Since how many years you have been working in this organization?
0-5 Years
10-15 Years
5-10 Years
10,000 20,000
20,000-50000
Promotion
Pay rise
Bonus
Cash rewards
Personal bonus
Job upgradation
Cash recongnitons
Non-monetary:
Org. benefits
Work performance &recongnition
Career development and management
Coaching / mentoring
Work life benefits
Working environment
5) How far you are satisfied with the incentives provided by the Organization?
Monetary:
Highly Satisfied
Non-monetary:
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Appreciation letters
monetary
non-monetary
7) Please rank the following incentives from Most Motivating to Least Motivating by giving
1- 8 rankings.
Benefits( stock,health insurance)
Company Socials/ parties/celebrations)
Opportunities for promotion
Performance
Based bonuses
Recognition for good work
Salary /hourly wage
Scheduled flexibility
8) Do you think that the incentives and other benefits will influence your performance??
Yes
No
9) Does the company provide any other additional benefits? (Check any if applicable)
Education for children
Vacation Tours
Others
10) Does competition for rewards influence your performance?
Influence
Does not influence
No opinion
11) Do you get bonus??
Yes
No
No
13) What are the reasons that you stay at your present job?
(Check all that apply)
Challenging job assignments
Promotional opportunities
Vacation
Training Opportunities
Salary/Benefits Stability/Security
Work assignments vary
Interesting Work Hours
Retirement Benefit
Good boss
Location is convenient
other_________________
Vacation leave
14) Does the management involve you in decision making which are connected to your
department?
Yes
No
15) Does that affect your performance?
Yes
No
16) Are u given opportunity to enhance your skills by doing a different task within the
company??
Yes
No
17) Does your Ministry/Department have an ongoing Recognition Programme?
Yes
No
No
No
No
20) What would be the greatest additional employee ben efits your employer could implement
that would assist in morale enhancement?
Monetary: _______________________
Non monetary: ___________________________
PERSONAL DETAILS
Name:
Gender: Female
Age:
20-30
40-50
Educational qualification:
graduate
MPhil
Designation in the organisation:
Male
30-40
50+
post graduate
Phd
REFERENCES
1 Naresh Malhotra
2 Ashwathaapa
3 http://www.ukessays.com/essays/business/motivation-throughmonetary-and-non-monetary-benefits-business-essay.php
4 http://www.ehow.com/info_8190209_important-factor-employeemotivation.html
5 http://kalyan-city.blogspot.com/2010/06/frederick-herzberg-two-factortheory.html
6 http://kalyan-city.blogspot.com/2010/06/david-mcclellandachievement-motivation.html
7 http://lh6.ggpht.com/_iFIztPmvqg8/TCV1ifbPCTI/AAAAAAAAC3g/5gdwb
BhtK3M/s420/Maslow-Hierarchy-of-Needs-Motivation-Theory.jpg
8 http://kalyan-city.blogspot.com/2010/06/maslow-hierarchy-of-needstheory-of.html
9 http://kalyan-city.blogspot.in/2010/06/motivation-motivationalfactors.html
10 http://www.ehow.com/how-does_5407144_employee-motivationimpact-organizational-performance_.html
11 http://isearch.babylon.com/?
q=impct+of+benefits+on+employee+motivtion&babsrc=NT_ss&s=we
b&as=3&ac=0