INTRODUCTION OF BANK

What is bank?

A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital
markets.

A bank may be defined as an institution that accepts deposits, makes loans, pays checks, and
provides financial services. A bank is a financial intermediary for the safeguarding,
transferring, exchanging, or lending of money. A primary role of banks is connecting those
with funds, such as investors and depositors, to those seeking funds, such as individuals or
businesses needing loans. A bank is the connection between customers that have capital deficits
and customers with capital surpluses.

Banks distribute the medium of exchange. Banking is a business. Banks sell their services to
earn money, and they must market and manage those services in a competitive field. Banks are
financial intermediaries that safeguard, transfer, exchange, and lend money and like other
businesses that must earn a profit to survive. Understanding this fundamental idea helps you to
understand how banking systems work, and helps you understand many modern trends in
banking and finance.

Banking is a Unique Business :

The services banks offer to customers have to do almost entirely with handling money or
finances for other people. Banks are critical to our economy. The primary function of banks is

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to put their account holders' money to use by lending it out to others who are in need of the
same.

Money is a medium of exchange, an agreed-upon system for measuring the value of goods and
services. Once, and still in some places today, precious stones, animal products, or other goods
of value might be used as a medium of exchange. This system was used for centuries, before
the invention of money. People used to exchange the goods or services for other goods or
services in return. This system is also known as “Barter System” and an age-old method that
was adopted by people to exchange their services and goods. Roman soldiers were sometimes
paid in salt, because it was critical to life and was a scarce commodity at those times.

Anything with an agreed-upon value might be a medium of exchange. Today, many forms of
money are used. Money is any object or record that is generally accepted as payment for goods
and services and repayment of debts in a given socio-economic context or country. The main
functions of money are distinguished as: a medium of exchange; a unit of account; a store of
value; and, occasionally in the past, a standard of deferred payment. Any kind of object or
secure verifiable record that fulfils these functions can be considered money. Money simply
shows how much something is worth, whether it is a new gadget that you can purchase or two
hours of your labour. When you have money, a bank can act as your agent for using or
protecting that money.

How Banks are created:

Banks and money are essential to maintaining economies and they impact the entire societies
and nations. Hence they are closely regulated and strict procedures and principles are advised
to be followed by the banks by various authorities and governments. In the United States, banks
may be chartered by federal or state governments and in India government decides the rules
for opening any banks or its branches.

From a business structure perspective, most of the Banks are corporations or cooperative
societies and may be owned by groups of individuals, corporations, or some combination of
the two. Around the world banks are supervised by governments to guarantee the safety and
stability of the money supply and of the country.

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Types of Banks:

Banks provide a multitude of financial services beyond the traditional practices of holding
deposits and lending money. Commercial, retail, and central banks are three main types.
Understand the difference between the three:

Commercial Banks: Provide familiar services such as checking and savings accounts, credit
cards, investment services, and others. Historically, offered their services only to businesses,
including credit and debit cards, bank accounts, deposits and loans, and secured and unsecured
loans. Due to deregulation, commercial banks are also competing more with investment banks
in money market operations, bond underwriting, and financial advisory work.

Retail Banks: Developed to help individuals not served by commercial banks. Provide basic
banking services to individual consumers. These institutions help customers save money,
acquire loans, and invest. They also offer a wide range of financial services to a broad customer
base. Examples include savings banks, savings and loan associations, and credit unions and
examples of products and services include safe deposit boxes, checking and savings
accounting, certificates of deposit (CDs), mortgages, and car loans.

Central Banks: Banks formed, owned and regulated by the government to manage, regulate,
and protect both the money supply and the other banking institutions. Guarantee stable
monetary and financial policy from country to country. Typical functions include
implementing monetary policy, managing foreign exchange and gold reserves, making
decisions regarding official interest rates, acting as banker to the government and other banks,
and regulating and supervising the banking industry. Central banks serve as the government's
banker. Central banks issue currency and conduct monetary policy.

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Benefits of Banking:

Safety: It’s risky to keep your money in cash as it could be lost, stolen, or destroyed. Financial
institutions keep your funds safe.

Convenience: With banks, there's no need to carry cash. If you need cash, you can easily
access your funds virtually anywhere.

Security: Banks follow stringent laws and regulations and at most banks, funds are insured.

Financial Future: As individual you'll have access to financial professionals to help you.
Knowledgeable advice of bankers is a valuable resource to help you build a better financial
future.

Spreading the Wealth:

Banks are critical to the economy. The banking

industry is a vital component to individual, business, national, and global financial well-being.
Although there are many ways that money moves around the economy, banks play a central
role in establishing the financial environment. Transferring money to provide growth and
stabilizing the monetary supply are important functions performed by banks. This industry
builds and maintains financial relationships with customers of all sizes to supply financial
products and services that stimulate economic growth. Lending by banks makes money
available to consumers and businesses to make purchases they might not otherwise be able to
make.

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Issuing Money:

Banks issue money in the form of banknotes and current accounts subject to check or payment
at the customer's order. These claims on banks can act as money because they are negotiable
or repayable on demand, and hence valued at par. They are effectively transferable by mere
delivery, in the case of banknotes, or by drawing a check that the payee may bank or cash.

Payment Agents:

Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by
making advances to customers on current accounts, by making instalment loans, and by
investing in marketable debt securities and other forms of money lending. Banks act as
payment agents by conducting checking or current accounts for customers, paying cheques
drawn by customers on the bank, and collecting cheques deposited to customers' current
accounts.

Money Transferring:

Banks move money. They move it between banks, between banks and individual customers,
between banks and industry, between banks and governments, and sometimes between
governments. Sometimes the sums involved are huge. This motion of money throughout the
nation and the world allows businesses to have access to capital. With capital to invest,
businesses expand, job creation occurs, products are manufactured, services are performed, and
the economy grows.

Distribution of Funds:

The industry players produce an assortment of services from savings accounts to home and
business loans and mortgages. Money is a medium of exchange and the basis of the modern
economy. Banks play a huge role in the distribution of funds throughout society. Although
there are many institutions involved in the movement of money today, banks remain
fundamental to the flow of money that maintains local, national, and global economies.

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Record Keeping:

Record keeping is an important part of securing your money. Banks devote much time and
attention to both the practice and technology of maintaining and storing accurate records. If
banks expect you to let them hold and use your money, you expect them to keep careful track
of it. The same principle applies to large transactions between banks and industry and between
banking institutions and the government.

Security & Identification:

Identification is an important security function of banking. Obviously, you do not want

unauthorized people walking in and taking money from your account, but the issue of security
and identification goes far beyond the local branch. Identifying theft is a growing concern in
the economy, and bank officials work closely with technology experts and law-enforcement
agencies to prevent various forms of identity theft.

Identity theft occurs when someone achieves financial gain by using another person's personal
information to unlawfully assume the identity of the other person. An identity thief conducts
transactions illegally for personal gain. With the increased reliance on the Internet for financial
transactions, identity theft protections extend beyond conventional checking accounts to
include online banking, automatic bill pay, and online shopping.

Exchange Rates:

In international banking, exchange rates measure

the relative strength of one form of currency against another. These variable rates are often

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indications of the strength of a nation's economic position. The ability to transfer sums of
money between financial institutions safely and effectively depends on the stability of the
institutions, the stability of the countries where the banks reside, and the security of the money
supply itself.

Evaluating Creditworthiness:

Banks play an important role in a productive economy, helping businesses and consumers take
appropriate risk. Appropriate risk means that banks must lend money only to those who'll be
able to repay those loans. A creditworthy customer has a good credit rating, sufficient collateral
for loans, and an ongoing income source sufficient to make timely loan payments. Evaluating
the creditworthiness of customers, whether they are large industries, governments, or
individual consumers, is a critical banking function that affects the economy. Banks lend
money to ordinary commercial and personal borrowers (ordinary credit quality), but are high
quality borrowers by evaluating loan applications carefully.

Guaranteeing the Money:

Banks must contribute to implementing positive changes to ensure consumer protection,

transparency, and responsible lending. They need to work closely with regulatory bodies to
help shape initiatives and regulations. They must also ensure they take appropriate risks in their
lending activities. In most countries, banks and the government work together to form the
banking system and to make sure the money supply is adequate, appropriate, and trustworthy.
Much of this guarantee is backed through the central banking function of the Central Bank of
the Country. Individual banks also work with the government to implement monetary policy,
perform exchange functions for citizens, defeat counterfeiters of currency, and prevent identity
theft.

The Substance of Society:

The functions that banking institutions perform do more than move money through the
economy. They also provide a common economic system that is built primarily on trust. A
great part of an economic system is psychological. It is our belief and trust in the financial
system that keeps the financial system going.

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 COMPANY PROFILE OF ICICI BANK

ICICI Bank is a multinational

banking and financial services company headquartered in Mumbai. As of 2014, it was the
second largest bank in India by assets and by market capitalization, and India’s largest private
sector bank. It had total assets of Rs.5,946.42 billion (US$99 billion) and after-tax profit of Rs.
98.10 billion (US$1,637 million) for the year ending March 31, 2014 (ICICI Bank, 2016a). With
a network of 3,820 branches and 11,798 ATMs in India and 18 other countries. ICICI Bank
offers a wide range of financial products and services to corporate and retail customers,
including investment banking, life insurance, venture capital, and asset management. Analysts
credit the bank’s growth to a continuous focus on technological innovation to its well-
diversified portfolio of offerings. Despite the fact that ICICI Bank has fewer international
branches than many other Indian banks, it has captured a significant share of international
business, especially in the area of foreign remittances, thanks to its technological assets. ICICI
Bank has also leveraged its technological edge to develop new products to further expand its
influence in the industry.

History:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited
in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to
institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative
of the World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing medium-
term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its
business from a development financial institution offering only project finance to a diversified
financial services group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the
first Indian company and the first bank or financial institution from non-Japan Asia to be listed
on the NYSE.

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After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities, and would create the
optimal legal structure for the ICICI group's universal banking strategy. The merger would
enhance value for ICICI shareholders through the merged entity's access to low-cost deposits,
greater opportunities for earning fee-based income and the ability to participate in the payments
system and provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly fee-based services,
and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned
retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and
ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and
by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking operations, both wholesale
and retail, have been integrated in a single entity. ICICI Bank has formulated a Code of
Business Conduct and Ethics for its directors and employees.

Technological Innovations at ICICI Bank:

Advances in technology, the widespread use of the Internet, and increasing dissatisfaction with
traditional banking services and credit facilities have led given the fact that
January/February 2017 DOI: 10.1002/joe Global Business and Organizational Excellence
8to significant innovations in the banking industry.
technology is a key enabler of process and product improvements (albeit not the only one),
bank officials have come to realize the importance of incorporating the latest technological
solutions into banking operations.

ICICI Bank was established in 1994 as a wholly owned subsidiary of ICICI Ltd., an Indian
financial institution that had been established in 1955 to provide project financing to Indian
industries. In that era of deregulation and liberalization, the Reserve Bank of India (India’s

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central bank) allowed private banks to enter the sector, which had previously been dominated
by state-owned public sector banks and foreign firms. ICICI Bank capitalized on the
opportunity to serve India’s burgeoning middle class, which was dissatisfied with the services
offered by the state-owned public sector banks. In
their favor, the state-owned banks had a large network of branches, but they offered minimal
or no automation. The foreign banks, on the other hand, had deployed high-end technologies
that enabled them to offer innovative products through a very small network of branches that
focused exclusively on corporations and high-net-worth individuals. Yet, these foreign banks
typically lacked an under- standing of local customers’ needs

ICICI Bank exploited the technological tools at its disposal to attract the Indian middle -
class customers who felt under-served by both foreign banks and state-owned entities
(Bedi, 2010). To compete with banks that had numerous branches, ICICI Bank opened
a broad network of automated teller machines (ATMs) to make it easy for customers to
withdraw funds. The early, ATMs were bank-specific, which meant that ATM cards
issued by one bank could not be used in another bank’s ATMs. This restrictive usage
allowed ICICI Bank to leverage its broad network of ATMs to gain an extra advantage
in terms of higher visibility.
Another strategic move to sustain growth was to capture international business, especially that
of non-resident Indians (NRIs) who utilized remittance services. To do so, ICICI Bank
management had to study the various sources of foreign remittance and the challenges inherent
in such transactions, and then devise a method to reach customers that would not require their
physical presence. These growth targets gave company leaders reason to find new ways to
compete via innovation, despite challenges from established industry players and potential
customers. They realized that the effectiveness and efficiency of their IT system would be
crucial (Joseph, McClure, & Joseph, 1999; Khanfi& Mahapatra, 2008). The latest trends in
banking were changing customers’ responses to innovation and technology (Dhir & Mital,
2012).
Even traditional customers were beginning to want simple and quick solutions for various
services. There-fore, increasing business processing speed, agility, and efficiency; improving
customer-centricity; and reducing complexity were essential. Accelerating the growth of
business would require an increase in IT investment

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ICICI BANK BRANCHES AND ATM

ICICI Bank
Place
Branches ATM

India 4050 12964

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE).

Personal banking:

 Deposits
 Loans
 Cards
 Investments
 Insurance
 Demat services
 Wealth management

NRI Banking:
 Money Transfer
 Bank accounts
 Investments
 Property Solutions
 Insurance
 Loans

Business Banking:
 Corporate net banking
 Cash Management

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  Trade services
 FXonline
 SME services
 Online taxes
 Custodial services

PRODUCTS AND SERVICES PROVIDED BY ICICI BANK

ICICI Bank has designed a gamut of accounts and deposits to cater to your unique banking
needs. Add to this ,ICICI bank extensive branch and ATM network and facilities like mobile,
phone, internet and doorstep banking, and experience banking at its best.

1. I wish

I wish is a unique flexible Recurring Deposit that lets the customer to save for their goals when
they have the funds and earn better interest rates just like a Fixed Deposit. I wish also provides
an easy online interface to see the progress of all goals and manage them from one place. The
key features of wish are:

2. Fixed Deposit Account

The flexibility tenure of the fixed deposit account is 7 days to 10 years. The convenient ways
to open a fixed deposit account is Internet banking, Phone banking and through direct visit to
an ICICI bank branch. The Liquidity of the fixed deposit account happens when Premature /
Partial withdrawal permitted, Loan / Overdraft up to 90 percentage of FD amount and Option
of monthly / quarterly pay-out available.

3. Recurring Deposit Accounts

ICICI Bank Recurring Deposits are an ideal way to invest small amounts of money every month
and end up with a large kitty on maturity. High recurring billing and recurring payments can
be a drain on the customer’s finances and hence large investments may seem a plan away. The
bank helps the customers in processing their recurring payment through recurring billing
software that keeps track of the investments with them. This can be easily availed of through a
recurring account online that lets customers serve through Internet banking. The customers

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even transfer funds through Internet banking into their recurring account. A recurring account
transfer gets done in seconds through Internet banking.

4. Silver Savings Account

ICICI Bank’s Silver Savings Account entitles its customers to select privileges and offers.

 The ICICI Bank International VISA debit card is a debit-cum-ATM card providing
customers with the convenience of acceptance at merchant establishments and cash
withdrawals at ATMs.

 Money Multiplier Facility.

 Internet Banking offered on free of cost.

 Customers can give various types of standing instructions like transferring to fixed
deposit accounts at regular intervals.

 Nomination facility is available.

 Interest is payable half-yearly basis.

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 COMPANY PROFILE OF STATE BANK OF INDIA

The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking
in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernise India's economy. Their
evolution was, however, shaped by ideas culled from similar developments in Europe and
England, and was influenced by changes occurring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and
the global economic framework.

State Bank of India has been at the forefront of financial inclusion efforts mandated by the
Government and Reserve Bank of India. After all, SBI was created pursuant to All India Rural
Credit Survey (Gorewala) Committee Report which recommended creation of a strong bank to
meet the need for formal credit in rural areas. SBI Act in fact mandated setting up of a minimum
400 branches in 5 years (between 1955 and 1960). In other words, financial inclusion and
reaching out to the customer are the very reason for creation of SBI.

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Inclusive growth basically means broad based or shared growth which does not bypass the
poor. Sustained poverty reduction requires inclusive growth that allows people to contribute to
and benefit from economic growth.

Financial inclusion, which envisages access to formal financial sector for all segments of the
society, is one of the enablers for inclusive growth.

An Overview of SBI:

State Bank of India (SBI) is a multinational banking and financial services company based in
India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. It
was founded on 1st July, 1955. As of December 2012, it had assets of US$501 billion and
15,003 branches, including 157 foreign offices, making it the largest banking and financial
services company in India by assets.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras (incorporated on 15 April 1841) merged into the other two
presidency banks Bank of Calcutta and Bank of Bombay (incorporated on 1 July 1843) to form
the Imperial Bank of India, which in turn became the State Bank of India (SBI) in 1955 by an
Act of Parliament 1921.
Government of India nationalized the Imperial Bank of India in 1955, with Reserve Bank of
India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took
over the stake held by the Reserve Bank of India. SBI was ranked 285th in the Fortune Global
500 rankings of the world's biggest corporations for the year 2012.SBI provides a range of
banking products through its network of branches in India and overseas, including products
aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are
located at important cities throughout the country.

SBI has five associate banks namely:

 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala

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  State Bank of Travancore

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:
• SBI Capital Markets Ltd
• SBI Funds Management Pvt Ltd
• SBI Factors & Commercial Services Pvt Ltd
• SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
• SBI DFHI Ltd
• SBI Life Insurance Company Limited
• SBI General Insurance

SBI has 27,000+ ATMs and SBI group (including associate banks) has about 45,000 ATMs.
SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil
region. This was the Bank's 27,032nd ATM on 27 July 2012.

Logo:

The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts
perfection and the small man the common man - being the centre of the bank's business.

Slogans:
"Pure Banking, Nothing Else", "With You - All the Way", "A Bank of the Common Man",
"The Banker to Every Indian", "The Nation Banks on Us."
Some of the major competitors for SBI in the banking sector are ICICI Bank, HDFC Bank,
Axis Bank, Punjab National Bank(PNB) and Bank of Baroda(BOB). However in terms of
average market share, SBI is by far the largest player in the market.

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 REVIEW OF LITERATURE

The banking sector in India has made remarkable progress since the economic reforms in
1991.new private sector banks have brought the necessary competition into the industry and
spearheaded the changes towards higher utilization of technology, improved customer service
and innovative products. Customers are now becoming increasingly conscious of their rights
and are demanding more than ever before. The recent trends show that most banks are shifting
from a “product-centric model” to a “customer-centric model” as customer satisfaction has
become one of the major determinants of business growth. In this context, prioritization of
preferences and close monitoring of customer satisfaction have become essential for banks.
keeping these in mind, an attempt has been made in this study to analyse the factors that are
essential in influencing the investment decision of the customers of the public sector banks.
For this purpose, Factor Analysis, which is the most appropriate multivariate technique, has
been used to identify the groups of determinants. Factor analysis identifies common
dimensions of factors from the observed variables that link together the seemingly unrelated
variables and provides insight into the underlying structure of the data.

Employee Motivation:
Employee motivation can be defined as “influencing others in a specific way towards goals
specifically stated by the motivator, conforming within organisational constraints and the level
of motivation of the workforce represents one of the most critical factors affecting
organisational performance. One of the main reasons for increasing importance of motivation
in the workplace relates to the role of human resources becoming greater in ensuring long-term
growth for the business.

Employee motivation is an essential component of a successful business practice. No matter

how appealing products and services a company is providing, how efficient are company’s
business and marketing strategy and what size of budget does a company have to operate, low
morale and lack of motivation in employees could be a major problem for companies who aim
to make a profit in marketplace.

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It has been argued that while each individual has a general idea of what motivation is, these
ideas differ from each other. One of the most comprehensive definitions of the term motivation
is offered by Business Dictionary as internal and external factors that stimulate desire and
energy in individuals to be interested and committed to a position, role or subject in a
continuous manner, and exhibit persistent effort in achieving a goal.

Alternatively, motivation can be defined as “a process of stimulating someone to adopt a

desired course of action” and the level of employee motivation can be justly specified as one
of the major factors contributing to overall organisational competitiveness

It has been also said that “all employees have unique needs that they seek to fulfil through their
jobs. Organisations must devise a wide array of incentives to ensure that a broad spectrum of
employee needs can be addressed in the work environment, thus increasing the likelihood of
motivated employees”

It is much easier for small and medium size businesses to monitor the level of motivation in
their employees and detect and take measures if the motivation in workforce is low and it is
causing problems. In global, multicultural companies, on the other hand, objectively assessing
employee morale and level of motivation may present major challenges due to cultural and
regional differences, not recognizing the problem due to lack of contact between senior level
managers and floor staff and range of other factors.

Thomas (2009) associates changing nature of employee motivation with the rapid decline of
bureaucracy and decrease of formal rules within organisations mainly during the last three
decades. Moreover, Thomas (2009) divides motivational tools into two categories: tangible
and intangible. Tangible motivational tools include physically tangible elements such as
financial incentives, specific perks and company benefits, while intangible motivational tools
can be formal or informal recognition of contribution thanks letters, parties etc.

Thomas (2009) convincingly argues that the choice between tangible and intangible
motivational tools in any given situation depends on a range of factors such as industry,
employee cultural background the level of education, etc. However, Thomas fails to illustrate
the application of tangible and intangible motivational tools referring to real life business case
studies, and this fact marks the main shortage of the author’s text.

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The idea of institutionalising specific patterns of employee motivation practices within
organisations has been enthusiastically put forward. Specifically, according to Llopis rather
than being perceived as one time occasions, employee motivation practices need to be
implemented in a regular manner on the basis of formulation of relevant programs.

The high quality of leadership has been identified as the most basic factor impacting upon the
level of employee motivation. if managers lack basic interpersonal and communication skills,
their attempt to introduce various employee motivational programs and initiatives are destined
for failure.

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 RESEARCH METHODOLOGY

The procedure adopted for conducting the research requires a lot of attention as it has direct
bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that
research methodology, which we used at the time of conducting the research. needs to be
elaborated upon. It may be understood as a science of studying how research is done
scientifically. So, the research methodology not only talks about the research methods but also
considers the logic behind the method used in the context of the research study. Research
Methodology is a way to systematically study and solve the research problems. If a researcher
wants to claim his study as a good study, he must clearly state the methodology adopted in
conducting the research the research so that it may be judged by the reader whether the
methodology of work done is sound or not.

Motivation levels of employees can significantly go up or down with change in their official
designations. Looking at it relatively, how important are designations when placed against
other factors like pay package. relationships with peers, overall work responsibilities, etc. in
modern day organizations. Most service sectors such as telecom, banking, hospitality, retail.
etc. has a lot of people working in areas where they directly have to deal with customers or
clients at such times if the designation is attractive as it instils confidence in the individual and
equips him/her to handle the situation with confidence. No wonder workplaces today are
coming up with interesting roles like chief executive officer, executive operations so on. Also
with designation there is a certain level of authority that is given and the individual feels elated
to work with that kind of authority. The following table presents the designations of sample
employees at SBI and ICICI.

Work Motivation:
The world of work has changed dramatically over the past decade. Organizations are being
assessed against international standards and best practices. This is due to downsizing and
expanding increasing globalization, workforces diversifying, new organizational forms and
benchmarking. A these changes have a profound influence on how organizations, including
banking organizations. attempt to motivate their employees in order to have a competitive edge.
The importance of employee motivation and job satisfaction is growing all the time in the

20
organizations. Motivation is believed to lead to an increase in employees' work performance.
That in turn leads to an increase in overall organizational productivity levels. Furthermore.
motivation is said to improve employee job satisfaction, Many researchers have
been made to find out the effect the job satisfaction and motivation have in the productivity of
the company.

Motivation is one of the key factors in getting employees to increase performance. He further
adds that in today's competitive world and market t is essential that an organisation have
positively motivated employees to improve productivity and efficiency. Furthermore some
employees do not produce the quality of work or maintain a consistent level of work outputs,
which they are capable of. This may be attributed to many factors, including the
underutilization of their skills, lack of a challenge, or unstimulating leadership styles. This
could result in motivation levels decreasing and hence overall job satisfaction levels
decreasing.
Research shows that employees are motivated by various factors. which in turn should satisfy
certain needs and expectations. Managers are continually challenged to motivate a workforce
to do two things. The first challenge is to motivate employees towards helping the organization
achieve its goals. The second is to motivate the employees towards achieving their own
personal goals.

Overview Motivational Factors:

The purpose of this study is to research the different motivational factors that affect employees
motivation in the SBI and ICICI Banks. The banks represent one from public sector and the
other one being from private sector. Based on previous research it is viewed that employees
employed in the public sector will prioritize work motivation in different ways than their
counterparts employed in private sector. It is also observed that public sector and private sector
employment differ at a number of levels.

Today's work environment is undergoing a major shift: factors such as globalization growing
economies. and improved technology are constantly presenting new challenges and creating
new opportunities for people. With these changes. people's perceptions regarding their jobs are
also changing. In this grow-or-die marketplace the success of any organization relies on its

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workforce. Satisfied and committed employees are the most significant assets of any
organization including banks. As banking institutions are the backbone of a nation's economy,
the efficient management of human resources and the maintenance of higher job satisfaction
levels affect the growth and performance of an entire economy.

The Indian banking sector is a fast-growing financial service sector that has seen tremendous
progress following liberalization, The Indian Banking system can be broadly categorized into
scheduled commercial banks and "non-scheduled commercial banks. Scheduled commercial
banks can be further classified into public sector banks. private sector banks (old and new) and
foreign banks. Over time differences have been observed between public sector banks and
private sector banks in terms of various operational and efficiency parameters.

A quantitative method was used to gather data for the research. The measuring instruments
included the Work Satisfaction and Motivation Questionnaire. The self-developed
questionnaire was used to determine the personal information of Sample respondents. It
includes variables such as age, gender, experience. Designation education, salary, job security
and so on.

Income Distribution:

Employees are most valuable assets of any organization. They are motivated in many different
ways, such as by recognition, promotional opportunities, and by money. Money has been
recognized as a chief source of satisfying the needs of people. Money not only satisfies
psychological needs but also the security and social needs. Every employee want to earn fair
wages and salaries, and employers want their workers to feel that is what they are getting. To
that end, it is logical that employees and employers alike view money as the fundamental
incentive for satisfactory job performance. The use of monetary or other financial incentives
in the classic work performance paradigm is based primarily on reinforcement theory.
Reinforcement theory focuses on the relationship between a target behaviour like work
performance and its consequences on pay. The following table depicts the annual salaries of
sample employees in banks.

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Job Security:
Job motivation and job security are issues both of which are related to working Motivation
factors do change though as the economy goes up or down, During these tough times. job
security is a major concern for employees. They have to try their best, even when job security
is uncertain, for the sake of keeping self-esteem intact and knowing they are doing the best job
possible. It is observed that job security is one of the most effective factors on job motivation
due to its emanating employee's future anxiety. Job security. which is crucial for an employee
in terms of keeping his or her job or finding a new job, is also important for the employers
since it enables them to keep their employees or find new ones.

Objectives of the Study :

 To identified the motivation of employees.

 To examine the satisfaction level of the employees.

 To provide the suggestion for the improvement of organization’s performance.

 To study the important factors which are needed to motivate the employees.

Research Design :

Research design is the plan structure and the strategy of investigation so as to obtain answer to
research question and control variance.

There are three types of research design:

 Exploratory research design  Descriptive research design  Causal research design

Method of Data Collection:

Questionnaires are most suitable method to collect the data for study these variables because I
observed that most of the researchers used this tool to collect the data. Concerned sector for
collecting the data is banking sector. The questionnaire will cover the all aspects related to the
variables:

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  The effect of the personal characteristics of employee’s motivation.
 What is the effect of job design and employee’s motivation?
 What is the relationship between supervision and employee’s motivation?
 How good pay does affect employee motivation?

Sample Size:
Following points to be covered in the sample Size

A. Population or universe:- Employees of the SBI and ICICI Bank

B. Sampling frame: - Area covered around Amritsar region.

C. Sampling size:- 50

D. Sampling techniques:- Questionnaire

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 QUESTIONNAIRE

A STUDY ON EMPLOYEE MOTIVATION

Respected madam/sir,
As a part of my project I would like to gather
some information from you which will help me in an in depth study of project. I would be
obliged if you co-operate with me in filling the questionnaire. Since the questionnaire is being
used for academic purpose, the information gathered will be strictly confidential.

Kindly fill the following:

(Please put a tick mark in the appropriate box)

1. Are you satisfied with the support from the HR department?

a) Highly satisfied
b) Dissatisfied
c) Satisfied
d) Highly Dissatisfied
e) Neutral

2. Management is really interested in motivating the employees?

a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly disagree

3. Which type of incentives motivates you more?

a) Financial incentives
b) Non-financial incentives
c) Both

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4. How far you are satisfied with the incentives provided by the organization?
a) Highly satisfied
b) Satisfied
c) Neutral
d) Dissatisfied
e) Highly Dissatisfied

5. Please provide the following rates

(5- Strongly agree, 4- Agree. 3-Neutral, 2-Disagree, 1-Strongly disagree)

No Factors Rates
1. Reasonable periodical increase in salary
2. Job security exist in the company
3. Good relationship with co-workers
4. Effective performance appraisal system
5. Effective promotional opportunities in the organization
6. Good safety measures adopted in the organization.
7. Performance appraisal activities are helpful to get motivated
8. Support from the co-worker is helpful to get motivated
9. Company recognize and acknowledge your work

6. Rank the following factors which motivates you the most?

(Rank 1, 2,3,4. respectively)

No Factors Rates
1. Salary increase
2. Promotion
3. Leave
4. Motivational talks
5. Recognition

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7. Do you think that the incentives and other benefits will influence your performance?
a) Influence
b) Does not influence
c) No opinion

8. Does the management involve you in decision making which are connected to your
department?
a) Yes
b) No
c) Occasionally

9. What changes can be made to improve the work place environment?

----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------

10. is the present employer the first employer?

a) Yes
b) No

11. Since when are you working with the present job?
a) 1-5 months
b) 6-12 months
c) 1-2 years
d) 2-3 years
e) more than 3 years

12. As an employee what do you think motivates the employee most?

a) Achievement
b) Recognition
c) Responsibility
d) Advancement

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13.Is salary the most important attribute towards employee motivation?
a) Yes
b) No

14. Is management interested in motivating the employees?

a) Strongly agree
b) agree
c) neutral
d) disagree
e) highly disagree

15. What Types of incentives motivates the employees more?

a) financial
b) non-financial

16. Is performance appraisal activities helpful in motivating?

a) Strongly agree
b) agree
c) neutral
d) disagree
e) highly disagree

17. Does incentives and other benefits influence employees performance?

a) Influenza
b) Does not influence
c) No opinion

18. Does management involves you in decision making connected to your department?
a) Yes
b) Occasionally
c) No

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19.Does career development opportunities motivates you the most?
a) Strongly agree
b) Agree
c) neutral
d) disagree
e) strongly disagree

20. Job security in the existing company good attribute to motivate employees?
a) Strongly agree
b) agree
c) neutral
d) disagree
e) strongly disagree

21. Does periodical increase in salary motivates you the most?

a) Strongly agree
b) agree
c) neutral
d) disagree
e) strongly disagree

22. Are you satisfied with the support you are getting from the HR department?
a) Agree
b) disagree
c) Neither agree nor Disagree

23. Are employees motivated with the job that provides variety, interest and stimulation
a) agree
b) neutral
c) disagree

24. Does employees get motivated by being given scope to organised approach to work?
a) agree
b) neutral
c) disagree

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25. The salary increments given to employees who do their jobs very well motivate them.
a) Agree
b) disagree

26. Financial incentives motivates me more than non-financial incentives.

d) Agree
e) disagree
f) Neither agree nor Disagree

27. l am satisfied with the salary I draw at present

a) Agree
b) disagree
c) Neither agree nor Disagree

28. I am satisfied with the lunch Break, Rest Break and Leaves given in the organization.
a) Agree
b) disagree
c) Neither agree nor Disagree

29.Good physical working conditions are provided in the organization.

a) Agree
b) disagree
c) Neither agree nor Disagree

30. The Employee in the Organization feel secured in the Job.

a) Agree
b) disagree
c) Neither agree nor Disagree

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