A

PROJECT REPORT

ON
“ EFFECT OF INCENTIVES AND COMPENSATION ON
EMPLOYEE PERFORMANCE AT BIG BAZAAR – RAJKOT”

Submitted to
ATMIYA Institute of Technology & Science

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Under
Gujarat Technological University
UNDER THE GUIDANCE OF
DR. AMIT RAJDEV MR. HARDIK THANKI
(Professor) (HR Manager)

Submitted by
(CHAUHAN SADHANA)
177030592021
M.B.A – SEMESTER III

ATMIYA Institute of Technology & Science

M.B.A PROGRAMME
Affiliated to Gujarat Technological University Ahmedabad
July 2018
COMPANY INTERNSHIP CERTIFICATE

I
COLLEGE CERTIFICATE

II
 PREFACE
I am student of M.B.A. department. I am studying in Atmiya Institute of Technology and
Science at Rajkot.
As per the syllabus of Gujarat Technology University ( GTU ) Rajkot SEMESTER – 3
Student has to training the industrial unit and prepare report. The Industrial training is also
essential in order that student can measure organizational structure, and it‟s working , or etc.
I have undersigned Miss Chauhan Sadhana Valajibhai Student of SEMESTER – 3
ATMIYA INSTITUTE OF TECHNOLOGY AND SCIENCE, brought the opportunity to
understand the Retail Sector & it‟s working. I have made report after the training of “
FUTURE GROUP “ In Retail Sector I have selected the BIG BAZAAR retail sector for the
training because BIG BAZAAR retail sector is the constantly learning and being inspired
from the universal laws of nature. I am highly thankful of the company to permit the training
and helped me to prepare this report.

III
 ACKNOWLEDGEMENT

I am so glad to present this report of my project work, because of which I got opportunity to
visit BIG BAZAAR. These all efforts to prepare project work report would not be possible
without the co-operation & efficient support of the staff members of BIG BAZAAR. And I
am very much thankful to MR. Hardik Thanki and Miss. Ruchi Raithama who had given me
sufficient & suitable information about the industry and also my topic.

I also express my sincere gratitude to Mr. Amit Rajdev staff of our college for giving me
guidance for preparing this report.

Place :- Rajkot
Your faithfully

Date :-
( Chauhan Sadhan )

IV
 DECLARATION

I, CHAUHAN SADHANA , hereby declare that the report for“Summer Training

Project” entitle “ EFFECT OF INCENTIVES AND COMPENSATION ON
EMPLOYEE PERFORMANCE ” is a result of my own work and my
indebtedness to other work publications, references, if any, have been duly
acknowledged.

Place: Rajkot (Signature)

Date : 22/07/2018 (CHAUHAN SADHANA)

V
xecutive summary
The only aim of SIP is not to have approach that is not only the benefit for the
students but also the company should be benefited. The value addition done by me
was the survey conducted by me. The survey carried out was for Big Bazaar, Rajkot.
To conduct a survey this was carried out to know the “Effect of incentives and
compensation on employee performance at Big Bazaar, Rajkot” This survey include
things like number of employee in Big Bazaar, various type of incentives and
compensation at Big Bazaar.
I carried a survey of 73 employees by formulating Questionnaire which is attached at
the end. I have carried a survey in Big Bazaar Rajkot to knowing that what the effect
of the incentives and compensation is on employee‟s performance.
I personally work with employees of Big Bazaar and fill-up the Google form for this
survey. I also tried to know about the competitor‟s strategies

VI
 TABLE OF CONTENTS

Sr. No. Particulars Page No.

Preface
Acknowledgement
Declaration
Executive Summary

1.0 Part – 1 Industry Information

1.1 About the Industry
1.2 World Market
1.3 Indian Market
1.4 Growth of the Industry

2.0 Part – II Organization Information

2.1 About Organization
Introduction to Functional Department
Finance
2.2 Marketing
HR
Production
2.3 Organization Structure
2.4 SWOT Analysis

3.0 Part – III – Primary Study

3.1 Introduction of the study
3.2 Literature Review
3.3 Background of the Study
3.4 Problem Statement
3.5 Research Objective

4.0 Research Methodology

4.1 Research Design
4.2 Source/s of Data
4.3 Data Collection Method
4.4 Population
4.5 Sampling Method
4.6 Sampling Frame
4.7 Data Collection Instrument
4.8 Data Analysis & Interpretation

VII
5.0 Findings
5.1 Conclusion
5.2 Limitation of the Study

6.0 References / Bibliography (APA Style)

Annexure

VIII
 Part – I
Industry
Information

1
 About the Industry
Retail means the sale of goods and services to the consumers or the end user for their own
use. The aspect of the sale that qualifies it as a retail transaction is that the end user is the
buyer. A retailer purchases goods or products in a large quantity from manufacture directly or
from wholesaler and sells in small quantities to consumers and earns profit. Retails involves
the sale of merchandise from a single point of purchase directly to a customer who intends to
use that product. In some jurisdictions or regions, legal definitions of retail specify that at
least 80 percent of sales activity must be to end-users.

Retail derives from the Old French word re-tailler, which means “to cut off, clip, pare,
divide” in terms of tailoring (1365). It was first documented as a noun with the meaning of a
“sale in small quantities” in 1433 (from the Middle French retail, “piece cut off, shred,
scrap, paring”). As in the French, the word, retail, in both Dutch and German, also denotes
the sale of small quantities of items. Retailing practices of accumulation of various marketing
practices directed towards giving the best merchandize, from a fixed location such as
departmental store or kiosk. A retailer is a person, agent, agency, company, or organization
which is instrumental in reaching the goods and merchandise, or services to the ultimate
consumer.

A common assumption is that retailing involves only the sale of products in store. However,
it also includes the sale of services like those offered at a restaurant, parlor, or by car rental
agencies. The selling needs not necessarily take place through stores. Retailing encompasses
selling through the mail, the internet, door to door visits – any channel that could be used to
approach the consumer. When company directly sell to consumer then it also known as the
retailing (like Dell)

Retailing has become such an intrinsic part of our everyday lives that it is often taken for
granted. The greatest economic and social progress has been those with strong retail sector.
Over the last decade there have been sweeping changes in the general retailing business.

2
World Retail Market

The world retail market is growing rapidly over the years.

The total retail revenue - in the year 2001 was US$ 2.40 billion
- In the year 2006 was US$ 3.36 billion
- In the year 2011 was US$ 4.50 billion
- And in the year 2016 US$ 4.73 billion
The top 10 players of the world retail market according to 2016 are: (Delottie report 2016)

Rank Company Retail Growth Net Profit Return on

revenue margin assets
1 Wal mart 485873 0.8% 2.9% 7.2%
2 Costco 118719 2.2% 2.0% 7.2%
3 Kroger 115337 5.0% 1.7% 5.4%
4 Schwarz 99256 5.3% NA NA
Group
5 Walgreens 97256 8.3% 3.6% 5.8%
Boots
Alliance
6 Amazon 94665 19.4% 1.7% 2.8%
7 Home Depot 94595 6.9% 8.4% 18.5%
8 Aldi Group 84923 4.8% NA NA
9 Carrrefour 84131 -0.4% 1.1% 1.8%
10 CVS Health 81100 12.6% 3.0% 5.6%

Wal-Mart has retained its position at the top of as the retailer leader for over 20 years in the
world market.

Amazon has climb sharply from 157 rank in FY2001 to 6th rank in FY2016 as its retail
revenue approaches US$100B.

The some of the statistics of the world retail market are as follows:
 In the year 2016 – 2017 the aggregate retail revenue is US$ 4.4 trillion of top 250
retailers
 The average size of the top 250 retailers is US$ 17.6 billion
 The total share of the total aggregate retail revenue from foreign operations is 22.5%
 90 percent of worldwide retail sales are still done in physical stores.
the overall retail market is expected to grow at 12 per cent per annum, modern trade would
expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent

3
 Indian retail market

The Indian retail market is growing at a very fast pace of about 20% and has a market size of
US $500 billion. India is the fifth largest preferred retail destination globally.

India is expected to the world‟s 3rd largest consumer economy reaching US$400billion in
consumption by 2025. (according to a study by Boston Consulting Group)

The Indian retail industry is divided into two sectors: Organized and Unorganized retailing.
The Indian Retail industry has primarily been dominated by the unorganized segment. During
FY16, the unorganized retail accounted for about 90% of the total retail revenue. Compared
to the unorganized retail contribution of 15-20% to the total retail sales in countries such as
U.K., U.S., Taiwan etc, the Indian figure is high.

Retailing is the India‟s largest industry, over 10% of the country GDP and around 8% of the
employment. Retail industry in India is at crossroads. It emerged as one of the most dynamic
and fast paced in industry with several players entering the market

The organized Indian retail industry has begun experiencing an increased level of activity in
the private label space. In India the private label strategy is playing 6% role in market. The
stores like Shopper Stop, Lifestyle generates 15 to 25% revenue from private label brands.
Growth of online retail is also augmenting the growth of private label brand in Indian

In India Luxury retailing is gaining importance. It includes fragrance, gourmet retailing,

accessories, and jewellery and many other. The Indian consumer is ready to splurge on luxury
items and is increasing doing so. In India luxury market was around USD 14.7 Billion in
2015 and 18.3 billion in 2016. Due to these the India will be 12th largest luxury retail in the
world by 2020.

In India the retail industry is likely to grow in future due to demand factors like high brand
consciousness, rising income and purchasing power, growing young population and working
women, changing consumer preference and growing urbanization etc. and supply factors like
increase in infrastructure facility, easy availability of credit.
India is ranked first in the Global Retail Development Index 2017, because of increase in the
middle class family and also increase in consumer spending capacity.

Indian retail market has witnessed investment of US$800million by Private Equity firms and
wealth funds in 2017

E commerce is expanding steadily in the country and it is creating the biggest retail industry
revolution and this trend would continue in the years to come. Retailers should leverage the
digital retail channels (e-commerce), which would enable them to spend less money on real
estate while reaching out to more customers in tier-2 and tier-3 cities.

Both organised and unorganised retail companies have to work together to ensure better
prospects for the overall retail industry, while generating new benefits for their customers.
Nevertheless, the long-term outlook for the industry is positive, supported by rising incomes,
favourable demographics, entry of foreign players, and increasing urbanisation.
Exchange Rate Used: INR 1 = US$ 0.016 as on FY2018.

4
Growth of retail industry

The retail industry in the introduction stage of modern retail industry, it is categorized as the
shifting of traditional grocery stores into the modern pattern store like departmental store,
super markets, speciality store, hypermarket, etc.

The retail industry starts from early 1990 by people migrating from villages to urban areas
and opening the small stores to provide necessary items and take the advantage of repeat
sales with the customer living thereby and it is up to the limited consumer base within the
area only

In 1960 to 1980 the domestic textile market ventures entered into retailing through company
owned outlets, few manufacturer has opened their own outlets (Vimal, Bombay Dyeing,
Raymond, etc.) while some has established their own retail chain (Bata, Metro)

In 1990 to 2005 the conceptualization in retail industry has done with liberalization and
starting the Indian economy many corporates and first generation entrepreneurs enter in the
retail business and investments by international retail firms increased in India.

In 1991 RPG group Launched Spencer in Bangalore and Shoppers Stop in Mumbai by
Raheja‟s. In 1998 Tata group enter in retail with the brand Westside. And also the various
international brands enter in the Indian market (McDonalds, Adidas, Reebok, Nike, Pepe
Jeans, etc.) and the Growth in apparel retail format was the most noteworthy during this
period.

In the year 2005 – 2010 the expansion in the retail market taken place, these time period was
considered as the growing share of the organized retail market. In the total Indian retail
market sales with substantial investment by Large Indian corporates.

In 2006, Reliance entered in the retail business with Reliance fresh. And in 2006 the
government change the FDI policy make allow foreign retailers to invest in Indian retail
market. This saw several premium brands such as Armani, Versace etc entering the Indian
market.

In 2008-2009, due to recession impact in the Indian economy, many over-leveraged retail
stores had to shut down.

From 2010 onwards, the consolidation and growth started with huge competition in the urban
market.
And emergence of the online retail brands came in the existence like Flipkart, Myntra,
Homeshop18, Amazon, etc.

5
Part – II Organization Information

6
 About organization

Big bazaar was introduced by the FUTURE GROUP in September 2001 by Mr. KISHORE
BIYANI with the opening of its first 4 stores in Kolkata , indore, Bengaluru and Hyderabad.
Big Bazaar was designed with the combination of typical traditional Indian Bazaar with
modern retailing feature in that structure.
Every day, Future Group brings multiple products, opportunities and services to millions of
customers in Indian. Through more than over 22 million sq. Ft. Of retail space, they serve
customers in more than 250 cities the country.
At Future Group we are committed to being a catalyst of positive change in the communities, societies and
business sectors in which we operate. We envision India,s transformation into the legendary „ Sone Ki
Chidiya‟ ( golden bird ), taking wings once again to reach greater heights.
We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth and economic
prosperity evokes trust among consumers, employees, partners, shareholders and the community.
Future Group understands the soul of Indian consumers. As one of Indian‟s retail pioneers with multiple retail
formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective
impact on business is staggering : Almost 500 million customers walk into our stores each year and choose
products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from
across India. And this number is set to grow. Future Group employs around 60,000 people directly from every
section of our society. We source our supplies from enterprises across the country, creating fresh employment,
impacting livelihoods , empowering local communities and fostering mutual growth.
We believe in the „ Indian dream „ and have aligned our business practices to our larger objective of being a
premier catalyst in Indian‟s consumption-led growth story. Working towards this end, we are ushering positive
socio-economic changes in communities to help the Indian dream fly high and the „ Sone Ki Chidiya „ soar
once again. This approach remains embedded in our ethos even as we rapidly expand our footprints into Indian

Vision :
 To deliver everything, everywhere, every time to every Indian consumer In consumer
in the profitable manner

Mission :
 We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future scenarios in the consumption space leading to
economic development.
 We will be the trendsetters in evolving delivery formats and making consumption
affordable for all customers segments - for classes and for masses.
 We shall infuse Indian brands with confidences and renewed ambition.
 We shall be efficient , cost – conscious and committed to quality in whatever we do.
 We shall ensure that our positive attitude, humility and united determination shall be
the driving force to make us successful.

Values :
 RESPECT AND HUMILITY in dealing everyone within and outside the organization
 FLOW by constantly learning and being inspired from the universal laws of nature
 INDIANNESS by believing in oneself and doing things the Indian way
 OPENNESS AND ADAPTABILITY by accepting new ideas and knowledge, and
being proactive in meeting challenges emerging from changing business scenarios

7
 VALUING AND NURTURING RELATIONSHIPS with customers, business
associates, stakeholders, communities and the society LEADERSHIP in thought and
in business
 SIMPLYCITY AND POSITIVITY to foster innovation, speed and imagination

8
 Introduction to Functional
department

9
 Finance

13.8 901 26 240

Mn.Sq.Ft. STORES STATES CITIES
HARYANA HIMACHAL JAMMU &
Big Bazaar
PRADESH KASHMIR JHARHAND
8 Big Bazaar Big Bazaar Big Bazaar
EasyDay 1 1 1
63 EasyDay EasyDay Home Town
FBB 1 7 6
1
Foodhall
1
Home Town
1

MADHYA
KARNATAKA KERALA PRADESH MAHARASHTRA
Big Bazaar Big Bazaar Big Bazaar Big Bazaar
28 9 7 37
EasyDay FBB E Zone EasyDay
31 3 1 27
E Zone Home Town E Zone
6 1 12
FBB FBB
4 11
Foodhall Foodhall
2 1
Home Town Home Town
5 11

ODISHA SIKKIM
Big Bazaar
PUNJAB RAJASTHAN Big Bazaar

10
7 Big Bazaar Big Bazaar 1
6 12
E Zone
1 EasyDay
EasyDay
106
9
TAMIL UTTAR
NADU TELANGANA TRIPURA PRADESH
Big Bazaar Big Bazaar Big Bazaar Big Bazaar
10 9 1 23
EasyDay EasyDay EasyDay
36 80 55
FBB E Zone Home Town
1 2 3

W5EST
UTTARAKHAND BENGAL
Big Bazaar Big Bazaar
3 20
EasyDay E Zone
20 6
FBB FBB
1 6
Home Town
6

The financial management of the Big Bazaar are managed centrally.

According to 2016 – 2017 report the Big Bazaar has 235 stores in 26 states and in 124 cities
with 13.8 million sq.ft. across the India.

The financial performance of the Future Group of 2016 – 2017 are as follows:
 The income from the operation is Rs. 17,075 crore
 The gross margin is 24.8%
 The EBIT is Rs. 573 crores i.e. 3.4%
 The PAT is Rs. 368 and 2.2%
 The EPS is Rs. 7.8
 The Return on capital employed is 16.8%
In the same report the chairman has mention that the co. has the total income of 17,075 crores
and the profit after tax is 368 crores. And the overall sales growth is 12% and the no. of
inventory days‟ decrease to 80 days.

11
In the year 2016-2017 the 300 million consumer walked into the store and 143 million bills
were generated and with these the co has the annual growth of 17% and the average bill
valuing touches Rs. 1155 with the growth of 11%.
Financial services
 Future capital holdings
 Internal financial serves
 Future Generali Life Insurance
 Future Ventures

12
FUTURE RETAIL LTD. – FINANCIAL OVERVIEW

PARTICULURE (Rupees in CR) 2015 2014 2012

NET SALES 10994.03 12292.64 7420.52
OPERATING PROFIT 1243.28 1098.15 1060.60
OTHER INCOME 127.24 58.55 330.32
INTEREST 669.04 692.54 460.41
DEPRECIATION 512.88 404.34 311.87
PROFIT BEFORE TAX 61.36 1.27 288.32
TAX -12.70 -1.54 15.06
PROFIT AFTER TAX 74.06 2.81 273.26

13
 Marketing

4P‟s of marketing
1.PRODUCT MIX:

The Big Bazaar offers the maximum variety for each category of product. The various
category offer by Big Bazaar are as follows:

General Merchandize – stationery, etc.

Electronic Bazaar – television set, Washing machine, refrigerator, mobile phones, Computer
accessories, etc.

Apparel and Fashion – denims, t-shirts, formal wear, casual wear, party wear, ethnic wear,
accessories, dress materials, etc.

Home and Personal care (HPC) – Shampoo, detergent, Soaps, Liquid wash,

Home fashion – Bedsheet, Pillow, door mate, etc.

Farm Fresh - Fruit and Vegetables, Dairy products

Chill Station – Soft drinks, Packaged juice, milk, frozen foods, etc.

Staple goods– grocery

Beauty Centre – cosmetic items

2.PRICE

 Value Pricing (Every Day Low Pricing):

Big Bazaar gives the lowest price without coupon, waiting for discount promotions, or
comparison shopping.

 Promotional Pricing:
Big Bazaar offers financing at low interest rate. The concept of psychological discounting
like Rs. 99, Rs. 49, etc. is used as promotional tool. Big Bazaar also provides on Special
Event Pricing at the time of festivals like Diwali, GudiPadva, Durga Pooja, Independence
day, Republic day etc.

 Differentiated Pricing:
Time pricing, i.e., difference in rate based on peak and non-peak hours or days of shopping is
also a pricing technique used in Indian retail, which is also used by Big Bazaar.

 Bundling:
Selling combo-packs and offering discount to customers. The combo-packs add value to

14
customer, and as well as to the Big Bazaar by selling in the combos and huge

3.PLACE

The place means distribution of goods in marketing so in the Big Bazaar the distribution
channel in managed through the centralized distribution centre and the goods are sold at the
various stores

4.PROMOTION
Marketing Techniques used by Big Bazaar are as follows:
 Exchange Offers:
To increase the consumer, the Big Bazaar came with the offer such as the THE
GREAT EXCHANGE OFFERS in that the consumer will bring their old stuff/goods
and exchanged it to Big Bazaar and in returned they get the coupon and the coupon
can be reimbursing by purchasing goods from the store

 SabseSaste Din:
During the time of festivals like republic day Jamnastami, Diwali, etc. Big Bazaar
provides the low price of goods and have the special offers.

 Wednesday Bazaar:
Big Bazaar has introduced the “HaftekaSabseSasta din” which provides lowest price
of the week. The aim is to provide the lowest price and save the money for the
homemaker

 Monthly Bachat Bazaar:

Big bazaar has scheme of „Monthly Bachat Bazaar‟ at the starting of every month, its
start from date 1 to 8, it‟s the time when most of the working people get their salaries,
so big bazaar take good advantage of grabbing these salary by giving this scheme

 Special offer before college or school start:

Big Bazaar provide special offer when there is time of starting schools, give special
offer or discount on stationery items and for school and college students provide
special offer on apparel like jeans, t-shirt etc., on foot ware, bags, etc.

Target Audience
The target audience of the Big Bazaar is the middle and upper middle class of the society

15
 Human Resources

In Big Bazaar there are two types of employees i.e. own employees and private employees.
Own employees are the staff members of the Big Bazaar and the private employees are the
employees send their their personal at Big Bazaar and sell their products.

In Big Bazaar the employees‟ recruitments made from various sources like consultancy
services, walk-ins, referral, etc.

The selection is done on the basis of interview for the entry level job, the interview is
conducted by the HR person and asked the basic question about the education, experience,
communication skills, etc. For the higher and top level job the selection is made on through
psychometric test in which the candidates are asked to answer the few question which
basically test their sharpness, analytical ability, ability to handle stress, presence of mind, etc.
and sometimes the group discussion is also conducted.

After the selection of new employees, the 13 days‟ induction and training is conducted. There
the new employees are given information about organization vision, mission, values, and the
basic rules and the introduction to the various departments etc. They will be informed about
their roles, duties and responsibility.

The new employees will be on probation period for the 6 months

The employees are rewarded suitably with attractive pay packages and some allowances. And
the annual bonuses are given

Employees and their dependent are entitled for medical treatment.

Along with these employees are given card known as EDC (Employee Discount Card)
through these they can get special discount by purchase at Big Bazaar.

The HR department conducts performance appraisal of all employees annually in the month
of April. Big Bazaar uses the rating method to evaluate the performance. The employees are
given the stars and awarded on their performance.

Based on their performance increment will be given in their pay. In addition, if the employees
achieve or exceed the given targets along with their team members will provided with
attractive cash and other incentives.

16
 Operation
The main operation in the Big Bazaar is the management of the inventory.
The inventory mgt. in the Big Bazaar is done through Centralized Distribution
Channel (CDC) and local vendors. The central distribution centre are located in way
that centre can cater most of the big bazaar located nearby. In the Gujarat the centre is
located at the Ahmedabad.
The company is now focusing only on large format retail Through the Big Bazaar and
small format neighbor hood retail business and has decided to move away from the
specialty retail businesses to Ensure reduction in operation cost as well as unlocking
value of home retail business in a separate company
The objective of getting higher ROCE along with operating free cash flows from the
first full year of operations has been achieved. We have also been able to take benefit
of batter financial position for future group.

Manufacturer

Manufacturer CDC

Manufacturer

17
 Organizational structure

Band 4Accc
Market Manager Advisory Band

Store Karta
Band 3B/3A
Mid Manager
Assistant Store Band
Manager

Department Manager
Band 2D/2C
Specialist
Assistant Band
Department Manager

Team Leader Band 1C/1A

Coordinator
Band
Team Member

18
SWOT Analysis
Strength :
 Big Bazaar is known as the Indian “ Wall – Mart “
 Everyday low Price
 Affordable by middle class
 Huge investment capacity
 Benefit of early entry in industry
 Culture, Values a
 And ethics are strongly followed

Weakness :
 Perception of consumer low price = low quality
 High employee turnover
 Cost of operation is high

Opportunity :
 With increase in population demand increase and scope for the further expansion
 Expand the business at global level
 Increase in brand conscious consumer
Threats :
 International competitors ( Wall mart )
 E – commerce market can affect the market share of Big Bazaar

19
Part – III Primary
Study

20
 Introduction of the Study

In today‟s world‟s any organization employees performance is very

important. To know/understand the organization productivity it is required to carry
out the research.

The employee performance is to study the effect of incentives and compensation

while they working, at big bazaar and their perception and many more
So research will help to know the effect of incentives and compensation on
employee performance and through these the company can easily able to identify the
new opportunity, what employee want, their expectation, etc.

These study was undertaken to know the performancer if the employee of the
organized retail sector and to study at the Big Bazaar is considered and the employee
of the big bazaar were asked to fill the few question for the study.

21
 Literature Review

The research will focus on one company – sandvik Mining – a Swedish manufactureing
company, specializing in producing and supplying in machinery for the mining sector
globally. It has over 15,000 employees. Sandvik Mining has been a part of the Sandvik
Group sinc 1998 when the Sandvik Group acquired the Finish company, Tamrock. Sandvik
Mining is a leading global supplier of equipment and tools, service and technical solutions for
the mining industry.
http://www.mining.sandvik.com/

Saunders et. al. (2009,p.98) state that “a critiacal review of literature is necessary to help
you to develop a through understanding of, and insight into, previous research that relates to
your research question(s) and objectives”.

Compelling evidences have been found in the literature about the significance of the
relationship between compensation & reward and the employee behavior and organizational
performance. Pritchard et. al, (1988) To explore the numerous types of motivational
incentives received by employees

Anonymous(2015). How America‟s Top CEOs Motivate Employees-And Get Results, what
are the best ways to motivate people ? Forbes Magazine. Retrieved from
http://www.forbes.com/pictures/gkig45efh/behrooz-abdi-ceo-invense/

Fadil, P. A. & Williams, R. j., & Limpaphayom, W., & smatt, c. (2005 ). A conceptual
Examination of the influence of Individualism / Collective on the Cross-Cultural Application
of Equity Theory.
Cross Cultural Management: International Journal, Equity or Equality ? Retrieved from
http://www.emeraldinsight.com.ezproxy.arcada.fi:2048/doi/pdfplus/10.1108/1352760051079
8114

According to Mishra and Dixit (2013), financial and non financial benefits are highly
correlated with employee‟s performance in an education reward system . Because of positive
relationship of between rewards and performance in an education rewards system. Because of
positive relationship of between performance also increase the job satisfaction.
Kabak, E, K, Gocer, K, S, A, Kucuksoylemez, S, Tuncer, G, (2014) “ strategies for
employee performance: a case of service,” Procedia – Social and behavioral Sciences 150
(2014) 1167-1176.

22
 Background of the Study
The relationship between employers and employees, and the organization and the
organization and its shareholders is expected to be mutually. Reciprocal. The employee
expects employees to give their best in the areas of monitoring their performance , learning
to develop themselves, adhere to rules and regulation in the performance of their assigned
duties to increase productivity. They also expect their employees to be innovative and take
initiative and address problems on their own . Employees on the other hand are also looking
up to the employer or management to provide the necessary tools and equipment they need
work with and also get fair compensation for the work they do and the other services they.
Provide
Many have said , that the most valuable asset of an organization is its human resource and
therefore they must be managed efficiently to ensure increased productivity. It has also been
said that compensation management is an area of the corporate world that has not been
given much attention hence the very rampant industrial actions experienced in industry.
Compensation plays an important role in organization that want to reach their objectives and
their goals. It goes without saying that organizations which do not properly manage this
aspect of human resource activity very well will have a negative impact on the total
performance of their employees and impact on performance

23
 Problem statement
Compensation is usually narrowed to cash and as a result, employers only have a tunneled
vision when it comes to the issues of compensation for their employees. Other aspect of
compensation which makes up the total compensation package for the employee are not
given much attention. Employees themselves fail to recognize the fact that their
compensation is a package nd not only related to cash. The by-product of the above
understanding of compensation is that it is poorly managed and most of the time performance
is affected adversely. Therefore the problem the research intends to investigates into is to
understand what contribution to total compensation and how it can be better managed and
linked to employee performance

24
 Objective of the study
The general objective of the study is to determine the effect of compensation management on
employee performance
To determine the importance of compensation management on employee performance at Big
Bazaar
To identify the compensation packages available at the Big Bazaar
To investigate the problems and challenges associated with compensation management at the
Big Bazaar
To identify other forms of compensation and recommendation ways of addressing challenges
in compensation management at he Big Bazaar
This sample comprises management staff, senior ( non-management) staff, middle level staff,
and junior staff. The objective is to be able to capture some characteristics such as
perceptions, and to make relevant inferences from the data collected representative of the
entire population

25
 Research Methodology
The steps and procedures followed in conducting the research. To be precise, the chapter
presents the procedures to be used in selecting research subject, the research instruments,
gathering and analyzing data, And making meaning of the data that is collected.
In defining the term „ methodology „ it can be said to refer to the sets of structured procedures
and instruments used in conducting a research..A framework within which to record facts,
document them and interpret them in a piece of research. Two fundamental approaches exitst
to methodology and researchers are naturally inclined to use either of them, they are the
quantitative and the qualitative methods.
Qualitative research is more descriptive and qualitative research more often draws inferences
based on statistical procedures and often makes use of graphical presentations and figures in
its analysis .
In recent times researchers commonly employ the use of both qualitative and quantitative
methods in a single research This study incorporation the use of both method to some extent;
the researcher however uses more of the quantitative approach than qualitative approach. The
latter was also useful in the aspects of the research which require explanation to observed
correlations or relation. The Quantitative research methodology allowed for gathering
empirical measurement of the impact of compensation management on employee
performance and the Qualitative approach was more handy whiles probing into and
exploiting the views of respondent and clarifying ambiguous responses.
The researcher took to cognizance the importance of the credibility and validity of the
research findings and therefore the research methods employed in data gathering, analysis
and interpretation, were all accepted methods and procedures that also help make the final
report an easy read. The various aspects of the research methodology covering the research
design, population and sampling, instruments, data collection procedure and mode of analysis
used in this study is detailed below.

26
 Research Title:
A Study on Effect of incentives and compensation on employee performance At Big Bazaar
Rajkot branch

Research Design
PURPOSE OF RESEARCH
I have to filled out a survey for big bazaar. I collect this information for HR research. The
reason for conducting research is to gather data about current packages of incentives and
compensation and how it can effect the employee performance. The Right HR Research
helps in major related to employee decision-making, such as promotion, reward, increase in
compensation etc.
1) Exploratory Research
2) Causal Research
3) Descriptive Research
EXPLORATORY RESEARCH :
Is the initial Research into a hypothetical or theoretical idea. This type of research isn‟t
making final information about a topic Often in HR terms , Exploratory research is used to
planed or long-term business activity to see if an idea is viable in any way. Informal
approaches can be used for exploratory research. Typical sources are causal conversations
with employees os company HR manager
CAUSAL RESEARCH :
Causal research is defined as an attempt to connect ideas to understand cause and effect, so
researchers can try to explained what is going on. This type of research has the potential to
get to the bottom of deeper issues, such as why a certain target worker doesn‟t understand
the service. One variable gets manipulated to see if it changes the outcome. This could be as
simple as putting a service in a test
DESCRIPTIVE RESEARCH :
Descriptive research attempts to explore and explain information often discovered through
exploratory research. When it comes to a organization, this could relate to a organization
related information & services offering, or any other part of the organizational structure
pertaining to employee. Focus group are a descriptive research option because the purpose of
these groups is simply to get more information about a set topic, like measure employee
performance etc.
The descriptive research design is used for conducting this research work because this design
enables the researcher to study the problem at given point of time of the population of interest
. For The Study on Effect of Incentives and Compensation on Employee performance I am
conducting descriptive research..

27
 Sources of data

A research project may depend upon two types of data:

1) Primary data.

2) Secondary data.

Primary data: Primary data are those data which are collected directly by the researchers
themselves. But, the process of collecting primary data is more complicated the primary data
is collected by using primary methods such as questionnaires, interviews, observations, etc.
For this study questionnaires are used to collect primary data from the customers.

Secondary data: Secondary data mainly include past records or reports of any organization.
Any article or report published in newspapers, books etc. the data can be collected at less cost
of time & money.

Data from both primary and secondary sources were used for the study. Primary data was
gathered from employees of Big Bazaar. With the help of the survey questionnaire and
personal interviews to clarify some responses and secondary data was gathered from sources
including various published sources management, journals and internet resources as well as
the Administrative and Procedural manuals, Conditions of Service Manual at Big Bazaar.
Data collected was analyzed using frequencies, percentages, tables and graphs

28
 Population
Data Collection Sources : Primary data & secondary data
Method : Survey method
Instrument used : Questionnaire (Google form)
Type of Questionnaire : Structured Questionnaire
Sample size : 75

29
 Sampling Frame
The Sampling procedure used will be convenience sampling combined with judgemental
sampling. Sample have been taken into consideration on the basis of criteria which includes
that respondent should be an employee of Big Bazaar & at least aware about incentives &
compensation
The sampling procedure used will be convenience sampling combined with judgmental
sampling. Sample have been taken into consideration on the basis of criteria which includes
that respondent should be an online shopper or at least aware about internet shopping.

30
 Data collection Instrument
These are the fact finding strategies, they are the tools for data collection. They includes
Questionnaire, Inerview, Observation and Reading Essentially the researcher must ensure that
the instrument chosen is valid and reliable.
The validity and reliability of any research project depends to large extent on the
appropriateness of the instruments. Whatever procedure one uses to collect data, it must be
critically examined to check the extent to which it is likely to give you the expected results.

31
 Data Collection and Interpretation

1.Gender :

Male 38
Female 35

Total
Female Male

48%
52%

Interpretation :
From the above data, we can analyze that 52% of the male are working At Big
Bazaar as compared to female is 42 %

32
2.Age :

18 or Above 13
18 – 25 44
26 – 40 14
40 or Above 2

Age
50

45

40

35

30

25

20

15

10

0
18 - 25 18 or under 26 - 40 40 or Above

Interpretation :
From the above data, we can analyze that mostly the people who work at Big Bazaar is
between 18 – 25 age mostly the youths. The age groups including 18 under and 26 – 40 are
working at Big Bazaar fewer and the persons 40 or above are rarely working at Big Bazaar .

33
3.Education :

Under graduate 18
Graduate 34
Post graduate 21

Age
50

45

40

35

30

25

20

15

10

0
18 - 25 18 or under 26 - 40 40 or Above

Interpretation :
The education qualification of the sample was 34% were graduate and 21% are post
graduate and 18% till under graduate

34
4.Marital Status :

Married 21
Single 52

Marital status
60

50

40

30

20

10

0
Married Single

Interpretation :
In the sample the 21 employee are Married and 52% aere single

35
5.Designation :

Cashier 13
Head 12
HR Manager 17
Salesman 12
Store Manager 6
Vertual merchandise 7
Warehouse 6

Designation

Warehouse

Virtual merchandiser

Store manager

Salesman

HR Manager

Head cashier

Cashier

0 5 10 15 20

Interpretation :
From the above data, we can analyzed that mostly the HR Manager is 17%
and salesmen, cashier, is 12% the cashier is 13 %, salesmen , head cashier is
12% warehouse and store manager is only 6% at Big Bazaar

36
6.Dose the management provide full information regarding the Business
and development achievement of the company ?
Very often 27
Some times 38
Never 8

Does the management provide full

information regarding the business and
development achievement of the company ?
40

35

30

25

20

15

10

0
Never Some times Very often

Interpretation :
From the above data mostly 38% people believe that sometime they give
information regarding the business and development and 27% say that big
bazaar is very often regarding there information but 8% person say that big
bazaar never provide there information regarding business and developments

37
7.Since how many years have you been working with the organization ?

Less Than 1 year 26

1 – 2 year 23
2 – 3 year 12
3 – 4 year 9
4 year or Above 3

Count of Since how many years have you

been working with the organization ?

Less than 1 year

4 year or Above

3 - 4 year

2 - 3 year

1 - 2 year

0 5 10 15 20 25 30

Interpretation :
The above chart shows that since how many year employee working at big
bazaar And almost 26% employee new joins and 23% employees 1-2 year,
12% employee 2-3 year , 9% employee 3-4 year and only 3% employee of the
big bazaar are working with big bazaar more than 4 year.

38
8.Big Bazaar provides Incentives or not ?

Yes 65
No 8

Count of Big bazzar

provides incentives?
70

60

50

40

30

20

10

0
No Yes

Interpretation :
From the above chart 65% know about incentives of big bazaar and only 8%
employee don‟t know about incentives of big bazaar

39
9.If yes than which type of incentives big bazaar provides you ?

Retirement benefits 11
Medical reimbursement 27
Bonus 44
Provident fund 27
Free training workshop 29
Regularity of promotion 22
Long service awards 20
Gratuity benefits 20
Sales target achievement 14
incentives
Overall profit driven incentives 13

50
45
40
35
30
25
20
15
10
5 Series1
0

Interpretation :
From the above data we analyzed that 44 employees take the benefits of bonus and 29
employees take the benefit of free training workshop

40
 10.Income
Less than 10000 24

11000 – 20000 19
21000 – 30000 18
31000 or Above 12

30
Income

25

20

15

10

0
11000 - 20000 21000 - 30000 31000 or Above Less than 10000

Interpretation :
The table shows that most of the employee i.e. 24% are employees so their income is
bbelow 10000 and income between 11000 -20000 are 19% are having the income of 21000 -
30000 has the income are 18% and 12% are having 31000 – 40000

41
11.What do you think compensation plays in your organization ?
To meet the employer‟s legal 5
obligation
To encourage employees to work hard 27
To help employees meet basic needs 17
To enhance the organization‟s image 27
All the above 17

What do you think compensation plays in your

organisation ?

To meet the employer's legal obligation

To help employees meet basic needs

To enhance the organization's image

To encourage employees to work hard

All the above

0 5 10 15 20 25 30

Interpretation :
From the above data we analyzed that 27% employee think that to encourage them for work
hard and also to enhance the image of organization for that Big Bazaar give them
compensation.

42
12.The compensation packages are well defined and explained to employee
?

Strongly disagree 6
Disagree 17
Neutral 32
Agree 12
Strongly agree 6

The compensation packages are well defined and

explained to employee ?

Strongly disagree

Strongly agree

Neutral

Disagree

Agree

0 5 10 15 20 25 30 35

Interpretation :
The above charts shows the satisfaction level of overall compensation package at Big Bazaar.
The most of 32% employee has give rating Neutral

43
13. Employee‟s opinion on how effective compensation management
influences employee performance
disagree Strongly 9
Disagree 19
Neutral 27
Agree 14
Strongly agree 3

Employee's opinion on how effective compensation

management influences employee performance

Strongly disagree

Strongly Agree

Neutral

Disagree

Agree

0 5 10 15 20 25 30

Interpretation :
The above charts shows the satisfaction level of employees opinion on how that the effective
compensation management influence in employee performance and most of 27% employee
has given rating Neutral.

44
14. In Addition to my pay for the work I do I am entitled to the following
benefits
1) Medical
Yes 57
No 16

In Addition to my pay for the

work i do i am entitled to the
following benefits [Medical]
60

50

40

30

20

10

0
No Yes

Interpretation :
From the above data we analyzed that 57% employee take the benefit of Medical.

45
2)Pension
Yes 30
No 43

In Addition to my pay for the

work i do i am entitled to the
following benefits [Pension]
50

45

40

35

30

25

20

15

10

0
No Yes

Interpretation :
From the above data we analyzed that only 30 % employee take the benefit of pension and
43% employee don‟t take the benefits of loan.

46
3)Paid leave
Yes 38
No 35

In Addition to my pay for the work

i do i am entitled to the following
benefits [Paid leave ]
38.5

38

37.5

37

36.5

36

35.5

35

34.5

34

33.5
No Yes

Interpretation :
From the above data we analyzed that 38% employee take the benefit of paid leave

47
4)Insurance
Yes 48
No 25

In Addition to my pay for the

work i do i am entitled to the
following benefits [Insurance]
60

50

40

30

20

10

0
No Yes

Interpretation :
From the above data we analyzed that 48% employee take benefit of Insurance

48
5)Loan
Yes 39
No 34

In Addition to my pay for the

work i do i am entitled to the
following benefits [Loan]
40

39

38

37

36

35

34

33

32

31
No Yes

Interpretation :
The above charts shows 39% employee believe in addition to there work they take the
benefit of loan.

49
15. Give your Opinion
1) My basic pay is reviewed periodically
Strongly disagree 2
Agree 3
Not sure 11
Disagree 28
Strongly agree 29

My basic pay is reviewed periodically

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 5 10 15 20 25 30 35

Instrument :
From the above data we analyzed that most of the 29% employee‟s strongly agree that his
basic pay is reviewed periodically.

50
2)My basic pay varies from others in other levels of employment
Strongly disagree 3
Agree 4
Not sure 11
Disagree 37
Strongly agree 18

My basic pay varies from others in other levels of

employment

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 5 10 15 20 25 30 35 40

Interpretation :
The above charts shows employees basic pay varies from others in other level of
employment and 37% employee agree with this statement.

51
3)My basic pay is motivates me to do my work well
Strongly disagree 1
Disagree 5
Not sure 14
Agree 29
Strongly agree 24

My basic pay motivates me to do my work well

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 5 10 15 20 25 30 35

Interpretation :
The charts shows that employees basic pay motivates to do there work well and 29%
employee agree with this statement

52
4) My basic pay is well balanced compared to the work
Strongly disagree 1
Disagree 7
Not sure 16
Agree 32
Strongly agree 17

My basic pay is well balanced

compared to the work i do

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 10 20 30 40

Interpretation :
This charts shows the employees asic pay is well balanced as compared to the work they do.

53
5) My basic pay is well balanced compared to other employees in the
company
Strongly disagree 4
Disagree 4
Not sure 16
Agree 34
Strongly agree 15

My basic pay is well balanced

compared to other employees in the
company

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 10 20 30 40

Interpretation :
The above charts shows employees basic pay is well balanced as compared to other
employees in the other organization and 34% employee agree with this statement

54
6) An increase in my basic pay will motivate me improve on my
performance

Strongly disagree 3
Disagree 5
Not sure 16
Agree 27
Strongly agree 22

An increase in my basic
pay will motivate me
improve on my
performance

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 10 20 30

Interpretation :
the above table shows if Big Bazaar increase the compensation so it‟s motivates to their
employee to improve in performance and most of the employees are agree.

55
7) There exist a system in the company of compensating employees if they
achieve their targets
Strongly disagree 2
Disagree 5
Not sure 14
Agree 34
Strongly agree 18

There exist a system in the company of compensating

employees if they achieve their targets

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 5 10 15 20 25 30 35 40

Interpretation :
The above charts shows a system in the company of compensating employees if they achieve
their targets and most of the employee 34%
Are agree with this statement

56
8) I am entitled for a reward if the whole organization achieves it's set
target
Strongly disagree 3
Disagree 2
Not sure 15
Agree 33
Strongly agree 20

I am entitled for a reward if the whole organization

achieves it's set target

Strongly disagree

Strongly Agree

Not sure

Disagree

Agree

0 5 10 15 20 25 30 35

Interpretation :
The above table shows The most of 33% employee agree only 2% employee disagree with
the organization achieves and It‟s target.

57
16 . Are you satisfied with the present system of incentives and
compensation ?
Highly satisfied 7
Satisfied 51
Not so much 10
Not at all 5

Are you satisfied with the present system of incentives and

compensation ?

Satisfied

Not so much

Not at all

Highly satisfied

0 10 20 30 40 50 60

Interpretation :
the above chart shows that the satisfaction level of overall system of compensation and
incentives at Big Bazaar
The most of the employee are satisfied with the system of Big Bazaar

58
 Findings
 Employees ratio at Big Bazaar 38% male and 35% female equally working
and most of 44% youth working at Big Bazaar & they all are 34% graduated,
21% post graduated and rarely 18% employee are under graduate
 The most of the 52% employee are single and only 21% employee are
married
 The 27% employee are aware about the full information regarding big bazaar
provide by the management but till only 8% employee not aware
 Most of the 65% employee aware about incentives provide at big bazaar & 8%
employee‟s don‟t know about the incentives
 The employee working at big bazaar mostly 24% employees income slab less
then 10,000 and only 12% employees income slab more than 31,000
 Most of the 27% employee believe that organization give them compensation
because of the reason for that they enhance the image of organization
 The employee only 32% believe that there compensation packages are well
defined &explained them very well and also 27% employee give there opinion
that how effective compensation influence employee performance
 Most of the employee think that in addition to there pay for the work they do
they take following benefits 57% medical benefits, 30% pension benefits, 38%
paid leave benefits, 48% insurance benefits and 39% loan benefits
 The employees opinion regarding big bazaar is 29% employee strongly agree
that there basic pay is reviewed periodically & also 32% employee are think
that there basic pay is well balanced
 Most of the employees motivate by increase in basic pay and this change help
to achieve there set targets and for all that employees are satisfied with the big
bazaar

59
 Conclusion
The study shows the Employee Performance at Big Bazaar Rajkot and from these
study the conclusion can be drawn that the ratio of male and female work the big
bazaar are equal.
And the employee working the Big Bazaar they take incentives most of the Bonus and
Free training workship. From this study I learn that incentives and compensation it
create very deep effect on employees performance. When people get extra benefit
from employer or organization they can more focus toward they work and that work is
more productive.

60
 Limitation of the study
Any research is not complete and there is always a scope of further research.
 There are a few limitations in this entire study and first is limited to Big Bazaar in
retail industry and to specific set of there employee only.
 Most of the employee are from Gujarat so in some cases it can‟t apply to other states
 Limitation of work and compensation
 Study has been done in general not specific to any particular category of employee
 In future, more post/ designation specific and with more geographically spread
research need to be done in order to examine how website actually impact on
performance on employee compensation for working decision process..
 Secondly as data was collected by convenience sampling, though enough precaution
has been taken to avoid the biasness but still there is scope of improvement.
 So, there is scope of further research which will give more comprehensive conclusion
for website attribute and A detailed study on effect of incentives and compensation
employee performance.

61
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0-%20June%202017.pdf
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ve+Program+on+Employee+Performance.pdf
15. http://www.scipress.com/ILSHS.52.95.pdfS

16. References:
Media Reports, Press Releases, Deloitte report, Department of Industrial Policy and
Promotion website, Union Budget 2017–18
Source:

Deloitte Touche Tohmatsu Limited. Global Powers of Retailing 2018. Analysis of

financial performance and operations for fiscal years ended through June 2017 using
company annual reports, Planet Retasil database and other public sources

ELK Asia Pacific Journals - 978-93-85537-02-8

Annual_Report_2016_17.pdf

International Journal of Business and Management Invention ISSN (Online): 2319 – 8028,
ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 4 Issue 11 || November. 2015 || PP-37

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Plagiarism Certificate

63