“The Impact of Employee Motivation on

Organizational Commitment”

FINAL DRAFT

Human Resource Management

SUBMITTED TO:

Kirti Ma’am
Faculty of Human Resource Management

SUBMITTED BY:
NAME: KUSHAGRA AGNIHOTRI
COURSE: B.B.A. LL.B (Hons):
SEMESTER: 1St

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA

NAGAR, MITHAPUR, PATNA - 800001

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 ACKNOWLEDGEMENT

It is my privilege to record my deep sense to perform gratitude to those who helped me

in completion of this project.

In making of this project many people helped me immensely directly or

indirectly. I sincerely acknowledge the help rendered to by our faculty Ms. KIRTI
who had given me an idea and encouragement in making this project. I also
acknowledge the help of library staff and my friends for being cordial in order to make
conductive environment of the CNLU Hostel.

NAME: KUSHAGRA AGNIHOTRI

1ST SEMESTER

ROLL NO: 2229

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 DECLARATION BY THE CANDIDATE

I hereby declare that the work report in the B.B.A.LLB(Hons) Project report entitled
“ESTABLISHMENT OF COURTS UNDER CONSUMER PROTECTION ACT”
submitted at CHANAKYA NATIONAL LAW UNIVERSITY is an authentic record of
my work carried out under supervision of Ms. KIRTI. I have not submitted this work
elsewhere for any other degree or diploma. I am fully responsible for my project report.

NAME OF STUDENT:KUSHAGRA AGNIHOTRI

ROLL NO: 2229

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 TABLE OF CONTENT

1) INTRODUCTION
2) ROLE OF MOTIVATION
3) IMPORTANCE OF MOTIVATION
4) IMPORTANCE OF STUDY
5) MOTIVATIONAL CHALLENGES
6) CLASSIFICATION OF MOTIVATION
6.1) NEEDS
6.2) DRIVES
6.3) GOALS
6.4) MOTIVES
6.5) MOTIVATION
6.6) MOTIVATING
7) MOTIVATION AND FRUSTATION
8) EASY WAYS TO MOTIVATE YOUR EMPLOYEES
9) DIFFERENT THEORIES REGARDING MOTIVATION
10)LITERATURE REVIEW
11)CASE STUDY
12)CONCLUSION AND SUGGESTION
13)BIBLIOGRAPHY

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 AIMS AND OBJECTIVES
1) The researcher tends to analyze whether there is a significant relationship between the
motivational and organizational commitment?

2) The researcher tends to analyze that how far the motivation affect the organizational
commitment?

3)The researcher tends to analyse whether employee motivation has significant impact on
continuance organizational commitment?

HYPOTHESIS

The researcher hypothesizes to presume that employee motivation has significant impact on
organizational commitment.

RESEARCH METHODOLOGY

The researcher relied on the doctrinal method of research to complete this project.

SOURCES OF DATA

The researcher will be relying on secondary sources to complete the project.

1. Books.

2. Newspaper.

3.Journals and Websites.

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 INTRODUCTION

Motivation in simple terms may be understood as the set of forces that cause people to
behave in certain ways. A motivated employee generally is more quality oriented. Highly
motivated worker are more productive than apathetic worker one reason why motivation
is a difficult task is that the workforce is changing. Employees join organizations with
different needs and expectations. Their values, beliefs, background, lifestyles, perceptions
and attitudes are different. Not many organizations have understood these and not many
HR experts are clear about the ways of motivating such diverse workforce.
Now days employees have been hired, trained and remunerated they need to be motivated
for better performance. Motivation in simple terms may be understood as the set or forces
that cause people to behave certain ways. People are motivated rewards something they
can relate to and something they can believe in. Times have changed People wants more.
Motivated employees are always looking for better ways to do a job. It is the responsibility
of managers to make employees look for better ways of doing their jobs.
Individuals differ not only in their ability to do but also in their will to do, or motivation
Managers who are successful in motivating employees are often providing an environment
in which appropriate goals are available for needs satisfaction. Retaining and motivating
workers requires special attention and the responsibility falls squarely on the shoulders of
HR as well as managers and supervisors at all level. They have to create a work
environment where people enjoy what they do, feel like they have a purpose and have
pride in the mission of the organization. It requires more time, more skill, and managers
who care about people. It takes true leadership.
By giving employees special tasks, you make them feel more important. When your
employees feel like they are being trusted with added responsibilities, they are motivated
to work even harder so they won’t let the company down.
Motivation is essential for any company because employee is Asset of company.
Motivation is important for the growth of employees as well as growth of the organization.
In the organizational setting the word “Motivation” is used to describe the drive that impels
an the person technically, the term motivation has its origin in the Latin word “mover”
which means “to move”. Thus the word motivation stands for movement. One can get a
donkey to move by using a carrot or a stick; with people one can use incentives, or threats

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or reprimands. However, these only have a limited effect. These work for a while and then
need to be repeated, increased or reinforced to secure further movement.
If a manager truly understands his subordinate’s motivation, he can channel their “inner
state” towards command goals, i.e., goals, shared by both the individual and the
organization. It is a well known fact that human being have great potential but they do not
use it fully , when motivation is absent .Motivation factor are those which make people
give more than a fair day’s work and that is usually only about sixty-five percent of a
person’s capacity .Obviously , every manager should be releasing hundred percent of an
individual’s to maximize performance for achieving organizational goals and at the same
to enable the individual to develop his potential and gain satisfaction. Thus every manager
should have both interest and concern about how to enable people to perform task willingly
and to the best of their ability.
At one time, employees were considered just another input into the production of goods
and services. What perhaps changed this way of thinking about employees was research,
referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932
(Dickson, 1973). This study found employees are not motivated solely by money and
employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies
began the human relations approach to management, whereby the needs and motivation of
employees become the primary focus of managers (Bedeian, 1993).

ROLE OF MOTIVATION

Motivated employees are needed in our rapidly changing workplaces. Motivated

employees help organizations survive. Motivated employees are more productive. To be
effective, managers need to understand what motivates employees within the context of
the roles they perform. Of all the functions a manager performs, motivating employees is
arguably the most complex. This is due, in part, to the fact that what motivates employees
changes constantly (Bowen & Radhakrishna, 1991). For example, research suggests that
as employees' income increases, money becomes less of a motivator (Kovach, 1987). Also,
as employees get older, interesting work becomes more of a motivator.

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 IMPORTANCE OF MOTIVATION
Probably, no concept of HRM receives as much attention of academicians, researchers and
practicing manager’s motivation. The increased attention towards motivation is justified
by several reasons
1. Motivated employees are always looking for better ways to do a job. This statement can
apply to corporate strategists and to production workers. It is the responsibility of
managers to make employees look for better ways of doing their jobs.

2. A motivated employee generally is more quality oriented. This is true whether we are
talking about a top manager spending extra time on data gathering and analysis for a report
or a clerk taking extra care when filing important document.

3. Highly motivated worker are more productive than apathetic worker .The high
productivity of Japanese worker and the fever worker are needed to produce an automobile
in Japan than elsewhere is well known. An appreciation of the nature of motivation is
highly useful manager.

4. Every organization requires human resources in addition to financial and physical

resources for it to function .Three behavioral dimensions of HR are significant to
organizations.
(i)people must be attracted not only to join the organizations but also to remain it.
(ii) people must perform he tasks for which they are hired and must do so in a dependable
manner and
(iii) people must go beyond this dependable role per performance and engage in some
form of creative, spontantaneous, and innovative behavior at work.
5. Motivation as a concept represents a highly complex phenomenon that affects. and is
affected by .a multitude of factors in the organizational milieu .an understanding of the
topic of motivation is thus essential in order to comprehend more fully the effects of
variations in other reaction as they relate to the performance, satisfaction, and so forth .

6. Why increasing attention is paid towards motivation can be found in the present and
future technology required for production, as technology increases in complexity,

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machines tend to become necessary, yet insufficient, vehicles of effective and efficient
operation .Consider the example of the highly technology-based space programmed in
our country.

The polar Satellite Launch Vehicle’s (PSLV) lift-off has been the result of 12 years of
developmental work, transfer of technology to the private industry, smoothening the
manufacture of components and subsystem .complex project management, and dedicated
work by literally thousands in ISRO. Industry other national laboratories and research
institutes. With this feat, India has joined the exclusive club of half a dozen nations that
can build and, more importantly, launch its own satellites.
The secret behind the success of ISRO has been its employees who are both capable of
using and are willing to use the advanced technology to reach the goals.

IMPORTANCE OF STUDY

The importance of this study was to describe the importance of certain factors in
motivating employees at the Piketon Research and Extension Center and Enterprise
Center. Specifically, the study sought to describe the ranked importance of the following
ten motivating factors:
(a) job security
(b) sympathetic help with personal problems
(c) personal loyalty to employees
(d) interesting work
(e) good working conditions
(f) tactful discipline
(g) good wages
(h) promotions and growth in the organization
(i) feeling of being in on things
(j) full appreciation of work done. A secondary purpose of the study was to compare
the results of this study with the study results from other populations.

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 MOTIVATIONAL CHALLENGES

The framework of motivation indicates that motivation is a simple process. But in reality
, the task is more daunting
One reason why motivation is a difficult task is that the workforce is changing.
Employees join organizations with different needs and expectations. Their values,
beliefs, background, lifestyles, perceptions and attitudes are different. Not many
organizations have understood these and not many HR experts are clear about the ways
of motivating such diverse workforce.

Motivating employees is also more challenging at a time when firms have dramatically
changed the jobs that employees perform, reduced layers of hierarchy, and jetusoned
large numbers of employees in the name of right-sizing or down-sizing .These actions
have considerably damaged the level of trust and commitment necessary for employee to
put in efforts above minimum requirements some organization have resorted to hire and
fire and pay – for- performance strategies almost giving up motivational efforts. Such
strategies may have some effects (both positive and negative) but fail to make and
individual overreach him or her

Third, motives can only be inferred, but not seen. The dynamic nature of needs offend
poses challenge to any manager in motivating his or her subordinate. An employee, at
any given time, has a various needs, desire, and expectations. Employees who put in
extra hours at work to fulfill their needs or accomplishment may find that these extra
hours conflict directly with needs for affiliation and their desire to be with their families
However, there is no shortage of models, strategies, and tactics for motivating
employees. As a result, firms constantly experiment with next motivational programmed
and practices.

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 CLASSIFICATION OF MOTIVATION

Needs: Needs are created whenever there is a physiological or psychological imbalance

For example: A need exists when cells in the body are deprived of food and water or when
the personality is deprived of other people who serve friends or companions. Although
psychological may be based on a deficiency, sometimes they are not. For instant, and
individuals with a strong need to get ahead may have a history of consistent success

Drives: “Drives (Or motives) are set up to alleviate needs. Psychological needs can be
simply defined as a deficiency with direction. Physiological or psychological drives are
action – oriented and provide energizing thrust towards reaching an incentive or goals.
They are at the very heart of the motivational process. The needs for food and water are
translated into hunger and thrust drives, and the need for friend becomes a drives
affiliation. Thus, a drive is a psychological state which moves an individuals satisfying a
needs

Goals: At the end of the motivational cycle is the goal or incentive. It is anything that wills
that will alleviate a need and reduce a drive. Thus, attaining a goal will tend to restore
physiological or psychological balance and will reduce or cut off the drive. Eating food,
drinking water and obtaining friends will tend to restore the balance and reduce the
corresponding drives food, water and friends are the incentive are the goals in this example

Conceptual clarification: (motives, motivation and motivating)

The terms motives, motivation and motivating which are derived from the Latin word
‘Mover’ (to move) are important concept which have distinct connotation. In order to steer
the energies of the employees towards organizational goals accomplishment, it is essential
to grasp the meaning and significance of this concept and also to learn how to apply them
intelligently

Motives: Motive is defined as a inner state that energizes, activates (Or moves) and directs
(or channels) the behavior of individuals towards certain goals the strong motives or needs

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are fulfill. In order to minimize the restlessness, and keep it under control, the individual
is propelled into action. Thus motive induce individual to channel their behavior towards
such type of actions as would reduce their state of restlessness are inner disequilibrium.
Thus motives can be thought of as drives that energize people to action.

Motivation: while motives are energizers of action, motivation is the actual action that is
work behavior itself. For instance, when a employee work hard, his level of motivation
may be consider as low. Thus, the level of motivation of employee is judged by his
actual work behavior

Motivating: Motivating it is the term that implies that one person induces another to
engage in action or work. Behavior by ensuring that a channel to direct the motive of the
individuals become available and accessible to the individual.
Managers play a significant role in channeling the strong motive in a direction that he
satisfying to both the organization and the employees. Additionally, managers are also
responsible for awakening or activating latent motives in individuals- that is the needs that
are less strong and somewhat dormant and harness them in a manner that would be
functional for the organization.

MOTIVATION AND FRUSTATION

The basic process of motivation as defined earlier involves a smooth progression of the
need-drive-goal motivational cycle. The motivational cycle begins with a need followed
by a response directed toward a goal object, when this goal directed drive is blocked before
reaching a desired goal, frustration result. Frustration is a common event in the daily lives
of employees. The strength of frustration in a situation is related to the magnitude of the
need which is being thwarted.
In the above figure, goal-directed drive faces a barrier and frustration results due to
blocking of goal attainment. The barrier may be either overt (outward, or physical) or
covert (inward, or mental-socio-psychological).
When a person is frustrated, defense mechanisms get triggered in him. Traditionally,
psychologists like Dollard ** and others felt that frustration always leads to the defense

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mechanism of aggression. On becoming frustrated, it was thought that a person will react
by physically or symbolically attacking the barrier. More recently, aggression is
considered as only one possible reaction.
Responses to frustration are now viewed as defense mechanisms falling into four broad
categories: aggression, withdrawal, fixation and compromise.
In order to analyze specific aspects of on-the –job behavioral reaction to know some
behavioral reactions to frustration that may occur in the formal organization.

EASY WAYS TO MOTIVATE YOUR EMPLOYEES

Set Goals: It’s important to help your employees set goals for themselves. These can
include both long-term and short-term goals and they can be both work-related and
personal in nature. Often, goals are set on a weekly, monthly, quarterly, or even yearly
basis. Many companies use “performance management systems,” which get every
employee on the same page, regardless of his or her position. If they understand the
relationship between their specific job and the company’s success, they’ll often approach
their work with a sense of belonging. Frequently, that sense is all it takes to get that
individual to finish a given task. And, of course, rewarding your employees for achieving
their goals goes a long way toward creating a consistently motivated workforce.
Encourage Creative Thinking: Successful companies promote an environment in which
creative thinking by the employees is allowed, if not encouraged. If you’ve been successful
in explaining your company’s overall objectives in detail, employees will often come up
with their own creative strategies for achieving these goals. In the case of the sales force
that I help manage, I usually tell them the successful tactics that I used while making sales
but I also add that there’s no one correct way. Everyone has a unique personality that might
translate into an effective method of making sales. The challenge of figuring out an
effective method on their own can be liberating and much more fulfilling. Plus, employees
are more apt to listen to future advice if you let them figure out that you are right on their
own.
Devise a System of Teamwork and Trust: Employees are never going to produce the
way you expect them to if they think you don’t care about them. Start off by learning about
your employees’ personal lives. This will give you insights into how to deal with them in
certain situations. Your relationship with your workers should seem like one between

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partners as opposed to one between employee and boss. Also, spread specific assignments
around among your workers. By giving employees special tasks, you make them feel more
important. When your employees feel like they are being trusted with added
responsibilities, they are motivated to work even harder so they won’t let the company
down.
Foster an Environment of Fun: Studies have shown that employees are more dependable
and productive when they think their workplace is a fun place to come to every day. I’ve
found that one of the most effective methods of doing this is simply engaging my sales
reps in conversations about topics that we both find interesting. It’s not necessary to talk
to them all day long, but a few minutes here and there throughout the day can work
wonders. Little talks like these allow the employee to see you as a regular person, and
when your employees like you as a person, they are more likely to listen to you when you
need them to get something done.

DIFFERENT THEORIES REGARDING MOTIVATION

Douglas McGregor's Theory X and Y: whereby he links employee motivation to the

way managers express themselves through attitude, behaviour and organizational policies,
and his encouragement to manage through democratic involvement rather than unilateral
authority.
Frederick Herzberg's two-dimensional theory, distinguishing between "Hygiene Factors"
and "Motivational Factors". He explains the hygiene factors (company policy, supervision,
interpersonal relations, working conditions and salary) as those elements of the work
environment which do not by themselves cause motivation but whose absence lead to job
dissatisfaction; while the motivational factors (achievement, recognition, the work itself,
responsibility and advancement) do in effect cause increased job motivation.
William Ouchi's Theory Z: based on the model of Japanese management and the theory
that workers want to have a close, cooperative and participative working relationship with
the people they work for. Ouchi's motivational theory is also built around people's
individual value and the role they have in determining the organization's success.

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Abraham H Maslow Need Hierarchy or Deficient theory of Motivation: The intellectual
basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow
and Frederick Heizberg, whose published works are the “Bible of Motivation”. Although
Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond
academic circles. Douglous Mac Gregor has used Maslow’s theory to interpret specific
problems in personnel administration and industrial relations.

The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of five
categories. The lowest level needs are physiological and the highest levels are the self
actualization needs. Maslow starts with the formation that man is a wanting animal with a
hierarchy of needs of which some are lower ins scale and some are in a higher scale or system
of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be
satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles
the standard economic theory of diminishing returns. The hierarchy of needs at work in the
individual is today a routine tool of personnel trade and when these needs are active, they act
as powerful conditioners of behavior- as Motivators.
Hierarchy of needs; the main needs of men are five. They are physiological needs, safety
needs, social needs, ego needs and self actualization needs, as shown in order of their
importance.

LITERATURE REVIEW

Rensis Likerthas called Motivation as the core management. Motivation is the core of
management. Motivation is an effective instrument in the hands of the management in
inspiring the work force .It is the major task of every manager to motivate his subordinate or
to create the will to work among the subordinates .It should also be remembered that the
worker may be immensely capable of doing some work, nothing can be achieved if he is not
willing to work .creation of a will to work is motivation in simple but true sense of term.

Motivation is an important function which very manager performs for actuating the people to
work for accomplishment of objectives of the organization .Issuance of well conceived

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instructions and orders does not mean that they will be followed .A manager has to make
appropriate use of motivation to enthuse the employees to follow them. Effective motivation
succeeds not only in having an order accepted but also in gaining a determination to see that
it is executed efficiently and effectively.

In order to motivate workers to work for the organizational goals, the managers must
determine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction .If the management is successful in
doing so; it will also be successful in increasing the willingness of the workers to work. This
will increase efficiency and effectiveness of the organization .There will be better utilization
of resources and workers abilities and capacities.

CASE STYDY

SWEDISH CASE STUDY

Today, neither employees nor employers seem to take for granted that a person will stay
with the same firm until retirement. Yet, keeping employees for longer periods is an imp-
ortant challenge for firms. One industry where retention is interesting is the auditing
industry in Sweden, this because certain requirements are needed to become an auditor.
Firstly, the employee needs to have a Swedish university degree, including specific courses
within au-diting/accounting. Furthermore, the person needs practical experience for a
specific period of time. Due to these statements the challenge of retaining and motivating
valuable em-ployees is crucial for the auditing firms, which is why we have chosen to do
a case study at Auditing Company X to see how they work with employee retention. We
have compared the findings to our chosen theory, which consist of four categories: the
hiring process, in-ternal labor market and career, motivation and performance, and finally
culture and leader-ship. These four categories are initially based on Leigh Branham?s
book: ?Keeping the people who keep you in business: 24 ways to hang on to your most
valuable talent? (Bran-ham, 2001).In our conducted case study, at Auditing Company X,
we have been able to conclude that the firm’s retention practices are to a great extend in

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line with the theoretical framework. There are some areas that need further attention from
the company, such as an individua-lized reward system and communication between
managers and employees. Even though there are some parts to work on the most important
aspects of retention, such as having a holistic and long-term orientation, Auditing
Company X seems to have incorporated this into their practices successfully.

Retention: An explanatory study of Swedish employees in the financial sector regarding

leadership style, remuneration and elements towards job satisfaction
University essay from Växjö universitet/Ekonomihögskolan
Author: Sanna Paulsson; Linda Lindgren; [2008]
Keywords: retention; remuneration; reward; leadership; leadership style; management;
motivation; employee;
Abstract: Introduction: Companies today are forced to function in a world full of change
and complexity, and it is more important than ever to have the right employees in order to
survive the surrounding competition. It is a fact that a too high turnover rate affects
companies in a negative way and retention strategies should therefore be high on the
agenda. When looking at this problem area we found that there may be actions and tools
that companies could use to come to terms with this problem. Research told us that
leadership, remuneration and elements like participation, feedback, autonomy, fairness,
responsibility, development and work-atmosphere is important for job satisfaction and
retention. Object: The main objective is to increase the understanding regarding
employee’s retention in relation to leadership style, remuneration and elements such as
participation, feedback, autonomy, fairness, responsibility, development and work-
atmosphere in the Swedish financial
Sector. Method: We wanted to investigate how employee of the Swedish financial sector
prefers to be retained, and how they consider and react to the chosen areas. The survey has
a quantitative approach with a web based questionnaire and includes 129 respondents from
banks, insurance and finance companies. The theoretical framework includes leadership
and leadership style, financial as well as non-financial remuneration and research done in
later years regarding participation, feedback, autonomy, fairness, responsibility,
development and work-atmosphere connected to retention.
Conclusion: The result shows that regarding leadership the respondents prefer leadership
based on relations were they feel appreciation. Both appreciations from the closest

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manager as well as the company management influences employee job satisfaction in a
positive way. More money was the most common reason for wanting to change jobs, and
when asking how the remuneration system should be designed, base pay with additional
bonus and benefits were preferred. But also non financial factors such as participation,
feedback, autonomy, fairness, responsibility, development and work-atmosphere must be
taken in consideration to satisfy since they seem to increase employees? Willingness to
stay in the company.

What leaders can do to keep their key employees - Retention Management

University essay from Göteborgs universitet/Företagsekonomiska institutionen
Author: Lisa Hedberg; Maria Helnius;

FINNISH CASE COMPANY: TADADEKA

Background: retention management is a highly topical subject and an important dilemma

many organizations might face in the future, if not facing it already. We believe that the
leader plays a key role in employee retention and retention management. The concept of
retention management can both have a narrow, and a broader significance. Both parts of
its significance are generally included in this thesis. The background of the thesis present
a few articles that discuss issues that makes it important for the organization, and the
leaders, to work hard with retention management. The research is based on the leaders in
the Finnish case company Tradeka. Following key questions are intended to be answered:
What are the consequences between leaders actions and employees retention? Which is
the leader’s role when it comes to retaining employees? Purpose statement: The purpose
of the thesis is to investigate and analyze how company leaders today can retain their key
employees. How can the provision of key human resources develop a long-term
relationship that makes top employees stay in the company? The study aims to establish
the procedure leaders apply to retain employees. The purpose is to compare the qualitative
study, made at the case company, with findings from the thesis theoretical framework.
Research method: The study is a qualitative, as well as a theoretical study where empirical
findings and theories has been compared. The intention of investigating and using the

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Finnish company Tradeka Limited as a case company, is to make the information from the
theories more valid, and also the interest in how retention management works in practice.
Eleven qualitative interviews were conducted at Tradeka?s financial department, both with
supervisors and employees to get a broader view at the phenomenon retention
management. Result: Leaders and their skill in creating a culture of retention, has
becoming a key in why people stay and what usually drives them away from a company.
The leader has become the main factor in what motivates people’s decision to stay or leave.
For organizations to keep its key employees their number one priority should be to look at
their management, because people leave managers and not companies. Characteristics in
a leader that are of importance, as the leader plays a key role in retention management is:
trust builder, esteem builder, communicator, talent developer and coach, and talent finder.
The leader’s relation to the employees plays a central role in retaining employees, because
employees need to feel involvement, and that their presence count. When retention is a
core value, good things happen for customers, employees, and the company.

TESCO SHARE SAVE SCHEME

Three-year schemes, 3.99 per cent for five-year schemes, and 4.07 per cent for seven-year
schemes.
Staff makes 36 payments into the three-year scheme, and 60 payments into the five and
seven-year schemes. Their savings are left in the deposit account for an extra two years
under the seven-year scheme.
At the end of the period, the employee has the right to choose whether to buy the shares at
the pre-determined option price with the savings they have made; or, if the current market
price has dipped below the price at outset, to take the savings in cash, free of tax, instead.
Motivating for success - motivating employees - includes related article on demotivators
Nation's Business, March, 1988 by Sharon Nelton Profit-share and sharesave schemes
have provided good returns for the staff of retailers and other large groups.
In 2002, Tesco paid out £50 million to just over 100,000 of its workers after holding £38
million-worth of shares on their behalf for three years in its profit-share scheme.
Since 1999, when the shares were placed in trust for the employees, Tesco's share price
had risen by more than 30 per cent, from 188p to 258p when the scheme matured.
Employees were able to keep the shares or cash them in.

19
Staff can join Tesco's profit-share scheme after two years' service. The number of shares
allocated to each employee depends on the number of hours they work each week.
During 2002, Tesco, which has 195,000 staff, distributed more than £200 million through
sharesave and bonus schemes.
In February 2002, two Save As You Earn share schemes matured and released £116
million to 37,000 staff who had been saving into the schemes for either three or five years.
Savers who had started the scheme three years before could buy Tesco shares at the 1998
option price of £1.36, while savers in the five-year scheme could buy at 83p per share. The
shares they bought at these prices were actually worth about £2.35 each.
Those who had saved the maximum £250 per month saw an investment over five years
turn into a maturity value of £49,000, a return of almost three times what they put in.
Savers who put away as little as £10 per month saw the value of their investment soar from
£600 to £1,953 once the savings had been used to buy shares at the end of the five-year
term.
By contrast, if these employees had saved the same £10 per month into a savings account
paying the building society average of 4.8 per cent gross per year, each would have
£695.96 before tax after five years.
ATerry Leahy, chief executive of Tesco, said: "The popularity of SAYE has increased
dramatically in 21 years as staff recognise the value of the benefit. The most recent three
and five-year schemes to be offered to Tesco staff in October 2001 attracted more than
63,000 applications. This equates to over one in four staff - more than 66 times the 1981
figure when 942 employees signed up for the scheme."
Most large companies operate share-save schemes for their staff. Under government rules,
employees can save between £5 and £250 per month into a scheme, which can run for
three, five or seven years with an option to buy shares in the company at a price determined
at the outset. This price is often the market price at outset, but companies have the right to
discount the market price by up to 20 per cent - which Tesco did.
Contributions are paid into a bank or building society account nominated by the employer
and interest is paid at a rate set universally by the Treasury. This year, the rates were 3.67
per cent gross per annum.

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 CONCLUSION

Motivation is an important concept that has been receiving considerable attention from
academicians, researchers and practicing HR managers. In its essence, motivation
comprises important elements such as the need or content, search and choice of strategies,
goal-directed behavior, social comparison of rewards reinforcement, and performance-
satisfaction.
The increasing attention paid towards motivation is justified because of several reasons.
Motivated employees come out with new ways of doing jobs. They are quality oriented.
They are more productive. Any technology needs motivated employees to adopt it
successfully.
Several approaches to motivation are available. Early theories are too simplistic in their
approach towards motivation. For example, advocates of scientific Management believe
that money is the motivating factor. The Human Relations Movement posits that social
contacts will motivate workers.
Mere knowledge about the theories of motivation will not help manager their subordinates.
They need to have certain techniques that help them change the behavior of employees.
One such technique is reward. Reward, particularly money, is a motivator according to
need-based and process theories of motivation. For the behavioral scientists, however,
money is not important as a motivator. Whatever may be the arguments, it can be stated
that money can influence some people in certain circumstance.
Being an outgrowth of Herzberg’s, two factor theory of motivation, job enrichment is
considered to be a powerful motivator. An enriched job has added responsibilities. The
makes the job interesting and rewarding. Job enlargement refers to adding a few more task
elements horizontally. Task variety helps motivate job holders. Job rotation involves
shifting an incumbent from one job to another. This reduces boredom and disinterest.
OB Mod uses the reinforcement principle of B.F. skinner to give the management a
powerful technique to change employee behavior. Several reputed organizations in a
America have used OB Mod programmes successfully to achieve positive results.
Recommendation

Motivation is essential for each and every organization because its helps in avoiding the

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frustration and it also create the healthy work environment.This concern for, and
investment in, future scenarios will ingrain unshakable trust and loyalty towards the
company. The word motivation stands for movement. Every manager should have both
interest and concern about how to enable people to perform task willingly and to the best
of their ability. Motivation is essential for any company because employee is Asset of
company. Motivation is important for the growth of employees as well as growth of the
organization.
Motivated employees help organizations survive. Motivated employees are more
productive. To be effective, managers need to understand what motivates employees
within the context of the roles they perform. Motives can only be inferred, but not seen.
The dynamic nature of needs offend poses challenge to any manager in motivating his or
her subordinate. An employee, at any given time, has a various needs, desire, and
expectations. Employees who put in extra hours at work to fulfill their needs or
accomplishment may find that these extra hours conflict directly with needs for affiliation
and their desire to be with their families.

SUGGESTION

The results obtained from this research can certainly be used very effectively to improve
the present scenario of motivation in different sectors of our country. It will help to
establish a firmer grip on not only organizational behavior but also employee psychology.
Motivating your employees is a delicate and purposeful challenge that requires more than
an annual review or jotting a few notes in someone’s personnel file. The following can be
suggested based on the research and survey conducted above.
• Based on the result provided by the study, the organization can get an idea of the fact if
they require taking steps regarding motivation.
• The study can also be used to bring clarity concerning how toimplicate different theories
of motivation into practical field of work.
• To inspect the extend up to which motivation has been able to meet employee prospect
expectation.
• To inspire these sectors to enforce more motivational tools to achieve more successes.

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• The results can be used to compare present scenario regarding level motivation and the
optimum rate of motivation should be applied to attain organizational goals most
effectively.

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 BIBLIOGRAPHY

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PeƌfoƌŵaŶĐe: A ƌeoute foƌ ďƌitish fiƌŵs͛ .
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methods-factors.html
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.php?aid=86681
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7) Butkus, R.T. & Green, T.B. 1999. Motivation, Beliefs and organizational
Transformation Organizational Quorum Books.

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