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RESEARCH REPORT

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ON

“A Study on promotion and rewards


policies for employees at SBI in
Lucknow City”
Submitted To:
Dr. APJ Abdul Kalam Technical University, Lucknow
Towards the partial fulfillment of the award of degree of
Master of Business Administration (MBA)

Guided by: Submitted by:


Dr. Neeta Bhatla Babli Kumari
(Associate Professor) MBA 4th Semester
Dept of Management Studies Roll No. 1805670009
BBD NIIT, Lucknow

Session 2019-2020
Department of Management Studies

Babu Banarasi Das


Northern India Institute of Technology
Sector II, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
Certificate from the College
ACKNOWLEDGEMENT
First and foremost am indebted to the Almighty. It provides Pine Tree State immense

pleasure to position on record my feeling and reverence to my guide and supervising

faculty Dr. Neeta Bhatla from Babu Banarasi Das Northern India Institute of

Technology, Lucknow for all the timely help and support rendered. But for her

constant motivation, encouragement and adept guidance during the entire course of

research, my endeavor would not have culminated in fruition. The sincerity and

dedication put in by her for the sake of my Thesis is remarkable. I would like to thank

her for the opportunity I was given to conduct my Research and further my thesis

dissertation under her guidance. I am grateful to Prof. (Dr.) M. K. Rastogi, the Head

of Department of Babu Banarasi Das Northern India Institute of Technology,

Lucknow for sparing his valuable time for me on different occasions. I really

appreciate all the bank employees who provided the requisite data for my research

work. It was their cooperation and input that made this research possible. I express my

gratitude to all the library staff of Babu Banarasi Das Northern India Institute of

Technology, Lucknow. Close to my heart is the support of my dear Colleagues,

family and friends. They were always there for me with their wise counsel and

sympathetic ear. I could not have done any of this without you all. Thank you once

again.

BABLI KUMARI
Roll No. 1805670009
MBA 4TH SEMESTER
BBD NIIT, LUCKNOW
PREFACE

Research Report is an important a part of the Management studies. It gives the student

to discover the precious treasure of experience and an exposure to actual paintings

culture observed by the industries and thereby assisting the scholars to bridge gap

among the theories explained within the eBook and their realistic implementations.

Research performs an important function in future constructing of a person so that we

can recognize the actual world in which he has to paintings in future. The theories

greatly decorate our knowledge and provide possibilities to blend theoretical with the

sensible expertise where researcher receives familiar with certain factor of research. I

feel proud to get myself to do research at topic “A Study on promotion and rewards

policies for employees at SBI in Lucknow City”.

This basis for this research originally stemmed from my passion for developing better

methods of data storage and preservation. As the world moves further into the digital

age, generating vast amounts of data and born digital content, there will be a greater

need to access legacy materials created with outdated technology. How will we access

this content? It is my passion to not only find out, but to develop tools to break down

barriers of accessibility for future generations.

In truth, I could not have achieved my current level of success without a strong

support group. First of all, my parents, who supported me with love and

understanding, and secondly, my committee members, each of whom has provided

patient advice and guidance throughout the research process. Thank you all for your

unwavering support.
TABLE OF CONTENT
Certificate i

Acknowledgement ii

Preface iii

Sr. No. Chapters Page no.

1. Introduction 1

2. Review of Literature 25

3. Company profile 39

4. Objective of the study 54

5. Research Methodology 56

6. Data Analysis and Interpretations 60

7. Findings 73

8. Conclusion 76

9. Suggestion & Recommendation 78

10. Limitations of the study 80

11. Bibliography 82

12. Annexure 84
CHAPTER 1
INTRODUCTION

1
INTRODUCTION

Good remuneration has been found over the years to be one of the policies the

organization can adopt to increase their workers performance and thereby increase the

organizations productivity. Also, with the present global economic trend, most

employers of labour have realized the fact that for their organizations to compete

favorably, the performance of their employees goes a long way in determining the

success of the organization. On the other hand, performance of the employees in any

organization is vital not only for the growth of the organization but also for the

growth of the individual employee. An organization must know who are its

outstanding workers, those who need additional training and those not contributing to

the efficiency and welfare of the company or organization. Also, performance on the

job can be assessed at all levels of employment such as: personal decisions relating to

promotion, job rotation, job enrichment etc. And, in some ways, such assessment are

based on objective and systematic criteria, which includes factors relevant to the

person‟s ability to perform on the job. Hence, the overall purpose of performance

evaluation is to provide an accurate measure of how well a person is performing the

task or job assigned to him or her. And based on this information, decisions will be

made affecting the future of the individual employee.

Therefore, a careful evaluation of an employee‟s performance can uncover weakness

and deficiencies in a specific job skill, knowledge or areas where motivation is

lacking. Once identified, these deficiencies may be remedied through additional

training or the provision of the needed rewards.

2
o cope with the changing situations an organization makes adjustments in the existing

workforce through promotion. Promotion is a change in status upward resulting from

assignment to a position assigned a higher salary grade. A promotion is the

advancement of an employee‟s position in an organizational hierarchy. According to

Scott and Clothier “A promotion is the transfer of an employee to a job which pays

more money or one that carries some preferred status”.

According to Pigors and Charles “ Promotion is advancement of an employee to a

better job-better in terms of greater responsibility, prestige or status, greater skill and

especially increased rate ofpay or salary.” Thus Promotion is an upward reassignment

of an individual in an organization‟s hierarchy, accompanied by increased

responsibilities, status and with increased income. The employee being promoted, the

promotee‟s duties and responsibilities usually become qualitatively different from

those of his earlier job. Promotion is an employee's reward for good performance or

positive appraisal. Before acompany promotes an employee to a particular position it

ensures that the person is able to handle theadded responsibilities by screening the

employee with interviews and tests and giving them training oron-the-job experience.

A promotion can involve advancement in terms of designation, salary and

benefits.

to fill the vacancies in an organization management choose promotion as it serves the

following purposes.

1. To utilize the employee skill, knowledge at the appropriate level in the

organizational hierarchy resulting in organizational effectiveness and

employee satisfaction.

3
2. To develop competitive spirit and inculcate the zeal in the employees to acquire

the skill,knowledge etc, required by higher level jobs.

3. To develop competent internal source of employees ready to take up jobs at higher

levels inthe changing environment.

4. To promote employee self-development and make them await their turn of

promotions. Itreduces labour turnover.

5. To promote a feeling of content with the existing conditions of the company and a

sense ofbelongingness.

6. To promote interest in training, development programmes and in team development

areas.

7. To build loyalty and boost morale.

8. To reward committed and loyal employees.

Promotion:

Each organization needs to maintain a balance between the internal sources of

personnel promotion and external sources by means of recruitment. Hence, promotion

must be based on consistent, fair and clear cut policy. The National Institute of

Personnel management ( NIPM) has suggested a promotion policy on the following

lines:

Drawing up an organization chart to make clear to all the ladder promotion. Where

there is a job analysis and a planned wage policy, such chart is quite easy to prepare.

making the promotion system clear to all concerned who may initiate and handle

cases of promotion. Though departmental heads may initiate promotion, the final

approval must lie with the top management, after the personnel department has been

asked to check from its knowledge whether any repercussion is likely to result from

the proposed promotion.

4
All promotions should be for a trail period to ascertain whether the promoted person

is found capable of handling the job or not. Normally, during this period, he draws the

pay of the higher post, but it should be clearly understood that if “he does not make

the grade” he will be reverted to his former post and former pay scale..

Bases for Promotion

Organizations develop a policy depending on the basis on which promotions are to be

made.

1. Merit: denotes an individual employee‟s skill, knowledge, ability, efficiency and

aptitude as measured from educational, training and past employment record. It helps

employees to acquire new skill, knowledge. However, lack of reliability in

determining merit criteria objectively is the main obstacle to its becoming the sole

basis for promotion.

2. Seniority: Seniority is based on the length of service of an employee in an

organization. It isrelatively easy to measure the length of service and judge the

seniority. It minimizes the scope for grievances and conflicts regarding promotion.

At the same time it results inemployee turnover and it kills the zeal and interest to

develop among young people.

3. Seniority-cum-Merit: There is a need to strike a balance between merit and

seniority. Hencea combination of both seniority and merit can be considered the basis

for promotion satisfying the management for organizational effectiveness and

employees and trade unionsfor respecting the length of service.

5
Promotion Policy

Every organization need to specify clearly its promotion policy based on its corporate

policy.

The policy should contain clear cut norms and criteria for promoting an employee.

The policy should be fair and impartial and should be applied uniformly to all

employees without giving scope for nepotism,

favoritism etc. Promotion systems necessitate a twofold balance between the choice of

the individual most suited to fulfill the job role and thus contribute effectively to the

organization‟s mission, and individual‟s aspirations for promotional opportunities,

which need to be satisfied. Organizations have adopted a variety of promotion

policies depending upon their culture, size, and business.

The reward system is a group of neural structures responsible for incentive salience

(i.e., motivation and "wanting", desire, or craving for a reward), associative learning

(primarily positive reinforcement and classical conditioning), and positive emotions,

particularly ones which involve pleasure as a core component (e.g., joy, euphoria and

ecstasy). Reward is the attractive and motivational property of a stimulus that induces

appetitive behavior, also known as approach behavior, and consummatory behavior.

In its description of a rewarding stimulus (i.e., "a reward"), a review on reward

neuroscience noted, "any stimulus, object, event, activity, or situation that has the

potential to make us approach and consume it is by definition a reward." In operant

conditioning, rewarding stimuli function as positive reinforcers; however, the

converse statement also holds true: positive reinforcers are rewarding.

Good remuneration has been found over the years to be one of the policies the

organization can adopt to increase their workers performance and thereby increase the

organizations productivity. Also, with the present global economic trend, most

6
employers of labour have realized the fact that for their organizations to compete

favorably, the performance of their employees goes a long way in determining the

success of the organization. On the other hand, performance of the employees in any

organization is vital not only for the growth of the organization but also for the

growth of the individual employee. An organization must know who are its

outstanding workers, those who need additional training and those not contributing to

the efficiency and welfare of the company or organization. Also, performance on the

job can be assessed at all levels of employment such as: personal decisions relating to

promotion, job rotation, job enrichment etc. And, in some ways, such assessment are

based on objective and systematic criteria, which includes factors relevant to the

person‟s ability to perform on the job. Hence, the overall purpose of performance

evaluation is to provide an accurate measure of how well a person is performing the

task or job assigned to him or her. And based on this information, decisions will be

made affecting the future of the individual employee.

Therefore, a careful evaluation of an employee‟s performance can uncover weakness

and deficiencies in a specific job skill, knowledge or areas where motivation is

lacking. Once identified, these deficiencies may be remedied through additional

training or the provision of the needed rewards.

o cope with the changing situations an organization makes adjustments in the existing

workforce through promotion. Promotion is a change in status upward resulting from

assignment to a position assigned a higher salary grade. A promotion is the

advancement of an employee‟s position in an organizational hierarchy. According to

Scott and Clothier “A promotion is the transfer of an employee to a job which pays

more money or one that carries some preferred status”.

7
According to Pigors and Charles “ Promotion is advancement of an employee to a

better job-better in terms of greater responsibility, prestige or status, greater skill and

especially increased rate of pay or salary.” Thus Promotion is an upward reassignment

of an individual in an organization‟s hierarchy, accompanied by increased

responsibilities, status and with increased income. The employee being promoted, the

promotee‟s duties and responsibilities usually become qualitatively different from

those of his earlier job. Promotion is an employee's reward for good performance or

positive appraisal. Before a company promotes an employee to a particular position it

ensures that the person is able to handle the added responsibilities by screening the

employee with interviews and tests and giving them training or on-the-job experience.

A promotion can involve advancement in terms of designation, salary and

benefits.

to fill the vacancies in an organization management choose promotion as it serves the

following purposes.

1. To utilize the employee skill, knowledge at the appropriate level in the

organizational hierarchy resulting in organizational effectiveness and

employee satisfaction.

2. To develop competitive spirit and inculcate the zeal in the employees to acquire

the skill, knowledge etc, required by higher level jobs.

3. To develop competent internal source of employees ready to take up jobs at higher

levels in the changing environment.

4. To promote employee self-development and make them await their turn of

promotions. It reduces labour turnover.

5. To promote a feeling of content with the existing conditions of the company and a

sense of belongingness.

8
6. To promote interest in training, development programmes and in team development

areas.

7. To build loyalty and boost morale.

8. To reward committed and loyal employees.

Promotion:

Each organization needs to maintain a balance between the internal sources of

personnel promotion and external sources by means of recruitment. Hence, promotion

must be based on consistent, fair and clear cut policy. The National Institute of

Personnel management ( NIPM) has suggested a promotion policy on the following

lines:

Drawing up an organization chart to make clear to all the ladder promotion. Where

there is a job analysis and a planned wage policy, such chart is quite easy to prepare.

making the promotion system clear to all concerned who may initiate and handle

cases of promotion. Though departmental heads may initiate promotion, the final

approval must lie with the top management, after the personnel department has been

asked to check from its knowledge whether any repercussion is likely to result from

the proposed promotion.

All promotions should be for a trail period to ascertain whether the promoted person

is found capable of handling the job or not. Normally, during this period, he draws the

pay of the higher post, but it should be clearly understood that if “he does not make

the grade” he will be reverted to his former post and former pay scale..

9
Bases for Promotion

Organizations develop a policy depending on the basis on which promotions are to be

made.

1. Merit: denotes an individual employee‟s skill, knowledge, ability, efficiency and

aptitude as measured from educational, training and past employment record. It helps

employees to acquire new skill, knowledge. However, lack of reliability in

determining merit criteria objectively is the main obstacle to its becoming the sole

basis for promotion.

2. Seniority: Seniority is based on the length of service of an employee in an

organization. It is relatively easy to measure the length of service and judge the

seniority. It minimizes the scope for grievances and conflicts regarding promotion.

At the same time it results in employee turnover and it kills the zeal and interest to

develop among young people.

3. Seniority-cum-Merit: There is a need to strike a balance between merit and

seniority. Hence a combination of both seniority and merit can be considered the basis

for promotion satisfying the management for organizational effectiveness and

employees and trade unions for respecting the length of service.

Promotion Policy

Every organization need to specify clearly its promotion policy based on its corporate

policy.

The policy should contain clear cut norms and criteria for promoting an employee.

The policy should be fair and impartial and should be applied uniformly to all

employees without giving scope for nepotism,

10
favoritism etc. Promotion systems necessitate a twofold balance between the choice of

the individual most suited to fulfill the job role and thus contribute effectively to the

organization‟s mission, and individual‟s aspirations for promotional opportunities,

which need to be satisfied. Organizations have adopted a variety of promotion

policies depending upon their culture, size, and business.

1. 2 Reward System

“fat pay package quicker promotion and incentives are not enough anymore.

Employers need to listen what employees want.”

A reward „or „incentive can be anything that attracts a worker‟s attention and

stimulates him to work.

In the words of Bureckm and smith “reward systems is a plan or programme to

motivate individual or group performance.” An incentive programme is most

frequently built on monetary rewards, but also includes a variety of non-monetary

rewards or prizes

On the hand French says the incentive system has a limited meaning that excludes

many kinds of inducements offered to people to perform work, or to work up to or

beyond acceptable stands. It is related with wage payment plans which tie wages

directly or indirectly to standard productivity or to the profitability of the organization

or both criteria.

The use of incentives assumes that people‟s actions are related to their skills and

abilities to achieve important longer run goals. Even though many organization by

choice or by tradition or contract. In fact rewards on non performance criteria,

rewards should be regarded as a “pay off” the performance.

11
Jack Zigon defines rewards as “something that increase frequency of an employee

action:. This definition points to an obvious desired outcome of rewards and

promotion: to improve performance.

An incentive plan has following important features:-

1. An incentive plan may consist of both „monetary‟ and „non-monetary‟

elements. Mixed elements can provide the diversity needed to match the needs

of individual employees.

2. The timing, accuracy and frequency of incentives are the very basis of a

successful incentive plan.

3. The plan requires that it should be properly communicated to the employees to

encourage individual performance, provide feedback and encourage

redirection.

1.3 Determinants of Rewards

These features are contingencies, which affect the suitability and design of

rewards to varying degrees. The effective use of rewards depends on 3 variables.

Individual

Work situation

Incentive plan

12
TYPES OF REWARDS

There are a number of ways to classify rewards. Three of the more typical

dichotomies are: Intrinsic versus extrinsic rewards, financial versus non financial

rewards, and performance-based versus membership based rewards. These categories

are far from being mutually exclusive.

1. Intrinsic versus extrinsic rewards: The satisfactions one gets from the job itself

are its intrinsic rewards. These satisfactions are self initiated rewards, such as having

pride in one‟s work, having a feeling of accomplishment, or being part of a team. The

techniques of flex time, job enrichment, shorter work weeks, and job rotation, can

offer intrinsic rewards by providing interesting and challenging jobs and allowing the

employee greater freedom.

On the other hand extrinsic rewards include money, promotions, and fringe benefits.

Their common thread is that extrinsic rewards are external to the job and come from

an outside source, mainly, management.

Thus, if an employee experiences feelings of achievement or personal growth from a

job, we would label such rewards as intrinsic. If the employee receives a salary

increase or a write up in the company magazine, we would label those rewards as

extrinsic.

While we have stressed the role of extrinsic rewards in motivation, we should point

out that intrinsic and extrinsic rewards may be closely linked.

2. Financial versus Non financial rewards: Rewards may or may not enhance the

employees financial well being. If they do they can do this directly through wages,

bonuses, profit sharing, and the like, or indirectly through supportive benefits such as

pension plans, paid vacations, paid sick leaves and purchase discounts.

13
Non financial rewards are potentially at the disposal of the organization. They do not

increase the employee‟s financial position, instead of making the employees life better

off the job, non financial rewards emphasize making life on the job more attractive.

The old saying “one man‟s food is another man‟s poison” applies to the entire subject

of rewards, but specifically to the area of non financial rewards. What one employee

views as something I‟ve always wanted, another finds superfluous. Therefore care

must be taken in providing the right non financial reward for each person, yet where

selection has been done assiduously, the benefits to the organization should be

impressive.

Some workers are very status conscious. An attractive office, a carpeted floor, a large

executive desk, or a private bathroom may be just the office furnishing that stimulates

an employee towered top impressive job title, their own business cards, their own

secretary, or a well located parking space with their name clearly painted underneath

the “Reserved” sign.

3. Performance based versus membership based rewards: The rewards that the

organization allocates can be said to be based on either performance criteria or

membership criteria. While the managers in most organizations will vigorously argue

that their reward system pays off for performance, you should recognize that this is

almost invariably not the case. Few organizations actually rewards employees based

on performance. However, without question, the dominant basis for reward

allocations in organization is membership.

Performance based rewards are exemplified by the use of commission, piecework pay

plans, incentive systems, group bonuses, or other forms of merit pay plans. On the

other hand, membership based rewards include cost of living increases, profit sharing,

benefits, and salary increases attributable to labor market conditions, seniority or time

14
in rank, credentials (such as a college degree or a graduate diploma), or future

potential (the recent M.B.A. from a prestigious university). The demarcation between

the two is not always obvious. For instance company paid membership in a country

club or use of company owned automobiles by executives may be given for

membership or performance. If they are available to say all middle and upper level

executives, then they are membership base. However, if they are made available

selectively to certain managers based on their performance rather than their

entitlement, which of course implies they can also be taken away, we should treat

them as performance based rewards for those who might deem them attractive.

For practical purposes, we need to break membership based rewards into two groups.

One group is made up of benefits and services that go to all employees regardless of

their performance level. All nurses at certain hospital, for instance, get ten days, sick

leave, $ 200000 worth of life insurance, paid hospitalization coverage, and a host of

other benefits and services regardless of whether they do an outstanding job or a

barely acceptable one. Because benefits and services are explicitly acknowledged to

be allocated on the basis of membership, we will call them explicit membership based

rewards. All the other membership based rewards will be thrown into the second

group which we will call implied. You may wonder why the need to differentiate two

groups?

We have separated the membership based rewards into two groups to clarify what is

often confusing in practice. Most organizations treat benefits and services as the only

membership based rewards. All other rewards are traditionally treated as performance

based. This or course, is both incorrect and misleading labeling. In practice,

performance is only a minor determinant of rewards. This is true despite academic

theories holding that high motivation depends on performance base rewards. In

15
practice, a lot of lip service is given to the value a good job performance, but the

organizations rewards do not closely parallel employee performance.

In summary, you should recognize that there are performance based rewards; there are

explicit membership based rewards, which we call benefits and services; and there are

implied membership based rewards. Practicing managers often call the latter group

performance based but they are not.

Importance

Never assume a particular reward is universally important to all employees. Money,

for example, can have a very different meaning to different people. It may represent

basic security and love, power, a measure of one‟s achievements or merely means to a

comfortable life style. To some employees 1000/- Rs – a –month raise would be very

important. Other employees, in the same job and at the same salary level might far

prefer an extra week of vacation.

This different among employees was substantiated in a study undertaken at a public

utility. One hundred and fifty employees were asked to rank their performance for

rewards. It was found that the employees in general, rated extra vacation as most

preferred, followed by pay, a pension increase, paid family insurance, early retirement

and work schedule rearrangements, in decreasing order. But this ranking varied

among different employee groups. For instance, the preference for insurance plan

decreased with age, while desire for more pension benefits increases. Married

employees also valued insurance plan more than single employees, and this

preference increased with number of dependents.

Research indicates that the preference for rewards will be significantly affected by

age, marital status and number of children the employee has. Young unmarried person

desire more time off the job and young married men rated more vacation lower than

16
family health coverage, or that older employees seek increased retirement benefits

while younger workers opt for more cash.

In expectancy theory terms, motivation is optimized when employees see

rewards satisfying their individual needs. Therefore a good reward system should be

designed to offer heterogeneous rewards to a heterogeneous labour force. Employees

should be rewarded with what they individually consider important.

One effort to broaden the idea of individualizing rewards has been labeled „cafeteria

compensation‟. In contrast to the traditional manner in which fringe benefits are

allocated- all employees get the same package which best satisfies his or her current

needs. Specifically where cafeteria-type flexible compensation exists, employees are

told what their total compensation is, and they can choose a mix salary, life insurance,

deferred compensation and other benefits suit their particular needs.

The advantages of flexible compensation go beyond merely allowing employees to

customize their own compensation package. This method involves little in additional

direct costs, it makes clear to employees how much the organization is actually

spending to compensate them and it ensure that the money will be spent only on the

rewards the employees want. On the negative side, there is the tendency for

employees to think in short- range rather than long- range terms. Most organizations

that have instituted a cafeteria plan actually provides all employees with minimum

insurance and pension benefits and let each employees select additional rewards to

suit his or her own needs.

17
Equitable Distribution

Employees desire rewards that are distributed in what seems to be an equitable

manner. This means fairness among the organization‟s employee and fairness

relative to what people get for doing a similar job in another organization. Equity

theory has been proposed to explain what happens when individuals perceive an

imbalance between what they put into job and what they get out of it elative to

others‟ give – and –get ratio.

It is no secret that employees make comparisons between themselves and their

peers. Employees perceive what they get from a job situation in relation to what

they must put into. They also compare their input-outcome ratio with the input-

outcome ratio of their peers. If a person‟s ratio and that of others are perceived to

be equal, a state of equity is said to exist. If they are unequal, in-equality exists.

That is, the individual views herself or himself as under rewarded or over

rewarded. Equity theory argues that when an inequality is seen as aversive, the

individual will attempt to correct it.

Evidence indicates that the referent chosen by the employee is an important

variable in equity theory. The three referent categories have been classified as

“other”, “system” and “self”. The “other” category includes other individual with

similar jobs in the same organization, as well as friends, neighbors or professional

associates. Based on information that employees receive through word of mouth

or through newspaper and magazines on such issues as executive salaries or recent

union contract, employees can compare their pay relatively to that of others.

The “system” category considers organizational pay policies and procedures and

administration of this system. It considers organization wide, implied and explicit

18
pay policies. Organization precedents in terms of allocation of pay would be a

major determinant in the category.

The “self” category refers to input – outcome ratios unique to the individual that

differ from the individual‟s current input – outcome ratio. This category is

influenced by such criteria as past jobs or commitments that must be met in terms

of family role.

The choice of particular set of referents is related to the information available

about referents as well as their perceived relevance. Based on equity theory,

employees may choose one or more five alternatives.

1. Distort either their own or others‟ input or outcomes

2. Behave in some way as to change their own inputs or outcomes

3. Behave in some way as to change their own inputs or outcomes

4. Choose a different comparison referent

5. Leave the organization

6. Visibility

A reward that is not visible to the employee may fail to get the desired motivating

effect from employee. On the hand, a truly visible reward gets the attention not

only of employees but also their peers. This latter quality means visible rewards

can contribute to satisfying an employee‟s esteem and promotion needs.

In what ways can managers increase the visibility of rewards? Possibilities include

well- publicized bonuses, allocating annual salary increases in a lump sum rather

than spreading them out over the entire year, and eliminating the secrecy

surrounding pay by openly communicating everyone‟s compensation.

Some organizations have successfully maximized the value of rewards by making

them both impressive in size and highly visible. Probably the most widely

19
discussed and contra versial approach to increasing the visibility of rewards is to

eliminate the traditional secrecy surrounding pay. The proponents of openness

argue that pay secrecy actually demotivates employees.

Secrecy may tend to work to the disadvantage of using money to motivate

managers because even most carefully derived pay schedule and differentials may

be seen as potentially less rewarding as they actually are. The misperception of

pay contributes to dissatisfaction with pay, and secrecy regarding pay contributes

to this misperception.

Complete openness about pay policies is indeed rare in organizations. If such

information were common knowledge, employees would undertake to compare

their salaries with those of everyone else and the inevitability of human error

would reveal any inequalities in pay system.

There would be misunderstandings, petty complaints, increased dissatisfaction and

perceived if not real inequalities. Whether it is true or not, almost everyone thinks

him or her worth more than the next person. On the other hand, an open pay

system demonstrates confidence by management in the structure of compensation

and hence it should increase the trust individuals have in the organization

Flexibility

An effective reward is one that has the flexibility to vary with changes in

performance. If an employee‟s job performance declines in 1987, the rewards he

received in 1986 should ideally have downside adjustment capability.

An effective reward would be flexible in terms of the amount given to

everyone in the organization. The annual performance bonus, for instant, offers

high flexibility. It can be adjusted upward or downward or eliminated, each year

20
depending on some measure of performance. Additionally, it can be given

selectively to those employees who have done a superior job.

Another attribute of flexible reward is that it be given frequently without losing

importance. Giving rewards frequently is often helpful foe sustaining extrinsic

motivation, yet some rewards diminish in importance when used over time. As a case

in point praise is a flexible reward in that its amount can be varied in allocation to and

among individuals. However, it suffers from diminishing returns. Continued use of

praise results in the reward losing its importance.

Low Cost

The final quality of an effective reward is low cost. Rewards are not free goods, and

the organization must consider the costs along with the benefits from any rewards. A

high-cost reward simply cannot be given out as often, and when it is, it reduces

organizational effectiveness as a result of its cost. All other factors equal, the lowest-

cost reward should be preferable to management.

Summary

A careful review of the above criteria which identified for effective rewards brings

one to the conclusion that no organizational reward is ideal on all dimensions.

Because no reward is perfect, managers must carefully assess what they expect from

their reward system and structure it so it provides the maximum in motivation

potential. Each organization is unique, so the rewards that work in one may be

ineffective in another. Similarly jobs within each organization differ, and the rewards

made available to incumbents of each job should reflect this fact.

21
Designing a Reward Program

The keys to developing a reward program are as follows:

 Identification of company or group goals that the reward program will

support

 Identification of the desired employee performance or behaviors that will

reinforce the company‟s goals

 Determination of key measurement of the performance or behavior, based

on the individual or group‟s previous achievements

 Determination of appropriate rewards

 Communication of program to employees

In order to reap benefits such as increased productivity, the entrepreneur designing a

reward program must identify company or group goals to be reached and the

behaviors or performance that will contribute to this. While this may seem obvious,

companies frequently make the mistake of rewarding behaviors or achievements that

either fails to further business goals or actually sabotage them. If teamwork is a

business goal, a bonus system rewarding individuals who improve their productivity

by themselves or at the expense of another does not make sense. Likewise, if quality

is an important issue for an entrepreneur, the reward system that he or she designs

should not emphasize rewarding the quality of work accomplished by a business unit.

Properly measuring performance ensures the program pays off in terms of business

goals. Since rewards have a real cost in terms of time or money, small business

owners need to confirm that performance has actually improved before rewarding it.

Once again, the measures need to relate to a small business‟ goals. As Linda

Thornburg noted in HR Magazine, “Performance measures in a rewards program have

to be linked to an overall business strategy.

22
Most reward programs use multiple measures which can include such variables as

improved financial performance along with improved customer service, improved

customer satisfaction, and reduced defects.”

When developing a rewards program, an entrepreneur should consider matching

rewards to the end result for the company. Perfect attendance might a different reward

than saving the company $10,000 through improved contract negotiation. It is also

important to consider

Rewarding both individual and group accomplishments in order to promote both

individual initiative and group cooperation and performance.

Lastly, in order for a rewards program to be successful, the specifics need to be

clearly spelled out for every employee. Motivation depends on the individual‟ s

ability to understand what is being asked of her. Once this has been done, reinforce

the original communication with regular meetings or memos promoting the program.

Keep your communication simple but frequent to ensure staffs are kept abreast of

changes to the system.

REWARD

Although these terms are often used interchangeably reward and promotion

systems should be considered separately. Employee reward systems refer to programs

set up by a company to reward performance and motivate employees on monetary in

nature or otherwise have a cost to the company. While previously considered the

domain of large companies, small businesses have also begun employing them as a

tool to lure top employees in a competitive job market as well as to increase employee

performance.

As notes, although employee promotion programs are often combined with reward

programs they retain a different purpose altogether. Promotion program are generally

23
not monetary in nature though they may have a cost to the company. Sue Glasscock

and Kimberly Gram in productivity Today differentiate the terms by noting that

promotion elicits a psychological benefit whereas reward indicates a financial or

physical benefit. Although many element of designing and maintaining reward and

promotion systems are the same, it is useful to keep this difference in mind,

especially for small business owners interested in motivating staffs while keeping

costs low

24
CHAPTER 2

LITERATURE
REVIEW

25
LITERATURE REVIEW

Organizations in today„s environment seek to determine the reasonable balance

between employee commitment and performance of the organization. The reward and

promotion programs serve as the most contingent factor in keeping employees„ self

esteem high and passionate. Oosthuizen (2001) stated that it is among the function of

managers to motivate the employees successfully and influence their behavior to

achieve greater organizational efficiency. La Motta (1995) is of the view that

performance at job is the result of ability and motivation. Ability formulated through

education, equipment, training, experience, ease in task and two types of capacities

i.e. mental and physical. The performance evaluation and rewards are the factors that

proved to be the bonding agents of the performance evaluation programs. According

to Wilson (1994), the process of performance management is one among the key

elements of total reward system. Entwistle (1987) is of the view that if an employee

performs successfully, it leads to organizational rewards and as a result motivational

factor of employees lies in their performance. Majority of the organizations require

their employees to work according to the rules and regulations, as well as, job

requirements that comply with full standards. The investigations that have been

conducted to find the relationship between compensation and individuals were

focused to increase the performance of employees (Ciscel, 1974). The highly

motivated employees serve as the competitive advantage for any company because

their performance leads an organization to well accomplishment of its goals. Among

financial, economical and human resources, human resources are more vital that can

provide a company competitive edge as compared to others. According to Andrew

(2004), commitment of all employees is based on rewards and promotion. Lawler

(2003) argued that prosperity and survival of the organizations is determined through

26
the human resources how they are treated. Most of organizations have gained the

immense progress by fully complying with their business strategy through a well

balanced reward and promotion programs for employee. Deeprose (1994) argued that

the motivation of employees and their productivity can be enhanced through

providing them effective promotion which ultimately results in improved performance

of organizations. The entire success of an organization is based on how an

organization keeps its employees motivated and in what way they evaluate the

performance of employees for job compensation. Managing the performance of

employees forms an integral part of any organizational strategy and how they deal

with their human capital (Drucker as cited in Meyer & Kirsten, 2005). Today where

every organization has to meet its obligations; the performance of employees has a

very crucial impact on overall organizational achievement. In a demotivated

environment, low or courageless employees can not practice their skills, abilities,

innovation and full commitment to the extent an organization needs. Freedman (1978)

is of the view that when effective rewards and promotion are implemented within an

organization, favorable working environment is produced which motivates employees

to excel in their performance. Employees take promotion as their feelings of value and

appreciation and as a result it boosts up morale of employee which ultimately

increases productivity of organizations.Csikszentmihalyi (1990) posits a view that the

state of satisfaction and happiness is achieved by the employees only when they

maximally put their abilities in performing the activities and functions at work. In this

way motivated employees are retained with the organizations thus reducing extra

costs of hiring. Flynn (1998) argued that rewards and promotion programs keep high

spirits among employees, boosts up their morale and create a linkage between

performance and motivation of the employees. The basic purpose of reward program

27
is to define a system to pay and communicate it to the employees so that they can link

their reward to their performance which ultimately leads to employee„s job

satisfaction. Where job satisfaction, as defined by Lock (cited in Gruneberg, 1979, p.

3), is a pleasurable positive emotional state as a result of work appraisal from one„s

job experiences. The rewards include the financial rewards, pay and benefits,

promotions and incentives that satisfy employees to some extent but for committed

employees, recognition must be given to keep them motivated, appreciated and

committed. Baron (1983) argued that when we recognize and acknowledge the

employees in terms of their identification, their working capacity and performance is

very high. Recognition today is highest need according to most of the experts whereas

a reward which includes all the monetary and compensative benefits cannot be the

sole motivator for employees„ motivation program. Employees are motivated fully

when their needs are met. The level of motivation of employees increases when

employees get an unexpected increase in promotion, praise and pay (La Motta, 1995).

In today„s dynamic environment the highly motivated employees serve as a synergy

for accomplishment of company„s goals, business plans, high efficiency, growth and

performance. Motivation is also required when the organizational workforce has not a

good relationship pattern. Employees„ relation with employees and with supervisor is

a key ingredient of the inner strength of the organization. The ability of supervisors to

provide strong leadership has an effect on job satisfaction of employees (Morris,

2004). The study relates how the impact of incentives, promotion and rewards

programs drives employee motivation. Rewards play a vital role in determining the

significant performance in job and it is positively associated with the process of

motivation. Lawler (2003) argued that there are two factors which determine how

much a reward is attractive, first is the amount of reward which is given and the

28
second is the weightage an individual gives to a certain reward. Deeprose (1994, p. 3)

is of the view that ―Good managers recognize people by doing things that

acknowledge their accomplishments and they reward people by giving them

something tangible.‖ Fair chances of promotion according to employee„s ability and

skills make employee more loyal to their work and become a source of pertinent

workability for the employee. Bull (2005) posits a view that when employees

experience success in mentally challenging occupations which allows them to

exercise their skills and abilities, they experience greater levels of job satisfaction.

Incentives, promotion and rewards are the key parameters of today„s motivation

programs according to most of the organizations as these bind the success factor with

the employees„ performance. Robbins (2001) asserts that promotions create the

opportunity for personal growth, increased levels of responsibility and an increase on

social standing. Similarly, the recognition which is a central point towards employee

motivation adores an employee through appreciation and assigns Fortune best

companies which discriminates companies from the others is recognition that is the

most important factor of their reward system. Wilson (1994) stated that the

conditional recognition is that type of promotion which one has to earn by his own

efforts and which is gained by some sense of achievement of an action or result.

Employees are definitely closer to their organization as their job can become the

major satisfaction in their life after having a proper promotion and rewards at their

job. Rewards enhance the level of productivity and performance at job whether it„s a

first time performance or repeated activity at the job in a progressive way. Research

by Eastman (2009) consistently found that intrinsic motivation is conducive to

producing creative work, while extrinsic motivation is unfavorable to producing

creative work. Gagne (2009) suggested a new model of knowledge-sharing

29
motivation which provides suggestion for designing five important human resource

management (HRM) practices including staffing, job design, performance and

compensation systems, managerial styles and training. Ali and Ahmed (2009)

confirmed that there is a statistically significant relationship between reward and

recognition respectively, also motivation and satisfaction. The study revealed that if

rewards or recognition offered to employees were to be altered, then there would be a

corresponding change in work motivation and satisfaction. The pay package is one of

the most obvious and visible expressions of employment relationship, it is main issue

in exchange between employees and employer expressing connection between

individual work and performance employing organization itself‖ Hege Wisch and

Ganguli O, N, (1967), in his study found "pay and allowances as the most important

factor causing satisfaction or dissatisfaction to workers" Singh ET. al. (1977) in a

study of organizational culture and its impact on managerial remuneration concluded

that the demands for money was significantly influenced by the quality of

organizational culture and that it can substantially be reduced by improving the

quality of organizational culture. Findings such as those suggest that satisfaction, task

involvement, demand for money and commitment are largely determined by

organizational culture. According to Fred Luthans (1981), "inequality occurs when an

individual perceives that the ratio of his outcomes to input and the ratio of relevant

others outcome to input are unequal" Rowlinson (1988) one of the American vice

presidents whose company observed and concluded that recognition speaks to the

employee receiving it and awards and only one aspect of it. The symbolism, meaning

and intrinsic value attached to the reward are equally important. Although the gold

plated carriage clock, watch all engraved tinkered in recognition of long service is

probably most prominent form of recognition award in U.K. Judy L. Agnew and

30
William K. Redmon, (1992), indicates that the organization may have the latest

technology, well -thought out strategic plans, detailed job descriptions and

comprehensive training programmes, but unless the people are rewarded for their

performancerelated behaviours, the "up-front" variable (technology, plans and so on)

or the rules that govern their behaviour have little impact". Pay and allowances as the

most important factor causing satisfaction or dissatisfaction to workers. Steve

Williams and Fred Luthans (1992) stated that, "the choice of reward interacting with

feed back had a positive impact on task performance". Simon (1992) after thorough

study suggested that employees should be given cash bonuses and prizes for meeting

sales targets, customer services and cleanest store. For special yearly competition

when only few people gain prizes should be precious and can range from holiday

voucher, a set of 2 tickets for an all expense paid trip to Hollywood. One example is

Vodafone Australia. When Vodafone introduced the liveyourlife reward and

promotion program they had turnover rates around 30 per cent per year. That rate has

reduced to just 18 per cent (Human Resources 2005) predominantly due to the

company focusing on its culture and its people. The liveyourlife incentive program is

a major part of the people retention initiative. By offering experiential benefits as part

of their remuneration structure, the dynamic Managing Partner encouraged Gardens to

be known as an innovative, progressive and fun law firm. The SBI approached

liveyourlife to customize a team based experiential reward program for a project that

involved employees in every branch of the Company across Australia, including

remote regional areas. Liveyourlife customized a specific team based reward program

including the development of specific team experiences for branches in regional areas.

The customized liveyourlife team based reward program was delivered with great

success.

31
Organizations in today„s environment seek to determine the reasonable balance

between employee commitment and performance of the organization. The reward and

promotion programs serve as the most contingent factor in keeping employees„ self

esteem high and passionate.

Oosthuizen (2001) stated that it is among the function of managers to motivate the

employees successfully and influence their behavior to achieve greater organizational

efficiency.

La Motta (1995) is of the view that performance at job is the result of ability and

motivation. Ability formulated through education, equipment, training, experience,

ease in task and two types of capacities i.e. mental and physical. The performance

evaluation and rewards are the factors that proved to be the bonding agents of the

performance evaluation programs.

According to Wilson (1994), the process of performance management is one among

the key elements of total reward system.

Entwistle (1987) is of the view that if an employee performs successfully, it leads to

organizational rewards and as a result motivational factor of employees lies in their

performance. Majority of the organizations require their employees to work according

to the rules and regulations, as well as, job requirements that comply with full

standards. The investigations that have been conducted to find the relationship

between compensation and individuals were focused to increase the performance of

employees Ciscel, 1974). (The highly motivated employees serve as the competitive

advantage for any company because their performance leads an organization to well

accomplishment of its goals. Among financial, economical and human resources,

human resources are more vital that can provide a company competitive edge as

compared to others.

32
According to Andrew (2004), commitment of all employees is based on rewards and

promotion.

Lawler (2003) argued that prosperity and survival of the organizations is determined

through the human resources how they are treated. Most of organizations have gained

the immense progress by fully complying with their business strategy through a well

balanced reward and promotion programs for employee.

Deeprose (1994) argued that the motivation of employees and their productivity can

be enhanced through providing them effective promotion which ultimately results in

improved performance of organizations. The entire success of an organization is

based on how an organization keeps its employees motivated and in what way they

evaluate the performance of employees for job compensation. Managing the

performance of employees forms an integral part of any organizational strategy and

how they deal with their human capital.

Drucker as cited in Meyer & Kirsten, 2005) Today where every organization has

to meet its obligations; the performance of employees has a very crucial impact on

overall organizational achievement. In a demotivated environment, low or courageless

employees can not practice their skills, abilities, innovation and full commitment to

the extent an organization needs

Freedman (1978) is of the view that when effective rewards and promotion are

implemented within an organization, favorable working environment is produced

which motivates employees to excel in their performance. Employees take promotion

as their feelings of value and appreciation and as a result it boosts up morale of

employee which ultimately increases productivity of organizations.

Csikszentmihalyi (1990) posits a view that the state of satisfaction and happiness is

achieved by the employees only when they maximally put their abilities in performing

33
the activities and functions at work. In this way motivated employees are retained

with the organizations thus reducing extra costs of hiring.

Flynn (1998) argued that rewards and promotion programs keep high spirits among

employees, boosts up their morale and create a linkage between performance and

motivation of the employees. The basic purpose of reward program is to define a

system to pay and communicate it to the employees so that they can link their reward

to their performance which ultimately leads to employee„s job satisfaction. Where job

satisfaction, as defined by Lock (cited in Gruneberg, 1979, p. 3), is a pleasurable

positive emotional state as a result of work appraisal from one„s job experiences. The

rewards include the financial rewards, pay and benefits, promotions and incentives

that satisfy employees to some extent but for committed employees, recognition must

be given to keep them motivated, appreciated and committed.

Baron (1983) argued that when we recognize and acknowledge the employees in

terms of their identification, their working capacity and performance is very high.

Recognition today is highest need according to most of the experts whereas a reward

which includes all the monetary and compensative benefits cannot be the sole

motivator for employees„ motivation program. Employees are motivated fully when

their needs are met. The level of motivation of employees increases when employees

get an unexpected increase in promotion, praise and pay (La Motta, 1995).

In today„s dynamic environment the highly motivated employees serve as a synergy

for accomplishment of company„s goals, business plans, high efficiency, growth and

performance. Motivation is also required when the organizational workforce has not a

good relationship pattern. Employees„ relation with employees and with supervisor is

a key ingredient of the inner strength of the organization. The ability of supervisors to

34
provide strong leadership has an effect on job satisfaction of employees (Morris,

2004).

The study relates how the impact of incentives, promotion and rewards programs

drives employee motivation. Rewards play a vital role in determining the significant

performance in job and it is positively associated with the process of motivation.

Lawler (2003) argued that there are two factors which determine how much a reward

is attractive, first is the amount of reward which is given and the second is the

weightage an individual gives to a certain reward.

Deeprose (1994, p. 3) is of the view that ―Good managers recognize people by

doing things that acknowledge their accomplishments and they reward people by

giving them something tangible.‖ Fair chances of promotion according to employee„s

ability and skills make employee more loyal to their work and become a source of

pertinent workability for the employee.

Bull (2005) posits a view that when employees experience success in mentally

challenging occupations which allows them to exercise their skills and abilities, they

experience greater levels of job satisfaction. Incentives, promotion and rewards are

the key parameters of today„s motivation programs according to most of the

organizations as these bind the success factor with the employees„ performance.

Robbins (2001) asserts that promotions create the opportunity for personal growth,

increased levels of responsibility and an increase on social standing. Similarly, the

recognition which is a central point towards employee motivation adores an employee

through appreciation and assigns Fortune best companies which discriminates

companies from the others is recognition that is the most important factor of their

reward system.

35
Wilson (1994) stated that the conditional recognition is that type of promotion which

one has to earn by his own efforts and which is gained by some sense of achievement

of an action or result.

Employees are definitely closer to their organization as their job can become the

major satisfaction in their life after having a proper promotion and rewards at their

job. Rewards enhance the level of productivity and performance at job whether it„s a

first time performance or repeated activity at the job in a progressive way. Research

by Eastman (2009) consistently found that intrinsic motivation is conducive to

producing creative work, while extrinsic motivation is unfavorable to producing

creative work.

Gagne (2009) suggested a new model of knowledge-sharing motivation which

provides suggestion for designing five important human resource management

(HRM) practices including staffing, job design, performance and compensation

systems, managerial styles and training.

Ali and Ahmed (2009) confirmed that there is a statistically significant relationship

between reward and recognition respectively, also motivation and satisfaction. The

study revealed that if rewards or recognition offered to employees were to be altered,

then there would be a corresponding change in work motivation and satisfaction. The

pay package is one of the most obvious and visible expressions of employment

relationship, it is main issue in exchange between employees and employer expressing

connection between individual work and performance employing organization itself‖

Hege Wisch and Ganguli O, N, (1967), in his study found "pay and allowances as

the most important factor causing satisfaction or dissatisfaction to workers"

Singh ET. (1977) in a study of organizational culture and its impact on managerial

remuneration concluded that the demands for money was significantly influenced by

36
the quality of organizational culture and that it can substantially be reduced by

improving the quality of organizational culture. Findings such as those suggest that

satisfaction, task involvement, demand for money and commitment are largely

determined by organizational culture.

According to Fred Luthans (1981), "inequality occurs when an individual perceives

that the ratio of his outcomes to input and the ratio of relevant others outcome to input

are unequal" Rowlinson (1988) one of the American vice presidents whose company

observed and concluded that recognition speaks to the employee receiving it and

awards and only one aspect of it. The symbolism, meaning and intrinsic value

attached to the reward are equally important. Although the gold plated carriage clock,

watch all engraved tinkered in recognition of long service is probably most prominent

form of recognition award in U.K. Judy L. Agnew and William K. Redmon, (1992),

indicates that the organization may have the latest technology, well -thought out

strategic plans, detailed job descriptions and comprehensive training programmes, but

unless the people are rewarded for their performance related behaviours, the "up-

front" variable (technology, plans and so on) or the rules that govern their behaviour

have little impact". Pay and allowances as the most important factor causing

satisfaction or dissatisfaction to workers.

Steve Williams and Fred Luthans (1992) stated that, "the choice of reward

interacting with feedback had a positive impact on task performance".

Simon (1992) after thorough study suggested that employees should be given cash

bonuses and prizes for meeting sales targets, customer services and cleanest store. For

special yearly competition when only few people gain prizes should be precious and

can range from holiday voucher, a set of 2 tickets for an all expense paid trip to

Hollywood. One example is Vodafone Australia. When Vodafone introduced the

37
liveyourlife reward and promotion program they had turnover rates around 30 per

cent per year. That rate has reduced to just 18 per cent (Human Resources 2005)

predominantly due to the company focusing on its culture and its people. The

liveyourlife incentive program is a major part of the people retention initiative. By

offering experiential benefits as part of their remuneration structure, the dynamic

Managing Partner encouraged Gardens to be known as an innovative, progressive and

fun law firm. The SBI approached live your life to customize a team based

experiential reward program for a project that involved employees in every branch of

the Company across Australia, including remote regional areas. Live your life

customized a specific team based reward program including the development of

specific team experiences for branches in regional areas. The customized live your

life team based reward program was delivered with great success.

38
CHAPTER 3

COMPANY
PROFIE

39
COMPANY PROFILE

State Bank of India

State Bank Bhavan', Nariman Point, Maharashtra

Native name भारतीय स्टेट बैंक

Formerly Imperial Bank of India

Type Public

Traded as  NSE: SBIN

 BSE: 500112

 LSE: SBID

 BSE SENSEX Constituent

 CNX Nifty Constituent

Industry Banking, financial services

Predecessor  Imperial Bank of India(1921-1955)

 Bank of Calcutta (1806-1921)

40
 Bank of Bombay (1840-1921)

 Bank of Madras (1843-1921)

Founded  2 June 1806, Bank of Calcutta

 15 April 1840, Bank of Bombay

 1 July 1843, Bank of Madras

 27 January 1921, Imperial Bank of India

 1 July 1955, State Bank of India

Headquarters State Bank Bhawan, M.C. Road, Narima

Point, Mumbai, Maharashtra, India

Number of locations 24,000

Area served Worldwide

Key people Rajnish Kumar

(Chairman)

Products Retail banking, corporate banking, investmen

banking, mortgage loans, private banking, wealth

management, credit cards, finance and insurance

Revenue ₹265,100 crore(US$37 billion)(2018)

Operating income ₹15,528 crore(US$2.2 billion) (2018)

Net income ₹6,547 crore(US$910 million) (2018)

Total assets ₹3,312,461 crore(US$460 billion) (2018)

Owner Government of India (61.23%)

Number of employees 264,041 including 107,077 officers

(March 2018)

Parent SBI Group

Website sbi.co.in

41
The State Bank of India (SBI) is an Indian multinational, public Sector banking

and financial services statutory body. It is a government corporation statutory body

headquartered in Mumbai, Maharashtra. SBI is ranked as 216th in the Fortune Global

500 list of the world's biggest corporations of 2018. It is the largest bank in India with

a 23% market share in assets, besides a share of one-fourth of the total loan and

deposits market.

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank

of India, making it the oldest commercial bank in the Indian subcontinent. The Bank

of Madras merged into the other two "presidency banks" in British India, the Bank of

Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn

became the State Bank of India in 1955. The Government of India took control of the

Imperial Bank of India in 1955, with Reserve Bank of India (India's central bank)

taking a 60% stake, renaming it the State Bank of India. In 2008, the government took

over the stake held by the Reserve Bank of India.

Marketing strategy of State Bank of India

Founded in 1806, State Bank of India (SBI) is an Indian multinational, public sector

bank and financial service company headquartered in Mumbai, Maharashtra. The

bank descends from Bank of Calcutta making it the oldest commercial bank of the

subcontinent.

The merger of Bank of Madras with two presidency banks of British India, the Bank

of Bombay and the Bank of Calcutta leading to the formation of the Imperial Bank of

India which eventually became State Bank of India when Reserve Bank of India

(RBI)holding 60% stake renamed it to State Bank of India. Later in 2008, the

government took over the stakes held by RBI taking full control over the Public

Sector Bank.

42
Segmentation, targeting, positioning in the Marketing strategy of State Bank of

India –

SBI segments the market on the basis of geographic, demographic, behavioral

psychographic variables like people from Rural, Urban and Metropolitan who are

self-employed, students, corporate or government employed also behavioral and

psychography includes people who trusted banking system and frequently used bank

and its value-added services.

It targets students, the lower class who are deprived of banking services, the tech-

savvy business class for whom time is more important.

Positioned as peoples most trusted bank, it has high accessibility with over 25,000

branches, it finds relevance to young customers with its value-added services like net

banking, telebanking etc.

Mission –“Committed to providing Simple, Responsive and Innovative Financial

solutions.”

Vision– “Be the bank of choice A Transforming India”

43
Tagline –

“With you all the way, Pure Banking Nothing Else, The Nation‟s banks on us.”

Competitive advantage in the Marketing strategy of SBI –

Ranked 216th on the Fortune Global 500 list of the world‟s biggest corporations 2017,

SBI is India‟s largest bank with a 23% market share of assets and a quarter of the

share of loan and deposit market of the country.

SBI over the years has attained the leadership status in digital banking space by

offering a pool of seamless and secured services like, SBI YONO- an omnichannel

banking and lifestyle platform which has close to 10 million downloads already for

which SBI has Tied up Reliance JIO, State Bank Buddy- a wallet service, State Bank

Anywhere- Mobile banking platform.

With the set up 60 digital branches referred to as sbi INTOUCH, the bank aims to

offer advanced services like instant loan approvals, access to the latest mutual funds,

assistance in choosing investment portfolios and other financial services.

Equipped with the latest technology these creates an instant connection with the

customers in real-time with an audio-visual experience and an ability to print, scan,

and share the document using touch screen controls ensuring the bank doesn‟t lose a

potential customer. Thus these digital branches provide SBI an edge over its

competitors and aim to help SBI expand its reach with increasing profitability.

44
Distribution in the Marketing strategy of SBI –

SBI has a large footprint over 25,000 domestic branches (including extension

counters) and 59,000+ ATM‟s after its merger with Bhartiya Mahila Bank and its five

associate Banks on 1st April 2017. The overseas operations of the bank are spread

over its 195 international offices with branches spread across 36 countries.

Brand equity in the Marketing strategy of SBI –

A Fortune 500 company, with a balance sheet size of over Rs. 30 lakh crore SBI

entered into the league of top 50 global banks. Ranked 35th in the Brand Equity‟s

Most Trusted Brand survey of 2015 SBI is the only bank to be featured in the Nielsen

surveyed top 100 brands.

SBI also stands at 381st on Forbes 2000 World‟s Best Employers of 2018 and 489th on

Global 2000 list of 2018.

Competitive analysis in the Marketing strategy of SBI –

The advent of technology in Banking industry has provided for the

immense opportunity to the players which has stagnated or has been marred by Non

Performing Assets in recent years. Governments push by infusing in funds into the

public sector banks has given the industry some breathing space which has been

struggling in recent years. SBI seems to have already taken a head start in Digital

Banking when it comes to its competitors with its bouquet of Digital services.

Major Competitors of SBI includes:

 Punjab National Bank

 ICICI Bank

 Allahabad Bank

45
 HDFC Bank

 Bank Of Baroda

 Axis Bank

Market analysis in the Marketing strategy of SBI –

The banking industry in the recent past has been in a turnaround phase where PSU‟s,

Private Banks are fighting neck to neck in order to re-establish itself in the

competitive market. Private Banks like ICICI Bank, AXIS Bank, HDFC revenue and

profitability has seen the rise by 3rd party products whereas PSUs revenue and

profitability has been more driven by retail lending and CASA share.

Market share for SBI customers Saving Bank and Current Account Deposits as of

March 2018 stood at 26.55% and 16.83% respectively. Market share for home loans

stood at 13% and 67.65% share in Government business showing its dominance in the

Government sector. Market share for customers using the Debit card for the bank is as

high as 30.5% and a share of 31.79% for customers opening PM Jan Dhan Accounts.

Customer analysis in the Marketing strategy of SBI –

Customers of SBI includes farmers and workers in rural, students, early jobbers, both

Public and private sector working professionals, businessmen, young entrepreneurs.

Customers of SBI doesn‟t cant be put in a specific income group bracket and thus

ranges from lower class looking to open zero balance account for government benefits

transfer through Direct Benefit transfers to high-class individuals seeking loans for

their business.

46
Marketing mix of State bank of India

State Bank of India is a public corporation owned by the government of India. This

multinational company deals exclusively in the financial and banking sector. SBI was

founded in the year 1806 and at present, its headquarters is in the city of Mumbai. In

terms of assets, it is the largest and in terms of ancestry the oldest banking empire in

India. In the Indian subcontinent, State Bank of India is spread over 17,000 branches

and 190 offices in foreign. Arundhati Bhattacharya is the present Chairman of State

Bank of India.

Product in the Marketing mix of State bank of India

State Bank of India offers its corporate and retail customers numerous range

of products through its various branches. The banking products include

 Cards – The products under this category include Travelling cards, Debit

cards and Credit cards.

 Consumer banking – This includes special accounts for teenagers,

accounts for senior citizens, Recurring accounts, Saving account and

fixed deposit account.

 Investment banking – The products under this category include Foreign

Exchange services, Tax Saving Bonds, Investments related to Pure Gold

and Mutual Funds.

 Loans – This category includes all kinds of personal loans, Medical

loans, loans for buying equipment‟s and loans against securities.

 Internet banking – Under this category internet facilities are provided to

the interested customers.

47
 General insurance – According to a new scheme launched by the prime

minister every citizen who will open his account henceforth is liable for

a general insurance of INR one lakh from the bank.

 Mortgage loans

 Wealth management

 Asset management

 Private equity

 Savings security

 Finance and insurance

 Corporate banking

Place in the Marketing mix of State bank of India

The place is the most important factor for SBI because many of the top government

organizations deal with SBI as their bank. This creates large number of transactions

touching all parts of India. In India, State Bank of India provides its customers

services through a set-up of various branches. It has 14 regional hubs and 57 offices in

zones that are located throughout India at all the important cities. 66% of its branches

are located in rural areas whereas the rest 34% are located in urban areas.

48
In international arena, the bank has nearly 190 overseas offices that extend over

nearly thirty-four countries in cities like Dhaka, Tehran, Moscow, London, Maldives,

Dubai, New York and many others. State Bank of India has opened various ATMs

and branches for the convenience of its customers. The places are chosen with great

care so that security would not be a problem.

Banking facilities are handled very easily over there by efficient staff and personnel‟s.

State Bank of India has opened nearly 43,515 ATMs in India. These distribution

channels are equipped with latest infrastructure, technology and modern facilities.

ATM and the branches are installed at places that are convenient to both the banker

and the customer. The concept of internet banking through their residence and offices

is also encouraged to save time.

Price in the Marketing mix of State bank of India

State Bank of India offers a variety of financial services to its honored customers. It

has a very clear-cut pricing policy. It works in a competitive marketplace and so it has

a policy that includes creativeness at each level. Hence it can be said that State bank

uses competitive pricing. Also remember that the pricing of SBI is determined by

many of government policies.

The bank‟s value added strategies are made keeping in mind and examining the

customer‟s mindset and economic changes happening in the market. State Bank of

India‟s pricing policy is very customer friendly. It gives many opportunities to the

customers via its flexible policies like operating the home loan account in either

current account mode or savings account mode. 75% of their funds are accessible at

any given time.

49
The pricing policies and decisions are based on the rate of interest that is regulated by

the Reserve bank of India. The risk on loan has to be kept in mind also. Liability and

Assets make a huge impact on the pricing factors.

Promotions in the Marketing mix of State bank of India

In order to promote its services and banking facilities proper strategies are

implemented. Promotions through the Visual and print media through hoardings,

radio, theatres, movies, TV advertisements and newspapers have become very

necessary so that an awareness can be created. The various advertisements

emphasizes on the modernization of the banks, its branches and its various facilities.

Special mention is given in the ads to the impeccable services provided by the bank.

The advantage of each product is emphasized so that the clients become impressed

and they are forced to grasp the services of this bank.

Under the promotional strategy, ads have been created with famous personalities

depicting trust as trust and State Bank of India go hand in hand. People from State

Bank of India visit various campus and take part in road shows. The bank also

provides incentives to its staff so that better work environment is established. The

tagline of SBI is very apt-“The Banker to Every Indian”.

50
SWOT analysis of SBI

SBI has its roots since 1806 which was later transformed under various names,

finally SBI Was established after the act in parliament on May 1955. In the year

1959 SBI took over 8 state owned banks and since then it started to grow up

carrying its heritage of servicing people at various economic levels.

Strengths in the SWOT analysis of SBI

SBI is the largest bank in India in terms of market share, revenue and assets.

As per recent data the bank has more than 13,000 outlets and 25,000 ATM centres

The bank has its presence in 32 countries engaging currency trade all over the world

The bank has a merged with State Bank of Saurashtra, State bank of Indore and the

bank is planning to go further acquisition in the current FY2012.

SBI has the first mover advantage in commercial banking service

SBI has recently changed its vision and mission statements showing a sign of

inclination towards new age banking services

51
Weaknesses in the SWOT analysis of SBI

Lack of proper technology driven services when compared to private banks

Employees show reluctance to solve issues quickly due to higher job security and

customers‟ waiting period is long when compared to private banks

The banks spends a huge amount on its rented buildings

SBI has the largest number of employees in banking sector, hence the bank spends a

considerable amount of its income in employee‟s salary compensation

In spite of modernization, the bank still carries the perception of traditional bank to

new age customers

SBI fails to attract salary accounts of corporate and many government sector

employees salary accounts are also shifted to private bank for ease of operationsunlike

before

Opportunities in the SWOT analysis of SBI

SBI‟s merger with five more banks namely State Bank of Hyderebad, State bank of

Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank

of Mysore are in approval stage

Mergers will result in expansion of market share to defend its number one position

SBI is planning to expand and invest in international operations due to good inflow of

money from Asian Market

Since the bank is yet to modernize few of its banking operations, there is a better

scope of using advanced technologies and software to improve customer relations

Young and talented pool of graduates and B schools are in rise to open new horizon to

so called “old government bank”

52
Threats in the SWOT analysis of SBI

Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the

year FY2011.

This shows the reduce in market share to its close competitor ICICI Other private

banks like HDFC, AXIS bank etc

FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as

people tend to switch to foreign banks for better facilities and technologies in banking

service Other government banks like PNB, Andhra, Allahabad bank and Indian bank

are showing Customer prefer to switch to private banks and financial service

providers for loans and mortgages, as SBI involves stringent verification procedures

and take long time for processing.

53
CHAPTER-4
OBJECTIVES
OF THE STUDY

54
OBJECTIVE OF THE STUDY

 To study the promotion & Rewards Policy of SBI in Lucknow

 To study the effect of Promotion &Reward policy on Employees.

 To study the criteria for Reward &Promotion given to employees.

55
CHAPTER-5
RESEARCH
METHODOLOGY

56
RESEARCH METHODOLOGY
Research is a common parlance which refers to search for knowledge. It is a

procedure of logical and systematic application of the fundamentals of science to the

general and overall questions of a study and scientific technique, which provide

precise tools, specific procedures, and technical rather philosophical means for getting

and ordering the data prior to their logical analysis and manipulating different type of

research designs is available depending upon the nature of research project,

availability of manpower and circumstances.

RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data

in a manner that aims to combine relevance to the research purpose with economy in

procedure. In fact, the research design is the conceptual structure within which

research is conducted. This research was descriptive in nature

DESCRIPTIVE RESEARCH:

The research undertaken was a descriptive research as it was concerned with specific

predictions, with narration of facts and characteristics concerning a study on Job

satisfaction of employees working in SBI Lucknow.

a. METHODS OF DATA COLLECTION. There are several methods of

collecting primary data, particularly in surveys and descriptive researches. In

descriptive research, we obtain primary data either through observation or

through direct communication with respondents in one form or another or through

personal interviews. I have used questionnaires(Primary) and Internet source

(Secondary) for data Collection

b. DATA SOURCE

There were two types of data sources used in this research. These were

57
PRIMARY DATA

Primary data is the data collected for the first time from the source and never have

been used earlier. The data can be collected through interviews, observations and

questionnaires.

SECONDARY DATA

Secondary data is the data collected from already been use or published information

like journals, diaries, books, etc .In this research project, secondary source used were

various journals, and website of various online journals.

c. SAMPLE DESIGN

A sample design is made up of two elements. Sampling method. Sampling method

refers to the rules and procedures by which some elements of the population are

included in the sample. Some common sampling methods are simple random

sampling, stratified sampling , and cluster sampling .

I have used simple random sampling for study.

d. UNIVERSE OF STUDY: Universe of the study means all the employees of

SBI in Lucknow.

SAMPLE AREA: SBI, Lucknow.

e. SAMPLE TYPE

I have used Random sample for study.

f. SAMPLE SIZE: A sample of minimum respondents will be selected from SBI

Lucknow. An effort was made to select respondents evenly. The survey was

carried out on 100 respondents.

58
g. SAMPLE UNIT: Employees of SBI Lucknow

h. STATISTICAL TOOLS TO BE USED:A structured questionnaires is

used to collect the data and data will be analyzed with the help of percentage

table, respective graph, bar graph and pie charts.

TOOLS OF PRESENTATION:

It means what all tools are used to present the data in a meaningful way so that it

becomes easily understandable. In this research tables and graphs were used for

presenting the data.

59
CHAPTER-6
DATA ANALYES AND
INTERPRETATION

60
DATA ANALYSIS & INTERPRETATION

1. Do you think Promotion is one of the motivational factor?

No of respondents % of respondents
Strongly Agree 40 40%
Agree 34 34%
Neither agree nor disagree 10 10%
Disagree 8 8%
Strongly disagree 8 8%
Total 100 100%

8%
8%
40% Strongly Agree
10%
Agree
Neither agree nor disagree

34% Disagree
Strongly disagree

INTERPRITATION -40 % respondents strongly agree, 34 % respondents agree, 10

% respondents neither agree nor disagree,8% disagree and 8% strongly disagree that

Promotion is one of the motivational factor.

61
2. Is the reward system of your Company being followed genuinely?

No of respondents % of respondents
Strongly Agree 32 32%
Agree 48 48%
Neither agree nor disagree 12 12%
Disagree 4 4%
Strongly Disagree 4 4%
Total 100 100%

4% 4%

12% 32% Strongly Agree


Agree
Neither agree nor disagree
48% Disagree
Strongly Disagree

INTERPRITATION -32 % respondents strongly agree, 48 % respondents agree, 12%

respondents neither agree nor disagree,4% disagree and 4% strongly disagree that

reward system of your Company being followed genuinely.

62
3. Do you think recognition of work is important for work place?

No of respondents % of respondents
Strongly Agree 26 26%
Agree 54 54%
Neither agree nor disagree 12 12%
Disagree 6 6%
Strongly Disagree 2 2%
Total 100 100%

2%

6%
12% 26%
Strongly Agree
Agree
Neitheer agree nor disagre
Disagree
54%
Strongly Disagree

INTERPRITATION -26 % respondents strongly agree, 54 % respondents agree, 12 %

respondents neither agree nor disagree,6% disagree and 2% strongly disagree that

recognition of work is important for work place.

63
4. Do you think recognition provided by your Company is satisfactory?

No of respondents % of respondents
Strongly Agree 30 30%
Agree 48 48%
Neither Agree nor disagree 12 12%
Disagree 6 6%
strongly disagree 4 4%
Total 100 100%

6% 4%
12% 30%
Strongly Agree
Agree
Neither Agree nor disagree
Disagree
48%
strongly disagree

INTERPRITATION -30 % respondents strongly agree, 48 % respondents agree, 12

% respondents neither agree nor disagree,6% disagree and 4% strongly disagree that

recognition provided by your Company is satisfactory.

64
5. Do you think promotion increase the job liability and creditability?

No of respondents % of respondents
Strongly agree 30 30%
Agree 36 36%
Neither agree nor disagree 24 24%
Disagree 6 6%
Strongly disagree 4 4%
Total 100 100%

6% 4%
30%
Strongly agree
24%
Agree
Neither agree nor disagree
Disagree
36%
Strongly disagree

INTERPRITATION -30 % respondents strongly agree, 36% respondents agree, 24%


respondents neither agree nor disagree,6% disagree and 4% strongly disagree that
promotion increase the job liability and creditability.

65
6. Do you think delay of promotion demotivate you?

No of respondents % of respondents
Strongly Agree 31 31%
Agree 39 39%
Neither Agree nor
Disagree 12 12%
disagree 10 10%
Strongly disagree 8 8%
Total 100 100%

8%
10% 31%
Strongly Agree
12%
Agree
Neither Agree nor Disagree
disgree
39%
Strongly disagree

INTERPRITATION -31 % respondents strongly agree, 39 % respondents agree, 12


% respondents neither agree nor disagree,10% disagree and 8% strongly disagree that
delay of promotion demotivate.

66
7. Do you think existing promotion policy of your Company need to be
modified?

No of respondents % of respondents
Strongly Agree 24 24%
Agree 46 46%
Neither agree nor disagree 12 12%
Disagree 9 9%
Strongly Disagree 9 9%
Total 100 100%

9%
9% 24%
Strongly Agree
12%
Agree
Neither agree nor disagree
Disagree
46%
Strongly Disagree

INTERPRITATION -24 % respondents strongly agree, 46 % respondents agree, 12


% respondents neither agree nor disagree,9% disagree and 9% strongly disagree that
existing promotion policy of your Company need to be modified.

67
8. Are you aware of various reward provided by the Company?
No of respondents % of respondents
Strongly Agree 22 22%
Agree 38 38%
Neither Agree nor disagree 26 26%
Disagree 10 10%
Strongly Disagree 4 4%
Total 100 100%

10% 4%
22%
Strongly Agree

26% Agree
Neither Agree nor disagree
38% Disagree
Strongly Disagree

INTERPRITATION -22% respondents strongly agree, 38 % respondents agree, 26 %


respondents neither agree nor disagree,10% disagree and 4% strongly disagree that
they are aware of various reward provided by the Company..

68
9. Do you think the promotion policy in your Company is transparent to all
employees?
No of respondents % of respondents
strongly agree 20 20%
Agree 40 40%
neither agree nor disagree 25 25%
Disagree 10 10%
Strongly Disagree 5 5%
Total 100 100%

5%
10% 20%
strongly agree

25% Agree
neither agree nor disagree
40% Disagree
Strongly Disagree

INTERPRITATION -20 % respondents strongly agree, 40 % respondents agree, 25


% respondents neither agree nor disagree,10% disagree and 5% strongly disagree that
promotion policy in your Company is transparent to all employees.

69
10. Do you perform better if you are reward with verbal recognition
No of respondents % of respondents
Strongly Agree 35 35%
Agree 30 30%
Neither agree nor disagree 20 20%
Disagree 10 10%
strongly disagree 5 5%
Total 100 100%

5%
10%
35%
Strongly Agree
20% Agree
Neither agree nor disagree
Disagree
30%
strongly disagree

INTERPRITATION -35 % respondents strongly agree, 30 % respondents agree, 20


% respondents neither agree nor disagree,10% disagree and 5% strongly disagree that
Promotion is one of the motivational factor.

70
11. Does tangible recognition motivates you?
No of respondents % of respondents
Strongly agree 40 40%
Agree 35 35%
Neither Agree nor disagree 10 10%
Disagree 9 9%
Strongly disagree 6 6%
Total 100 100%

6%
9%
10% 40% Strongly agree
Agree
Neither Agree nor disgree

35% Disagree
Strongly disagree

INTERPRITATION -40 % respondents strongly agree, 35 % respondents agree, 10


% respondents neither agree nor disagree,9% disagree and 6% strongly disagree that
tangible recognition motivates.

71
12. Do you think financial rewards are more motivating than non financial
rewards?
No of respondents % of respondents
Strongly Agree 24 24%
Agree 36 36%
Neither agree nor disagree 16 16%
Disagree 14 14%
Strongly disagree 10 10%
Total 100 100%

10%
24%
14% Strongly Agree
Agree
16% Neither agree nor disagree
36% Disagree
Strongly disagree

INTERPRITATION -24 % respondents strongly agree, 36 % respondents agree, 16


% respondents neither agree nor disagree,14% disagree and 10% strongly disagree
that financial rewards are more motivating than non financial rewards.

72
CHAPTER-7
FINDINGS

73
FINDINGS
 40 % respondents strongly agree, 34 % respondents agree, 10 % respondents

neither agree nor disagree,8% disagree and 8% strongly disagree that

Promotion is one of the motivational factor.

 30 % respondents strongly agree, 48 % respondents agree, 12 % respondents

neither agree nor disagree,6% disagree and 4% strongly disagree that

recognition provided by your Company is satisfactory.

 30 % respondents strongly agree, 36% respondents agree, 24% respondents

neither agree nor disagree,6% disagree and 4% strongly disagree that

promotion increase the job liability and creditability.

 31 % respondents strongly agree, 39 % respondents agree, 12 % respondents

neither agree nor disagree,10% disagree and 8% strongly disagree that delay

of promotion demotivate.

 24 % respondents strongly agree, 46 % respondents agree, 12 % respondents

neither agree nor disagree,9% disagree and 9% strongly disagree that existing

promotion policy of your Company need to be modified.

 22% respondents strongly agree, 38 % respondents agree, 26 % respondents

neither agree nor disagree,10% disagree and 4% strongly disagree that they are

aware of various reward provided by the Company..

 20 % respondents strongly agree, 40 % respondents agree, 25 % respondents

neither agree nor disagree,10% disagree and 5% strongly disagree that

promotion policy in your Company is transparent to all employees.

 35 % respondents strongly agree, 30 % respondents agree, 20 % respondents

neither agree nor disagree,10% disagree and 5% strongly disagree that

Promotion is one of the motivational factor.

74
 40 % respondents strongly agree, 35 % respondents agree, 10 % respondents

neither agree nor disagree,9% disagree and 6% strongly disagree that tangible

recognition motivates.

 24 % respondents strongly agree, 36 % respondents agree, 16 % respondents

neither agree nor disagree,14% disagree and 10% strongly disagree that

financial rewards are more motivating than non financial rewards.

75
CHAPTER-8
CONCLUSION

76
CONCLUSION

As per the analysis and findings, it can be concluding that the Promotion Policy of

the organization is effective. The employees are overall satisfied with the Promotion

Policy. Organization is not only concentrating on career growth of new entrants

joining but also updating knowledge of existing employees in term of better career

growth through giving incentives for higher education and training and development

programmed as well as through higher education.

77
CHAPTER-9
RECOMMENDATIONS

78
RECOMMENDATIONS

 To find out talented employees and involve in continuous learning process as

well as to give them environment for continuous learning process so that they

can update their knowledge and extra skills.

 Provide opportunity within the organization for cross-training and career

succession. People like to know that they have scope for career movement.

 To give opportunity for higher studies. So, they can hike their salary, career

growth, span of control and promotion also.

 Mentoring and handholding all fresh entrants from day one are important

tasks; during this period, they should be familiarized with the culture, vision

and mission of the company. It is at this time that new entrants experiment

with different options. Hence they should be exposed to the best values the

organization.

79
CHAPTER-10
LIMITATIONS

80
LIMITATIONS

 The system covers only executive cadre, so it is limitation in scope.

 Scope of the study is confined to the areas of SBI & that too with limited

sample size of 100.

 It was difficult for some executives to fill up the questionnaire themselves.

Thus the researcher has to clear all the doubt about the questionnaire that

consumed most of the time.

 Some executive might have not answered the questions currently because of

the busy schedule. They tend to hurry up the talk, which inhibits proper

collection of data.

 The higher level executives were unavailable for response as they have a very

busy schedule.

81
BIBLIOGRAPHY

82
BIBLIOGRAPHY
Brandi, JoAnna. "9 Ways to Keep Employees Engaged." Entrepreneur. 12 April
2005.

Grimaldi, Lisa. "Study proves recognition pays off." Meetings & Conventions. August
2005.

Henneman, Todd. "Daniels' Scientific Method." Workforce Management. 10 October


2005.

Odell, Patricia. "Live from the Mo Show: Non-Cash Awards More Effective." Promo.
28 September 2005.

Parker, Owen, and Liz Wright. "Pay and Employee Commitment: The Missing Link."
Ivey Business Journal. January 2001.

Rauch, Maggie. "Communications Gap: Majority of businesses give managers little


guidance on recognition." Incentive. September 2005.

Ventrice, Cindy. "Make Their Day! Employee Recognition That Works." Berrett-
Koehler Publishers. April 2003.

83
ANNEXURE

84
Questionnaire
For each of the statement below, please indicate the extent of your agreement and
disagreement by placing a tick in the appropriate box.

The response scale is as follows:


1. Strongly Agree
2. Agree
3. Neutral or Undecided
4. Disagree
5. Strongly Disagree

Statements Scale
1-Strongly Agree, 2-Agree, 3-Neutral,
4-Disagree, 5-Strongly Disagree.

1. Do you think Promotion is one of the motivational 1 2 3 4 5


factor

2. Is the reward system of your Company being 1 2 3 4 5


followed genuinely.

3. Do you think recognition of work is important t work 1 2 3 4 5


place .

4. Do you think recognition provided by your Company 1 2 3 4 5


is satisfactory..

5. Do you think promotion increase the job liability and 1 2 3 4 5


creditability

6. Do you think delay of promotion demotivate you. 1 2 3 4 5

85
7. Do you think existing promotion policy of your 1 2 3 4 5
Company need to be modified

8. Are you aware of various reward provided by the 1 2 3 4 5


Company

9. Do you think the promotion policy in your Company 1 2 3 4 5


is transparent to all employees

Q.10. Do you perform better if you are reward with verbal recognition?

a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree

Q.11. Does tangible recognition motivates you?

a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree

Q.12. Do you think financial rewards are more motivating than non financial
rewards?

a) Strongly agree
b) Agree
c) Neither agree nor disagree
d) Disagree
e) Strongly disagree

86