GTUS Enrollment No: 107690592069

A PROJECT REPORT ON Study of Compensation and Benefits in BPCL

Submitted By: Shruti D. Rana (Roll No:B-40) MBA PROGRAMME 2010-2012 (SEMESTER II) In partial fulfillment of the requirements for Summer Internship Programme for the award of the degree of MASTER OF BUSINESS ADMINISTRATION SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT AND COMPUTER APPLICATIONS (NICM-MBA) INSTITUTE CODE: 769

Submitted to: GUJARAT TECHNOLOGICAL UNIVERSITY, AHMEDABAD

Declaration

This project report entitled To study the effect of motivational programs and policies in Welcom Hotel, Vadodara has been submitted to Gujarat Technological University, Ahmedabad in partial fulfilment for the award of degree of Master of Business Administration. I, the undersigned hereby declare that this report has been completed by me under the guidance of Mr. Vimlendu Sharma (H.R Manager, Welcom Hotel, Vadodara) and Professor Vaishali Trivedi (Faculty Member, Shri Jairambhai Patel Institute of Business Management & Computer Applications, Gandhinagar.) The report is entirely the result of my own efforts and has not been submitted either in part or whole to any other institute or university for any degree.

Name of the Student with Signature: Malvika Puranik GTUs Enrolment No/s: 107690592036 Date: 25th July, 2011 Place: Ahmedabad

Add here: Certif.from organization and after dis certi der wil b certi from institute which m addin just change name of project n ur name

Shri Jairambhai Patel Institute of Business Management and Computer Applications

(Formerly known as National Institute of Cooperative Management),
Approved by AICTE, New Delhi and Affiliated with Gujarat Technological University
Opposite Amusement Park, Indroda Circle, Gandhinagar - 382 007 Phone: 079 23213043, 37 - 38 - 39 Web: www.nicm.org.in Fax : 079 23213036 E mail: director_mbanicm@yahoo.com

CERTIFICATE
This is to certify that Shruti D. Rana, student of MBA

(2010-2012 batch) at Post Graduate Centre of Gujarat Technological University MBA, SJPI has prepared a Summer Internship Project Report on Study of Compensation and Benefits in BPCL in partial fulfillment of two years full-time MBA Programme of Gujarat Technological University, Ahmedabad. This project work has been undertaken under my supervision and found satisfactory.

Date : Place: Gandhinagar

NAME OF FACULTY GUIDE: Ms. Bansi Patel Core Faculty MBA Deptt & Project Guide

Add here: Preface: why is summer internship imp

Acknowledgement
It is almost inevitable to incur indebtedness to all who generously helped by sharing their invaluable time and rich experience with me, without which this project would have never been accomplished. No task can be achieved alone, particularly while attempting to finish a project of such magnitude. It took many special people to facilitate it and support it. Hence, I would like to acknowledge all of their valuable support and convey my humble gratitude to them. I would like to thank PROF. Vaishali Trivedi and all other faculties of SJPI INSTIITUTE for their guidance throughout the preparation of the project and for their valued suggestion. I express my sincere thanks to the management of Welcome Hotel, Vadodara for giving me this golden opportunity to work as a trainee in their company. The guidance and support provided by the company have really made the training a learning experience for me. This short period was full of rich experience, which will definitely help me in my future career. First of all, I would like thanking Mr. Vimlendu Sharma (H.R Manager, Welcom Hotel, Vadodara) and other staff member for their valuable guidance and encouragement.

add here: executive summary: bried intro of wat u did n ur findings in short(wat u concluded)
after summary table of contents, table and fig which m sndn u

Overview of Hotel Industry

In 2007 there were about 2,000 hotels approved and classified by the Ministry of Tourism with a total capacity of about 110,000 hotel rooms. The Indian hotel industry contributed to over 6% of Indias GDP in 2008-2009. Revenue per available room came down from above INR 1.8 million in 2007-08 to about INR 1.6 million in 2008-09 mainly because of the worldwide recession but is expected to pick up soon.

60% of the total industry revenue in India comes from room tariffs while sales of food and beverage account for around 25%. The Indian Hotel industry is adding over 90,000 more rooms in between 2010-2015 to meet the growing demand: 1) Carlson Group The global hospitality chain is bringing its luxury hotel brand Regent to India. 2) The Leela Plans to open six more properties by 2013, taking the total number of hotels to 12. 3) ITC Ltd. Expects to add 8-10 hotels in India in the next 3-5 years to the existing 110 that it currently operates.

Ahmedabad
Ahmedabad, being a commercial destination, has seen a decline in average rates and occupancy (11.2 points decline in occupancy) owing to the economic downturn. With sixteen new hotels scheduled to commence operations in the next four to five years, the hotels in the city are expected to witness a price war. Also, some companies such as Torrent Power have developed guest houses and training centres in their facilities. If this trend continues, it could further bring down hotel occupancies. However, in the long term, the investor friendly approach of the Gujarat government, availability of good infrastructure such as road connectivity to major metros of Delhi and Mumbai as well as uninterrupted power, and proximity to several ports makes Ahmedabad a favoured destination for corporations to set up regional offices or headquarters. Although the development of

some big projects in Ahmedabad such as the Gujarat International Finance Tec-City (GIFT) and the Sabarmati Riverfront Development Project has slowed down, we expect Gujarat to be a financial hub for West India and continue to generate demand for hotel rooms. In the long term, Ahmedabad might also get more business from domestic and international airlines as it is developing a separate international terminal. Airlines that choose to park in Ahmedabad stand to benefit from cheaper parking and accommodation facilities.

About ITC Limited

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.

ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by BusinessWorld and among India's Most Valuable Companies by Business Today. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar says : "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading

global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 24,000 people at more than 60 locations across India. The Company continuously endeavours to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4, 05,000 shareholders, fulfil the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder." ITC Vision Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.

ITC Mission To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value. Core Values ITC's Core Values are aimed at developing a customer-focused, highperformance organisation which creates value for all its stakeholders: 1) Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis. 2) Customer Focus We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction. 3) Respect For People We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity. We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.

4) Excellence We do what is right, do it well and win. We will strive for excellence in whatever we do. 5) Innovation We will constantly pursue newer and better processes, products, services and management practices. 6) Nation Orientation

We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels. Organizational Chart

Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the wholetime Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and the need for supervision and control.

Board of Directors

Audit Committee

Compensation Committee

Nominations Committee

Investor Service Committee

Sustainability Committee

Corporate Management Committee

Divisional/ Strategic Business Unit (SBU) Management Committees, each headed by a divisional/ SBU Chief Executive Business includes: FMCG, Hotels, Paperboards, Specialty Papers & Packaging, Agri Business and Information Technology

Corporate Functions, each headed by a HOD Corporate Functions include: Planning and Treasury, Accounting, Taxation, Risk Management, Legal, Secretarial, EHS, Human Resources, Corporate Communications, Corporate Affairs, Internal Audit and Research & Development

Overview ITC Hotels

ITC Hotels, India's premier chain of luxury hotels was launched on October 18, 1975, with the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC Hotels brand has become synonymous with Indian hospitality. With over 100 hotels in more than 90 destinations, ITC Hotels has set new standards of excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest

Safety. A leader in the premium hospitality segment, ITC Hotels have had the privilege of hosting world leaders, Heads of State and discerning guests from across the world and within. As one of India's most dynamic hospitality chains, ITC Hotels has set standards for excellence in the hotel industry by pioneering the concept of branded accommodation. The chain has developed three brands of accommodation ITC One', 'Towers' and the 'Executive Club' to differentiate between the needs of various travellers and provide high levels of service. First to introduce branded cuisine, its restaurants Bukhara, Dakshin and DumPukht are renowned for their delicious and authentic Indian cuisines from the different regions of India. ITC Hotels also showcases international cuisine in its specialty restaurants West View and Pan Asian. ITC Hotels has strategically customized its hotels and appropriately categorized them to fulfil the service and budgetary needs of travellers. With its exclusive strategic tie up with Starwood for its top of the line premium brand the 'Luxury Collection', the group is strengthening its international marketing stance. ITC Hotels was also instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive partnership. ITC Hotels properties are classified under four distinct brands: 1) ITC Hotels - Luxury Collection In 2007, ITC Hotels entered a new phase in its collaboration with Starwood Hotels & Resorts. ITC Hotels now has an exclusive tie-up with Starwood in bringing its premium brand, the 'Luxury Collection', to India. These are super deluxe and premium hotels located at strategic business and leisure locations. The seven hotels which are part of this collection are:

ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor & ITC Gardenia in Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra. 2) Welcom Hotels offer five-star hospitality for the discerning business and leisure traveller. Currently there are three hotels under this brand namely, Welcom Hotel Rama International Aurangabad, Welcom Hotel Vadodara and Welcom Hotel Grand Bay Vishakhapatnam. Four other ITC Hotels Sheraton Hotels Sheraton Rajputana Hotel Jaipur, Sheraton Chola Hotel Chennai, Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi offer warm, comforting services to the global traveller and a chance to connect. 3) Fortune Hotels operates mid-market to upscale properties in the first-class, full-service business hotel segment all over India, in major metros, mini metros, state capitals and business towns, promising business and leisure travelers a wide choice of destinations and accommodation. Fortune Hotels currently has hotels operating in Ahmedabad, Chennai, Gurgaon, Indore, Jaipur, Jammu, Jamshedpur, Kolkata, Ludhiana, Madurai, Navi Mumbai, Ooty, Port Blair, Pune, Tirupati, Trivandrum, Vapi, Vijayawada, Vishakhapatnam, Hyderabad, Lavasa, Noida, Manipal, Bengaluru, Mussoorie, Goa, Thane, Gandhinagar and Mysore while several more hotels are expected to be commissioned soon in other key locations in India. 4) WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience. WelcomHeritage endeavours to preserve ancient royal homes and the historical Indian grandeur and opulence for the future Indian generations. WelcomHeritage provides a fine range of hotel services inside these architectural legacies present in Rajasthan, Madhya Pradesh, Uttarakhand, Himachal Pradesh,

Jammu & Kashmir, West Bengal, Karnataka, Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya, Arunachal Pradesh, Uttar Pradesh, Maharastra, Kerala, Andhra Pradesh and Pondicherry.

About Welcom Hotel, Vadodara

It was opened on 23 July,1985. It has 134 well appointed rooms and suites including the Executive Club. In addition to access to the exclusive Executive Club lounge, the Executive Club rooms provide a range of thoughtful in-room conveniences, each carefully conceived for the business traveller. It has 2 restaurants :

CAMBAY PAVILION 24 hour restaurant serving Continental and Chinese specialities, along with snacks and light meals. A cheerful air, with lush green plants and a rippling waterfall. PESHAWRI Redolent with the rugged flavours of the North-West Frontier, Peshawri is where one can experience the pleasures of a celebrated cuisine in a splendid setting. There is a choice of 3 conference halls. The Main conference hall with separate entrance and attached private lawn for upto 300 people. There are 2 additional halls for up to 70 people each. Poolside arrangement can also be made that can accomodate upto 500 people.

Marketing strategies 1) Welcomaward: The WelcomAward programme recognizes your needs as a business traveler and through its strategic alliances with travel partners, endeavors to build a rewarding relationship with customers.

As a WelcomAward member you earn 'Stars' on every aspect of your business trip. 2) Welcomlink: Welcomlink, Indias most popular lifestyle rewards programme, designed exclusively to recognize and reward our business partners who channelize bookings into ITC Hotels. As a WelcomLink Member, you can earn points for every materialized room night you book at participating hotels. 3) Culinary plus: One of the rewards of this membership is the pleasure of dining at ITC Hotels, a journey that encompasses a wide choice of cuisine from across the globe. As a member you enjoy attractive savings when you dine & entertain with the Culinary plus Card. 4) Luxury events: Their guests can choose from a selection of 3 banquets / conference venue for their seminars. There are also a board rooms which can accommodate around 15 guests. Events which can be carried out are: exhibition, delegate kits, theme parties and entertainment, video coverage and photography.

5) Gift certificates: Introducing ITC Hotels Experience Certificates that can be utilized against a host of services at our Hotels from stay, fine dining experiences, Kaya Kalp Spa services to business centre & telecommunication services. Purchase Experience Certificates and gift them to your loved ones on special occasions, treating them to unique experiences at ITC Hotels. Experience Certificates can also be used

for Corporate Gifting, recognition, rewarding or motivating employee.

Introduction to Motivation and Motivation Theories

DEFINITION: Motivation is defined as the processes that account for an individuals intensity, direction, & persistence of effort towards attaining a goal. EARLY THEORIES OF MOTIVATION

The 1950s were a fruitful period in the development of motivation concepts. Three specific theories were formulated during this period, which although heavily attacked and now questionable in terms of validity, are probably still the best-known explanations for employee motivation. These are the hierarchy of needs theory, Theories X and Y, and the two-factor theory. These theories represent a foundation from which contemporary theories have grown, and practicing managers still regularly use these theories and their terminology in explaining employee motivation.

Hierarchy of Needs Theory

Its probably safe to say that the most well-known theory of motivation is Abraham Maslows hierarchy of needs. He hypothesized that within every human being there exists a hierarchy of five needs. These needs are:

1. Physiological: - Includes hunger, thirst, shelter, sex, and other bodily needs 2. Safety: - Includes security and protection from physical and emotional harm 3. Social: - Includes affection, belongingness, acceptance and friendship 4. Esteem: - Includes internal esteem factors such as self-respect, autonomy and achievement; and external esteem factors such as status, recognition, and attention 5. Self-actualization: - The drive to become what one is capable of becoming; includes growth, achieving ones potential, and selffulfillment

SelfActualization

Esteem Social Safety Physiological

As each of these needs becomes substantially satisfied, the next need becomes dominant. In terms of the figure, the individual moves up the steps of the hierarchy. From the standpoint of motivation, the theory would say that although no need is fully gratified, a substantially satisfied need no longer motivates. So if you want to motivate someone, according to Maslow, you need to understand what level of the hierarchy that person is currently on and focus on satisfying the needs at or above that level. Maslow separated the five needs into higher and lower orders. Physiological and safety needs were described as lower-order and social, esteem, and self-actualization as higher-order needs. The differentiation between the two orders was made on the premise that higher-order needs are satisfied internally (within the person), whereas lower-order needs are

predominantly satisfied externally (by things such as pay, union contracts, and tenure). Maslows need theory has received wide recognition, particularly among practicing managers. This can be attributed to the theorys intuitive logic and ease of understanding. Unfortunately, however, research does not generally validate the theory. Maslow provided no empirical substantiation, and several studies that sought to validate the theory found no support for it.

Theory X and Theory Y

Douglas McGregor proposed two distinct views of human beings: one basically negative, labeled Theory X, and the other basically positive, labeled Theory Y. After viewing the way the managers dealt with employees, McGregor concluded that a managers view of the nature of human beings is based on a certain grouping of assumptions and that he/she tends to mold his/her behavior toward employees according to these assumptions. Under Theory X, the four assumptions held by managers are: 1. Employees inherently dislike work and, whenever possible, will attempt to avoid it. 2. Since employees dislike work, they must be coerced, controlled or threatened with punishment to achieve goals. 3. Employees will avoid responsibilities and seek formal direction whenever possible. 4. Most workers place security above all other factors associated with work and will display little ambition.

In contrast to these negative views about the nature of human beings, McGregor listed the four positive assumptions that he called Theory Y: 1. Employees can view work as being as natural as rest or play. 2. People will exercise self-direction and self-control if they are committed to the objectives. 3. The average person can learn to accept, even seek, responsibility. 4. The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions. What are the motivational implications if you accept McGregors analysis? The answer is best expressed in the framework presented by Maslow. Theory X assumes the lower-order needs dominate individuals. Theory Y assumes that higher-order needs assume dominate individuals. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X. Therefore, he proposed ideas such as participative decision-making, responsible and challenging jobs, and good group relations as approaches that would maximize an employees job motivation.

Two-Factor Theory

The two-factor theory (sometimes also called as motivation-hygiene theory) was proposed by psychologist Frederick Hertzberg. In the belief that an individuals relation to work is basic and that ones attitude toward work can very well determine success or failure, Hertzberg investigated the question, What do people from their jobs? He asked people to describe, in detail, situations in which they felt extremely good or bad about their jobs. These responses were then tabulated and categorized.

According to Hertzberg, the factors leading to job satisfaction are separate and distinct from those that lead to job dissatisfaction. Therefore, managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation. They will be placating their workforce rather than motivating them. As a result, conditions surrounding the job such as quality of supervision, pay, company policies, physical working conditions, relations with others, and job security were characterized by Hertzberg as hygiene factors.

MODERN THEORIES OF MOTIVATION

ERG theory
Clayton Alderfer has reworked Maslows need hierarchy to align it more closely with the empirical research. His revised need hierarchy is labeled ERG theory. Alderfer argues that there are three groups of core needs-Existence, Relatedness, and growthhence, the label ERG theory. The existence group is concerned with providing our basic material existence requirements. They include the items that Maslow considered to be physiological and safety needs. The second group of needs are those of relatednessthe desire we have for maintaining important interpersonal relationships. These social and status desires require interaction with others if they are to be satisfied, and they align with Maslows social need and the external component of Maslows esteem classification. Finally, Alderfer isolates growth needsan intrinsic component from Maslows esteem category and the characteristics included under self-actualization. In contrast to hierarchy of needs theory, the ERG theory demonstrates that (1) more than one need may be operative at same time, and (2) if the gratification of a higher-level need is stifled, the desire to satisfy a lowerlevel need increases.

ERG theory also contains a frustration-regression dimension. ERG theory counters by noting that when a higher-order need level is frustrated, the individuals desire to increase a lower-level need takes place.

McClellands Theory of needs

McClellands theory of needs was developed by David McClelland and his associates. The theory focuses on three needs: achievements, power, and affiliation. They are defined as follows:

Need for achievement:

The drive to excel, to achieve in relation to a set of standards, to strive to succeed.

Need for power:

The need to make others behave in a way that they would not have behaved otherwise.

Need for affiliation:

The desire for friendly and close interpersonal relationships.

Some people drive to succeed. They are striving for personal achievements rather than rewards of success as per work done. They have a desire to do something better or more efficiently than it has been done before. This drive is the achievement need. From research into the achievement need, McClelland found that high achievers differentiate themselves from others by their desire to do things better.

Goal-Setting theory

Gene Broadwater coach of the Hamilton high school cross-country team gave his squad these last words before they approached the line for the league championship race: each one of you is physically ready. Now, get out there and do your best. No one can ever ask more of you than that. The research on goal setting theory addresses these issues, and the findings, as you will see, are impressive in terms of the effect that goal specificity, challenge, and feedback have no performance. In late 1960s, Edwin Locke proposed that intentions to work toward a goal are a major source of work motivation. That is, goal tells an employee what needs to be done and how much effort need to be expended. The evidence strongly supports the value of goals. More to the point, we can say that specific goals increase performance; that difficult goals, when accepted, result in higher performance than do easy goals; and that feedback leads to higher performance than does no feedback. Goal-setting theory presupposes that an individual is committed to the goal; that is, is determined not to lower or abandon the goal. This is most likely to occur when goals are made public, when the individual has an internal locus of control, and when the goals are self-set rather than assigned.

Equity Theory

It means individuals compare their job inputs and outcome with those of others and then respond to eliminate any inequities.

This theory is based on the example of Ms Jane Pearson who graduated from the state university with a degree in accounting and working with 'G5' a public accounting firm with a monthly salary of $4,550.

However Janes motivational level has dropped dramatically due to the hiring of the fresh college graduate out of the state university who lacks the one year experience which Jane has gained and was paid $4,800 which was more than Janes salary.

In this case Janes situation illustrates the role that equity plays in motivation. Employees make comparisons of their job inputs and outcomes relative to those of others.

In other words if we perceive our ratio to be equal to that of the relevant others with whom we compare ourselves, a state of equity is said to be exist. When we see the ratio as unequal we experience equity tension and when over rewarded, the tension creates guilt.

The referent that an employee selects adds to the complexity of equity theory. There are 4 referent comparisons that an employee can use:

1. Self-inside. 2. Self-outside. 3. Other-inside. 4. Other-outside.

Which referent an employee chooses will be influenced by the information the employee holds about referents as well as by the attractiveness of the referent.

Employees with short tenure in their current organization tend to have little information about others and on the long tenure rely more heavily on coworkers for comparison.

Equity theory is also related with the pay of the employees. Thus on these grounds, the theory establishes the following 4 propositions related to inequitable pay:

1. Given payment on time, over rewarded employees will produce more than will equitably paid employees.

2. Given payment by quantity of production, over rewarded employees will produce fewer, but higher-quality, units than equitably paid employees.

3. Given payment on time, under rewarded employees will produce poorer quality of output.

4. Given payment by quality of production, under rewarded employees will produce a large no of low-quality units in comparison with equitably paid employees.

These propositions have generally been supported with few minor qualifications.

Conclusion of equity theory:-

The equity theory demonstrates that, for most employees, motivation is influenced significantly by relative rewards as well by absolute rewards. But some key issues related to this theory are still unclear.

Expectancy Theory:-

Currently, one of the most widely accepted explanations of motivation is victor vroom's Expectancy Theory. Although it has its critics, most evidence is supportive of the theory.

Meaning:"The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual". In more practical terms, expectancy theory says that an employee will be motivated to accept a high level of pressure when he or she believes that effort will lead to a good performance appraisal; which will lead to good org rewards such as bonus, a salary increase, or a promotion; and that the rewards will satisfy the employee's personal goals. The theory, therefore focuses on three relationship:-

1. Effort performance relationship. 2. Performance-reward relationship. 3. Rewards-personal goals relationship.

Thus expectancy theory helps to explain why lot of workers aren't motivated on their job and do only the minimum necessary to get by.

In summary, the key to expectancy theory is the understanding of an individual's goals and the linkage b/w effort and performance, between

performance and rewards and, finally, between the rewards and individual goal satisfaction. As a contingency model, expectancy theory recognizes that there is no universal principle for explaining everyone's motivation. In addition, just because we understand what needs a person seeks to satisfy does not ensure that the individual perceives high performance as necessarily leading to the satisfaction to these needs.

Because of complications like methodological, criterion, and measurement problems, this theory is viewed with caution.

Various Motivational Strategies Followed at Welcom Hotel, Vadodara

y Welcom Achiever  Its a motivational program for their employees in this the employees get points when they do any work for the other department which is actually based on one of their standards which says that the employee needs to go further and do something beyond their duty, here the points are given by the head of departments of the department the employee has done that extra work and not by their own HODs, these points are given in the from of paper leaves and they are worth 25-50 points it is a kind of apriciation given to them which put on the bulliten board as well.

 The following are the criterias in which the employee can earn points: 1) Namaste-only for Front Of The House: here the comments given by guest in the feedback form for an employee gives them point. 2) Welcom spirit: here orally any comments given by guets adds up points for that particular employees. 3) Well done: the HODS nominates employees after looking at their efforts towards their work. 4) There are different Performance awards given every month which also helps employees to earn points for example: how much guest is delighted by their service, what new innovations were put in by the employee in serving the guest, etc

5) Top exemplory cross functional teamwork by associates. 6) Welcom cheer: here associates appreciate employees of different department thrice in a quarter and as appreciation they give the employees leaves which is of 25 points and these leaves are stuck on the appriciation tree. Revenue Linked Bonus  In this all employees are given bonus at the end of each financial year on the basis of the revenue generated by the hotel.  For each Rs. 1,20,000 exceeding after achieving the annual budget, each employee is given Rs 100 as bonus.  This encourages the employees to attain the companys goal so as to gain monetary benefits. Performance Linked Bonus  This added in an employees salary on the basis of his performance as determined by the head of the department.

Aim
To study the motivational Programs followed in Welcom Hotel, Vadodara.

Objective
y To know about various motivational policies and programs followed by the company. y To know the view of employees regarding these programs.

Methodology

The study has been divided into two distinct phases: the preliminary phase and the second phase.

The preliminary phase, This consisted of exploratory research. For this, information was collected regarding the programs and policies followed in the hotel for motivation of the employees. A questionnaire was prepared on the basis of this research for understanding the effect of these policies and programs on the employees.

The second phase Questionnaires were administered to the employees. For sampling randomly 5 employees were taken from each of the core departments and 1-2 from the rest of the departments. The data thus obtained by

the survey, was put to frequency analysis and presented in the form of a report.

Questionnaire

1. Are you satisfied with the support from the HR department? a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly Dissatisfied 2. Management is really interested in motivating the employees? a) Yes b) No c) Cant Say 3. Which type of incentives motivates you more? a) Financial incentives b) Non-financial incentives c) Both 4. How far you are satisfied with the incentives provided by the organization? a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly Dissatisfied

5. Please provide the following rates. (5- Strongly agree, 4- Agree, 3-Neutral, 2-Disagree, 1-Strongly disagree) No 1 2 3 4 5 6 Factors Reasonable periodical increase in salary Good relationship with co-workers Effective performance appraisal system Effective promotional opportunities in the organization Good safety measures adopted in the organization. Company recognize and acknowledge your work Rates

6. Do you think that the incentives and other benefits will influence your performance? a) Influence b) Does not influence c) No opinion 7. Does the management involve you in decision making which are connected to your department? a) Yes b) No c) Occasionally

lt

1. Are you satisfied wit t e support from t e HR department

Fi 1
5% 19% 17%

Highly satisfied
satisfied Neutral 22% Dissatisfied

Highly Dissatisfied
37%

2. Management is really interested in moti ating t e employees?

Fi 2

Yes

No Can't Sa

3. Whi h type of incenti es moti ates you more?

Fi 3

33%

44%
Financial incentives

Non-financial incentives Both

23%

4. How far you are satisfied with the incenti es provided by the organi ation?

Fi 4
8%

Yes
3 %

53%

No Neutral

5. Please provide the following rates. (5- Strongly agree, 4- Agree, 3-Neutral, 2-Disagree, 1-Strongly disagree)

Fi 5

Good safety measures adopted in the organization.

Effecti e promotional opportunities in the organization Effecti e performance appraisal system

Strongly Disagree Disagree

Neutral Agree
Strongly Agree

Good relationship with co-workers

6. Do you think that the incentives and other benefits will influence your performance?

20%

Reasonable periodical increase in salar

Colu n1

Influence Does Not Influence

No Opinion

77%

Company recognize and acknowledge your work

7. Does the management involve you in decision making which are connected to your department?

Sal s
2%

44% Yes
54%

No Occasionally