A STUDY ON EMPLOYEE MOTIVATION AT HETERO DRUGS.

LTD (009-07-147)
Project submitted in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION

(M.B.A)

ANDHRA VIDYALAYA P.G.CENTRE GAGANMAHAL, HYDERABAD AFFILIATED TO OSMANIA UNIVERSITY

CERTIFICATE
This is to certify that the Project Report entitled A STUDY ON EMPLOYEE MOTIVATION AT HETERO DRUGS LTD, submited in partial fulfillment of the degree of Masters in Business Administration was carried by CH.PRIYANKA.(H.T.00907147)Under the guidance and supervision of Ms. Lalitha This project report is original and has not been submitted to any other University for the award of any Degree / Diploma/certificate.

Prof. P. Bucha Reddy Head, Dept. of Business Management

Ms. Lalitha Project Guide

DECLARATION

I here by declare that this Project work report title

EMPLOYEE MOTIVATION

Submitted by me to the OSMANIA UNIVERSITY, and HYDERABAD. It is not submitted to any other University / Institution for the award of any degree / diploma / certificate or published a time before.

HETERO DRUGS. Ltd. Department of A.V. PG COLLEGE,

at

Name and Address of the Student

CH.PRIYANKA, # 1-6-196, CHIATANYAPURI, HYDERABAD.

Signature of the Student

ACKNOWLEDGE MENT
I take this opportunity to express my heartfelt gratitude to Mr.P.MADHU, HR Executive of Leo Labs IT organization and also for his valuable guidance, help, motivation, and encouragement from the beginning till the completion of my project work. I would like to thank MR. BUCHA REDDY H.O.D of MBA A.V.P.G College for his kind cooperation during the entire MBA Program. I also extend my thanks to MISS.LALITHA Lecturer, for her guidance, valuable support and encouragement through out the project. Last but not the least, I would like to thank my parents and friends without their support I wouldnt have completed my project successfully and every one who has helped me directly or indirectly in completion of the project successfully.

(CH.PRIYANKA)

CONTENTS
CHAPTER 1 INTRODUCTION

1-5 1 2 3-4 5 5
6-35

Need for the study Objectives Research Methodology Scope of the Study Limitations

CHAPTER -2

LITERATURE REVIEW
Introduction

7 8 8 935 - 42

Importance Meaning Purpose 34

CHAPTER-3 CHAPTER 4

COMPANY PROFILE DATA ANALYSIS & INTERPRETATION

43 - 57 58- 60

CHAPTER 5

FINDINGS, SUGGESTIONS ANNEXURE

QUESTIONNNAIRE BIBLIOGRAPHY

61-62 63
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CHAPTER-I

NEED FOR THE STUDY:

The advancement of technology and spread of business on global scale, it has become necessary for the organization to concentrate on meeting the global challenges. Merely selecting the employees does not ensure that the organization will be successful. For the smooth and successful running of every organization it is needed to motivate its employees to meet the global challenges and to create a harmonious environment in the organization. Hence, employee motivation topic is selected by me to study how far it will help the organizations for maintaining harmonious environment and successful growth.

OBJECTIVES

To measure the impact of motivational factors and its effectiveness on employees in Hetero Drugs Ltd. To study whether the employees of Hetero are satisfied with the motivational factors or not. To study any modifications are needed for future motivational activities.

RESEARCH METHODOLOGY:

DATA COLLECTION METHODS:

Data is empowered information about the problem chosen. The data is considered as raw material used in the interpretation part of the project work used to find out the hidden problem of the topic chosen. Thus the collected data is analyzed and interpreted to find out the exact reason for the problem and to give out appropriate suggestions to over come the problem. So in order to carry out the analysis and interpretations as part of project work collection of data with relevant to problem chosen is essential. The data relevant to problem identified is available in two forms. They are: Primary Data Secondary Data

Primary data:
Primary Data is of first hand in nature and it does not exist anywhere. It has to be collected riches as for as problem chosen. Following methods can collect the primary data.

Questionnaire:
Under this method a well-structured questionnaire is prepared covering all aspects with respect to the related topic. This may contain both open and close-ended questions. The open ended questions are those where the respondents are free to give their options. While in closed-ended questions the respondent has to answer the questions with in choice specify by the richer. By distributing the questionnaire to the respondents the data is collected.

Observation Method:
Here observing the activities being performed by the organization collect the data. Care should be taken that the activities should be observed for one complete work life style.

Secondary Data:
Secondary data is that type of data, which already write and has gone through some statistical analysis. Secondary data can be collected from various data banks, Internet downloads, business articles, business periodicals, annual reports of the company Sample size: Statistical tool: Sample Unit: 150 Percentage Method People belonging to all designations

Sampling plan:

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Since, the size of the population is very large, the sample size is selected using random sampling method from different departments basing on different designations.

SCOPE OF THE STUDY

The scope of study is limited to the workgroups at the Hetero drugs ltd, Bang lore division only. Work is to study motivational activities and employees opinion about existing motivational activities, by questioning and interviewing the employees at the work place. Work is limited to only recommending the management for motivation programs. The motivation needs are based on an analysis of present and expected needs of the organization compared with the existing competency of the personal.

LIMITATIONS:

The project work is constrained to a limit of 45 days. Even though counter-checking of the supervisors rating has been done with the observation data, there might be bias. There is a chance for regency effect (rating based on recent action rather than considering past performance) in my observation.

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CHAPTER-II
LITERATURE REVIEW

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INTRODUCTION

An organization is a bi-barite in nature. Employees and employers are two strong pillars on which an organization should stand. The ultimate goal of every of business and wealth maximization. To fulfill the human wants and needs organizations or industries decided to produce qualitative goods and services. For organization is to meet the needs and wants of consumers or customers and also maintaining a congenial environment for industrial peace and for smooth running producing qualitative goods and services the employees working in the organization should have effective and efficient skills. Motivation has become a major growth in industry in recent years. Every organization needs to have well-trained and experienced people to perform the activities that have to be done. In rapidly changing society employee motivation is not only an activity that is desirable but also an activity that an organization must commit resources to. If it is to maintain a viable and knowledge workforce. Planned employee motivation program will return values to the organization in terms of increased productivity, heightened morale, reduced costs and greater organizational stability and flexibility to adopt to changing external requirements. Such programs and assignments that can add up to lifelong careers. he factory. If any accident occurs, they will be immediately taken to the hospital. Thrice in a week a doctor visits the factory

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IMPORTANCE OF MOTIVATION:
With the advancement in technology and the spread of business on a global scale, it has become necessary for the organizations to concentrate on motivating their employees to meet the global challenges. Merely selecting employees does not ensure that an organization will be successful. It has to motivate them to face the continuous challenges of a competitive business environment. Moreover, the ongoing trends of greater work force diversity, flatter organization in increased global competition. This increases the significance of motivation in helping the employees take up greater responsibilities.

MEANING OF MOTIVATION:
Motivation is a Latin word, meaning, to move. Human motives are internalized goals within individuals. A motive is an inner state that energizes, activates, or moves and directs or channels behavior toward goals. Motivation is the process of creating organizational conditions which will impel employees to strive to attain company goals. It is the stimulation of any emotion or desire operating upon ones will and prompting or driving it to action. Motivation is derived from the word motive. A motive is an inner state that energizes, activates or moves and directs or channels behavior toward goals.

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PURPOSE OF MOTIVATION:
Every human action is the result of a need or desire. One experiences a sort of mental discomfort as long as that need remains unsatisfied in him. The moment the action is initiated he makes an attempt to get over the discomfort. So what causes an action is the need or desire. What causes a need is called the stimulus. Therefore, the managers duty is to create the stimulus that causes a need, which initiates action that leads to satisfaction. This should be a repetitive process for the action to continue. All this is called motivation Goals. Psychologists generally agree that all behavior is motivated, and that people have reasons for doing the things they do or for behaving in the manner that they do. In other words, all human behavior is designed to achieve certain goals and objectives. Such goal directed behavior revolves around the desire for need satisfaction. The needs set up drives to accomplish goals.

CLASSIFICATION OF MOTIVES:

Classification of motives is not an easy affair, for much controversy rages in the minds of the psychologists. However, they agree that motives are unlearned and physiologically based. Such motives are called physiological, biological, unlearned or primary, and usually include hunger, thirst, sleep, and avoidance of pain, sex and material concern. Motives are divided into three categories, viz., Primary Motives General Motives and Secondary Motives.

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Primary Motives:
These motives are unlearned and physiologically based. They include hunger, sleep, and avoidance of pain, sex and maternal concern.

General Motives: These motives are unlearned but not physiologically

based. These motives include curiosity, manipulation and activity motives and the affection motive.

Secondary Motives: Secondary motives are closely tied to the learning

concept. A motive must be learned in order to be included in the secondary classification. Important among them are: achievement, affiliation, power, security, status and immediate feedback. Murray classifies these motives into five categories, of which the last three seem to have a greater relevance to motivation to work. These motives are:

Homeostatic motives (such as motives for thirst, hunger, rest, sleep); Sexual motives are powerful motives and their influence upon work behavior can be very pronounced; Emotional motives (such as fear, anger, rage, hate, terror, anxiety, love, etc.). Individuals commit themselves to occupations, jobs,

organizations and work groups as a result of their emotional motives; Intrinsically motivated behavior (such as curiosity, cognition) Social motives (achievement motivation and affiliation motivation

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OBJECTIVE OF MOTIVATION
It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the unused potential in people they are to be motivated. Needless to say that such exploitation results in greater efficiency, higher production and better standard of living of the people. The purpose of motivation is to create conditions in which people are willing to work with zeal, initiative, interest and enthusiasm, with a high personal and group moral satisfaction, with a sense of responsibility, loyalty and discipline and with pride and confidence in a most cohesive manner so that the goals of an organization are achieved effectively. Motivational techniques are utilized to stimulate employee growth. Clarence Francis indicated this when he was Chairman of General Foods. He said: You can buy a mans physical presence at a given place; you can even buy a measured number of skilled muscular motions per hour or day; but you cannot buy enthusiasm. You cannot buy initiative; you cannot buy loyalty; you cannot buy devotion of hearts, minds and souls. You have to earn these things.

Types of Motivation: There are two ways by which people can be

motivated. One is a positive approach and another is a negative approach.

Positive or Incentive Motivation: Positive motivation is a process of

attempting to influence others to do your will through the possibility of gain or reward. People work for incentives in the form of the four Ps of motivation: Praise, Prestige, Promotion and Pay chouse.

Positive motivation, in fact, includes:

Praise and credit for work done;

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 A sincere interest in subordinates as individuals; Competition; Participation; Pride; Delegation of responsibility; Appreciation; and Pay;

People are said to be motivated positively when they are shown a reward and the way to achieve it. Such reward may be financial or nonfinancial. Monetary motivation may include different incentives, wage plans, productive bonus schemes etc,.Non-monetary motivation may include praise for the work, participation in management, social recognition etc. Positive motivation seeks to create an optimistic atmosphere in the enterprise. According to Peter Drucker, the real positive motivators are responsible for placement, high standard of performance, information adequate for selfcontrol and the participation of the worker as a responsible citizen in the plant community. Incentive motivation is the pull mechanism. It has its own benefits. The receipt of awards, due recognition, and praise for work well done definitely lead to good team spirit, co-operation and a feeling of happiness.

Negative or fear Motivation:

By installing fear in the minds of people, one can get the desired work done. In this method of motivation, fear of consequences of doing something or not doing something keeps the worker in the desired direction. This method has ot several limitations; through its use only the minimum of effort is put in to

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avoid punishment. Moreover, the imposition of punishment frequently results in frustration among those punished, leading to the development of maladaptive behaviour. Punishment also creates a hostile state of mind, and an unfavorable attitude to the job. Moreover, it may result in lower productivity because it tends to dissipate such human assets as loyalty, cooperation and esprit de crops. Inspire of these demerits, negative motivation has been used to achieve the desired behavioral in the case of a fire, a breakdown, a panic or a riot. There is no management, which has not used the negative motivation at some time or the other. However, in recent years, the trend has been towards the use of positive motivation. This tendency has been influenced by extensive unionization, a higher level of employee education, a number of researches in the field, which have emphasized the importance of the use of positive motivation. Extrinsic motivation is concerned with external motivators which thats enjoy- pay promotion, status, fringe benefits, retirement plans, health insurance schemes, holidays and vacations, etc. By and large, these motivators are associated with financial rewards. Intrinsic motivation, on the other hand, is concerned with the feeling of having accomplished something worthwhile, i.e., the satisfaction one gets after doing ones work well. Praise, responsibility, recognition, esteem, power, status, competition and participation are examples of such motivation.

STEPS IN MOTIVATION:
According to Judos, the following are the steps that should be adopted in motivation. Sizing up situations requiring motivation. Preparing a set of motivating tools.

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 Selecting and applying an appropriate motivation. Following up the results of the application.

Sizing up:
This step mainly involves ascertaining motivational needs. All employees need motivation but of varying kinds and in varying degrees. For example, one may need proper facilities for the education of ones children; others may want higher education for them. One may take pride in producing quality work; another may be interested only in quality. Stress at size-up stage must, therefore, be laid up as individual differences.

Preparing a set of motivating tools:

This requires a selection of specific tools of motivation. An executive, from personal experience, from the experiences of others, and with the help for the personnel department, may draw up a list of the devices that may motivate different types of people under different circumstances.

Selecting and applying motivators:

The executive should decide about the words, the tone of voice, the gestures, etc., to be used and make a necessary rehearsal for their proper use. Besides, it has also to be considered where and when motivation is to be applied. The place and timing for this purpose are important.

Feedback:
This involves the finding out of whether an individual has been motivated. If not, some other device may be applied While establishing the steps of motivation, an executive should be guided by certain rules such as: 20

 Variability: The methods of motivation should not be the same but should change according to the circumstances, and also because no one set of motivators will be effective for every body or for the same person over a period of time. Attainability: It is necessary to establish goals, which are reasonable and attainable. When such goals are attained, employee satisfaction is achieved. Unattainable goals often frustrate people. Participation: The desirability of the participation of those to be motivated ensures that their co-operation is enlisted. This reduces suspicion of a managements motivational aims. Promoting Rewards: Motivation should be in proportion to the effort made. The Human Element: Motivation appeals to the emotions. The executive who is most successful as a motivator can trace his success invariably to his skill in dealing with other peoples feelings. Individual Group Relationships: Motivation must be based on group as well as individual stimuli. Stimulation: Motivation must be based on a sound managerial theory.

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MANAGEMENT MOTIVATION

TECHNIQUES

DESIGNED

TO

INCREASE

Management generally uses financial and non-financial motivation techniques to motivate their employees.

FINANCIAL MOTIVATORS
Such motivation is connected directly or indirectly with money. Wages and salary, bonuses, profit sharing, leave with pay, medical reimbursement, etc. are included under this type of motivation. At the first glance, money would seem to be one of the lower level needs, a need that is quickly satisfied. But in reality this is not true. The reason is that money is more than just a medium of exchange. It is more than a vehicle through which one can satisfy other higher-order needs. When a person goes out to buy a car he is doing more than just spending his money; he is buying at least in his own eyes- Prestige, recognition and a visible symbol of his achievements. He uses money to satisfy some of higher-order needsselfactualization, ego and social needs besides the safety and physiological needs. For this reason, money is sometimes regarded as the most esteem need and, hence, a most reliable motivator. Besides money, there are other motivators, which deal with the personal development of the employee and his relation to the environment in which he works. This is corroborated by the observations of experts.

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NON-FINANCIAL MOTIVATORS

These motivators are not connected with monetary rewards. In the other words, on-financial incentives are the psychic rewards, or the rewards of enhanced position, that can be secured in the work organization. Some of the most commonly used non-financial motivations are: Appraisal, Praise and Prestige. Status and Pride. Competition. Delegation of Authority. Participation. Job Security. Job Enlargement. Job Rotation. Job Loading. Job Enrichment. Reinforcement. Quality of Work-Life. Others.

COMPETITION

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As a form of motivation, competition is widely used in an organization. Individuals do compete with one another if they feel they have chances of winning and satisfying their ego. This competition may be in regard to sales, production, or safety measures. The person who is adjudged the best is awarded the coveted prize. But, sometimes, competition generates jealousy and hostility among the competing members, may give rise to a sense of frustration among the losers, and may even destroy team spirit.

DELEGATION OF AUTHORITY
An authority is the right to act, to direct, and to requisition resources needed to properly perform the job. The delegation of a substantial amount of responsibility to execute a given task often proves to be a strong motivating force. The subordinate is more or less on his own. The supervisor trusts him. He feels that he must show results, but for persons who lack confidence, this technique of motivation often proves disastrous.

PARTICIPATION
It implies the physical and mental involvement of the people in an activity, especially in that of decision-making. This satisfies ones ego and self-esteem, and the needs of creativeness and initiative. Participation may be in regards to: Institutional arrangements for workers within undertakings; Participation of workers in management organs; Participation at the shop-floor level and at the board level. participation in decisions

JOB SECURITY

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For some employees, this is an equally important motivator. Job security implies that an employee would continue on the job in the same plant or elsewhere, and that he shall enjoy economic and social security through health and welfare programmers providing security against sickness, unemployment, disability, old age, and death. Job security may be provided by: Ensuring that catastrophes will be avoided as far as possible Implementing elaborate programmed of fringe benefits Adjusting surplus labor in an organization.

JOB ENLARGEMENT OR WHOLE JOB CONCEPT

It is the process of increasing the complexity of the job in order to appeal to the higher-order needs of workers. It implies that the employee performs more varied tasks, which are all on the same level, the idea being to make the jobs less monotonous. The technique suggests that attempts are made to give workers more complete, or whole jobs to perform. Efforts are made to develop an environment in which employees are able not only to be actively involved in their jobs, but also to participate in both planning and their evaluating the results of their efforts. An example of job enlargement would be to allow a person on an assembly line to perform more than are specialized function. Jobs can be enlarged both in the horizontal dimension and in the vertical dimension. The former refers to the number and variety of the operations that an individual performs on a job; while the latter refers to the extent to which the jobholder controls the planning and execution of his job and participation in the setting of organizational policies. Job enlargement motivates employees in so far as it reduces the monotony of repetitiveness increases efficiency and interest in work because fatigue is lessened.

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JOB ROTATION
It implies the shifting of an employee from one job to another so that monotony and boredom are reduced. The basic objective of job rotation is to increase the skill and knowledge of the employee about related jobs. In job rotation, workers learn to do all the different activities necessary for an operation or unit of work. Sometimes an unpleasant job is made an entry-level position. Employees can be told that the job is monotonous, but temporary. Another possibility may be to put all dull jobs up for grabs each day. Sleepy or hangover workers may even prefer a day on a job not requiring much use of their minds. Another possibility is that physically or mentally handicapped workers might be given simple jobs.

JOB LOADING
It implies making the job more interesting. A horizontal job loading assumes that if employees are given more work at the same level at which they are currently performing. They will be motivated to work harder and also be more satisfied with their work. In a vertical job loading, changes in jobs include larger areas of responsibility. Jobs are restructured so that they will become intrinsically more interesting. The worker is motivated because his job is more challenging and more meaningful. He given as much responsibility as possible, and is encouraged to be accountable for his work with little supervision.

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JOB ENRICHMENT
It is a form of changing or improving a job so that a worker is likely to be more motivated. It provides the employee with the opportunity for greater recognition, advancement, growth and responsibility. Through job enrichment, the job is made more interesting and challenging. It is designed to be less specialized and more enriched. Usually this is accomplished by giving the worker more autonomy and by allowing him to do much of the planning and inspection formerly done by his supervisor. Job enrichment implies a deliberate upgrading of responsibility, scope and challenge. The goal of job enrichment is not merely to make the work more varied but to make every employee a manager. An employee whose job is enriched will perform the management functions of planning and control so far as his own work is concerned. Job enrichment would provide an opportunity for the employees psychological growth

REINFORCEMENT
Reinforcement is a powerful motivating tool. Reinforcement is built on two principles: That behavior which appears to lead to a positive consequence tends to be repeated; while behavior that appears to lead to a negative consequence tends not to be repeated; Therefore, by providing the properly scheduled rewards, it is possible to influence peoples behavior.

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 Positive and negative reinforcement focus on getting employees to learn the desired behavior. On the other hand, extinction and punishment focus on unlearning the undesired behavior and cannot be much use in teaching persons the correct, desired behavior. There are basically two schedules of positive reinforcement, which can be used: continual and partial: With the former, the employee may be rewarded each and every time he performs the desired behavior. With the latter, reinforcement may be provided only part of the time, following one of the four specific schedules: fixed interval, variable interval, fixed ratio, and variable ratio. Variable ratio is the most effective at sustaining the desired behavior. Different reinforcement schedules are useful for different purposes. Continual reinforcement schedule results in the faster learning. Partial reinforcement schedules lead to slower learning but stronger retention. Learning is more permanent when reward is given for correct behaviour only part of the time. Output ratios are more effective than the above two schedules.

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QUALITY OF WORKLIFE
The term quality of work life means different things to different persons. For example, to a worker on an assembly line, it may just mean a fair days pay, safe working conditions, and a supervisor who treats him with dignity. To a young new entrant, it may mean opportunities for advancement, creative tasks and a successful career. There are many factors which can contribute to quality of work life. Adequate and fair compensation. A safe and healthy environment. Jobs and aimed at developing and using employees skills and abilities. Growth and security. An environment in which employees develop self-esteem and a sense of identity. Protection and respect for employees rights to privacy, dissent, equity, etc. A sensible integration of job career and family life and leisure time.

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OTHERS
Job Sharing or Twinning: It is a novel system, under which two workers and the older people and those with physical limitations, and students, prefer to divide one fulltime job. Not only is the hours split, but also so are salary and fringe benefits. In such a system, workers tend to approach their work with far more energy and enthusiasm, and tend to put in more than a half days work in a half-days time. Absenteeism also tends to put in more than a half-days work in a half-days time. Absenteeism also tends to be less since one of the Twins can cover for the other in the event of illness or other reasons for being absent. Flextime or Flexible Working Hours: Under this system, the employees have the freedom to choose, within certain limitations, what times they begin and quit their job each day. Flexibility of work hours wipes out the 8 to 3 or 9 to 5 syndrome faced by many employees and enables workers to enjoy hours that more closely match their personal life styles. However, they work for a pre-established number of hour 40 or 48 hours per week. Such type of arrangement generally improves morale, increases productivity and gives employees a greater sense of control over their own lives. In conclusion, it may be said that a variety of techniques might be used to motivate employees. Pleasant surroundings, good lighting, good ventilation, reasonable hours of work, and other facilities do bring about a marked improvement in the productivity and morale of employees. But after the initial

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shot-in-the-arm effect of improved working conditions has worn off, they do not exert such a positive effect as they did before.

MOTIVATION THEORIES

McGregor and Maslow's hierarchy McGregor's work was based on Maslow's hierarchy of needs. He grouped Maslow's hierarchy into "lower order" (Theory X) needs and "higher order" (Theory Y) needs. He suggested that management could use either set of needs to motivate employees.

Theory X
In this theory management assumes employees are inherently lazy and will avoid work if they can. Because of this workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each level. According to this theory employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employees interest in the job is money. They will blame the person first in most situations,

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without questioning whether it may be the system, policy, or lack of training that deserves the blame. Furthermore, Theory X supervisors cannot trust any employee, and they reveal this to their support staff via their communications constantly. A Theory X manager can be said to be an impediment to employee morale and productivity.

Many managers in the 1960's tended to subscribe to Theory X, in that they take a rather pessimistic view of their employees. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager's job to structure the work and energize the employee. The result of this line of thought is that Theory X managers naturally adopt a more authoritarian style based on the threat of punishment. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses. Theory Y allows a business to expand while making more profit because factory-floor workers have their own responsibilities.

Theory Y
In this theory management assumes employees may be ambitious, self-motivated, anxious to accept greater responsibility, and exercise selfcontrol and self-direction. It is believed that employees enjoy their mental and physical work duties. It is also believed that if given the chance employees have the desire to be creative and forward thinking in the workplace. There is a chance for greater productivity by giving employees the freedom to perform at the best of their abilities without being bogged down by

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rules.A Theory Y manager believes that, given the right conditions, most people will want to do well at work and that there is a pool of unused creativity in the workforce. They believe that the satisfaction of doing a good job is a strong motivation in and of itself. A Theory Y manager will try to remove the barriers that prevent workers from fully actualizing themselves . Many people interpret Theory Y as a positive set of assumptions about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that creates.

Multifactor Motivation Theory

By Stephen Moulton A number of years ago a humpback whale, affectionately named Humphrey, was migrating along the California coast when a wrong turn got him stranded. Humphrey became a national celebrity when he turned into the San Francisco bay, swam under the Golden Gate Bridge, and managed his way 70 miles upriver. Even though it was for his own good, Humphrey resisted all attempts to get back to salt water. Three weeks into his predicament, marine biologists lured him with the recorded sounds of feeding humpbacks. Humphrey excited the crowds as he responded to a familiar sound and followed his friends into the Pacific. People and whales for that matter are motivated to do things because they want to, not because someone else thinks it is a good thing to

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do. Motivation results from actions that satisfy inner needs. Being forced to do something and doing it, is not indicative of being motivated. Fredrick Herzbergs theories on motivators and demotivators are helpful in understanding motivation. Herzberg described motivators to be primarily intrinsic (coming from within) and demotivators as being extrinsic (being external to the individual). Pay was categorized as a demotivators.

A pay increase typically delivers a short-term boost in good feeling, but seldom motivates the individual to work harder. Hence, if pay is perceived as being low it becomes a demotivator, once an individuals pay meets a level that meets his or her needs and is perceived as fair, it ceases to be a demotivator. Where Herzberg identified a number of motivators and demotivators, determining which are important to specific individuals has not necessarily been emphasized as an action leaders should be taking.

If we begin to understand that organizations cannot motivate employees; instead, they can create a work environment where potential demotivators are minimized and where individual motivation can flourish. Everyone has a different set of motivational factors; but if they find the right environment they will create their own motivation. Some organizations attempt to apply motivational programs to boost employee morale. Many times HR professionals are asked create programs that will motivate people. Companies that implement these types of programs usually get meager results within the short term. Why? Carrot and stick extrinsic approaches miss the heart of true motivation, the individuals needs. Over the long term, these superficial actions have a negative effect, as peoples apathy and cynicism grows. 34

On the other hand, organizations that really care about employee motivation have ways of helping managers create an environment where individuals fit and their objectives and values are in alignment.

MOTIVATIONAL FACTORS

Motivational factors change over the course of time, and depend on circumstances that an individual may be experiencing at the time, whether it be personal life or career. That can be easily demonstrated when, on one day a person believes they have a great job and future, and the next day they are unemployed. It is also key to understand that not all people are motivated by a single factor; instead they are motivated by a series of factors. It is very important for managers to understand that different factors motivate different people.

When people are asked what factors motivate them in their work, we generally receive answers, such as: The Organization for which they work The Work Environment Their Boss Role the work itself

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Personal Achievement Recognition Money Status Their Peers and Co-workers The Work Life Balance

How important are each of these factors? One way to gain understanding is to ask the individual to weigh each factor for importance. Lets look at what motivates a fictitious employee, Bob: Abraham Maslow (1908 - 1970) Maslows Heirachy of Needs: MIn the first half of this century, sociologist Abraham Maslow proposed that all humans have universal needs, and those needs could be categorised and predicted. Regarded as the first person to develop a theory of motivation, Maslow sees motivation it terms of 5 differing levels of human needs with those at lower levels needing to be met prior to those at higher levels. This model of motivation has gained a lot of attention, but not complete acceptance. This theory may be applicable to modern management as follows:

Physiological needs - these are the needs of personal survival and include the needs we have for food, oxygen, water, to be active, to rest, to sleep, to avoid pain, to have accommodation and shelter etc. Work can provide individuals with the ability to earn an income in order to pay for these basic needs of survival. Safety and security needs - When the physiological needs are largely taken care of, this second layer of needs comes into play. 36

 Individuals become increasingly interested in finding safe circumstances, stability, and protection. There might develop a need for structure, for order and limits, and ways of preventing or reducing fears and anxieties. Such needs manifest themselves in the form of our urges to have a home in a safe neighbourhood, job security, reliable transport, savings in a bank account, a good retirement plan, health insurance, or anything that contributes to the orderliness and predictability of life.

Love and belonging needs - When physiological and safety needs are predominantly met an individual begins to seek affiliation with others. This includes the need for friends, a marriage partner, children, affectionate relationships and a sense of community. The meeting of these needs is expressed in our desires to marry, have a family, and be a part of a community or group, It is also a part of what we look for in a career work can provide opportunities for individuals to gain a sense of belonging and identity through their involvement in organisations, work teams and groups.

Self-esteem needs - When the three preceding groups of needs are met individuals begin to look to meeting needs for self-esteem such as the need for the respect of others, status, fame, recognition, attention, appreciation, dignity, confidence, competence, achievement, mastery,

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independence, and freedom. Esteem needs are often satisfied by recognition from peers and mentors, such as employers. This may include a raise in pay, a bonus, a certificate of completion or a degree from an educational institution. It may also include many other rewards for effort, but such feelings must be confirmed by recognition of those efforts. The work that an individual carries out, the type of organization they work for and even their job title may provide personal status or self-respect. Self-actualization needs - These are needs that involve the desire to fulfill our potential and to "be all that we can be". These needs involvebecoming the most complete, 'fullest' person that you can be. An individual

Maslows Heirachy of Needs is expressed graphically as:

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Frederick Herzberg - Two Factor Theory

Fredrick Herzburg developed another popular theory of motivation called the Two-factor Theory (or Motivator-Hygiene Theory) to explain the motivations of workers. Herzberg and his associates began their research into motivation during the 1950's, examining the models and assumptions of Maslow and others, and in 1959 he published a book entitled 'The Motivation'. The basic hypotheses of this theory are that there are two types of motivators, one type which results in satisfaction with the job, and the other which merely prevents dissatisfaction. The two types are quite separate and distinct from one another. Factors that result in job satisfaction are termed 'motivators' and those that simply prevent dissatisfaction are termed 'hygienes'The factors that lead to job satisfaction (the motivators - sometimes called motivational factors) are:

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 Advancement and promotions Recognition A way to recognize motivational factors is by considering that they are factors where 'it's no big deal if they are not there but it's a big deal if they are'. The factors which may prevent dissatisfaction (the hygienes - sometimes called maintenance factors) are: Pay levels Fringe benefits Job security Working conditions Company policy and administration Supervision Interpersonal relations Money Status A way to recognize hygiene factors is by considering whether they are factors whereby 'it's no big deal if they are there, but it's a big deal if they are not'. Motivators are those things that allow for psychological growth and development on the job. They are closely related to Mallows concept of 'selfactualization', involving a challenge, an opportunity to extend oneself to the fullest, to taste the pleasure of accomplishment, and to be recognized as having done something worthwhile. Hygienes, if applied effectively, can at best prevent dissatisfaction and if applied poorly, they can result in negative feelings about the job.

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Hygienes are simply factors that describe the 'conditions of work' rather than the work itself. Herberg's point is that if you want to motivate people, you have to be concerned with the 'job itself' and not simply with the surroundings. As such, he contends that we should focus our attention on the individuals in jobs, not on the things that we surround them with. He maintains that we tend to think that growth and development will occur if we provide good working conditions, status, security, and administration, Whereas in fact what stimulates growth (and motivation to grow and develop) are opportunities for achievement, recognition, responsibility and advancement. He felt that a key method for achieving these was 'job enrichment' and 'vertical job loading' whereby jobs are redesigned to make them more interesting and employees are given increased authority and challenge within their jobs (together with more feedback).

CHAPTER-III
41

COMPANY PROFILE

Today HETRO DRUGS LIMITED is a name, epitomizes hard work, experience and success. A relatively young company that is making its presence felt and making rapid progress nationally and internationally. Involved in the manufacturing of active pharmaceutical ingredients and finished dosage forms, Hetero is one of its kinds of the very few companies, which have been able to crave a niche in the pharmaceutical industry, given the present scenario where it requires a right blend of intellectual strength, core competencies and a precise foresight for the future. Hetero has come a long way since its inception in the year 1993 to be recognized as a strong player in the field of pharmaceutical, as a result of its combined strength in research, manufacture and marking.

42

Established in the year 1993, with the motto to be the best in the API manufacturing, Hetero today embodies the vision of a top notch player in developing and commercializing products catering to a variety of therapeutic categories, Integrating into a leading finished dosage manufacturer.

True to the statement, Where the Future Started Yesterd, with a foresight on the current trends in the pharmaceutical Market, Hetero has grown from strength to strength, combining its Research strengths, Manufacturing capabilities, and Human Resources and well established quality management system. With full-fledged marketing capabilities, the company has been able to market its products in over 80 countries in Asia, Middle East, Eastern Europe and Latin America

43

With all nine manufacturing facilities supported by excellent infrastructure and compliance to the GMP requirements, Hetero has crossed numerous milestones in a comparatively short period since its inception.

3.2 HETERO GROUP

HETERO DRUGS LIMETED HETERO LABS HETERO RESEARCH FOUNDATION SYMED LABS GENX PHARMA HETERO HELTH CARE

FOUNDER
The spirit and brain behind the story of hetero is its founder Dr. BPS Reddy, a scientist who started the company drawing immense from the vast and rich experience he gained during his stint laboratory where he was instrument in developing and commercializing processes of several APIs. The company was started by him with a vision to be recognized as an aggressive company the combines its strength of R&D and manufacturing with definite advantages in terms of cost and chemistry with a strong emphasis on quality of products. The untiring efforts of the chairman saw hetero develop process for several products at relatively low cost, thus making it possible for several life saving drugs to be available at affordable prices meeting all the regulatory and quality norms.

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3.3 MILESTONES/AWARDS
The company has been scaling New Heights on a conditional basis. These Achievements have been the result of concerted efforts on the part of different functions with in the organization to achieve the organizational goal of being a leader.In its path to success. Hetero has seen many a milestone being crossed and achieved many awards on various fronts. Awards for exemplary work in R&D and marketing are just a few name. A track of few events that saw hetero reaching its Zenith of glory are: National Award for best efforts in Research And Development from the department of scientific and Industrial Research Ministry of Science and Technology Government of India, in the year 1996. Highest Exporter award (for the year 1999) against stiff competition from internationally recognized domestic competitors. Approval of the API facilities by USFDA for compliance to CGMP norms Approval of the finished dosage facilities by WHO for the supply of Antiretroviral drugs.

3.4 VISION&VALUES
Hetero visualizes itself as an aggressive player in the global pharmaceutical scenario, supplying generics developed, combining intellectual property, research strengths and strong human resource input.

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The company values the concept of having social responsibilities in the courser of its assent to greater heights. It strongly believes in focusing on customer requirements and delivering the products at the right pace.

3.5 MISSION
Heteros mission is to be a globally acclaimed pharmaceutical company, meeting the requirements of healthcare imbibing the philosophy of both commercial and social concerns, driven by research and manufacturing capabilities.

Hetero API Facilities are designed to meet the best of global standards for an API Facility. These states-of-the-art facilities cater to the growing demand of manufacturing a large spectrum of APIS.

FINISHED DOSAGES
The finished dosage flagellates of Hetero are designed to match the best globally. The facilities house the best of the equipment in terms of design and capacity. The approval by several regulatory authorities and the approval by WHO, Geneva stands a testimony of the fast that serious efforts are made to ensure that every activity being taken up in these facilities are in compliance with the

46

requirements in terms of quality and integrity of the products being manufactured.

3.6 QUALITY
The approval of heteros API facility by USFDA and finished dosage facility buy WHO bear a testimony to this fact. All the activities at Hetero right from the receipt of raw materials to dispatch of the finished products are carried out in accordance to a well-oiled quality management system. The importance of having a strong quality based system has been recognized by the organization due to which every individual in each department understands his/her responsibilities and carries them out with utmost care avoiding any confusion, thus delivering the best results. The approval of Heteros API Facility by USFDS and Finished Dosage Facility by WHO bear a testimony to this fact.

COMPANY SECRETARY
S. Vasu Reddy All directors have been considered as key management personnel as they are involved in planning, directing and controlling the activities of the reporting enterprises

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PRODUCT LIST
Every new product introduction by Hetero was resounding success, which established not only its ability to meet the products exact specifications but more importantly also its credibility as a first supplier of APIs. It manufactures a number of products related to all kinds of curable diseases. It involves in the manufacturing of active pharmaceutical ingredients and finished dosage forms. Some of the products are: ANTIDEPRESSANTS ANTIPSYCHOTICS ANTIDIABETIES ANTIFUNGALS ANTIASTHMATICS ANTICANCER ANTIBACTERIALS ANTIVIRALS NEUROPROTECTIVE ANTIEMETIC ANTIOBESITY ANTIHYPERLIPOPROTENEMICS ANTIRHEUMATICS, ANTI-INFLAMMATORY ANTINEOPLASTICS / ANTI-CANCER / ANTI EMETIC CEPHALOSPORINS ANTIRETROVIRALS ANTIOSTEOPORTICS

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 ANTITHROMBOTICS

CHAPTER-IV

49

DATA ANALYSIS & INTERPRETATION

Q1.How do you feel about your job? Options Excellent Good Bad Total No of respondents 20 90 40 150 Percentage 13 60 27 100

50

100 90 80 70 60 50 40 30 20 10 0

90

NO OF RESPONDENTS

40 20

Excellent

good

Bad

OPINION OF EMPLOYEES

Inference:
From the above table it is known that 60% of the employees feel good about their job, 27% of the employees feel bad about their job, and 13% of the employees feel excellent about their job.

Q2.How is co-ordination of superiors? Options Excellent Good Bad Total No of respondents 75 50 25 150 Percentage 50 33 17 100

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NO OF RESPONDENTS

80 60 40 20 0

75 50 25

Excellent

Good

Bad

OPINION OF EMPLOYEES

Inference:
From the above table 50% of the employees feel that the cooperation of their superiors is excellent, 33% feel that good, and 17% feel that the cooperation is bad.

Q3.How are the Cooperation, coordination and good relationship with your pees? Options Yes No Total No of respondents 90 60 150 Percentage 60 40 100

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NO OF RESPONDENTS

100 80 60 40 20 0

90

60

Yes

No

OPINION OF EMPLOYEES

Inference:
From the above table 60% of the employees say that they are having cooperation, coordination and good relationship from their colleges and 40% say that they do not have.

4.The personal policies of the organization facilitate employee development. Options Yes No Total . No of respondents 95 55 150 Percentage 63 37 100

53

100 90 NO OF RESPONDENTS 80 70 60 50 40 30 20 10 0

95

55

Yes

No

OPINION OF EMPLOYEES

Inference:
From the above table it is known that 63% of the employees opinion is that the personal policies of the organization facilitate employee development and 37 % of the employees opinion is that it does not facilitate employee development

5.Senior officers/ executives in the organization take active interest in their juniors and help them learn their job. Options Yes No Total . No of respondents 80 70 150 Percentage 53 47 100

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82 80 NO OF RESPONDENTS 78 76 74 72 70 68 66 64

80

70

Yes

No

OPINION OF EMPLOYEES

Inference:
From the above table 53% of the employees feel that their superiors in the organization take active interest in their juniors and help them learn their job, and 47% feel that it is not true

6.Work environment in the organization is suitable to each other or not. Options Yes No None Total No of respondents 75 50 25 150 Percentage 50 33 17 100

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80 NO OF RESPONDENTS 70 60 50 40 30 20 10 0

75

50

25

Yes

No

None

OPINION OF EMPLOYEES

Inference:
From the above table 50% of the employees opine that the working atmosphere at the work in the organization is suitable to each other and 33% opines that it is not suitable to each other.

Q7.Do the seniors provide necessary training for juniors in order to prepare them for future responsibilities/roles they are likely to take up? Options Yes No None Total No of respondents 80 40 30 150 Percentage 53 27 20 100

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90 NO OF RESPONDENTS 80 70 60 50 40 30 20 10 0

80

40 30

Yes

No

None

OPINION OF EMPLOYEES

Inference:
From the above table it is known that 53% of the employees opinion is that their seniors provide necessary training for juniors in order to prepare them for future responsibilities/roles they are likely to take up.

8.Employees theyre in organization to reward any good work done or any contribution make any appraisal system. Options Yes No None Total . No of respondents 50 90 10 150 Percentage 33 60 7 100

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100 90 NO OF RESPONDENTS 80 70 60 50 40 30 20 10 0 Yes 50

90

10

No

None

OPINION OF EMPLOYEES

Inference:
From the above table it is clear that 60% of the employees opinion is that there is no appraisal system is there in this organization to reward any good work done or any contribution made by employees

9.Job rotation in organization facilitates employee development. Options Yes No None Total No of respondents 67 83 0 150 Percentage 45 55 0 100

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90 80 70 60 50 40 30 20 10 0

NO OF RESPONDENTS

83 67

0 Yes No None

OPINION OF EMPLOYEES

Inference:
From the above table it is clear that 55% of the employees opinion is that the Job rotation in this organization does not facilitates employee development.

10.The top management is willing to invest a considerable part of their time and other resources to ensure the development of employees. Options Yes No None Total No of respondents 90 40 20 150 Percentage 60 27 13 100

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100 90 80 70 60 50 40 30 20 10 0

90

NO OF RESPONDENTS

40 20

Yes

No

None

OPINION OF EMPLOYEES

Inference:
From the above table it is clear that 60% of the employees opinion is that The top management is willing to invest a considerable part of their time and other resources to ensure the development of employees.

11.Promotion decisions are based on the suitability of the promote rather than on appraisal system. Options Yes NO None Total No of respondents 25 110 15 150 Percentage 17 73 10 100

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NO OF RESPONDENTS

120 100 80 60 40 20 0 Yes 25

110

15

No

None

OPINION OF EMPLOYEES

Inference:
From the above table 73% of the employees opinion is that Promotion decisions are not based on the suitability of the promote rather than on appraisal system.

12.When any employee makes a mistake his superiors treat it with understanding and help him to learn from such mistakes rather than punishing him or discouraging him. Options Yes No None Total No of respondents 85 48 17 150 Percentage 57 32 11 100

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90 80 70 60 50 40 30 20 10 0

85

NO OF RESPONDENTS

48

17

Yes

No

None

OPINION OF EMPLOYEES

Inference:
From the above table 57% of the employees opinion is that, when any employee makes a mistake his superiors treat it with understanding and help him to learn from such mistakes rather than punishing him or discouraging him.

Q13.Are you satisfied with the present pay and employee welfare? Options Yes No None Total No of respondents 102 48 0 150 Percentage 68 32 0 100

62

120 NO OF RESPONDENTS 100 80 60 40 20 0

102

48

0 Yes No None

OPINION OF EMPLOYEES

Inference:
From the above table it is clear that 68% of the employees are satisfied with the present pay and employee welfare.

Q14.Does the employer provides any welfare facilities like medical care, safety, security Options Yes No None Total No of Respondents 117 20 13 150 Percentage 78 13 9 100

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140 120 NO OF RESPONDENTS 100 80 60 40 20 20 0 Yes No OPINION OF EMPLOYEES None 13 117

Inference:
From the above table we know that 78% of the employees opinion is that they are provided with many welfare facilities like medical care, safety, security etc, for each and every employee.

CHAPTER-V

64

FINDINGS SUGGESTIONS ANNEXURE BIBLIOGRAPHY

FINDINGS:
60% of the employees feel good about their job. 50% of the employees are on the opinion that the co-ordination of their superiors is excellent. 67% of the employees opinion is that the development of their subordinates is seen as an important part of their job by the managers/officers here.

65

 63% of the employees are on the opinion that the personal policies in this organization facilitate employee development. Senior officers/executives in this organization take active interest in their juniors and help them learn their job. People lacking competence in doing their jobs are helped to acquire competence rather than being left unattended. 50% of the employees are satisfied with the working atmosphere in the organization. There is no appraisal system is there in this organization to reward any good work done or any contribution made by employees. Job rotation in this organization does not facilitate employee development. This organization ensures employee welfare to such an extent that the employees can save a lot of their mental energy for work purposes.

SUGGESTIONS

While the motivational activities are being implemented in the organization employees interest in participating must be given almost importance.

66

 Employees must there in this organization to reward any good work done or any contribution make appraisal system. Job rotation in this organization should facilitate employee

development. Motivational activities and policies regarding motivation should be implemented regularly in order to motivate the employees. The psychological climate is to be improved in this organization so that it facilitates any employee in developing himself by updating knowledge and skills related to their job. Promotion decisions should be based on the suitability of the promote rather than on appraisal system.

QUESTIONNAIRE
1).How do you feel about your job? a) Excellent b) Good c) Bad [ ]

67

2). How is the co-ordination of superiors? a) Excellent b) Good c) Bad

[ ]

3) Cooperation, coordination and good relationship with your pees a) Yes b) no

[ ]

4). The personal policies of the organization facilitate employee development. a) Yes b) No [ ]

5) Senior officers/executives in the organization take active interest in their juniors and Help them learn their job. a) Yes b) No [ ]

6) Work environment in the organization is suitable to each other or not a) Yes b) No

[ ]

7). Do the seniors provide necessary training for juniors in order to prepare them for Future responsibilities/roles they are likely to take up. a) Yes b) No [ ]

8) Any appraisal system is there in organization to reward. a) Yes b) No

[ ]

68

9) Job rotation in organization facilitates employee development. a) Yes b) No

[ ]

10). The top management is willing to invest a considerable part of their time and other Resources to ensure the development of employees a) Yes b) No [ ]

11) When any employee makes a mistake his superiors treat it with understanding And help him to learn from such mistakes rather than punishing him or Discouraging him. a) Yes b) No [ ]

12). Are you satisfied with the present pay and employee welfare. a) Yes b) No

[ ]

13.) Does the employer provides any welfare facilities like medical care, safety, security a) Yes b) No 14) Promotion decisions are based on the performance of an employee or not ] a) Yes b) no []

BIBLIOGRAPHY

1. Essentials of human resource management and industrial relations. P.Subba Rao

69

2. Personal Management

C.B.Memoria S.V.Gankar

3. Human Resource Management 4. Management theory and practices. `

K.Aswathappa LM.Prasad

WEB SITE:

www.heterodrugs.com www.hetetodrugs-hyd.com

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