Missraji Project

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A STUDY ON ROLE AND EFFECT OF COMPENSATION MANAGEMENT ON EMPLOYEE MOTIVATION

CBS-IMS, AMRAVATIPage 1

CHAPTER-I

Introduction

COMPENSATION MANAGEMENT

Human Resource is the most vital resource for any organization. It is

responsible for each and every decision taken, each and every work done and

each and every result. Employees should be managed properly and motivated

by providing best remuneration and compensation as per the industry

standards. The lucrative compensation will also serve the need for attracting

and retaining the best employees.

Compensation is the remuneration received by an employee in return for

his/her contribution to the organization. It is an organized practice that

involves balancing the work-employee relation by providing monetary and

non-monetary benefits to employees.

Compensation is an integral part of human resource management which helps

in motivating the employees and improving organizational effectiveness.

Types of Compensation

Compensation provided to employees can direct in the form of monetary

benefits and/or indirect in the form of non-monetary benefits known as perks,

time off, etc. Compensation does not include only salary but it is the sum total

of all rewards and allowances provided to the employees in return for their

services. If the compensation offered is effectively managed, it contributes to

high organizational productivity.

Direct CompensationIndirect Compensation

Need of Compensation Management

* A good compensation package is important to motivate the employees to

increase the organizational productivity.

* Unless compensation is provided no one will come and work for the

organization. Thus, compensation helps in running an organization effectively


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and accomplishing its goals.

* Salary is just a part of the compensation system, the employees have other

psychological and self-actualization needs to fulfill. Thus, compensation

serves the purpose.

* The most competitive compensation will help the organization to attract and

sustain the best talent. The compensation package should be as per industry

standards.

Objectives of Compensation Management:-

1. Attracting and Retaining Personnel2. Motivating Personnel:

Compensation Management aims at motivating personnel for

higher productivity. Monetary compensation has its own limitations in

motivating people for superior performance.

3. Optimizing Cost of Compensation:Compensation Management aims at optimizing cost of

compensation by establishing some kind of linkage with performance

and compensation

4. Consistency in Compensation:Compensation Management tries to achieve consistency both

internal and external in compensating employees. Internal consistency

involves payment on the basis of criticality of jobs and employees

performance on the jobs.

BASIC COMPENSATION

WAGE:

The remuneration paid, for the service of labour in production, periodically to

an employee/worker. Wages means any economic compensation paid by the

employer under some contract to his workers for the services rendered by

them. Usually refer to the hourly rate paid to such groups as production and

maintenance employees' wages include family allowance, relief, pay, financial

support etc.

SALARY:

Salary is influenced by the size of a company by the specific industry, and in


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part by the contribution of the incumbent to the process of decision-making.

Salary refers to the weekly or monthly rates paid to clerical, administrative

and professional employees. Salary is determined by mutual agreement

between the individual and the employer.

INCENTIVE:

An incentive scheme is a plan or programs to motivate industries or group

performance. An incentive program is most frequently built on monetary, but

may also include a variety of non- monetary rewards or prizes.

DETERMINATS

The effective use of incentives depends on three variables. They are:1. The individual.

2. The work situation.

3. The incentive plan.

Factors influencing compensation:

1. Organization's capacity to pay

2. Prevailing pay and benefits in the industry:

3. Compensation in the industry and availability of special competent

personnel

4. Flexibility, i.e. kind of competencies and abilities in managers:

5. Performance/productivity/responsibilities of individual.

6. Organization philosophy such as to be leader or pay prevailing rates.

7. Qualifications and relevant experience.

8. Stability of employment and advancement opportunities.

MOTIVATION

Motivation is an employees intrinsic enthusiasm about and drives to

accomplish activities related to work. Motivation is that internal drive that

causes an individual to decide to take action.


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An individuals motivation is influenced by biological, intellectual, social and

emotional factors. As such, motivation is a complex, not easily defined,

intrinsic driving force that can also be influenced by external factors.

Every employee has activities, events, people, and goals in his or her life that

he or she finds motivating. So, motivation about some aspect of life exists in

each person's consciousness and actions.

The trick for employers is to figure out how to inspire employee motivation at

work. To create a work environment in which an employee is motivated about

work, involves both intrinsically satisfying and extrinsically encouraging

factors. Employee motivation is the combination of fulfilling the employee's

needs and expectations from work and the workplace factors that enable

employee motivation - or not. These variables make motivating employees

challenging.

Employers understand that they need to provide a work environment that

creates motivation in people. But, many employers fail to understand the

significance of motivation in accomplishing their mission and vision. Even

when they understand the importance of motivation, they lack the skill and

knowledge to provide a work environment that fosters employee motivation.

Here are thoughts about encouraging and inspiring employee motivation at

work.

Motivation

Motivation is a willingness to expand energy to achieve a goal and

reward. It is a force that activates dormant energies and sets in motion the

action of the people. It is the function that kindles a burning passion for action

among the human being of an organization.

Several factors influence human behavior. There are numerous drives

and needs which can act as good motivators moving people to work and

getting things done through them as per the plan. People respond to


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physiological needs, social needs and egoistic needs. Human needs and desires

are the doorways through which the manager channelizes his motivating

efforts. There are three types of motivational programmes to improve a person

behavior towards his job. These are:

1. Pay incentives plans2. Job enrichment and3. Management by objective

Factors Determining response to Motivation

There are four important factors governing employee response to the

measures of motivation.

1. The intensity or urge of the drive.2. Past Experiencecan he rely upon the promises made by the boss.3. Amount of RewardThe quality and quantity of the reward can

influence the amount of extra efforts put forth by the employee.

4. Time relationship of response to Rewardlong range promises areless effective than immediate fulfillment.

Type of Motivation

If manager wants to get work done by his employees, he may either hold out apromise of a reward (positive motivation) or he may instill fear (negative

motivation).

Both these types are widely used by managements.

1. Positive or Incentive Motivation: This type of motivation isgenerally based on reward. A positive motivation involves the

possibility of increased motive satisfaction. According to Flippo,

Positive motivation is a process of attempting to influence others to do

your will through the possibility of gain or reward. Incentive

motivation is the pull mechanism. 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.

Positive motivation includes:

(a)Praise and credit for work done(b)Wages and Salaries(c)Appreciation


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(d)A sincere interest in subordinates as individuals(e)Delegation of authority and responsibility

2. Negative or Fear Motivation: This type of motivation is based onforce and fear. Fear causes persons to act in a certain way because they

fear the consequences. Negative motivation involves the possibility of

decreased motive satisfaction. It is push mechanism.

The imposition of punishment frequently result in frustration

among those punished, leading to the development of maladaptive

behavior. It also creates a hostile state of mind and an unfavorable

attitude to the job. However, there is no management which has not

used the negative motivation at some tome or the other.

The Organizational Levers of Motivation

Although fulfilling all four of employees basic emotional drives is essential

for any company, our research suggests that each drive is best met by a

distinct organizational lever.

The reward system. The drive to acquire is most easily satisfied by an

organizations reward system how effectively it discriminates between good

and poor performers, ties rewards to performance, and gives the best peopleopportunities for advancement. When the Royal Bank of Scotland acquired

NatWest, it inherited a company in which the reward system was dominated

by politics, status, and employee tenure. RBS introduced a new system that

held managers responsible for specific goals and rewarded good performance

over average performance. Former NatWest employees embraced their new

companyto an unusual extent in the aftermath of an acquisitionin part

because the reward system was tough but recognized individual achievement.

Sonoco, a manufacturer of packaging for industrial and consumer goods,

transformed itself in part by making a concerted effort to better meet the drive

to acquirethat is, by establishing very clear links between performance and

rewards. Historically, the company had set high business-performance targets,

but incentives had done little to reward the achievement of them. In 1995,

under Cynthia Hartley, then the new vice president of human resources,

Sonoco instituted a pay-for-performance system, based on individual and

group metrics. Employee satisfaction and engagement improved, according to


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results from a regularly administered internal survey. In 2005, Hewitt

Associates named Sonoco one of the top 20 talent-management organizations

in the United States. It was one of the few midcap companies on the list,

which also included big players like 3M, GE, Johnson & Johnson, Dell, and

IBM.

Culture. The most effective way to fulfil the drive to bondto engender a

strong sense of camaraderieis to create a culture that promotes teamwork,

collaboration, openness, and friendship. RBS broke through NatWests silo

mentality by bringing together people from the two firms to work on well

defined cost-savings and revenue-growth projects. A departure for both

companies, the new structure encouraged people to break old attachments and

form new bonds. To set a good example, the executive committee (comprising

both RBS and ex-NatWest executives) meets every Monday morning to

discuss and resolve any outstanding issuescutting through the bureaucratic

and political processes that can slow decision making at the top. Another

business with an exemplary culture is the Wegmans supermarket chain, which

has appeared for a decade on Fortunes list of 100 Best Companies to Work

For. The family that owns the business makes a point of setting a familial

tone for the companywide culture. Employees routinely report that

management cares about them and that they care about one another, evidence

of a sense of teamwork and belonging.

Job design. The drive to comprehend is best addressed by designing jobs that

are meaningful, interesting, and challenging. For instance, although RBS took

a hard-nosed attitude toward expenses during its integration of NatWest, it

nonetheless invested heavily in a state-of-the-art business school facility,

adjacent to its corporate campus, to which employees had access. This move

not only advanced the companys success in fulfilling the drive to bond, but

also challenged employees to think more broadly about how they could

contribute to making a difference for co-workers, customers and investors.

Cirque du Soleil, too, is committed to making jobs challenging and fulfilling.

Despite gruelling rehearsal and performance schedules, it attracts and retains

performers by accommodating their creativity and pushing them to perfect

their craft. Its employees also get to say a lot about how performances are

staged, and they are allowed to move from show to show to learn new skills.


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In addition, they get constant collegial exposure to the worlds top artists in

the field.

Performance-management and resource-allocation processes.

Fair, trustworthy, and transparent processes for performance management and

resource allocation help to meet peoples drive to defend. RBS, for instance,

has worked hard to make its decision processes very clear. Employees may

disagree with a particular outcome, such as the nixing of a pet project, but they

are able to understand the rationale behind the decision. New technology

endeavours at RBS are reviewed by cross-business unit teams that make

decisions using clear criteria, such as the impact on company financial

performance. In surveys, employees report that the process is fair and that

funding criteria are transparent.

The Role of the Direct Manager

Our research also revealed that organizations dont have an absolute monopoly

on employee motivation or on fulfilling peoples emotional drives.

Employees perceptions of their immediate managers matter just as much.

People recognize that a multitude of organizational factors, some outside their

supervisors control, influence their motivation, but they are discriminating

when it comes to evaluating that supervisors ability to keep them motivated.

Employees in our study attributed as much importance to their bosss meeting

their four drives as to the organizations policies. In other words, they

recognized that a manager has some control over how company processes. The

study is intended to evaluate motivation of employees in the organization. A

good motivational program procedure is essential to achieve goal of the

organization. If efficient motivational programmes of employees are made not

only in this particular organization but also any other organization; the

organizations can achieve the efficiency also to develop a good organizational

culture. Motivation has variety of effects. These effects may be seen in the

context of an individuals physical and mental health, productivity,

absenteeism and turnover. Employee delight has to be managed in more than

one way. This helps in retaining and nurturing the true believers

who can deliver value to the organization. Proliferating and nurturing the

number of true believers1is the challenge for future and present HR

managers.


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1 HRM Review (The ICFI University Press) July 2008 2

A STUDY ON EMPLOYEE MOTIVATION. This means innovation and

creativity. It also means a change in the gear for HR policies and practices.

The faster the organizations nurture their employees, the more successful they

will be. The challenge before HR managers today is to delight their employees

and nurture their creativity to keep them a bloom.

This study helps the researcher to realize the importance of effective employee

motivation. This research study examines types and levels of employee

motivational programmes and also discusses management ideas that can be

utilized to innovate employee motivation. It helps to provide insights to

support future research regarding strategic guidance for organizations that are

both providing and using reward/recognition programs.

1.1 Types of Motivation.

Intrinsic motivation occurs when people are internally motivated to do

something because it either brings them pleasure, they think it is important, or

they feel that what they are learning is morally significant. Extrinsic

motivation comes into play when a student is compelled to do something or

act a certain way because of factors external to him or her (like money or good

grades)

1.1.1 Incentives

A STUDY ON EMPLOYEE MOTIVATION

An incentive is something which stimulates a person towards some goal. It

activates human needs and creates the desire to work. Thus, an incentive is a

means of motivation. In organizations, increase in incentive leads to better

performance and vice versa.

1.1.2 Need for Incentives

Man is a wanting animal. He continues to want something or other. He is

never fully satisfied. If one need is satisfied, the other need arises. In order to

motivate the employees, the management should try to satisfy their needs. For


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this purpose, both financial and non financial incentives may be used by the

management to motivate the workers. Financial incentives or motivators are

those which are associated with money. They include wages and salaries,

fringe benefits, bonus, retirement benefits etc. Non financial motivators are

those which are not associated with monetary rewards. They include

intangible incentives like ego-satisfaction, self-actualization and

responsibility.

1.1.3INCENTIVES

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

- Bonus - Group recognition

- Medical reimbursement - Job security

- Insurance - Praise

- Housing facility - Knowledge of result

- Retirement benefits. - Workers participation.

- Suggestion system.

- Opportunities for growth

1.2 Motivation is the key to performance improvement

There is an old saying you can take a horse to the water but you cannot

force it to drink; it will drink only if it's thirsty - so with people. They will do

what they want to do or otherwise motivated to do. Whether it is to excel on

the workshop floor or in the 'ivory tower' they must be motivated or driven to

it, either by themselves or through external stimulus. Are they born with the

self-motivation or drive? Yes and no. If no, they can be motivated, for

motivation is a skill which can and must be learnt. This is essential for any

business to survive and succeed. Performance is considered to be a function of

ability and motivation,

Thus:

Job performance = (ability)(motivation)

Ability in turn depends on education, experience and training and its

improvement is a slow and long process. On the other hand motivation can be

improved quickly. There are many options and an uninitiated manager may


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not even know where to start. As a guideline, there are broadly seven

strategies for motivation. There are broadly seven strategies for motivation.

Positive reinforcement / high expectations

Effective discipline and punishment

Treating people fairly

Satisfying employees needs

Setting work related goals

Restructuring jobs

Base rewards on job performance

Essentially, there is a gap between an individuals actual state and some

desired state and the manager tries to reduce this gap. Motivation is, in effect,

a means to reduce and manipulate this gap

The effects of monetary compensation on performance are often

debated. One of the most popular theories on the subject is psychologist Frank

Herzberg's Two-Factor Theory. Somewhat derived from Maslow's Hierarchy

of Needs, Herzberg's theory indicates that while pay is a demotivating factor if

not adequate for the work, it is also not a strong motivator. He does, however,

indicate that recognition and promotion are strong motivators.

1.2.1Pay Basics:

Companies use a variety of pay structures in an effort to use pay as a

motivator. Straight-salary pay seems to fall most obviously into Herzberg's

hygiene or maintenance factors, meaning it is necessary, but not motivating.

Other pay structures that include commissions, bonuses and other incentives

may have more ability to motivate performance. However, the influence of the

actual pay may not have as much to do with the motivation in many instances

as the correlation between the earned income and the recognition of the

employee's higher standard of performance and potential for advancement

because of it.

1.2.2Problems with Pay

Some psychologists and analysts indicate that pay may have varying levels of

motivational influence on employees. The biggest problem with a straight-pay


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structure is that employees quickly become used to earning a certain level of

income regardless of the results they produce. This prompts them to seek or

need alternative types of motivation to push beyond meeting basic

expectations and to pursue higher standards of excellence.

1.2.3Dissatisfaction

Herzberg's theory indicates that while not motivating, hygiene factors can lead

to dissatisfaction if expectations are not met. This suggests that adequate and

fair pay for work is necessary to retain employees and to protect against strong

feelings of dissatisfaction at work. If employees feel underpaid for their work,

they may also feel like the company and their direct managers do not valuetheir work or them as employees. This contributes to dissatisfaction, which

can ultimately cause the employee to underperform.

1.2.4The Promotional Effects

As noted, Herzberg's theory suggests that opportunities for promotions and

actual promotions are more likely to motivate higher performance than regular

pay structures. This is supported by Maslow's earlier needs theory, which

ranks self-esteem and self-actualization as higher-order needs compared with

physiological needs, which would include pay, as lower-order needs.

Promotions do usually increase pay, but the motivational influence stems from

recognition, increased responsibility, more challenging work and a personal

sense of accomplishment -- all of which are motivating factors, according to

Herzberg. Herzberg even notes "opportunities for advancement" specifically

as a motivator.

Daschler and Ninemeier (1989) conducted research and investigated what

employees may seek from the work environment. Their discussion reviews

some of employee-related concerns that can be found in the venue of strategies

to employees motivation.

Employees are individuals that come from different backgrounds, they have

different education with different experiences and their different family

classes are all the factors in which their needs be located.


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The primary interest of employees is to satisfy their personal needs,

ambitions, desires and goals.

An employee wants to satisfy its basic needs, linked to survival and security

concerns and desire to belong, to generate positive feelings from within and

from others, and to be self-fulfilled.

Most employees want

(a) fair and consistent company policies in matters affecting them;

(b) management they can respect and trust;

(c) adequate working relationships with managers and co-workers;

(d) acceptable salaries and working environment;

(e)Appropriate job security assurance;

(f) favorable job status.

The other important factors that can fulfill and motivate employees are:

challenging work, work that yields a sense of personal accomplishment,

expression of appreciation for good performance, increased responsibility and

the chance to grow in the job, the feeling of importance and making a

contribution to the organization, and participation in job-related matters that

affect the employees.

Human beings are motivated by requirements that fulfill their needs. These

depend on many factors and vary by the individual requirements and

necessary situation. Besides basic needs that range from food, clothing,

medicine and shelters, there is workplace that needs to be extended for

acceptance and self-esteem. The researcher has indicated that each individual

experience these factors in different level. Therefore, managers should figure

out the basic theories of motivation, how to better change. (Cheng,1995).


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CHAPTER-II

COMPANY PROFILE

Big Bazaar is a chain ofhypermarket in India. Currently, there are

214 stores across 90 cities and towns in India covering around 16 million sq.ft.

of retail space. Big Bazaar is designed as an agglomeration of bazaars or

Indian markets with clusters offering a wide range of merchandise including

fashion and apparels, food products, general merchandise, furniture,

electronics, books, fast food and leisure and entertainment sections.

Big Bazaar is part ofFuture Group, which also owns the Central

Hypermarket, Brand Factory, Pantaloons, eZONE, HomeTown,futurebazaar.com, KB's Fair Price to name a few and is owned through a

wholly owned subsidiary ofPantaloon Retail India Limited(BSE: 523574

523574), that is listed on Indian stock exchanges.

Big Bazaar was launched in September, 2001 with the opening of its

first four stores in Calcutta, Indore, Bangalore and Hyderabad in 22 days.

Within a span of ten years, there are now 152 Big Bazaar stores in 90 cities

and towns across India.

Big Bazaar was started by Kishore Biyani, the Group CEO and

Managing Director ofPantaloon Retail India. Though Big Bazaar was

launched purely as a fashion format including apparel, cosmetics, accessory

and general merchandise, over the years Big Bazaar has included a wide range

of products and service offerings under their retail chain. The current format

includes Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar.

The inspiration behind this entire retail format was from Saravana Stores, a

local store in T. Nagar, Chennai

The stores are customized to provide the feel of mandis and

melas[2]

while offering the modern retail features like Quality, Choice and

Convenience. As the modern Indian family's favorite retail store, Big Bazaar is

popularly known as the "Indian Walmart".
http://en.wikipedia.org/wiki/Hypermarkethttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Brand_Factoryhttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=http://en.wikipedia.org/wiki/Calcuttahttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Saravana_Storeshttp://en.wikipedia.org/wiki/T._Nagarhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-1http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-1http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-1http://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Walmarthttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-1http://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/T._Nagarhttp://en.wikipedia.org/wiki/Saravana_Storeshttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Kishore_Biyanihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indorehttp://en.wikipedia.org/wiki/Calcuttahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Pantaloon_Retail_Indiahttp://en.wikipedia.org/wiki/Brand_Factoryhttp://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Central_(Hypermarket)http://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Hypermarket


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On successful completion of ten years in Indian retail industry, in

2011, Big Bazaar has come up a new logo with a new tag line: Naye India Ka

Bazaar, replacing the earlier one: 'Isse Sasta Aur Accha Kahin Nahin'.

Operation:-

Most Big Bazaar stores are multi-level and are located in stand-alone

buildings in city centers as well as within shopping malls. These stores offer

over 200,000 SKUs in a wide range of categories led primarily by fashion and

food products.

Food Bazaar, a supermarket format was incorporated within Big Bazaar in

2002 and is now present within every Big Bazaar as well as in independent

locations. A typical Big Bazaar is spread across around 50,000 square feet

(4,600 m2) of retail space. While the larger metropolises have Big Bazaar

Family centres measuring between 75,000 square feet (7,000 m2) and 160,000

square feet (15,000 m2), Big Bazaar Express stores in smaller towns measure

around 30,000 square feet (2,800 m2).

Big Bazaar has the facility to purchase products online through its official web

page, and offers free shipping on some of their products.

INNOVATION

Wednesday Bazaar

Big Bazaar introduced the Wednesday Bazaar concept and promoted it as

Hafte Ka Sabse Sasta Din. It was mainly to draw customers to the stores on

Wednesdays, when least number of customers are observed. According to the

chain, the aim of the concept is "to give home makers the power to save the

most and even the stores in the city don a fresh look to make customers feel

that it is their day".


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Sabse Sasta Din

With a desire to achieve sales of Rs 26 Crore in a one single day, Big Bazaar

introduced the concept of "Sabse Sasta Din". The idea was to simply create a

day in a year that truly belonged to Big Bazaar. This was launched on January26, 2006 and the result was exceptional that police had to come in to control

the mammoth crowd. The concept was such a huge hit that the offer was

increased from one day to three days in 2009 (24 to 26 Jan) and to five days in

2011 (22-26 Jan).

Maha Bachat

Maha Bachat was started off in 2006 as a single day campaign with attractive

promotional offers across all Big Bazaar stores. Over the years it has grown

into a 6 days biannual campaign. It has attractive offers in all its value formats

such as Big Bazaar, Food Bazaar, Electronic Bazaar and Furniture Bazaar -

catering to the entire needs of a consumer.

The Great Exchange Offer

On February 12, 2009 Big Bazaar launched "The Great Exchange Offer",

through with the customers can exchange their old goods in for Big Bazaar

coupons. Later, consumers can redeem these coupons for brand new goods

across the nation.

TIME LINE

2010

Future Value Retail Limited is formed as a specialized subsidiary tospearhead the groups value retail business through Big Bazaar, Food

Bazaar and other formats.

Big Bazaar wins CNBC Awaaz Consumer Awards for the thirdconsecutive year. Adjudged the Most Preferred Multi Brand Food &

Beverage Chain, Most Preferred Multi Brand Retail Outlet and Most

Preferred Multi Brand One Stop Shop

Big Bazaar connects over 30,000 small and medium Indianmanufacturers and entrepreneurs with around 200 million customers

visiting its stores Big Bazaar opens its third store inKanpuratZ Square Mall
http://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Kanpur


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Big Bazaar opens its fourth store inKanpuratJajmauwhich is thelargest leather tannery garrison of Asia

Vidya Balanwas chosen as the brand ambassador of Big Bazaar's PriceChallenge exercise

Ranked 6 among the Top 50 Service Brands in India.[10]

2011

Big Bazaar forays into the rural wholesale and distribution businessthrough Aadhaar Wholesale store at Kalol,Gujarat.

Big Bazaar has come up a new logo with a new tag line: Naye IndiaKa Bazaar.

200th store opened in India Future Group has launched its latest venture, Foodhalla premium

food destination across 10 metros in India

For the convenience of the online customers, Big Bazaar has startedfree shipping on all orders above Rs. 1000

Entered into an agreement withHindustan Unileverto co-develop andco-brand bakery products, which would be sold exclusively at Big

Bazaar stores.

2012

Big Bazaar entered into a five year multi-million dollar dealwithCognizant Technology Solutionsfor IT infrastructure services

that supportFuture Group's network of stores, warehouses, offices,

and data centers.

Partnered with Disney to launch "Kidz Cookies", exclusively for kidsacross India.

Big Bazaar is planning to add further value to its retail services byoffering Value added services like grinding, de-seeding, vegetables

cutting at free of cost.
http://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Z_Square_Mallhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Kanpurhttp://en.wikipedia.org/wiki/Jajmauhttp://en.wikipedia.org/wiki/Jajmauhttp://en.wikipedia.org/wiki/Jajmauhttp://en.wikipedia.org/wiki/Vidya_Balanhttp://en.wikipedia.org/wiki/Vidya_Balanhttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-9http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-9http://en.wikipedia.org/wiki/Big_Bazaar#cite_note-9http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Cognizant_Technology_Solutionshttp://en.wikipedia.org/wiki/Cognizant_Technology_Solutionshttp://en.wikipedia.org/wiki/Cognizant_Technology_Solutionshttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Future_Grouphttp://en.wikipedia.org/wiki/Cognizant_Technology_Solutionshttp://en.wikipedia.org/wiki/Hindustan_Unileverhttp://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Big_Bazaar#cite_note-9http://en.wikipedia.org/wiki/Vidya_Balanhttp://en.wikipedia.org/wiki/Jajmauhttp://en.wikipedia.org/wiki/Kanpur


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AMRAVATI BIG BAZAAR

Amravati, July 9, 2010: Big Bazaar, one of the largest hypermarket

chains in India and part of Future Group, has further enhanced its reach to the

customers with launch of its first store in Amravati, one of Maharashtras

fastest growing industrial centers. With the opening of this new store, the total

count of Big Bazaar stores has reached 133 nationally. The new store is

located in the heart of the city at E-Orbit Mall, Badnera Road.

Spread over an area of 29,000 sq. ft, this new store will cater to each and

every single household need of the citizens of Amravati and will be the one-

stop-shop destination for the people of this city. Customers would be offered

the widest range of products from each section - Food Bazaar, Electronics,

GM, Mobile, Fashion, Navaras, Home Fashion and Shringar at unparalleled

prices.

Big Bazaar will provide right ambience and platform to add to customers

delight. From the moment the customers enter to the time they leave, the store

is aimed at enhancing a shoppers experience. Located in the heart of

Amravati, the store offers a streamlined approach, enabling greater

convenience in experiencing the comprehensive range of products.

Speaking on the launch, Mr. Sharad Venkta, Business Head, West Zone, said,"Though known as an historical city earlier, Amravati, in modern days has

grown to be a major industrial hub. With the advent of industrialization, the

needs and tastes of the people of this city is in par with any other modern city

which has encouraged us to set up this store. The store would give people the

opportunity to shop for all their requirements, save and enjoy the experience

with their entire family at the same time. We are happy to launch our first Big

Bazaar store in the city and are confident that it will fulfill all household

requirements of the customers.
http://en.wikipedia.org/wiki/File:Bazaar_at_Sarkhej_Gandhinagar_Highway_in_Ahmedabad,_India.jpg


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He further added, Big Bazaar maintains stringent procurement norms

and quality control measures to ensure quality products sold at every Big

Bazaar store. We are confident of our offerings both in quality and

competitive pricing, which have earned us the trust of millions of family

across the country.

At any given point of time, customers will find an amazing array of

products from the following categories

Food Bazaar - Wide range of products which include fruits & vegetables,

Live Kitchen and Bakery along with other items - personal care, home care,

home needs, beauty and more.

Fashion - Huge options from ready-to-wear apparels right from an extensive

range of T- shirts and jeans to salwar kameez dupattas to kids wear.

Navaras - Amazing range of BIS certified gold and diamond jewellery

including bangles, rings, pendants, jewellery sets etc.

Home - The section consists a wide range of household items like Utensils,

Plastic, Crockery, Luggage and Footwear.

Electronics & Mobiles - Includes LCDs from leading brands ranging between

sizes - 26 to 32 inches to match your home dcor and fit in your budget.

Shringar - Host of items such as Imitation Jewellery, Bindis, Bangles etc. to

choose from.


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CHAPTER III

RESEARCH METHODOLOGY

Introduction

Research is a systematic activity to achieve the truth. Research includes the

procedure of collecting data, analyzing the data and finding the conclusion or

truth. Research depends upon the scientific procedure. Research methodology

is a way to systematically solve the research problem. It may be understood as

a science of studying how research is done scientifically. Research

methodology involves activities designed to achieve research objectives. In

order to ensure that the appropriate information is collected, a detailed

research plan must develop.

Problem Definition

Defining research problems allows the researcher to focus on the how, what,

which, why, who, when, where question needed to guide the formulation of

research objectives and clarify the pertinent information requirements. All theefforts, time and money execute research will be wasted if the research

problem will be misunderstood.

The purpose of the study is to assess A Study of role and effect of

compensation management on employee motivation with reference Big Bazaar

Amravati. It is mainly conducted to identify the factors which will motivate

the employees and the organizational functions in Big Bazaar, Amravati.

Research Design

Here researcher Applied Exploratory Research Designs. Exploratory

research studies are also termed as formulate research studies. The main

purpose of such studies is that of formulating a problem for more precise

investigation or of developing the working research question which could be

worked upon at the later stage.


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The exploratory studies are carried out to explore a subject. The main

objective is to help in defining a research problem and generate a set of

research questions which could be worked upon at a later stage.

Research Objective

To study type of compensation.

To study the effect of compensation management on employeemotivation.

To study the factor which affect the employee motivation To study the role of compensation in employee motivation.

Data Collection

Primary Data:

Primary data are those which are collected fresh and for the first time and thus

happen to be original in chapters. Primary data has been collected by simple

random sampling method from the employees and the managers of the

company. Researcher has collected my data through the primary sources:

By talking with the employees of the department

By talking with the managers of the department

With the help of questionnaire

Collection of

Data

Primary DataSecondary

Data


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Secondary Data

Secondary data are those data which are being already collected by

someone else and which have already been passed through the statistical

process. Secondary data has been collected through the secondary sources:

Office manuals of the Department Magazines, report of the company. Policy documents of various departments.

Sample Design

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the researcher would

adopt in selecting items for the sample. Sample design determine before data

are collected.

Sample Size:

For the study the sample size will be 100 respondents from

Big Bazaar.

90 employees of the organization 10 managers of the organization

Sampling technique

The sampling technique which the research has decided is

simple random sampling technique.

SCOPE OF RESEARCH

Research study will be useful to student, researcher and employee.

Study helps student, employee and employer to use compensation astool for motivating.


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CHAPTER IV

DATA INTERPRETATION AND ANANALYSIS

FOR EMPLOYEE:-

Question 4.1:- How long you are working in this organization?

Table 4.1:-

Sr. No Working Years No. of Respondent Percentage

1 0-5 years 90 100%

2 5-10years 0 0

3 10-15years 0 0

4 15 year above 0 0

Graph 4.1:-

Interpretation:-

The above graph shows that all 100% respondents are working from 0 to 5

years.

Analysis:-

There is a low attrition rate in the organization and employees are quite loyal

to their organization.

0%20%

40%

60%

80%

100%

Working Years

Working Years


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Question 4.2:- Why you join this organization?

Table 4.2:-

Sr. No Particular No of respondent Percentage

1 Pay Package 10 11.11%

2 Brand Name 75 83.33%

3 Employee work

Culture

5 5.56%

Graph 4.2:-

Interpretation: -

The above graph shows that 6 employees and 11employees are join the

organization due to the employee work culture and pay package. And 83

employees join due to the Brand name.

Analysis:-

Organization has to create a good employer brand image in market which

helps to attract the employee.

11%

83%

6%

Pay Package

Brand Name

Employee work Culture


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Question 4.3:- Did you get any appraisal till date?

Table 4.3:-

Sr. No. Promotion Till Date No. of Respondent Percentage

1 Yes 25 27.78%

2 No 65 72.22%

Graph 4.3:-

Interpretation:-

The above graph shows that 28% employees gets promotion and 72%

employees are not getting promoted.

Analysis:-

Very few are employees getting appraisal as compared total strength of

employees are working in organization. Because of their less experience and

contribution other employees are not getting appraisal.

0

10

20

30

40

50

60

70

Yes No

Promotion Till Date


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If Yes how

Table 4.4:-

Sr. No. Particular No. of respondent Percentage

1 Salary Increment 17 68%

2 Post Increment 0 0

3 Salary and Post

Increment

8 32%

Graph 4.4:-

Interpretation:-

Above graph shows that 68% of employees promoted through salary

increment and 32% of employees through the salary and post increment.

Analysis:-

Most of the employees are getting benefits from salary increment and

remaining can benefit to salary and post increment.

68%

0%

32%

Salary Increment Post Increment Salary and Post Increment


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Question 4.5:- Do you think you are well compensated?

Table 4.5:-

Sr. No. Particular No. of Respondent Percentage

1 Yes 70 77.78%

2 No 20 22.22%

Graph 4.5:-

Interpretation:-

The above graph shows that 78% of employees are think that they well

compensated and 28% employees are not.

Analysis:-

Maximum employees are satisfied with their pay. Because they think that

company is not pay them according to their capabilities.

0

10

20

30

40

50

60

70

Yes

No


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Question 4.6:- Irrespective of yes or no in the above question which are the

compensatory rewards you expect from your organization?

Table 4.6:-

Sr. No Compensatory Rewards No. of respondent Percentage

1 Increase in Basic 78 86.67%

2 Increase in allowance 7 7.78%

3 Non- monetary Rewards 5 5.55%

Graph 4.6:-

Interpretation:-

The above graph shows that 8% and 5% of employees are expecting

compensatory rewards from organization in the form of increase in allowance

and non-monetary rewards. And 87% of employees are expecting an increase

in Basic.

Analysis: -

Maximum employees expect rise in their basic than allowances and non

monetary rewards to fulfill their needs and wants.

01020304050607080

Increase in

Basic

Increase in

allowance

Non-

monetary

Rewards

Compensatory Rewards

Compensatory Rewards


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Question 4.7:- In organization which of the following factors motivates you

most?

Table 4.7:-

Sr. No. Motivating Factors No. of Respondent Percentage

1 Salary Increase 80 88.89%

2 Promotion 6 6.67%

3 Leave 2 2.22%

4 Reward, appreciation 2 2.22%

Graph 4.7:-

Interpretation:-

The above graph shows that factor salary increase motivate the 89% of

employees and 7% of employees motivated by the promotion and 2% and 2%

of employees are motivated by leave and reward, appreciation.

Analysis:-

Maximum employees are getting motivated through their salary increment

rather than promotions and other rewards, appreciation. It is directly linked to

their performance which gives the motivation to perform better.

89%

7%2% 2%

Motivating Factor

Salary Increase

Promotion

Leave

Reward, appreciation


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Question 4.8:- Does your compensation policy motivate you?

Table 4.8:-


1 Yes 80 88.89%

2 No 10 11.22%

Graph 4.8:-

Interpretation:-

The above graph shows that 89% of employees are motivated with their

compensation policy and 11% employees are not motivated.

Analysis:-

Maximum employees are getting motivated through their compensation

policies.

89%

11%

Yes

No


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Question 4.9:- Does intrinsic (self-satisfaction, accomplishment task

successfully) factor motivates you?

Table 4.9:-

Sr. No Particular No of Respondent Percentage

1 Yes 70 77.78%

2 No 20 22.22%

Graph4.9:-

Interpretation:-

The above graph shows that 78% of employees are motivated by the intrinsic

factor and 22% employees are not motivated.

Analysis:

Motivation is the factors which turn their enthusiasm towards work so

maximum employees are motivate intrinsically.

0

10

20

30

40

50

60

70

80

Yes No


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Question 4.10:- Does extrinsic (Awards, incentives, Bonus, Extra allowances)

factor motivates you?

Table 4.10:-


1 Yes 80 88.89%

2 No 10 11.11%

Graph 4.10:-

Interpretation:-

The above graph shows that 11% of employees are not motivated by extrinsic

factors and 89% of employees are motivated.

Analysis:-

Extrinsic factors can work as a boost for employee. Due to this maximum

employees can work hard.

0

10

20

30

40

50

60

70

80

Yes No


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Question4.11:- Do you get motivated after hike in salary?

Table 4.11:-


1 Yes 90 100%

2 No 0 0

Graph 4.11:-

Interpretation:-

The above graph shows that all the 100 % of employees are motivated after

hike in salary.

Analysis: -A monetary benefit always helps to raise the moral of work. Employees are

motivated after hike in salary. It boosts their moral and gives them a sense of

recognisition.

0

10

20

30

40

50

60

70

80

90

Yes No


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Question 4.12:- Please rate your satisfaction level?

Table 4.12:-


1 Dissatisfied 5 5.56%

2 Moderate 10 11.11%

3 Satisfied 75 83.33%

Graph 4.12:-

Interpretation:-

The above graph shows that 83% of employees are well satisfied and 6% of

employees are not satisfied. 11% of employees are moderate.

Analysis:-

Maximum employees are giving their preference as they are satisfied with

their compensation policies.

6%11%

83%

Dissatisfied

Moderate

Satisfied


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FOR MANAGER:

Question 4.13:- Since how long you are with organization?

Table 4.13:-

Sr. No Years No. of Respondent Percentage

1 0-3 years 10 100%

2 3-6years 0 0

3 6-9years 0 0

4 9-12years 0 0

Graph 4.13:-

Interpretation: -

Above graph shows that all managers are working in organization since last 3

years.

Analysis:-

Managers are working in organization are having the experience of near about

3 years. There is a low attrition rate in the organization.

0

2

4

6

8

10

0-3 years 3-6years 6-9years 9-12years

Years

Years


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Question 4.14:-Have you got any promotion till date?

Table4.14:-

Sr. No Particular No of respondent Percentage

1 Yes 8 80%

2 No 2 20%

Graph4.14:-

Interpretation:-

In the above graph shows that out of 100% managers 80% managers get

promoted and remaining 20% are not promoted till date.

Analysis:-

Managers are promoted on the basics of experiences so that maximum

managers are promoted. And very few are not promoted due to the less

experience. Company gives promotion to the experience people and not to the

fresher.

0

2

4

6

8

Yes No


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Question 4.15:- From your experience which changes you found in the

organization till date?

Table 4.15:-

Sr. No. Various Changes No. of Respondent Percentage

1 Qualitative 1 10%

2 Monetary 2 20%

3 Knowledge Base 0 0

4 All of the these 7 70%

Graph 4.15:-

Interpretation:-

The above graph shows that 10% managers experienced the qualitative

changes and 20% managers experienced monetary changes in organization.

70% managers are experienced all the three changes in organization.

Analysis:-

Change is the ongoing process so that maximum respondent said that they are

already going through the knowledge base, monetary and qualitative changes.

10%

20%

0%

70%

Various Changes

Qualitative

Monetary

Knowledge Base

All of the these


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Question 4.16:- Did you ever felt that you are not well paid for the services

provided by you?

Table 4.16:-

Sr. No Particular No. of Respondent Percentage

1 Yes 0 0

2 No 10 100%

Graph 4.16:-

Interpretation:-

Above graph shows 100% managers are felt that they well paid for the

services they are provide.

Analysis: -

Employees are fully satisfied with their remuneration for services which they

provided to organization.

0 2 4 6 8 10

Yes

No


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Question4.17:-Did you ever come across an employee complaining for heavy

work and lesser compensation?

Table 4.17:-


1 Yes 2 20%

2 No 0 0

3 Sometimes 8 80%

Graph4.17:-

Interpretation: -

Above graph shows that 80% of employees can complaint sometimes about

heavy work load and lesser pay. While 20 % can complaint always.

Analysis:-

Sometimes employees can complaint about heavy workload and lesser pay

while very few can always complaining.

20%

0%

80%

Yes

No

Sometimes


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Question 4.18:- Does your compensation policy motivate you?

Table 4.18:-


1 Yes 10 100%

2 No 0 0

Graph 4.18:-

Interpretation:-

Above graph shows that all 100% managers are motivated by the

compensation policy.

Analysis: -

Everybody is happy within the organization about their compensation and they

are satisfied with what they got for their services.

0%20%

40%60%

80%100%

Yes

No


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Question 4.19:- Does intrinsic (self-satisfaction, accomplishment task

successfully) factor motivates your employee?

Table 4.19:-


1 Yes 7 70%

2 No 3 30%

Graph 4.19:-

Interpretation:-

Above graph shows that in organization 70% of managers said that their

employees are motivated intrinsically. And remaining 30% are said no.

Analysis:

Motivation is the factors which turn their enthusiasm towards work so

maximum employees are motivate intrinsically.

70%

30%

Yes

No


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Question 4.20:- Does the extrinsic (Awards, incentives, Bonus, Extra

allowance) factor motivates your employees?

Table 4.20:-


1 Yes 8 80%

2 No 2 20%

Graph 4.20:-

Interpretation:-

Above the graph shows that 80% employer said that their employees are

motivates by extrinsic factor and remaining 20% managers are said no.

Analysis:-

Motivation comes from inside, but sometimes it needed extrinsic factors.

Incentives, bonus, awards and extra allowances plays vital role in motivation

of employees.

0

1

2

3

4

5

6

7

8

Yes No


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Question4.21:- Do you think after getting extrinsic motivation (Awards,

Incentives, Bonus, Extra allowances) employees work hard?

Table 4.21:-

Sr. No Particulars No. of Respondent Percentage

1 Yes 70 70%

2 No 30 30%

Graph 4.21:-

Interpretation:-

Above graph shows that 70% managers think after getting extrinsic motivation

employees were doing hard work. And 30 % managers think vice versa.

Analysis: -

Extrinsic factors can work as a boost for employee. Due to this maximum

employees can work hard.

Yes

No

0

20

40

60

80


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Question 4.22:- Do you come across grievance after giving monitory

motivation (Bonus, Incentive)?

Table 4.22:-


1 Yes 0

2 No 10 100%

Graph 4.22:-

Interpretation: -

Above graph shows that 100% respondent not having any kind of grievance

after monitory motivation.

Analysis:-

Organization paid the monitory benefits to the employees. It helps to avoid the

grievance factors.

0

2

4

6

8

10

Yes No


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Question 4.23:-Do you take feedback of employees after giving monitory

rewards?

Table 4.23:-


1 Yes 10 100%

2 No 0 0

Graph 4.23:-

Interpretation:-

Above graph shows that 100% employees are giving their feedback to the

organization.

Analysis:-

Feedback is regularly taken by organization. Feedback is important part of the

two way communication.

0 2 4 6 8 10

Yes

No


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CHAPTER V

FINDING, RECOMMENDATION AND CONCLUSION

FINDING:-

Organization is having a good brand image in market which helps toattract the employee.

Employees are satisfied with their compensation policies. Both the intrinsic and extrinsic factor impact on employee motivation. It is found that there is low attrition rate in the organization and

employees are quite loyal to their organization. It is found that employees get motivated from their compensation

policy.

All the employees are motivated after salary hike. It is found that company takes feedback from all the employees after

giving monitory rewards.

RECOMMEDETION:-

There are still efforts required (like increase in salary, bonus andincentives) to satisfied all the employees as same are not satisfied

with their compensation.

Company should generate some competition within employees so thatthey earn more incentives and get motivates as well as company sales

will also increase.

For the employees motivation there should be a regular performanceappraisal after some period of time.


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CONCLUSION:-

It is clear that compensation has directly affect the employeemotivation.

There is low attrition rate is low in organization. Both the intrinsic (self-satisfaction, accomplishment task successfully)

and extrinsic (Awards, incentives, Bonus, Extra allowance) factors

play a vital role in employee motivation. Employees are satisfied with their compensation policies. Employees get motivated from their compensation policy.


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