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DECLARATION

We, the students of T.Y.B.B.A (HR) Zeel Choksi , Juhi Chorawala , Helina

Desai and Riddhi Desai hereby declare that the research report entitled “IMPACT

OF MONETARY AND NON-MONETARY BENEFITS ON EMPLOYEE

PERFORMANCE ” presented herein ; submitted to NIM-BBA , Surat , is a record of an

original and genuine work done by us under the guidance of  Mr.Baxis Patel, professor

for the subject RESEARCH METHODOLOGY a n d t h i s p r o j e c t w o r k i s

s u b m i t t e d i n t h e p a r t i a l f u l f i l l m e n t o f t h e s a m e s u b j e c t . The

results obtained through this research have not been submitted to any other University or

Institute for a similar purpose. Any literature, data or works done by others and cited

within this report have been listed in the reference section.

ACKNOWLEDGEMENT

We would like to express our gratitude towards our college principal Mr. Narendra Jadav,

Navnirman Institute of Management for giving us this opportunity for carrying out the research

on this topic. We sincerely thank our professor for Research Methodology-II, Mr.Baxis Patel, for

his constant guidance, help and support throughout the research work, without whom this project

wouldn’t be possible. We also thank the respondents, friends, family and relatives for the support

by filling out the survey forms and giving their valuable opinion.

PREFACE

This research work was conducted in partial fulfillment of the requirement for the subject

RESEARCH METHODOLOGY-II of BBA Programme sem-VI to find out the impact of both

monetary and non-monetary incentives on the performance of employees. In the course of the

study some basic research questions include are: What are the incentives that motivate

employees to higher performance; How effective is the payment of incentives on employees

performance; Whether the payment of non-monetary incentive motivates employees to higher

performance; and What would be the attitude of employees towards job performance if they are

provided with security of job. In an attempt to find answers to the above questions, set of

questionnaire was designed for the study. Study of male and female employees of banking and

production sector was done. A total number of 80 employees were around at the time were

interviewed through questionnaire filling through personal interview and internet survey was

done. Thereafter, their responses were collated and analysed. Thus, the data used is primary data.

Secondary data used was theories.

EXECUTIVE SUMMARY

Project report on the study the impact of monetary and non monetary benefit on employee

performance we studied that the main objective of this research is to determine if

organizations are utilizing both monetary and non monetary rewards within their rewards

reward programmes as competitive advantage tool in motivating employees and how they

affect on employees performance this:What are the elements that form part of the reward and

incentive offering to employees in oraganisations? Do various rewards and incentive options

have specific impacts on employees from a motivation perspective? To what extent are

organistions utlising non monetary rewards and monetary rewards in their offering to

motivate employees?What are the rewards preferences by employees.The effect of intrinsic

rewards on employee’s performance.The effect of extrinsic rewards on employee’s

performance.The relationship between extrinsic and intrinsic rewards.Through what ways

increase employee s interest towards job and their motivation towards organizational

goals.Decide the role of intrinsic and extrinsic motivation to enhance organizational

performance.Also look into a matter that how status is more important than money and why

motivate employees towards the organizational goal is possible by assigning them good

status. The tool that has been chosen to collect data was a filling up questionnaire

Respondents were asked to fill in the questionnaire and they were able to read the

instructions on their own. questionnaires were filled personally by going through some of

the production related companies likes Reliance, Larsen and Turbo Nj India Invest and ca

institutes and banks like State Bank of India, ICICI, Bank Of Baroda. Some data we

collected for literature review and theories of motivation from website,books. Our sample

size in study of impact of monetary was 80.From this study we found out and concluded that

The maximum no. of respondents are freshers working for over a period of 0-5 years

constituting 41.25% of the total respondents

Maximum no. of respondents have monthly income of rs.20,000-50,000 . constituting of

38.75% of respondents. Only 8.75% respondents have monthly income of rs.10,000 or below

Maximum number of respondents , i.e. 90% respondents have a salary system for

remuneration

we can make out that PAY RISE, BONUS, PROMOTION, FINANCIAL BENEFITS ,JOB

UPGRADATION are the benefits which are provided in the highest number to the

employees by the organization

Among Non-monetary benefits CAREER DEVELOPMENT AND

MANAGEMENT,WORK PERFORMANCE AND RECONGNITION AND GOOD

WORKING ENVIRONMENT top the list

PROMOTION motivates most of the respondents highest , followed by APPRECIATION

LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally constituting

a 15%.

74 respondents answered and We can see that Company Socials/ parties/celebrations)

motivates employees the most and performance motivates them the least

78.75% employees agree to the fact that incentives and benefits does affect their motivation

level , performance and productivity

most respondents are given insurance as the additional benefits , followed by vacation tours ,

gift vouchers and coupons and only a few respondents get education for children as a benefit

from work place.

48% of the employees agree to the fact that competing for rewards influences their

performance. On the other hand, about 31% people don’t agree to the fact that competition

influences performance in any ways. 21% of the people agree upon not having any opinion

regarding the influence of competition for rewards on the performance.

54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of

employees are not entitled to getting a bonus.

According to this survey, 69% of people agree to the fact that they do get motivated by

bonus. Whereas, the other 31% say that getting a bonus is not a factor that would motivate

them.

According to this survey, people are retaining their present jobs due to various reasons, out of

which the most influencing reasons are – challenging job assignments and a convenient

location of the organization. The least preferred reason being vacations and other reasons.

75% of the people are involved in the decisions taken related to their department. This survey

also tells us that 25% people are not involved or given any privilege of involvement in the

decision making of their departmental issues

Involvement in decision making effects the performance and improves it, says 81% of the

people that are surveyed, whereas 19% say that it does not really influence their performance

or improve it when these people are involved in the decision making process

1. 81% Repondents agree and are satisfied on being given different opportunities ,

competitive tasks to excel in the organsation.19% respondents deny the fact being given

competitive opportunities in the organsation

2. The percentage of respondents having an ongoing recongnition programme and not

having an recongnition programme is equal . ie. 50%

3. Maximum number of respondents have an annual recongnition programme ie. 45% ,

followed by a 27.5% respondents having a quarter recongnition programme. Respondents

having a monthly recongnition programme constitute 25%.

4. we conclude that out of 80 respondents 25 respondents ie. 31.25% were nominated for

employee of the year award and 20 respondents constituting about 25% have received

the award.

5. 75% respondents feel motivated about employee recongnition programmes whereas for

25% respondents such programmes do not create much pressure on performance

and non monetary benefit on employee performance was 80.

CHAPTER 3

Theoretical framework

And literature review

Theoretical framework

3.1 Definition of motivation

"Motivation is the art of getting people to do what you want them to do

because they want to do it."

--Dwight D. Eisenhower

Motivation is derived from a Latin word, ‘movere’, which means to move.

The author of book ‘Motivation, beliefs, and organizational transformation’

(1999), Dr. Green and Butkus (1999), says that motivation is derived from a

word “motivate”, which means to move, push or persuade to act for satisfying

a need. Further motivation can be explained as acting of such forces within a

person that cause a stimulation of effort, direction and goal direction.

‘Motivation’ is the total involvement of a person in his tasks to carry out with

dedication, devotion, happiness, excitements, and voluntarily, Mol (1992).

3.2Features of Motivation

1. Psychological Process: Motivation is a psychological process useful for

encouraging employees to take more interest in the work assigned. It relates to

human relations.

2. Initiative by Manager: The initiative for motivation is by the manager by

offering guidance and also by other methods like appreciation of good work or

offering incentives. Management has to adopt special measures for motivating

employees. They include monetary as well as non-monetary.

3. Continuous activity: It is a continuous and circular process. Subordinates

need motivation in a continuous manner as their needs and expectations change

from time to time. A manager has to study the needs of workers and use the

technique of motivation accordingly. The process of motivation must be made

a regular and continuous one.

4. Goal-oriented and action-oriented: Motivation diverts human behavior

towards certain goals. Attainment of organizational and individual goals

depends on the motivational plans.

5. Broad concept: Motivation covers needs, human relations and satisfaction of

employees. For employee motivation, monetary and other incentives need to

be offered. Job satisfaction is one such need and is useful for their motivation.

6. Essence of management process: Motivation is an essential function of a

manager. He has to motivate his subordinates for achieving organizational

objectives. Motivated labour force is an asset of a business unit. Motivated

employees bring prosperity to a business unit.

7. Beneficial to employees and management: Motivation offers benefits to

employees and Organization. It avoids crashes and encourages cooperative

outlook among employees. Motivation leads to cordial labour-management

relations. It provides more profit to management and better welfare to

employees.

8. Varied measures available for motivation: For motivation, various monetary

and non monetary incentives can be offered to employees by the management.

Attractive wages, welfare facilities, job satisfaction, appreciation of good

work, encouragement to self-development, job security and fair treatment are

some measures of motivating employees.

9. Motivation is different from satisfaction: Motivation implies a drive towards

a result while satisfaction involves result already experienced and achieved.

'When desire is satisfied, employee is motivated'.

10. Related to a person in totality: An employee is motivated in totality and not

in part. Employee's basic needs are interrelated. Management must fulfill all

the needs through monetary and non-monetary incentives.

3.3 Importance of Motivation

Motivation occupies an important place and position in the whole management

process. This technique can be used fruitfully for encouraging workers to make

positive contribution for achieving organizational objectives. Motivation is

necessary as human nature needs some sort of inducement, encouragement or

incentive in order to get better performance. Motivation of employee’s offers

may benefits to the Organization and also to the employees. This suggests the

importance of motivating employees. Motivation acts as a technique for

improving the performance of employees working at different levels.

Motivation of employees is one function which every manager has to perform

along with other managerial functions. A manager has to function as a friend

and motivator of his subordinates. Motivation is useful in all aspects of life and

even our family life. The same is the case with business. This dearly suggests

that motivation is extremely important. It is an integral part of management

process itself.

3.4Motivational Factors / Incentives

(fig3.1)

(A) Monetary or Financial Incentives

Monetary incentives are offered in terms of money. Such incentives provide

more cash or purchasing power to employees. Monetary incentives are

extremely attractive to employees (particularly those working at lower levels)

as they get the benefit quickly and in concrete terms. At the higher levels of

management, non-monetary incentives are more important than monetary

incentives. Workers prefer monetary incentives as compared to non-monetary

incentives. Managements also offer liberal monetary incentives to all

categories of workers.

Monetary incentives may be further classified as following:-

1. Individual Monetary Incentives: The benefit of individual monetary

incentive is available to concerned worker only. For example, F. W. Taylor

suggested differential piece rate system which offers different wage rates to

different workers as per their production efficiency. Different incentive wage

plans are the examples of individual monetary incentives as the benefit is

offered individually to every worker. Here, a worker is paid as per his

efficiency, productivity or as per the production given by him. Efficient/sincere

workers give more production and get higher reward in terms of wage

payment.

2. Group Monetary Incentives: In the group monetary incentives, the monetary

benefit is not given individually but to a group of workers or to all workers in

the Organization. Workers have to work jointly/collectively as a team in order

to secure the benefits of group monetary incentives. Bonus payment, pension,

P.F, production/productivity bonus, profit sharing, etc. is the examples of

group monetary incentives. For the employer/management, group incentives

are more important as they offer many benefits to the management.

(B) Non-monetary Incentives for Employee Motivation

1. Job security and job enrichment: Job security is useful for the motivation of

employees. Such security keeps the employee away from the tension of

becoming unemployed. Job enrichment provides an opportunity for greater

recognition and advancement. Job enrichment refers to redesign of jobs.

2. Fair treatment to employees: Employer should give attention to the needs,

difficulties and grievances of employees. Small work groups and effective

communication are useful for solving the problems of workers. Employees

must be given decent treatment. They will be co-operative only when they are

treated with sympathy and love, affection and dignity. Employees should also

be given help in personal matters.

3. Recognition of good work: Recognition of good work at an appropriate time

gives encouragement to employees to show better performance in future. As an

appreciation of good work, prizes, rewards, promotions, etc. should be given.

4. Encouragement to self-development and career development: Employees

should be given varied training facilities. Training facilitates self-development

and also provides opportunities for career development. Every employee has a

desire to grow, develop and rise higher. This desire should be exploited fully

for motivating employees. For this, training as well as management

development programmes should be introduced.

5. Delegation of authority: Due to delegation of authority, a subordinate

employee feels that superior has faith in him and also in his ability to use

authority in a proper manner. Employees get mental satisfaction when

authority is given to them. They take interest and initiative in the work and try

to prove that they are competent to work at the higher levels. Thus, delegation

of authority becomes a motivating factor.

6. Congenial working conditions: It is a non financial incentive for motivation.

Employees should be given various facilities and conveniences at the work

place. The work environment should be pleasant and safe. This creates desire

to work efficiently.

7. Helpful attitude of management: The helpful attitude of management

towards its employees creates a sense of affinity for the Organization. Fair

treatment to workers creates better understanding among workers. Cordial

industrial relations also motivate employees. Thus, enlightened and pro-

employee attitude of management acts as a motivating factor.

8. Fair opportunity of promotion: Fair opportunity of promotion to all eligible

workers is one more method useful for motivating employees. They take

interest in the work as they feet that they will be rewarded in the form of

promotions. Training facility should be provided to employees in order to

make them eligible for promotion.

9. Labour participation in management: Labour participation in management

is useful for the motivation of employees. Workers get higher status and better

scope for expressing their views through such participation. Even the

formation of quality circles or joint management councils is useful for

motivating employees.

10. Designation and status: When an employee is provided with a better

designation, it adds to his status. Employees are proud to reveal their attractive

and high-sounding designations.

3.5Theories on Motivation

There are two classes of theory of motivation;

Content Theories: Content also called as need theories of motivation basically

emphasis on internal factors of an individual that strengthens and gives the

direction to the behavior.

3.5.1Maslow’s Hierarchy of needs:

Abraham Maslow (1943, 1954), unsatisfied needs creates de-motivation, there

are following needs that must be satisfied, these are called as ‘deficiency

needs’. As these needs are fulfilled the person is satisfied and move towards

growth and self actualization.

Fig 3.2

Physiological needs: These are the basic needs for example food, water, air, and

all other things that are necessary for the survival. In order to enhance

workplace motivation by achieving the target of fulfilling the needs of

employee give proper breaks for lunch, and offer such salary to employees that

enable them to buy basic needs of life. Provide ample breaks for lunch

and recuperation and pay salaries that allow workers to buy life's essentials.

Security needs: it includes security regarding the physical environment, living in

a safe area, medical insurance, and job security. These needs can simply be

fulfilled by giving all these securities to employees.

Belongingness needs: it includes friendship’s trust and satisfaction, feeling right

in a group, giving and receiving care and love. It can be achieved by

generating a feeling of acceptance.

Esteem needs: It includes recognition, attention, social status, accomplishment,

self-respect. It can be achieved by recognizing the achievements of the

employee, by assigning them some projects, make them feel important and

valued asset for organization.

Self-actualization needs: it includes one’s own potential, creative capabilities

etc, it can be achieved by offering challenging and meaningful work

assignments which enable innovation, creativity, and progress according to

long-term goals.

.

Maslow's Hierarchy of Needs theory has had a substantial influence on

organizational approaches to motivation.thefollowing is the reasons which have

resulted in Maslow’s theory being popular amongst the organizations:

Its simplicity

Its inferences are strong and clear

It forms settings in which employees ‘lower level needs can be fulfilled so that

they are motivated to reach their full potential

It offers a corridor to self actualization.

Implications

Maslow’s theory highlights that organizations must identify the level of needs

at which employee is present at, and then the needs must be addressed as a

drive for motivation. If the basic needs such as physiological and safety needs

are not met, organisations will not be able to fulfill the other level of needs

indicated. Not all employees are directed by similar set of needs. It is through

this realization that organization is required to tailor rewards programmes that

suite an employee’s needs.

3.5.2Alderfer’s ERG Theory:

The Alderfer’s ERG theory (1969) is an extension of Maslow's theory of

needs. He suggested that needs can be divided into three components;

existence (similar to physiological needs and security needs), relatedness

(similar to belongingness needs and esteem needs) and growth (similar to self-

actualization).

It differs from Maslow hierarchy of needs theory in a way that according to

Alderfers it may happen that more than one need may be motivated at the same

time, lower motivators is not necessary to be  significantly fulfilled before

moving towards higher motivators, the order of needs may differ from person

to person, there is a ‘frustration- regression principle’ and according to it if

high order need is frustrated a person may regress to increase the satisfaction

of a lower need which appears easier to satisfy.

3.5.3Frederick Herzberg’s Motivator hygiene theory:

Herzberg’s motivator hygiene theory (1959) is closely related to Maslow's

theory but it is more closely related to how to motivate individuals at their

workplace. According to him individuals are influenced by two sets of factors;

Hygiene factors: These are said to be lower level of needs by Herzberg.

Motivator factors: These are said to high level of needs by Herzberg.

Fig3.3

According to him meeting hygiene factors will not motivate individuals to put

their effort or to improve their performance, it will just help them from being

getting dissatisfied, but if motivator factors will be combined with this it will

help individuals to motivate.

3.5.4McClelland’s learned needs theory: acquire

McClelland's theory states that individuals learn needs from their culture and

life experiences. There are three basic needs of an individual;

Need for affiliation it is the need of establishing social relationships with the

people, communities, getting accepted by them.

Need for power It is divided in two parts, desire to control one’s environment

and second to influence others.

Need for achievement It involves the aspiration to take accountability, set

challenging goals and get feedback of their performance.

McClelland states that a person has full strong capability in any one of the

above categories, thus it has prospective to motivated people that leads to

satisfaction. Management should understand these needs of the individuals and

then structure their jobs to satisfy them. Those who have high n Aff such

people perform well in customer service jobs or where customer interaction is

involved. Those who have high n Pow management should provide them the

opportunity to manage others. Those who have high n Ach such people should

be given challenging but achievable goals.

Process Theories: These theories of motivation focus on known human

decision behaviors for the explanation if motivation. These theories determine

that how an individual’s behavior can be energized, maintained in willed and

self directed cognitive process.

3.5.5Victor Vroom’s Expectancy Theory:

Victor Vroom (1964), theory is based on three beliefs;

Valence: is the extend of the expected outcomes of an individual are attractive

or unattractive.

Expectancy: is the extend to which employees believe that they are giving

enough effort that they will achieve the target of given level of performance.

Instrumentality: is the level to which employees believe that achieving a given

performance level resulting in the form of certain reward.

Motivation = Valence x Expectancy (Instrumentality)

If even one of these is zero the employee will have not motivation for the task,

so managers ensure increase in effort will improve performance and improved

performance will result in high rewards.

The theory says employees have different goals to achieve and can be

motivated if they believe that; there exists a positive correlation between

efforts and performance, good performance will result in a reward, and this

reward will satisfy an important need, and the wish for satisfying that need is

powerful enough to make effort valuable.

Fig3.5

3.5.6Equity Theory:

Equity theory was first time developed by John Stacey Adams in 1963.

Individuals in the society make comparison of their efforts (inputs) and

rewards (outputs) that they get. The fairness regarding the rewards influences

the level of motivation of individuals a lot. Equity exists when individuals

identify that the ratio between there efforts and rewards is similar to whom

they are comparing.

Individual’s Rewards (output) / Individual’s Efforts (Input) = other person’s

Rewards (output) / other person’s Efforts (Input)

Similarly inequity occurs when there is difference in ratio in comparison to

others. Inequity has two types;

Under-Reward: this type occurs when an individual starts believing that he is

putting more efforts as compare to others, but receiving the same rewards that

others are getting for relatively less effort.

Over-Reward: this type occurs when an individual starts believing that his

equity ratio is higher other individuals. Thus getting more rewards by putting

less efforts.

Under-Rewarded individual may get motivate to do more work to meet his

performance level while on the other hand he may get dis-hearted from this.

Over-Reward individual start putting less efforts as he may assume that he is

getting much more rewards from little effort. For managers equity theory states

that rewards should be fair to all employees.

3.5.7Gary Latham and Edwin Locke’s goal setting theory:

E. Locke and G. Latham (1990), states that goals are important factors in

affecting the behaviors and motivation levels of employees. Motivated

behavior of employees can be achieved by setting challenging goals for them

that usually involve the quantitative targets. Such goals of performance are

better than those in which you just say, ‘you did a great job, well done’.

Researches have shown that challenging goals are more motivational than any

other goals that are easily achievable. The more the dedicated is employee the

more he will put his effort to achieve those goals. Researchers show that

individuals that perform in goal setting have increases goal commitment. If an

individual has high self-efficiency he will respond more positively to achieve

goals rather than those who are low-efficient.

3.5.8B.F. Skinner’s Reinforcement Theory:

In Reinforcement theory B.F. Skinner (1957), considered a motivation theory

along with learning theory. The theory state that motivated behavior is the

outcome of reinforces which are actually the resultants from the behavior that

cause it more likely to occur again. It further says that it is essential to measure

the consequences of behavior rather than to understand cognitive or processes

motivation. Such behavior that was previously rewarded will be continued in

future as well from an individual rather than that behavior which was not

rewarded or for which he was being punished. The theory suggests to

managers that they can handle the behavior modifications by reinforce desired

behaviors and punish undesired behaviors.

3.6Importance of Rewards and Motivation

Searle, John G. (1990), rewards is basically to motivate the behaviors of

employees towards their work. Rewards should be given as a result to effective

performance. Following are some conditions that are necessary for the creation

of motivation among employees; Employees must have faith that their

effective performance will surely be appreciated and rewarded.

The rewards that will be being offered by management are attractive. The

believe of employees that their effort is really contributing worthwhile to attain

the organization’s goals.

Organizations must pay attention towards the Monetary as well as Non-

Monetary rewards, because the balanced combination of both creates

motivation. An individual’s goals and organization’s goals are independent

goals that are linked by the work motivation. Individuals provide their services

to organizations to attain organization’s goals in order to meet their personal

goals. So, we can say that an individual’s goals are directly proportional to the

organizational goals.

Mosley, Megginson, Pietri (2001), reports that the there are three levels of

employee motivation;

Behavior: the direction of those behaviors of an employee that he selects to

perform.

Effort: the level of willingness of an employee to put their effort on their work.

Persistence: the level of willingness to work regardless of difficult situations.

3.7Reward Systems:

This study involves intrinsic and extrinsic rewards as independent variables. In

independent variable extrinsic reward includes three dimensions such as basic

pay, merit pay and performance bonus. As for the intrinsic reward, it includes

four dimensions such as recognition, learning opportunity, challenging work

and career advancement

Employees’ Performance:

This study involves employees’ performance as dependent variable. In

dependent variable employee performance encompasses threedimensions such

as productivity, job quality and job accomplishment.

Motivation underlies employee enthusiasm and commitment. Employees who

are motivated to perform their job duties usually are conscientious workers

whose pride shows in the quantity and quality of their work. Enthusiasm,

commitment, pride and productivity are cornerstones of employee engagement.

Although these all may sound like ambiguous and extremely subjective aspects

of employee performance, they constitute employee engagement, an aspect of

employment that can indeed be measured.

Recognition

Professor and management consultant Frederick Herzberg's theories on

employee motivation illustrate the effect that motivation has on recognition,

and vice versa. Recognition, according to Herzberg's motivation-hygiene

theory, is what employees need from their supervisors. They need to be

recognized for demonstrating their capabilities, which, in turn, creates better

performance. Nonmonetary forms of recognition are useful in this case:

Promoting employees to leadership roles or assigning employees more

complex duties are two essential forms of nonmonetary recognition.

Promotion

When recognition consists of promoting an employee to a leadership role, the

employee is motivated to show she's worthy of the role. Therefore, employees

who receive promotions have a zealousness about their new responsibilities

that complacent employees may have lost. Recognition also may be subtle,

showcasing employees' talents by using them to train new or inexperienced

workers. When employees are charged with responsibilities such as assisting

with orientation for their colleagues, they also sustain high performance levels.

Competitiveness

Recognition at work is what employees seek, whether it's feedback from a

supervisor, a glowing performance evaluation or a commendation from the

company president. When recognition credits an employee for doing a great

job, the natural tendency is to continue the performance that garners attention.

There also is a competitive spirit that emerges throughout the workforce when

recognition is the prize. Competition itself fosters ingenuity and innovation,

both of which are factors that improve performance.

Satisfaction

Satisfaction is a byproduct of motivation. Employees who receive the type of

motivation they need to achieve high performance levels also exhibit signs of

greater job satisfaction. The best way to explain this is by looking at the

inverse of motivation and recognition. Employee dissatisfaction is evident

when employees don't receive some sort of recognition from their supervisors

or when their accomplishments aren't recognized.

LITERATURE REVIEW

1. According to Jon-Chao Hong, Sung-De Yang, Li-Jung Wang, En-Fu Chiou, Fan-Yin

Su, sui-Lan Huang, (1995) "Impact of employee benefits on work motivation and

performance", International Journal of Career Management, Vol. 7 Iss: 6, pp.10 –

14 publisher : MCB UP Ltd. To understand the impact of employee benefits on

employees' work-motivation and performance, questionnaires were sent to corporations

which had undertaken employee benefit programmes. Some of the significant results of

this study are: employee benefit programmes have greater impact on work-motivation

than on performance; monetary benefit programmes are most highly valued by both

executives and employees; there is a cognitive gap between management and employee

on the importance of employee benefit programmes; different genders have different

benefit demands; Employees with different education levels and positions perceive

different employee benefit impacts; and employee benefit programmes have greater

influence on younger employees' job performance.

2. According to Luthans (2002) financial rewards are an important form of rewarding

employees for their exceptional performance but other forms of recognition are often

overlooked as part of an organisation’s reward system. Nienaber, R. (2009 Nov). The

Relationship between Personality Types and Reward Preferences. (Doctoral dissertation).

Johannesburg: University of Johannesburg argues that organizations need to understand

the preferences and needs of employees and offer more than just a good pay-check when

responding to today’s workplace demands. According to Ferguson, R. & Brohaugh, B.

(2009). The Talent Wars. Journal of Consumer Marketing, 26 (5), 358-362 what really

impacts employee is the quality of their work experience. Effective reward management

involves a close understanding of employee references. Sarvadi, P. (2005). The best way

to reward employees. Solutions for growing Business. Retrieved February 27, 2005, from

http:www.entrepreneur.com .,arguing for the importance of non-monetary rewards says

that organization’s sometimes miss the most important reward elements of appreciation

and recognition, which are the inexpensive and high return elements to a reward

programme.

Wycombe, J. (2002). Rewards get results: Put away your cash. Workforce, 8(1), 42-47

study suggests evidence that there exists a robust relationship between non-monetary

rewards and better job performance. An organization’s reward system is an important

tool that can lead to employee motivation. Understanding the impact of both monetary

and non-monetary rewards, based on employee preferences, is crucial for an organization

to deliver growth and shareholder value. Lawler, E.E., (2003). Treat employee right. San

Francisco: Jossey-Bass Inc argues that for a reward programmed to work, it must be

developed with a few limitations. A reward programme must provide necessary rewards

to motivate employees; provide employees with a clear view of their roles going into the

near future; give employees the authority to influence their performance and deliver on it.

3. Syptak, J. M., Marsland, D. W., & Ulmer, D. (1999). Job satisfaction: Putting theory

into practice. Family Practice Management, 6(9), 26–30. Fulfilled and motivated

employees incline to be more committed and productive to their organization. Edward P.

Lazear, 2000. "Performance Pay and Performance," American Economic Review,

American Economic Association, vol. 90(5), pages 1346-1361, December identifies the

causal impact of different prize schedules on effort and outcome quality in a real-world

elite coding challenge. Past studies by Lazear 2000; Dohmen and Falk 2011 have found

evidence that higher-skilled employees tend to have a greater likelihood of preferring

competitive environments and high-powered incentive schemes

4. Employee benefits have grown in importance over the past several decades. Employee

benefits are the membership-based and nonfinancial rewards offered to attract and keep

employees. Along with the increasing costs of employee benefits, the effects of such

programs have received more attention. Much research has explored issues related to

effects of employee benefits at individual levels. Articles or case studies examined the

impact of employee benefits on firm performance. Beam and McFadden, 1988; Evers,

1998; Federico and Goldsmith, 1998; Steere, 2000; Laabs, 2000; Kurlander and

Barton, 2003. Benefits may be valuable in recruiting and retaining employees, but are

typically unrelated to performance Adigun and Stephenson, 1992; Mondy et al., 2002.

Furthermore, citing various studies, Hennessey (1989) argued that benefits cannot help

firms achieve competitive advantages. Similarly, Huseman et al. (1978), Sutton (1986),

and McCaffrey (1987) argued that benefits can be seen a means to meet organizational

objectives, such as increasing morale and retaining and attracting good employees;

however, they claimed that benefits can affect employee attitudes and performance

through operation of benefit programs..

5. Performance in multi-action settings has been the focus of an increasing amount of

research. It was studied that though employees exerted the desired level of effort but still

not benefit the firm because they do not allocate their effort well. Therefore Considerable

analytic and empirical research by Kachelmeier, Reichert, & Williamson 2008;

Brüggen & Moers 2007; Dataret al. 2001 has focused on the ability to motivate the

desired mix of effort by using monetary incentives tied to multiple measures. A rich

literature in economics Dataret al. 2001; Feltham & Xie 1994; Banker & Datar 1989;

Holmstrom 1979 explore how the monetary incentives associated with measures of

performance influence actions. Dambisya, 2007 investigated that the use of nonfinancial

incentives for health leads to satisfaction of employees. This study was conducted in

health sector and found that non--financial rewards affect the performance of an

individual.

Chapter 4

Research

Methodology

4.1Problem definition

The objective of this research is to determine if organizations are utilizing both monetary and

non monetary rewards within their rewards reward programmes as competitive advantage tool in

motivating employees and how they affect on employees performance and following resesearch

questions will assist in the exploration of this:

What are the elements that form part of the reward and incentive offering to employees in

organizations?

Do various rewards and incentive options have specific impacts on employees from a

motivation perspective?

To what extent are organizations utilizing non monetary rewards and monetary rewards

in their offering to motivate employees?

What are the rewards preferences by employees?

4.2 Main objective and secondary objective

Primary objective:

The main Objective of this research is to determine either the monetary benefits or non-monetary

benefits have great impact on motivation and how they affect on employees performance.

Secondary objectives:

The effect of intrinsic rewards on employee’s performance.

The effect of extrinsic rewards on employee’s performance.

The relationship between extrinsic and intrinsic rewards

Through what ways increase employee s interest towards job and their motivation

towards organizational goals.

Decide the role of intrinsic and extrinsic motivation to enhance organizational

performance.

To find out whether Pay dissatisfaction has numerous undesirable consequences or not

and see how pay satisfaction increases organizational commitment

Also look into a matter that how status is more important than money and why motivate

employees towards the organizational goal is possible by assigning them good status.

4.3Nature of research:

Basic research

Basic research is conducted to expand the knowledge and understanding by developing or testing

theorey.Basic research is also known as fundamental or pure research. Basic research is driven

by scientist’s curiosity o interest in scientific way. Basic research lays down the foundation for

the applied science.

Applied research

Applied research is research conducted to further redevelopment of effective policies and

programme. Applied research is designed to solve practical problems. Goals of applied research

are to improve the human conditions.

So here in our study impact of monetary and non monetary benefits on employees performance

in surat city the nature of research is applied research because we are doing research is to

discover whether a reward programme or framework results in the motivation of the employees

and strategic fit between employee and the organization. How we can improve on the basis of

basic research by studying theories of motivation models programmes.

4.4 Scope

This applies to all going academic and professional and technical employees all the type of

companies. this helps us to know how are employees are motivated affected with different

benefits whether it is monetary rewards or whether it is non monetary rewards what types of

benefits affects the most to the employees ‘performance in this way organization can know what

type of rewards affects the performance and in this way they can design their programmes of

giving rewards.

4.5 Data collection

There are two methods data can be collected they are as follow:

Primary data

Secondary data

Primary data

The tool that has been chosen to collect data was a filling up questionnaire .respondents were

asked to fill in the questionnaire and they were able to read the instructions on their own.

questionnaires some were filled personally by going through some of the production related

companies likes Reliance Larsen and Turbo Nj India Invest and ca institutes and banks like

State Bank of India,ICICI, Bank Of Baroda and some questionnaire were filled by calling

respondents.

Secondary data

We have also kept questionnaire online through www.google.docs.com. Some data we collected

for literature review and theories of motivation from website and books.

4.6 Sampling Design:

Sampling is the process of selecting units (e.g., people, organizations) from a population of

interest so that by studying the sample we may fairly generalize our results back to the

population from which they were chosen.

i. Sample size:

Total no of selected units from the population for the study is called sample size. Our sample

size in study of impact of monetary and non monetary benefit on employee performance was 80.

ii. Sample frame:

List of all units which represents target population and in case of list not possible then they can

consider some geographical boundaries in our study we selected employees particularly from

mainly 5 to 6 companies likes Reliance Larsen and Turbo NJ India Invest and ca institutes

and banks like State Bank of India,ICICI, Bank Of Baroda.

iii. Sample element:

Selection of some units from the population which represent the behavior pattern of the

population. In our study we selected employees mostly from lower level and middle level

employees.

iv. Sampling method:

In our study we used Convenience sampling which is a no probability method. This means that

subjects are chosen in a nonrandom manner, and some members of the population have no

chance of being included. With no probability sampling, researchers have no way of calculating

how well their sample represents the population as a whole.

V.Survey tool:

We used structured questionnaire to do our survey. A questionnaire is a series of questions asked

to individuals to obtain statistically useful information about a given topic. When properly

constructed and responsibly administered, questionnaires become a vital instrument by which

statements can be made about specific groups or people or entire populations.

vi. Survey method:

The broad area of survey research encompasses any measurement procedures that involve asking

questions of respondents. A "survey" can be anything forms a short paper-and-pencil feedback

form to an intensive one-on-one in-depth interview.

We'll begin by looking at the different types of surveys that are possible. These are roughly

divided into two broad areas: Questionnaires and Interviews. Next, we'll look at how we select

the survey method that is best for your situation. Once selected the survey method, we have to

construct the survey itself. Here, we will be address a number of issues including: the different

types of questions; decisions about question content; decisions about question wording; decisions

about response format; and, question placement and sequence in your instrument. We turn next

to some of the special issues involved in administering a personal interview

In a survey, researchers sample a population. A population is any set of persons or objects that

possesses at least one common characteristic. Data are usually collected through the use of

questionnaires, although sometimes researchers directly interview subjects. Surveys can use

qualitative (e.g. ask open-ended questions) or quantitative (e.g. use forced-choice questions)

measures. There are two basic types of surveys: cross-sectional surveys and longitudinal surveys.

Cross-sectional surveys are used to gather information on a population at a single point in time.

We conducted our survey by personally visiting in offices and some questionnaire was filled

through telephone and some through online survey (google.docs.co.in).

RESPONSE RATE

The targeted population for conducting this survey was general. The sample size, meant to be a

100 people filling the questionnaire, we approached the same for the responses regarding the

effects of monetary and non-monetary incentives on the job performance of individuals in an

organization.

Out of a total of 100 people approached, about 80 people responded by correctly filling the

questionnaire and provided the right information needed in order to find the solutions to the

problems, for which the survey had been undertaken. The responses of these 80 people have

been properly analyzed to reach up to an appropriate conclusion.

The method used for the survey was partly individual and partly electronic means. The responses

of people approached directly face to face were quick and they readily agreed to provide their

valuable time to fill it up. These people, approached directly, had to be explained in detail

regarding the motto and aim behind conducting the survey. While on the other hand, the people

approached via Electronic means were not so prompt in responding to filling the questionnaire.

There had to be some persuasion and promotion of the survey, to make people aware about it and

draw their attention towards the importance of responding to the survey.

Thus, the response rate of the people, not being 100% but it was still quite co-operative of them

to help carry out this research on Effects of Monetary and Non-monetary benefits on Job

performance.

Total Response Rate in this research survey: 80%

PILOT SURVEY (PRETESTING)

A Pilot Survey is a scientific tool of study that allows us to conduct a preliminary analysis before

committing to a final study or experiment. This survey is done in order to check the feasibility or

to improve the design of the research

The pilot survey that was conducted regarding the Effects of Monetary and Non-Monetary

benefits on job performance, turned out to be very helpful in finding the errors in the designing

of the questionnaire.

A total of 5 questionnaires were used for the pilot survey on friends. This survey was conducted

individually and through this we found certain errors which we later improvised upon. Following

were some of the errors that were pointed out:

1) Questions not easily understandable to the respondent.2) Grammatical mistakes.3) Use of very complicated wordings in forming the questionnaire

4) Lack of space (lines) provided for certain open ended questions

These errors were then taken care of and a perfect questionnaire was then formed through which

we could generate appropriate responses from the individuals.

Thus, Pilot Survey turned out to be of great importance in designing the right kind of

questionnaire for carrying out the survey research.

LIMITATIONS

There were certain problems faced during the conduction of the research on the effects of

monetary and non-monetary benefits on job performance of individuals in an organization. These

limitations were mostly pertaining to the respondents that were approached for the survey. The 2

main limitations being:

1) Unawareness of the respondent on the topic of survey2) Unwillingness of the respondent to respond to the survey

1) UNAWARENESS: Out of the total individuals approached (100); few were of the kind who was not at all aware about the different types of rewards and benefits that they can be entitled to. They had no knowledge regarding the same and seemed to be confused. Hence, they could not be given the questionnaire to be filled out for the right kind of answers.

2) UNWILLINGNESS: A few individuals we also came across, who knew everything about the survey, and had appropriate knowledge too. Still due to the embarrassment of

answering correctly they might specifically change their answers and provide a different response. This is a huge drawback in conducting an effective research.

Other than these, we also faced limitations of Electronic method used for conducting the survey.

Many of the people, in this day and age do not possess a PC or internet at their homes. Hence,

they are unable to fill out such surveys and give their valuable responses to the same. Hence, a

justice cannot be made to few of these people who are willing to, but are unable to respond the

questionnaire.

Thus, as a result of a few such limitations the survey couldn’t get a cent percent response and

hence provisions should be made in order to find solutions and eradicate such limitations faced

in conduction of such research.

CH: 5

ANALYSIS AND

INTERPRETATION OF DATA

1) Since how many years you have been working in this organization?

Responses No. of Respondents Percentage

0-5 years 33 41.25%

10-15 years 25 31.25%

15-20 years 8 10%

More than 15 years 14 17.5%

TOTAL 80

S0-5 years 10-15years 15-20years 15+years

0

5

10

15

20

25

30

35 33

25

8

14

responses

INTERPRETATION:

From the above figures we find that the maximum no. of respondents are fresher’s working for

over a period of 0-5 years constituting 41.25% of the total respondents.

2) What is your monthly income?

Responses No. of Respondents Percentage

below 10,000 Rs 7 8.75%

10,000 – 20,000 15 18.75%

20,000-50000 31 38.75%

50000 and above 27 33.75%

TOTAL 80

8.75%

18.75%

38.75%

33.75%

monthly income

below 10,00010,000-20,00020,000-50,00050,000+

INTERPRETATION:

Maximum no. of respondents has monthly income of rs.20, 000-50,000. Constituting of 38.75%

of respondents. Only 8.75% respondents have monthly income of rs.10, 000 or below.

3) By which method do you earn wages?

Responses No. of Respondents Percentage

Hourly 3 3.75%

Salary 72 90%

Other: 5 6.25%

TOTAL 80

4%

90%

6%

remuneration

hourlysalaryother

INTERPRETATION:

Maximum number of respondents, i.e. 90% respondents has a salary system for remuneration.

4) What kind of benefits are you entitled in the organization? (Multiple checks is

allowed)

Monetary

Responses No. of Respondents

Financial benefits 32

Pay rise 47

Bonus 35

Cash rewards 19

Promotion 34

Personal bonus 15

Job upgradation 25

Cash recognitions 6

INTERPRETATION:

From the above table we can make out that PAY RISE, BONUS, PROMOTION,

FINANCIAL BENEFITS, JOB UPGRADATION are the benefits which are provided in

the highest number to the employees by the organization.

Non – monetary

Responses No. of Respondents

Org. benefits 20

Career development and management 39

Work life benefits 28

Work performance & recognition 35

Coaching / mentoring 25

Working environment 33

INTERPRETATION:

Among Non-monetary benefits CAREER DEVELOPMENT AND MANAGEMENT,

WORK PERFORMANCE AND RECONGNITION AND GOOD WORKING

ENVIRONMENT top the list.

5) How far you are satisfied with the incentives provided by the Organization??

INTERPRETATION:

Here we compare the satisfaction level of employees with the benefits provided by the

organization.

highly agree agree neutral disagree highly disagree0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

31% 30%26%

9%

4%

15%

32%

37%

8%

0%

monetary benefitsnon-monetary benefits

Responses No. of Respondents Percentage

Monetary Non-monetary Monetary Non-monetary

Highly agree 25 18 31.25% 15%

Agree 24 26 30% 32.

Neutral 21 30 26.25% 37.5%

Disagree 7 6 8.75% 7.5%

Highly Disagree 3 0 3.75% 0%

TOTAL 80 100%

6) Which type of incentives motivates you more?

Responses Preferences

Incentive Awards 15%

Promotion 40%

non-monetary 10%

Appreciation letters 20%

Monetary 15%

15%

40%

10%

20%

15%

incentive preferances

incentive awardspromotionnon-monetaryappreciation lettersmonetary

INTERPRETATION:

PROMOTION motivates most of the respondents highest, followed by APPRECIATION

LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally

constituting a 15%.

7) Please rank the following incentives from Most Motivating to Least Motivating by

giving 1- 8 rankings.

Responses Averages

Benefits( stock, health insurance) 4.2

Company Socials/ parties/celebrations) 5.3

Opportunities for promotion 4.2

Performance 3.8

Based bonuses 5

Recognition for good work 4

Salary /hourly wage 4.5

Scheduled flexibility 5.3

Benefi

ts( st

ock,hea

lth in

suran

ce)

Company S

ocials/

parties/

celeb

rations)

Opportunities

for pro

motion

Perform

ance

bonus

Recogn

ition for g

ood work

Salar

y /hourly

wag

e

Sched

uled flex

ibility

0123456

4.25.3

4.2 3.8

54

4.55.3

responses

responses

INTERPRETATION:

74 respondents answered and we can see that Company Socials/ parties/celebrations) motivates

employees the most and performance motivates them the least.

8) Do you think that the incentives and other benefits will influence your

performance??

Responses No. of Respondents Percentage

Yes 63 78.75%

No 19 21.25%

TOTAL 80

yes no0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

78.75%

21.25%

performance influence

performance influence

INTERPRETATION:

78.75% employees agree to the fact that incentives and benefits do affect their motivation level,

performance and productivity.

9) Does the company provide any other additional benefits?

Responses Benefits Ranked

Education for children 4

Insurance for family 1

Vacation Tours 2

Gift vouchers & Coupons 3

Others 5

INTERPRETATION:

The table shows Additional benefits provided to the respondents. We can see that most

respondents are given insurance as the additional benefits, followed by vacation tours, gift

vouchers and coupons and only a few respondents get education for children as a benefit from

work place.

Q.10) does competition for rewards influence your performance?

Responses No. of respondents

Percentage

YES 38 48%

NO 25 31%

NO OPINION 17 21%

TOTAL 80 100%

48%

31%

21%

RESPONSES

YESNONO OPINION

INTERPRETATION:

48% of the employees agree to the fact that competing for rewards influences their performance. On the

other hand, about 31% people don’t agree to the fact that competition influences performance in any

ways. 21% of the people agree upon not having any opinion regarding the influence of competition for

rewards on the performance.

Q.11) Do you get bonus?

Responses No. of respondents

Percentage

YES 43 54%

NO 37 46%

TOTAL 80 100%

54%46%

RESPONSES

YESNO

INTERPRETATION:

54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of employees are not

entitled to getting a bonus.

Q.12) Do you get motivated by bonus?

69%

31%

RESPONSES

YESNO

INTERPRETATION:

According to this survey, 69% of people agree to the fact that they do get motivated by bonus. Whereas,

the other 31% say that getting a bonus is not a factor that would motivate them.

Responses No. of respondents

Percentage

YES 55 69%

NO 25 31%

TOTAL 80 100%

Q.13) what are the reasons that you stay at your present job?

REASONS No. of Responses

Challenging job assignments 37

Vacation 7

Salary/ Security 50

Interesting work hours 25

Good boss 28

Promotional opportunities 25

Training 28

Work assignments vary 12

Retirement benefits 10

Location is convenient 37

Vacation leave 16

Other 5

chall

engin

g job as

signmen

ts

vacati

onsal

ary

interesti

ng work

hours

good boss

promotional

opportunities

training

work ass

ignmen

ts va

ry

retirem

ent b

enefi

ts

location is

conve

nient

vacati

on leav

eother

0102030405060

REASONS

REASONS

INTERPRETATION:

According to this survey, people are retaining their present jobs due to various reasons, out of which the

most influencing reasons are – challenging job assignments and a convenient location of the organization.

The least preferred reason being vacations and other reasons.

Q.14) Does the management includes you in the decision making which are connected to your

department?

Responses No. of respondents Percentage

YES 60 75%

NO 20 25%

TOTAL 80100%

75%

25%

RESPONSES

YESNO

INTERPRETATION:

75% of the people are involved in the decisions taken related to their department. This survey also tells us

that 25% people are not involved or given any privilege of involvement in the decision making of their

departmental issues.

Q.15) Does involvement in decision making improve your performance?

Responses No. of respondents Percentage

YES 65 81%

NO 15 19%

TOTAL 80 100%

81%

19%

RESPONSES

YESNO

INTERPRETATION:

Involvement in decision making effects the performance and improves it, says 81% of the people that are

surveyed, whereas 19% say that it does not really influence their performance or improve it when these

people are involved in the decision making process.

Q.16) Are you given opportunities to enhance your skills by doing a different task within

your company/organization?

INTERPRETATION:

81% Respondents agree and are satisfied on being given different opportunities, competitive tasks to excel in the organsation.19% respondents deny the fact being given competitive opportunities in the organization.

81%

19%

RESPONSE

YES

NO

Responses No. of Respondents

Percentage

YES 65 81%

NO 15 19%

TOTAL 80 100%

Q.17) A) Does your department have an ongoing recognition programme?

INTERPRETATION:The percentage of respondents having an ongoing recognition programme and not having a recognition programme is equal. I.e. 50%

40%

RESPONSES

YES

NO

Responses No. of Respondents

Percentage

YES 40 50%

NO 40 50%

TOTAL 80 100%

Q.17) B) Does department have an ongoing recognition programme ?If YES, how often???

INTERPRETATION:Maximum number of respondents has an annual recognition programme i.e. 45%, followed by 27.5% respondents having a quarter recongnition programmes. Respondents having a monthly recognition programme constitute 25%.

Q.18) A) Have you ever been nominated for “EMPLOYEE OF THE YEAR” award?B) Have you ever received “EMPLOYEE OF THE YEAR” award?

MONTHLY QUARTERLY ANNUALLY OTHER02468

101214161820

1011

18

1

RESPONSES

Responses No. of Respondents

Percentage

MONTHLY 10 25%

QUARTERLY 11 27.5%

ANNUALLY 18 45%

OTHER 1 2.5%

TOTAL 40 100%

Responses No. of Respondents nominated

No. of respondents received award

Percentage of Respondents nominated

Percentage of Respondentsreceived

YES 25 20 31.25% 25%

NO 55 60 68.75% 75%

TOTAL 80 80 100% 100%

NOMINATED RECEIVED0

10

20

30

40

50

60

70

2520

5560

YESNO

INTERPRETATION:

From the above given figures we conclude that out of 80 respondents 25 respondents i.e. 31.25% were nominated for employee of the year award and 20 respondents constituting about 25% have received the award.

Q.19) Do you feel motivated about the programme?

60

20

RESPONSES

YES NO

Responses No. of Respondents

Percentage

YES 60 75%

NO 20 25%

TOTAL 80 100%

INTERPRETATION: 75% respondents feel motivated about employee recognition programmers whereas for 25% respondents such programmes do not create much pressure on performance

Q.20) what would be the greatest additional employee benefits, your employer could implement that would assist in moral enhancement?

20 out of 80 respondents i.e. 25% respondents answered this question.Major answers include:

MONETARY NON-MONETARY

1.Promotion 1.appreciation and recognition of work

2. pay rise / higher pay scale 2.public holidays

3.cash rewards 3.complain box

4.incentives , bonus , awards 4.more leaves

5.achievable targets 5.coaching

6.employee stock ownership plans – ESOPS 6.team party on successful completion of targets

7.achievable targets 7.awards for different targets

8.regular advances 8.better facilities

9.performance based incentives 9.better infrastructure

10.good salary 10.monitoring and supervision

CH: 6FINDINGS

FINDINGSFrom the above analysis and interpretations we find the following:

6. The maximum no. of respondents are fresher’s working for over a period of 0-5 years constituting 41.25% of the total respondents

7. Maximum no. of respondents has monthly income of rs.20, 000-50,000. Constituting of 38.75% of respondents. Only 8.75% respondents have monthly income of rs.10,000 or below

8. Maximum number of respondents , i.e. 90% respondents have a salary system for remuneration

9. we can make out that PAY RISE, BONUS, PROMOTION, FINANCIAL BENEFITS ,JOB UPGRADATION are the benefits which are provided in the highest number to the employees by the organization

10. Among Non-monetary benefits CAREER DEVELOPMENT AND

MANAGEMENT,WORK PERFORMANCE AND RECONGNITION AND GOOD

WORKING ENVIRONMENT top the list

11. PROMOTION motivates most of the respondents highest, followed by APPRECIATION

LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally

constituting a 15%.

12. 74 respondents answered and We can see that Company Socials/ parties/celebrations)

motivates employees the most and performance motivates them the least

13. 78.75% employees agree to the fact that incentives and benefits does affect their

motivation level , performance and productivity

14. Most respondents are given insurance as the additional benefits, followed by vacation

tours, gift vouchers and coupons and only a few respondents get education for children as

a benefit from work place.

15. 48% of the employees agree to the fact that competing for rewards influences their performance. On the other hand, about 31% people don’t agree to the fact that competition influences

performance in any ways. 21% of the people agree upon not having any opinion regarding the influence of competition for rewards on the performance.

16. 54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of employees are not entitled to getting a bonus.

17. According to this survey, 69% of people agree to the fact that they do get motivated by bonus.

Whereas, the other 31% say that getting a bonus is not a factor that would motivate them

18. According to this survey, people are retaining their present jobs due to various reasons, out of which the most influencing reasons are – challenging job assignments and a convenient location of the organization. The least preferred reason being vacations and other reasons.

19. 75% of the people are involved in the decisions taken related to their department. This survey

also tells us that 25% people are not involved or given any privilege of involvement in the

decision making of their departmental issues

20. Involvement in decision making effects the performance and improves it, says 81% of the people

that are surveyed, whereas 19% say that it does not really influence their performance or improve

it when these people are involved in the decision making process

21. 81% Respondents agree and are satisfied on being given different opportunities ,

competitive tasks to excel in the organsation.19% respondents deny the fact being given

competitive opportunities in the origination

22. The percentage of respondents having an ongoing recognition programmed and not having a recognition programmed is equal. i.e. 50%

23. Maximum number of respondents have an annual recognition programmed i.e. 45%, followed by a 27.5% respondents having a quarter recongnition programme. Respondents having a monthly recognition programmed constitute 25%.

24. We conclude that out of 80 respondents 25 respondents i.e. 31.25% were nominated for employee of the year award and 20 respondents constituting about 25% have received the award.

25. 75% respondents feel motivated about employee recognition programmers whereas for 25% respondents such programmers do not create much pressure on performance

CONCLUSION

• PROMOTION motivates most of the respondents highest , followed by APPRECIATION LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally

• Incentives and benefits does affect employee motivation level , performance and productivity

• Challenging job tasks , competitive environment , responsibility with authority , recongnition programmes , participation in management and decision making should be there to retain talented employees

• Organisations should focus on providing benefits to the employee and his family

• Organisations should know that bonus works as one of the major motivational tool

ANNEXURE

Dear Respondent ,

I , the Student of Auro University, Surat is conducting a survey to study the “Impact of

Monetary and Non-Monetary Benefits on Employees Performance” in Surat city . Data

which I collect from you will be used for academic purpose only .

Thank You

1) Since how many years you have been working in this organization?

☐ 0-5 Years ☐10-15 Years

☐ 5-10 Years ☐More than 15 Years

2) What is your yearly income?

☐below 10,000 Rs. ☐10,000 – 20,000

☐20,000-50000 50000 and above☐

3) By which method do you earn wages?

a. ☐Hourly

b. ☐Salary

c. ☐Other: _______

4) What kind of benefits are you entitled in the organization? (Multiple checks is allowed)

Monetary:

☐Financial benefits ☐Promotion

☐Pay rise ☐Personal bonus

☐Bonus ☐Job upgradation

☐Cash rewards ☐Cash recongnitons

Non-monetary:

☐Org. benefits ☐Work performance &recongnition

☐Career development and management ☐Coaching / mentoring

☐Work life benefits ☐Working environment

5) How far you are satisfied with the incentives provided by the Organization?

Monetary: Non-monetary:

☐ Highly Satisfied ☐ Highly Satisfied

☐ Satisfied ☐ Satisfied

☐ Neutral ☐ Neutral

☐ Dissatisfied ☐ Dissatisfied

☐ Highly Dissatisfied ☐ Highly Dissatisfied

6) Which type of incentives motivates you more?

(Multiple tick check is allowed)

☐ Incentive Awards ☐Appreciation letters

☐ Promotion ☐monetary

☐non-monetary

7) Please rank the following incentives from Most Motivating to Least Motivating by giving

1- 8 rankings.

Benefits( stock,health insurance)

Company Socials/ parties/celebrations)

Opportunities for promotion

Performance

Based bonuses

Recognition for good work

Salary /hourly wage

Scheduled flexibility

8) Do you think that the incentives and other benefits will influence your performance??

☐Yes ☐ No

9) Does the company provide any other additional benefits? (Check any if applicable)

☐Education for children Insurance for family☐

☐Vacation Tours Gift vouchers & Coupons☐

☐ Others

10) Does competition for rewards influence your performance?

☐Influence

☐Does not influence

☐No opinion

11) Do you get bonus??

☐Yes ☐No

12) Do you get motivated by bonus??

☐Yes ☐ No

13) What are the reasons that you stay at your present job?

(Check all that apply)

☐Challenging job assignments ☐Promotional opportunities

☐Vacation ☐Training Opportunities

☐Salary/Benefits Stability/Security ☐Work assignments vary

☐Interesting Work Hours ☐Retirement Benefit

☐Good boss ☐Location is convenient

☐other_________________ ☐Vacation leave

14) Does the management involve you in decision making which are connected to your

department?

☐Yes ☐No

15) Does that affect your performance?

☐Yes ☐No

16) Are u given opportunity to enhance your skills by doing a different task within the

company??

☐Yes ☐No

17) Does your Ministry/Department have an ongoing Recognition Programme?

☐Yes ☐ No

(If the answer is 'YES', how often?)

☐Monthly ☐Annually

☐Quarterly ☐Other:_____________

18) Have you ever been nominated or received an Employee of the Quarter/Employee of the

Year award?

Nominated :

☐Yes ☐No

Received :

☐Yes ☐No

19) Do u feel motivated about the program?

☐Yes ☐No

If no, would you change something about the reward system?

…………………………………………………

20) What would be the greatest additional employee ben efits your employer could implement

that would assist in morale enhancement?

Monetary: _______________________

Non monetary: ___________________________

PERSONAL DETAILS

Name:

Gender: ☐ Female ☐Male

Age: ☐20-30 ☐30-40

☐40-50 ☐50+

Educational qualification:

☐graduate ☐ post graduate

☐MPhil ☐Phd

Designation in the organisation:

REFERENCES

1) Naresh Malhotra

2) Ashwathaapa

3) http://www.ukessays.com/essays/business/motivation-through-monetary-and-non-

monetary-benefits-business-essay.php

4) http://www.ehow.com/info_8190209_important-factor-employee-motivation.html

5) http://kalyan-city.blogspot.com/2010/06/frederick-herzberg-two-factor-theory.html

6) http://kalyan-city.blogspot.com/2010/06/david-mcclelland-achievement-

motivation.html

7) http://lh6.ggpht.com/_iFIztPmvqg8/TCV1ifbPCTI/AAAAAAAAC3g/5gdwbBhtK3M/

s420/Maslow-Hierarchy-of-Needs-Motivation-Theory.jpg

8) http://kalyan-city.blogspot.com/2010/06/maslow-hierarchy-of-needs-theory-of.html

9) http://kalyan-city.blogspot.in/2010/06/motivation-motivational-factors.html

10) http://www.ehow.com/how-does_5407144_employee-motivation-impact-

organizational-performance_.html

11) http://isearch.babylon.com/?

q=impct+of+benefits+on+employee+motivtion&babsrc=NT_ss&s=web&as=3&ac=0