Employee motivation

Chapter 1

Introduction
1.1 Introduction

The word motivation has been derived from motive which means any idea, need or
emotion that prompts a man in to action. Whatever may be the behaviour of man,
there is some stimulus behind it .Stimulus is dependent upon the motive of the
person concerned. Motive can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives
which control man‘s behaviour at any particular point of time. In general,
the different motives operate at different times among different people and
influence their behaviours. The process of motivation studies the motives of
individuals which cause different type of behaviour.

Definition of Motivation
According to Edwin B Flippo, ―Motivation is the process of attempting to
influence others to do their work through the possibility of gain or reward.

Significance of Motivation
Motivation involves getting the members of the group to pull weight
effectively, to give their loyalty to the group, to carry out properly the purpose
of the organization. The following results may be expected if the employees are
properly motivated.

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1. The workforce will be better satisfied if the management provides

them with opportunities to fulfil their physiological and psychological
needs. The workers will cooperate voluntarily with the management
and will contribute their maximum towards the goals of the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their

skills and knowledge so that they are able to contribute to the progress
of the organization. This will also result in increased productivity.

3. The rates of labour‘s turnover and absenteeism among the workers will
be low.

4. There will be good human relations in the organization as friction

among the workers themselves and between the workers and the
management will decrease.

5. The number of complaints and grievances will come down. Accident

will also be low.

6. There will be increase in the quantity and quality of products. Wastage

and scrap will be less. Better quality of products will also increase the
public image of the business.

Theories of Motivation.
Understanding what motivated employees and how they were motivated was
the focus ofmany researchers following the publication of the Hawthorne study
results (Terpstra, 1979).Twelve major approaches that have led to our

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understanding of motivation are McClelland‘sAchievement Need Theory,

Behaviour Modification theory; Abraham H Mallow‘s needhierarchy or
Deficient theory of motivation. J.S. Adam‘s Equity Theory, Vrooms
Expectation Theory, Herzberg‘s Two factor Theory, Psychological
theory, Drive-reduction theory, Alderfer‘s ERG theory, Self-determine
theory, Temporal motivational theory, Goal-setting theory.

1. McClelland’s Achievement Need Theory.

According to McClelland‘s there are three types of needs;
Need for Achievement (n Ach);
This need is the strongest and lasting motivating factor. Particularly in case of
persons who satisfy the other needs. They are constantly pre occupied with a
desire for improvement and lack for situation in which successful outcomes
are directly correlated with their efforts. They set more difficult but achievable
goals for themselves because success with easily achievable goals hardly
provides a sense of achievement.

Need for Power (n Pow)

It is the desire to control the behaviour of the other people and to manipulate
the surroundings. Power motivations positive applications results in
domestic leadership style, while it negative application tends autocratic style.

Need for affiliation (n Aff)

It is the related to social needs and creates friendship. This results in
formation of informal groups or social circle.

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2. Behavioural Modification Theory

According to this theory people behaviour is the outcome of favourable and
unfavourable pastcircumstances. This theory is based on learning theory.
Skinner conducted his researchesamong rats and school children. He found
that stimulus for desirable behaviour could bestlengthened by rewarding it at
the earliest. In the industrial situation, this relevance of thistheory may be
found in the installation of financial and non-financial incentives.

More immediate is the reward and stimulation or it motivates it. Withdrawal of

rewardIncase of low standard work may also produce the desired result.
However, researches showthat it is generally more effective to reward desired
behaviour than to punish undesiredbehaviour.

3. Abraham H Maslow Need Hierarchy or Deficient theory of

Motivation.
The intellectual basis for most of motivation thinking has been provided by
behaviouralscientists, A.H Maslow and Frederick Herzberg, whose published
works are the ―Bible of Motivation”. Although Maslow himself did not apply
his theory to industrial situation, it haswide impact for beyond academic circles.
Douglous Mac Gregor has used Maslow‘s theoryto interpret specific problems
in personnel administration and industrial relations.

The crux of Maslow‘s theory is that human needs are arranged in hierarchy
composed office categories. The lowest level needs are physiological and the
highest levels are the self-actualization needs. Maslow starts with the formation
that man is a wanting animal with ahierarchy of needs of which some are lower
ins scale and some are in a higher scale orsystem of values. As the lower needs

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are satisfied, higher needs emerge. Higher needscannot be satisfied unless

lower needs are fulfilled. A satisfied need is not a motivator. Thisresembles the
standard economic theory of diminishing returns. The hierarchy of needs
atwork in the individual is today a routine tool of personnel trade and when
these needs areactive, they act as powerful conditioners of behaviour- as
Motivators. Hierarchy of needs; the main needs of men are five. They are
physiological

Hierarchy of needs; the main needs of men are five. They are physiological
needs, safety needs, social needs, ego needs and self-actualization needs, as
shown in order of their importance.

Self-
Actalisation

Ego Needs

Social needs

Safety needs

Physiological Needs

The above five basic needs are regarded as striving needs which make a person
do things. The first model indicates the ranking of different needs. The second is
more helpful in indicating how the satisfaction of the higher needs is based

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on the satisfaction of lower needs. It also shows how the number of person who
has experienced the fulfilment of the higher needs gradually tapers off.

i. Physiological or Body Needs: - The individual move up the ladder

responding first to thephysiological needs for nourishment, clothing and
shelter. These physical needs must bequeathed with pay rate, pay
practices and to an extent with physical condition of the job.

ii. Safety: - The next in order of needs is safety needs, the need to be free
from danger, eitherfrom other people or from environment. The
individual want to assured, once his bodily needs are satisfied, that they
are secure and will continue to be satisfied for foreseeablefeature. The
safety needs may take the form of job security, security against disease,
misfortune, old age etc., as also against industrial injury. Such needs are
generally met bysafety laws, measure of social security, protective
labour laws and collective agreements.

iii. Social needs: - Going up the scale of needs the individual feels the desire
to work in acohesive group and develop a sense of belonging and
identification with a group. He feelsthe need to love and be loved and
the need to belong and be identified with a group. In alarge organization
it is not easy to build up social relations. However close relationship
canbe built up with at least some fellow workers. Every employee wants
to feel that he iswanted or accepted and that he is not an alien facing a
hostile group.

iv. Ego or Esteem Needs: - These needs are reflected in our desire for status
and recognition,respect and prestige in the work group or work place

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such as is conferred by the recognitionof one‘s merit by promotion, by

participation in management and by fulfilment of workers urge for self-
expression. Some of the needs relate to ones esteeme.g.; need for
achievement, self-confidence, knowledge, competence etc. On the job,
thismeans praise for a job but more important it means a feeling by
employee that at all times hehas the respect of his supervisor as a
person and as a contributor to the organizational goals.

v. Self-realization or Actualization needs: - This upper level need is one

which whensatisfied provide insights to support future research
regarding strategic guidance fororganization that are both providing and
using reward/recognition programs makes theemployee give up the
dependence on others or on the environment. He becomes growth
oriented, self-oriented, directed, detached and creative. This need
reflects a state defined interms of the extent to which an individual
attains his personnel goal. This is the need whichtotally lies within
oneself and there is no demand from any external situation or person.

4. Alderfer's ERG theory

Alderfer, expanding on Maslow's hierarchy of needs, created the ERG theory.

This theory posits that there are three groups of core needs — existence,
relatedness, and growth, hence the label: ERG theory. The existence group is
concerned with providing our basic material existence requirements. They
include the items that Maslow considered to be physiological and safety
needs. The second group of needs are those of relatedness- the desire we have
for maintaining important personal relationships. These social and status
desires require interaction with others if they are to be satisfied, and they align
with Maslow's social need and the external component of Maslow's esteem

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classification. Finally, Alderfer isolates growth needs as an intrinsic desire for

personal development. These include the intrinsic component from Maslow's
esteem category and the characteristics included under self-actualization.

5. Self-determination theory

Edward L. Deci and Richard M. Ryan, during the early nineties, proposed the
theory of self-determination; focusing on the degree to which an individual‘s
behaviour is self-motivated and self-determined. According to Deci and Ryan, the
three psychological needs motivate the self to initiate specific behaviour and
mental nutriments that are essential for psychological health and well-being for an
individual. These needs are said to be universal, innate and psychological and
include the need for competence, autonomy, and psychological relatedness. When
these needs are satisfied, there are positive consequence (e.g. well-being and
growth), we're motivated, productive and happy. When they‘re thwarted, our
motivation, productivity and happiness plummet. Deci and Vansteenkiste claim
that there are three essential elements to the theory: 1. Humans are inherently
proactive with their potential and mastering their inner forces (such as drive and
emotions). 2. Humans have an inherent tendency towards growth, development
and integrated functioning. 3. Optimal development and actions are inherent in
humans but they don‘t happen automatically. Whether this aspect of our humanity
emerges in our lives depends on whether the conditions around us support it. The
main mechanisms of Motivation 2.0 are more stifling than supportive. Of course
these are necessary, as stated earlier, but the less salient they are made, the better.
Instead, we should focus our efforts on creating environments (at our workplace,
schools, home) for our innate psychological needs to flourish. Other researchers
also reach the same conclusion, i.e. human beings have an innate

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drive to be autonomous, self-determined yet connected to one another.

When these conditions are met, internal drive is liberated and people achieve
more and live richer lives.

6. Temporal motivation theory

The latest approach in developing a broad, integrative theory of motivation

is Temporal Motivation Theory. Introduced in a 2006 Academy of Management
Review article, it synthesizes into a single formulation the primary aspects of
several other major motivational theories, including Incentive Theory, Drive
Theory, Need Theory, Self-Efficacy and Goal Setting. It simplifies the field of
motivation and allows findings from one theory to be translated into terms of
another. Another journal article that helped to develop the Temporal
Motivation Theory, "The Nature of Procrastination" received American
Psychological Association's George A. Miller award for outstanding
contribution to general science.

7. Goal-setting theory

Goal-setting theory is based on the notion that individuals sometimes have a

drive to reach a clearly defined end state. Often, this end state is a reward in
itself. A goal's efficiency is affected by three features: proximity, difficulty and
specificity. Good goal setting incorporates the SMART criteria, in which goals
are: specific, measurable, accurate, realistic, and timely. An ideal goal should
present a situation where the time between the initiation of behaviour and the
end state is close. This explains why some children are more motivated to
learn how to ride a bike than to masteralgebra. A goal should be moderate, not
too hard or too easy to complete. In both cases, most people are not optimally

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motivated, as many want a challenge (which assumes some kind of insecurity

of success). At the same time people want to feel that there is a substantial
probability that they will succeed. Specificity concerns the description of the
goal in their class. The goal should be objectively defined and intelligible for
the individual. A classic example of a poorly specified goal is to get the
highest possible grade. Most children have no idea how much effort they need
to reach that goal.

8. J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If
the employee perceives inequity, she/he will act to correct the inequity: lower
productivity, reduced quality, increased absenteeism, voluntary resignation.

9. Vrooms Expectation Theory

Vroom‘s theory is based on the belief that employee effort will lead to
performance andperformance will lead to rewards (Vroom, 1964). Reward
may be either positive or negative.The more positive the reward the more
likely the employee will be highly motivated.Conversely, the more negative
the reward the less likely the employee will be motivated.

10. Herzberg’s Two Factor Theory

Douglas McGregor introduced the theory with the help of two views; X
assumptions areconservative in style Assumptions are modern in style.

X Theory
1. Individuals inherently dislike work.
2. People must be coerced or controlled to do work to achieve the

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objectives.
3. People prefer to be directed.

Y Theory
1. People view work as being as natural as play and rest
2. People will exercise self-direction and control towards
achieving objectives they arecommitted too.
3. People learn to accept and seek responsibility.

11. Psychological theory

Motivation can be divided into two types: intrinsic (internal) motivation

and extrinsic (external) motivation.

i. Intrinsic motivation

Intrinsic motivation refers to motivation that is driven by an interest or

enjoyment in the task itself, and exists within the individual rather than relying
on external pressures or a desire for reward. Intrinsic motivation has been
studied since the early 1970s.The phenomenon of intrinsic motivation was first
acknowledged within experimental studies of animal behavior. In these
studies, it was evident that the organisms would engage in playful and
curiosity driven behaviours in the absence of reward. Intrinsic motivation is a
natural motivational tendency and is a critical element in cognitive, social, and
physical development. Students who are intrinsically motivated are more likely
to engage in the task willingly as well as work to improve their skills, which
will increase their capabilities.Students are likely to be intrinsically motivated
if they:

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attribute their educational results to factors under their own control, also
known as autonomy
believe they have the skills to be effective agents in reaching their desired
goals, also known as self-efficacy beliefs
are interested in mastering a topic, not just in achieving good grades

ii. Extrinsic motivation

Extrinsic motivation refers to the performance of an activity in order to attain

an outcome, whether or not that activity is also intrinsically motivated.
Extrinsic motivation comes from outside of the individual. Common extrinsic
motivations are rewards (for example money or grades) for showing the
desired behaviour, and the threat of punishment following misbehaviour.
Competition is in an extrinsic motivator because it encourages the performer to
win and to beat others, not simply to enjoy the intrinsic rewards of the activity.
A cheering crowd and the desire to win a trophy are also extrinsic incentives.

12. Drive-reduction theory

There are a number of drive theories. The Drive Reduction Theory grows out
of the concept that people have certain biological drives, such as hunger. As
time passes the strength of the drive increases if it is not satisfied (in this case
by eating). Upon satisfying a drive the drive's strength is reduced. The theory is
based on diverse ideas from the theories of Freud to the ideas offeedback
control systems, such as a thermostat.

Drive theory has some intuitive or folk validity. For instance when preparing
food, the drive model appears to be compatible with sensations of rising hunger as
the food is prepared, and, after the food has been consumed, a decrease in

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subjective hunger. There are several problems, however, that leave the validity
of drive reduction open for debate. The first problem is that it does not explain
how secondary reinforces reduce drive. For example, money satisfies no
biological or psychological needs, but a pay check appears to reduce drive
through second-order conditioning. Secondly, a drive, such as hunger, is
viewed as having a "desire" to eat, making the drive a homuncular being—a
feature criticized as simply moving the fundamental problem behind this
"small man" and his desires.

Drive reduction theory cannot be a complete theory of behaviour, or a hungry

human could not prepare a meal without eating the food before he finished
cooking it. The ability of drive theory to cope with all kinds of behaviour, from
not satisfying a drive (by adding on other traits such as restraint), or adding
additional drives for "tasty" food, which combine with drives for food in order

Incentives
An incentive is something which stimulates a person towards some goal. It
activates humanneeds and creates the desire to work. Thus, an incentive is
a means of motivation. Inorganizations, increase in incentive leads to better
performance and vice versa.

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 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

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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.

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 =f(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
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

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• Setting work related goals

• Restructuring jobs

• Base rewards on job performance

Essentially, there is a gap between an individual‘s 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.

1.2 Industry Profile

History of Tata Steel

History of an industrial empire from the illustrious effort of India‘s original iron
man and the remarkable people who thereafter, have kept the fire burning.

The story of Tata Steel is a century old. And so is the story of steel in India.
Etched with the visions and the origins and ascent of Tata Steel, which has
culminated into the century long hardships of a single man, the story has flowed
through ages to redefine steel in every way. The saga, which started in 1907,
completes a century of trust in 2007. Over the years this one company
hasexposed the various shapes and forms in which steel can be redefines
conventional wisdom in myriad ways.

The great Iron Pillar, a thousand years older than the Outab Minar stands as a
living testimony to the unmatched skills of ancient Indian metallurgist. They
Macro Polo‘s travels there is a reference to andanique a corruption of the
Persian hundawanity, i.e. Indian steel. Tavernier, the 17th century French
traveller, mentions the existences of a steel industry in the ―kingdom of
Golconda‖. And the Arab Edrisi declared, ―The Hindus excel in the
manufacture of iron‖. For centuries, therefore, steel of remarkably superior

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quality was being fashioned in India out of primitive furnaces to be used,

for instance, the preparation of medicine and in the manufacture of arms. It
was only in the last century with the advent of the Industrial Revolution that
the time-honoured skills of Indian ironsmiths began to die.

The Industrial Revolution in England ushered in an era of unparalleled peace

and prosperity. Modern science before fruit in an unprecedented technological
development and industrial progress. This left countries like India, where
industrialisation as still in its infancy, feeling slightly dazzled and
overwhelmed. The leading Indian intellectuals of the 19th century believed that
if India ere to keep pace with the world it would have to master the modern
scientific methods of the West.

In these times was born JamsetjiNusserwanji Tata. Within his lifetime,

Jamsetji was to witness the birth of a revolutionary Indian nationalism that
would assist in the emergence of independent India, which he helped to create
and whose presence could already be felt when he died in 1904.

Birth of the Pioneer

Jamsetji Nursserwanji Tata was born in 1839 in Navsari, a small town in

Gujarat, into a family of priests. Having completed his education, he joined
his father‘s firm at the age of 20. Later he went to England, and set up a
profitable private trading company with a capital of Rs.21000 only.

Way back in 1882a report by a German geologist, Ritter Yon Schwartz aroused
Jamsetji‘s interest in the black metal. After a disappointing stint with iron ores in
areas close to Nagpur, the much-awaited opportunity came in 1899 when the
Viceroy, Lord Curzon, liberalised the mineral concession policy. The same year,
Major R H Mahon published an incisive report on the subject, announcing

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that it was time that India started manufacturing its own iron and steel.
Mahon suggested the Jharia coalfields as a source of fuel. The Salem district
in the South, the Chanda district in the Central Provinces and Bengal as good
for yielding the iron ore. To initiate the project, Jamsetji went to England and
secured an audience with the then Secretary of State for India, Lord George
Hamilton, who appreciated the idea and readily gave his support.

The War Years

Soon after the outbreak of the First World War in 1914, the plant was geared to
meet the priority needs of the government. It worked on a 24 hour schedule,
and sold its product to the government at a fraction of the price prevailing in the
open market. Two more open hearth furnaces of 60 tonnes capacity each were
added to make more steel. Tata‘s supplied 1500 miles of rails and 300,000
tonnes of steel to the allies‘ war effort. During this period, Tata steel embarked
on an expansion of the works. The greater extension programme was taken up
in 1917 to raise the steel production to 500,000 tonnes. This phase saw the then
latest Duplex process of steelmaking being introduced along with an electric
driven blooming mill.

The programme was delayed due to the war and could be completed only in
1924. As against the original estimate of Rs.67.6 million, the final cost came
to Rs. 196 million.

The company progressively added new units such as the third Duplex furnace
in 1929, two new roughing and finishing mills in 1933, and a new blast furnace
along with coke ovens in 1935. Simultaneously, mining leases were renewed or
obtained afresh and attention was given to ancillaries and, a capacity of 800,000
tonnes of saleable Steel was attained by 1939. At that time, Tata Steel came to

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be regarded as the largest Steel plant in the British Empire and also the cheapest
exporter of pig iron in the world (the latter reminiscent of the state in 1999).

During the years of the Second World War between 1939 and 1945, Tata Steel
contributed in a big way towards supplying war materials. This was a result of
successful experimentation and innovation with existing resources. At the
instance of the Government, in 1941, Tata Steel put up a wheel, tyre and axle
plant to meet the requirements of the railways; in 1942 a mill to manufacture
1,000 tonnes per month of armour plates for defence carriers was added; a
benzol recovery plant for producing toluene needed for the manufacture of
explosives was put up in 1943; special quality sheets of alloy Steel and of high
silicon were made in 1944-45 along with Steel for the famous ―Tatanagar‖
tanks.

Expansion to Two Million Tonnes

The Steel target of six million tonnes of ingot Steel per annum in India set for
the second five year plan included expansion of the existing Steel plants. Tata
Steel was permitted to go in for an expansion to two million tonnes of ingot
Steel per annum. Tata Steel‘s expansion programme, the largest project in the
private sector, was started in 1955 and completed by December 1958.

The rated daily capacity of the five blast furnaces in existence prior to TMP
was 4200 tonnes. Blast furnace F, with a rated capacity of 1650 tonnes per day,
provided sufficient hot metal for the two million tonne programme.

By providing sintered ore, blast furnace production increased by 10% to an

annual output of 1,870,000 tonnes. Blast furnace F was completed and put in
operation on October 10, 1958. One of the largest and most modern furnaces in
the world, it was designed for high top-pressure operation and the use of sinter

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in the burden. The blowing-in ceremony of blast furnace F was regarded as the
official christening of TMP.

A huge Steel Melting shop no. 3 (closed down in 1999) comprising two 800
tonne hot metal mixers, three 32 tonne Bessemer converters and seven 200
tonne open-hearth furnaces (with the possibility of adding an eighth furnace)
was the corner stone of steelmaking under TMP.

A new rolling mill complex was constructed consisting of soaking pits,

Blooming Mill no.2 and a sheet Bar and Billet mill (this was closed in early
1999). Between the two mills, the primary capacity was nearly three million
tons of ingots per annum. The continuous sheet bar and billet mill no.2 was the
main mill for semi-finished products for feeding the sheet mills, tin bars for
the tinplate company and gothic for the manufacture of seamless tubes.

The Medium and Light Structural mill, which was also installed along with the
other mills, was capable of rolling diversified products in wide ranges and was
designed to roll 350,000 tonnes of blooms per annum. The products
manufactured were to be mainly beams, channels, angles, junior beams and
parallel flange beams-the last two for the first time in country. The revamping
of the rail and structural mill (closed down in 1989), sheet bar and billet mill
no.1 (closed down in 1998) and the merchant mill were also undertaken. A new
merchant mill no.2 was commissioned in 1962. The additional service facilities
included water supply arrangement, power supply and distribution to meet the
total maximum demand of 125,000 kW and railway track facilities. The two
million tonne programme was completed on schedule and involved no major
delay.

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Period between1960-80

During the decade of the sixties, consideration was given to the expansion of
Tata Steel in the private sector. In July 1961, Tata Steel obtained an industrial
license for setting up alloy steel.

Sinter plant

A new 1.37 mtpa sinter plant (SP2) to raise the total sinter production to
2.5 mtpa and thereby, increase sinter in blast furnaces to around 65%.

Coke ovens: A coke oven battery with 54 ovens using stamp charging
technology to make coke of internationally acceptable quality was
established. Stamp charging has given following advantages:

1. Superior coke strength after reaction (CSR) compared with top

charged coke, as well as higher bulk density.
2. Higher yield of sized coke for the blast furnaces.
3. Improved blast furnace productivity because of usage of coke with better
room temperature and high temperature properties.

Waste recovery

1 Mtpa Waste recycling plant to recover metallic from the plant was
established. Ancillary technologies: The main technology improvement in phase
II was the introduction of coal injection in blast furnaces. The limited reserves
of coking coal in India have always spurred Indian iron makers to strive for
lower coke rates. Tata Steel commissioned a coal injection unit in 1991 for its
F blast furnace. The system developed by Kloeckner Stahl Technik (KST) was
adopted on the success of coal injection in F blast furnace; the technology was

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extended to G blast furnace as a part of modernisation phase III and

thereafter, also incorporated in D blast furnace.

Modernization phase III

The success of modernization phases I and II and the need to enter the flat
product market, provided the necessary impetus to embark on the crucial third
phase of modernization. Keeping in view the international and domestic Steel
scenario, it was felt necessary for Tata Steel to set up an internationally
competitive flat products complex. Apart from a one million tonne hot strip
mill, a new one million tonne G blast furnace was also installed. The landmarks
during this phase were:

1. Iron-making: To augment steelmaking capacity, a corresponding

increase in hot metal production was necessary. Hence, a highly
automated blast furnace of 1 mtpa capacity, called the G blast furnace,
was commissioned in November 1992.
2. Steel-making: A new LD shop 2 with two 130t capacity LD vessels,
with one out of two operating at any given moment, was commissioned.

New Cold Rolling Mill at Tata Steel

In addition to modernization, Tata Steel has defined its vision for the next
millennium and has embarked on an unprecedented expansion in flat products.
As a first step, taking into account the doubling of the capacity of the HSM, a
1.2 million tonnes cold rolling complex has been commissioned in Jamshedpur
towards the middle of the year 2000. Some of the salient features of this new
development are highlighted.

Facilities in the cold rolling complex

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Internationally, the technology of cold rolling has developed to an extremely

sophisticated level. This progress has been augmented by the work on
technology by equipment suppliers around the world, focused on further
improving the processes to produce better products, thereby propelling cold
rolled strips to higher levels of quality and cost competitiveness.

The major facilities include a pickling-cum-tandem cold rolling mill, an

annealing facility, and galvanizing lines.

Steel-making and casting

Major developments in the steel-making and casting areaincludes the following:

1. Switchover from duplex and open hearth steelmaking to the oxygen

process.
2. Adopting optimum KD vessel configuration (to accommodate the high
slag volume as a result of high silicon and phosphorus in hot metal)
and use of bottom inert gas agitation.
3. Strategy to make low phosphorus Steel.
4. Improvement of vessel lining life from 160-180 heats to over
1000 heats
5. Adoption of continuous casting through billet and slab casters.

Tata Steel Today

As a result of innovations and technological up-gradation, Tata Steel, has

become a well-run ultra-modern plant - one of the best in the world.
Fundamental changes in some metallurgical parameters have brought about
this remarkable transformation. Necessity became the mother of invention and

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numerous innovations invoked improvement. The metallurgical

changes introduced were essentially centredon:

1. Reducing alumina level in sinter from 4.4 to 2.5 %.

2. Improving in coke quality
3. Making changes in the fluxes used in sinter-making essentially to
decrease the alkali input.
4. Adopting the optimum LD vessel configuration and blowing
conditions to accommodate the high slag volume required to deal with
high silicon and phosphorus in Indian hot metal.
5. Increasing the yield during LD steelmaking
6. Introducing continuous casting (CC) instead of ingot casting to
increase the net yield.

All these factors have made Tata Steel internationally cost competitive. In
terms of hot metal costs, Tata Steel is amongst the lowest in the world and has a
clear advantage over other major integrated producers. The cost of conversion
from hot metal to a finished product such as hot rolled coils where Tata Steel
has not been very competitive so far would be taken care of in the near future as
investments already made to achieve the results foreseen. High ash in coke,
poor room temperature and high temperature strengths of coke, high alumina in
the iron oxide feed, high silicon in hot metal, low yields during steelmaking,
low yield of finished products, high energy consumption, high manpower, etc.
have been the weaknesses not only of Tata Steel but of the Indian Steel industry
as a whole.

Appropriate steps taken by the Company have already resulted in better

yield lower energy consumption, lower silicon in hot metal, lower silicon in
hot metal, lower lime consumption in steelmaking, higher vessel life, etc., all
of which augur well for the Steel Company in future.

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 Employee motivation

Tata Steel in the New Millennium

Tata Steel is all set to establish itself as the supplier of choice by delighting all
its customers with its products and services. The Organisation is envisaged to
become the most cost competitive Steel plant to serve the community and the
nation. Where Tata Steel would venture, others will follow. The 21st century
will certainly see a new Tata Steel - an integrated Steel plant in India with
truly world class facilities along with a will to win amongst a committed and
streamlined workforce.

Steel Making All the Ages

Way back in 1907 the greatest visionary of all times, Mr. J.N Tata established
India‘s first Iron and Steel making company and named it the ‗Tata Iron and
Steel Industry‘. The company was established primarily to provide India with a
substantial supply of raw material for its industrial usage. Within a few years of
establishment, the company took a major bound and established the first ever
‗Blast Furnace‘ in India in 1911. Ever since there has been no looking back,
and soon the company became a giant industrial group that spreads its arms not
only in India but across several other nations too. The company‘s journey so
far, has been full of events that has mark several milestones achievements.
Today, the Tata Iron Steel industry celebrates its glorious hundredth year of
existence and fondly looks back at the time when its pioneers saw a dream that
they are living even today.

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1.3 Company Profile

Vision

Aspire to be the global steel industry benchmark for Value Creation and
Corporate Citizenship.

Achieve this through:

1. People – by fostering team work, nurturing talent, enhancing

leadership capability and acting with pace, pride and passion.
2. Offer – by becoming the supplier of choice, delivering premium products
and services, and creating value for our customers.
3. Innovation – by developing leading-edge solutions in technology,
processes and products.
4. Conduct – by providing a safe and healthy workplace, respecting the
environment, caring for our communities and demonstrating high
ethical standards

Mission
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 Employee motivation

Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel
strives to strengthen India‘s industrial base through the effective utilization
of staff and materials. The means envisaged to achieve this are high
technology and productivity, consistent with modern management practices.

Tata Steel recognizes that while honesty and integrity are the essential
ingredients of a strong and stable enterprise, profitability provides the main
spark for economic activity.

Overall, the Company seeks to scale the heights of excellence in all that it does
in an atmosphere free from fear, and thereby reaffirms its faith in democratic
values.

Organisational Structure

Department profile

The organization has mainly 5 departments. They are

1. Human resource department
2. Financial department
3.Purchase department
4. Marketing department
5. Production department

Organizational chart of Human Resource Department

The managing human resource in the organization is an important task.

Human resource department is doing the management of human resource in
the organization. Tata Steels follows a system in HR department that each
authority coming under the General Manager (works) has to report directly

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 Employee motivation

to General Manager (Works) in the hierarchy. This will helps to speed up the
communication flow in the organization.

General Manager (Works)

Manager Industrial Relations

Jr. Manager Establishment

Sr. Officer HR

Security

Time Office Assistants

Organizational chart of Finance Department

Sound financial decisions have been one of the critical practices in the
success of Tata Steel Industries, proper planning and long vision of the
financial managers help the company to undergo to smooth sail. All
monetary transactions of the company are handled and brought to account by
the finance department.

Deputy Manager Accounts

Assistant manager

Sr. Accounts Officer

Assistants

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 Employee motivation

Organizational chart of Purchase department

The purchase manager is the only person who is the having the prime authority
to make orders for the purchase of raw materials. After referring the stock report
of raw materials and finished goods, the purchase manager purchase the raw-
materials in order to ensure the continuous flow of production.

Sr. Purchase Manager

Assistant Manager Purchase

Purchase Officer

Assistants

Organizational chart of Production Department

The production manager and his team are responsible for realizing the visions of
the company within constraints of technical possibility. This involves
coordinating the operations of various production activities and maintains a
good flow of work without any blockage.

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 Employee motivation

Production
Manager

Deputy Manager Deputy Manager

Production Maintenance

Jr. Manager Production Jr. Manager Production

Organizational chart of Marketing Department

Sound marketing decisions have been one of the critical practices in the
success of Tata Steel Industries, proper planning and long vision of the
marketing managers help the company to undergo to smooth sail marketing.
All marketing and promotional activities of the company are handled by the
marketing department.

Marketing Manager

Sales Manager

Regional Sales Manager

Area Sales Manager

Sales Officer

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Chapter 2

Scope and Objectives

2.1 Scope of study

The factors that motivate the employees may change with change in time
because the needs of the employees too change with change in time. Continuous
monitoring and close observation of factors that motivate the employees is
necessary to maintain a competent work force. Only with a competent work
force an organisation can achieve its objectives. Moreover, human resource is
the most valuable asset of an organisation. A future study within the department
analysis to know to what extent these factors motivate the employee is required.

2.2 Objectives

1. To study the important factors which are needed to motivate

the employees.

2. To analyze the monetary method of motivating employee.

3. To analyze the non-monetary method of motivating employee
4. To study the effects of monetary and non-monetary benefits provided by
the organisation on the employee‘s performance.
5. To study the effect of job promotion on employees.
6. To learn the employee‘s satisfactions on the interpersonal relationship
exist in the organisation.
7. To provide the practical suggestion for the improvement of
organisation‘s performance.

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 Employee motivation

8. To understand the importance of employee motivation as in Tata Steel.

9. To understand the difficulties/challenges found in caring out
the strategies.
10. Finally, to recommend how Tata Steel can improve its
motivational strategies.

2.3 Limitation

This questionnaire was revised several times before finalization. During those
revisions, some questions and some answer choices were removed in order to
make the questionnaire as short as possible while still providing worthwhile
data. The quality of the data collected will still be sufficient for the study, but
perhaps not as specific as a lengthier questionnaire could provide. Because the
questionnaire was distributed to only one place of work, the data is not
expected to reflect an incredibly wide range of perspectives. To apply results to
a greater population, a larger, more random sample would need to be taken.

1. The data is also gathered from secondary source thus any error in the
information would have also got replicated in this report.
2. Time constraint was the major limitation faced by the researcher.
3. Another problem was knowledge constraint and this report was an attempt
to gather as much of relevant data as possible.

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 Employee motivation

2.4 Hypothesis

A hypothesis is a preliminary or tentative explanation or postulate by the

researcher of what the researcher considers the outcome of an investigation
will be. It is an informed/educated guess. It indicates the expectations of the
researcher regarding certain variables. It is the most specific way in which an
answer to a problem can be stated.

Research hypotheses are the specific testable predictions made about the
independent and dependent variables in the study. Hypotheses are couched in
terms of the particular independent and dependent variables that are going to
be used in the study. The research hypothesis of this study is as follows.

Ho: There is no significant relationship between incentives and

employee‘s performance.

Ho: There is no significant relationship between career

development opportunities and the extent of employee motivation

Ho: There is no significant relationship between performance appraisal

system and the extent of motivation.

Ho: There is no significant relationship between interpersonal relationship in the

organization and extent of motivation.

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Chapter 3

Research Methodology

3.1 Definition
Research is a systematic method of finding solutions to problems. It is
essentially aninvestigation, a recording and an analysis of evidence for the
purpose of gaining knowledge. According to Clifford woody, ―research
comprises of defining and redefining problem, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, reaching
conclusions, testing conclusions to determine whether they fit the
formulated hypothesis‖

Nature of Research
Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied. Descriptive
research answers the questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the research
cannot describe what caused a situation. Thus, descriptive research cannot be
used to create a causal relationship, where one variable affects another. In other
words, descriptive research can be said to have a low requirement for internal
validity.

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 Employee motivation

Questionnaire
A well-defined questionnaire that is used effectively can gather information on
both overallperformance of the test system as well as information on specific
components of the system.A defeated questionnaire was carefully prepared and
specially numbered. The question were arranged in proper order, in accordance
with the relevance.

Nature of Questions Asked

The questionnaire consists of open ended, dichotomous, rating and
ranking questions.

3.2 Method of Data Collection

1. Primary Data
Primary data are in the form of ―raw material‖ to which statistical methods
are applied for the purpose of analysis and interpretations. The primary sources
are discussion with employees, data‘s collected through questionnaire.

2. Secondary Data
Secondary data‘s are in the form of finished products as they have already
been treated statistically in some form or other. The secondary data mainly
consists of data and information collected from records, company websites and
also discussion with the management of the organization. Secondary data was
also collected from journals, magazines and books.

3.2 Sample Size

A finite subset of population, selected from it with the objective of investigating
its properties called a sample. A sample is a representative part of the

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 Employee motivation

population. A sample of 50 respondents in total has been randomly

selected. The response to various elements under each questions were total
for the purpose of various statistical testing.

Universe
The universe chooses for the research study is the employees of Tata Steel
Industries Ltd.

Sample Size.
Number of the sampling units selected from the population is called the size
of the sample. Sample of 50 respondents were obtained from the population.

Sample Procedure.
The procedure adopted in the present study is probability sampling, which is
also known as chance sampling. Under this sampling design, every item of
the frame has an equal chance of inclusion in the sample.

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 Employee motivation

Chapter 4
Data Analysis and Interpretation

Response about the support from the HR department

Sr. no Particular No. Of Percentage

Respondents
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly dissatisfied 0 0
Total 50 100

Response about the support from the HR department

70

60

50

40

30 Series 1

20

10

0
Highly satisfied Satisfied Neutral dissatisfied highly
dissatisfied

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 Employee motivation

INTERPRETATION
The table shows that 58% of the respondents are satisfied with the support they
are getting from the HR department.

Management is interested in motivating the employees

Sr. No Particulars No .of Percentage
Respondents
1 Strongly agree 27 54
2 Agree 30 40
3 Neutral 3 6
4 Disagree 0 0
5 Strongly disagree 0 0
Total 50 100

Management is interested in motivating the employees

60

50

40

30
Series 1
20

10

0
Strongly agree Agree Neutral Disagree Strongly
disagree

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 Employee motivation

INTERPRETATION
The table shows that 54% of the respondents are strongly agreeing that the
management is interested in motivating the employees.

The type of incentives motivates you more

Sr. No Particulars No. Of Percentage

Respondents
1 Financial incentives 15 30
2 Non-financial incentives 9 18
3 Both 26 52
Total 50 100

The type of incentives motivates you more

Fiancial Incentives
Non-financial Incentives
Both

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 Employee motivation

INTERPRETATION
The table shows that 52% of the respondents are expressing that both financial
and non-financial incentives will equally motivate them.

Satisfaction with the present incentives scheme

Sr. No Particulars No. Of Percentage

Respondents
1 Highly satisfied 18 36
2 Satisfied 29 58
3 Neutral 3 6
4 Dissatisfied 0 0
5 Highly dissatisfied 0 0
Total 50 100

Satisfaction with the present incentives

scheme
70

60

50

40

30 Satisfaction with the present

incentives scheme
20

10
0
HighlySatisfied Neutral Dissatisfied Highly
satisfied dissatisfied

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 Employee motivation

INTERPRETATION
The table shows that 58% of the respondents are satisfied with the present
incentive scheme of the organization.

The company is eagerness in recognizing and

acknowledging Employee’s work
Sr. No Particulars No. Of Percentage
respondents
1 Strongly agree 18 36
2 Agree 29 58
3 Neutral 3 6
4 Disagree 0 0
5 Strongly disagree 0 0
Total 50 100

Company's eagerness in recognizing & acknowledging

employee's work
70

60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Company's eagerness in recognizing & acknowledging employee's work

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 Employee motivation

Interpretation
From the study, 58% of employees agree that the company is eager in
recognizing and acknowledging the work, 36% strongly agree and 6% showed
neutral response.

Periodical increase in salary

Sr. No Particulars No. Of Percentage
respondents
1 Strongly agree 12 24
2 Agree 23 46
3 Neutral 3 6
4 Disagree 9 18
5 Strongly disagree 3 6
Total 50 100

periodical increase in salary

50
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree

periodical increase in salary

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 Employee motivation

Interpretation
The table shows 46% of employees agree that there is a periodical increment in
the salary.

Job security existing in the company

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 15 30
2 Agree 18 36
3 Neutral 11 22
4 Disagree 3 6
5 Strongly disagree 3 6
Total 50 100

Job security
40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Job security

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 Employee motivation

Interpretation
The table shows 35% of employees agree with good job security exist in the
company.

Good relations with the co-workers

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 15 30
2 Agree 27 54
3 Neutral 8 16
4 Disagree 0 0
5 Strongly disagree 0 0
Total 50 100

Good relaion with the co-workers

60

50

40

30

20

10

0
Strongly agree Agree Neutral Diagree Strongly disagree

Good relaion with the co-workers

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 Employee motivation

Interpretation
The table shows 54% of the respondents agree that they have good relations
with co-workers.

Effective performance appraisal system

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 10 20
2 Agree 23 46
3 Neutral 8 16
4 Disagree 6 12
5 Strongly disagree 3 6
Total 50 100

Performance appraisal system

50
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree

Performance appraisal system

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 Employee motivation

Interpretation
The table shows 46% of respondent agree to effective performance appraisal
system existing in the company.

Effective promotion opportunities in the present job

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 9 18
2 Agree 26 52
3 Neutral 9 18
4 Disagree 3 6
5 Strongly disagree 3 6
Total 50 100

Promotion opportunities
60

50

40

30

20

10

0
Strogly agree Agree Neutral Disagree Strongly disagree

Promotion opportunities

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 Employee motivation

Interpretation
The table shows 52% of the respondents agree with effective promotional
opportunities in their present job.

Good safety measures existing in the organisation

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 15 30
2 Agree 23 46
3 Neutral 3 6
4 Disagree 6 12
5 Strongly disagree 3 6
Total 50 100

Safety measures
50
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree

Safety measures

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 Employee motivation

Interpretation
The table shows 46% of the respondents agree that there is a good safety
measure exiting in the company.

Performance appraisal activities are helpful to get motivated

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 9 18
2 Agree 23 46
3 Neutral 6 12
4 Disagree 3 3
Strongly disagree 9 18
Total 50 100

performance appraisal activities are helpful to get

motivated
50
45
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly disagree

performance appraisal activities are helpful to get motivated

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 Employee motivation

Interpretation
The table shows 46% of the respondents agree that the performance appraisal
activities are helpful to get motivated.

Support from the co-worker is helpful to get motivated

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 12 24
2 Agree 29 58
3 Neutral 0 0
4 Disagree 6 12
5 Strongly disagree 3 6
Total 50 100

Support from the co-worker

70

60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Support from the co-worker

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 Employee motivation

Interpretation
The table shows 58% of the respondents that the support from the co-worker is
helpful to get motivation.

Career development opportunities are helpful to get motivated

Sr. No Particulars No. Of Percentage

respondents
1 Strongly agree 10 20
2 Agree 26 52
3 Neutral 2 4
4 Disagree 4 8
5 Strongly disagree 8 16
Total 50 100

Career development opportunities

60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Career development opportunities

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 Employee motivation

Interpretation
The table shows 52% of the respondent agree that the career development
opportunities are helpful to get motivated.

Factors which motivates you the most

Sr. No Particulars No. Of Percentage

respondents
1 Salary increase 21 42
2 Promotion 15 30
3 Leave 3 6
4 Motivational talk 5 10
5 Recognition 6 12
Total 50 100

Factors of motivation
45
40
35
30

25
20
15
10
5

0
Salary increase Promotion Leave Motivational talk Recognition

Factors of motivation

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 Employee motivation

Interpretation
The table shows that the 42% of the respondent is responding that increasing in
salary will motivate them the most.

Incentive & other benefits will influence your performance

Sr. No Particulars No. Of Percentage

respondents
1 Influence 32 64
2 Does not influences 12 24
3 No opinion 6 12
Total 50 100

Incentivies & other benefits

70

60

50

40

30

20

10

0
Influence Does not influence No opinion

Incentivies & other benefits

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 Employee motivation

Interpretation
The table shows, 64% of the respondent responded incentive & their
performance.

Management involves you in decision making which are connected to

your department
Sr. No Particulars No. Of Percentage
respondents
1 Yes 47 94
2 No 0 0
3 Occasionally 3 6
Total 50 100

Management involves you in decision-making

100
90
80
70
60
50
40
30
20
10
0
Yes No Occasionally

Management involves you in decision-making

Interpretation
The table shows, 94% of the respondents agree that management involves them
in the decision making which are connected to your department.

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 Employee motivation

Chapter 5

Conclusion

5.1 Conclusion
The study concludes that, the motivational program procedure in Tata Steel
Industry is found effective but not highly effective. The study on employee
motivation highlighted so many factors which will help to motivate the
employees. The study was conducted among 50 employees and collected
information through structured questionnaire. The study helped to findings
which were related with employee motivational programs which are provided
in the organization.
The performance appraisal activities really play a major role in motivating the
employees of the organization. It is a major factor that makes an employee feels
good in his work and results in his satisfaction too. The organization can still
concentrate on specific areas which are evolved from this study in order to
make the motivational programs more effective. Only if the employees are
properly motivated- they work well and only if they work well the organization
is going to benefit out it. Steps should be taken to improve the motivational
programs procedure in the future. The suggestions of this report may help in
this direction.

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Suggestion

6.1 Suggestion

The suggestions for the findings from the study are follows
• Most of the employees agree that the performance appraisal activities are
helpful to get motivated, so the company should try to improve
performance appraisal system, so that they can improve their performance.

• Non-financial incentive plans should also be implemented; it can improve

the productivity level of the employees.

• Organization should give importance to communication between employees

and gain co-ordination through it.

• Skills of the employees should be appreciated.

• Better carrier development opportunities should be given to the employees for

their improvement.

• If the centralized system of management is changed to a decentralized one,

then there would be active and committed participation of staff for the
success of the organization

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 Employee motivation

QUESTIONAIRE

Q1. What is your Response about the support from the HR department? (pg no
36)

Q2. Is Management interested in motivating the employees?(pg no.37)

Q3. Which types of incentive motivates you?(pg no.38)

Q4. Are you satisfiedwith the present incentives scheme?(pg no.39)

Q5. Is company eagerin recognizing and acknowledgingEmployee‘s

work?(pg no.40)

Q6. Is any Periodical increase in salary?(pg no41)

Q7. Is Job security existing in the company?(pg no.42)

Q8. Is company having Good relations with the co-workers?(pg no.43)

Q9. Do you have Effective performance appraisal system in your

company?(pg no.44)

Q10. Do you have Effective promotion opportunities in the present job?(pg

no.45)

Q11. Doesgood safety measures existing in the organisation?(pg no.46)

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 Employee motivation

Q12. Does performance appraisal activities helpful to get motivated?(pg no.47)

Q13. Does Support from the co-worker helpful to get motivated?(pg no.48)

Q14. Does Career development opportunities helpful to get motivated?(pg no.

49)

Q15. Factors which motivates you the most?(pg no.50)

Q16. Incentive & other benefits will influence your performance?(pg no.51)

Q17. Management involves you in decision making which are connected

to your department? (pg no.52)

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